The bill reorganizes provisions related to nonrepairable vehicle certificates into a new section of the New Mexico Statutes Annotated (NMSA) 1978 and allows insurance companies that pay total loss claims to vehicle owners to obtain either a salvage certificate of title or a nonrepairable vehicle certificate. It amends Section 66-3-4 NMSA 1978 to clarify the application process for vehicle registration and title issuance, including the requirement for a nonrepairable vehicle certificate when applicable. The bill also introduces a new section, 66-3-4.1, detailing the procedures for obtaining a nonrepairable vehicle certificate after a total loss payment by an insurance company, including the necessary documentation and timelines for compliance.

Key provisions include the requirement for insurance companies to stamp titles with "NONREPAIRABLE" and submit documentation to the department within twenty days of receiving the title. Additionally, the bill allows for electronic signatures on documents related to the transfer of ownership for nonrepairable vehicles. It establishes that if an insurance company cannot obtain a properly endorsed certificate of title after a total loss payment, they may request a salvage certificate or nonrepairable vehicle certificate from the department, provided they meet specific criteria. The bill also includes indemnification provisions for the department regarding claims arising from the issuance of these certificates.