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 process for obtaining a nonrepairable vehicle certificate after a total loss payment by an insurance company, including stipulations for documentation and timelines.

Key provisions include the requirement for insurance companies to stamp titles with "NONREPAIRABLE" and submit necessary documentation to the department within twenty days of receiving the title. Additionally, if an owner retains possession of a nonrepairable vehicle, they must notify the department and submit the appropriate documentation within twenty days. The bill also specifies that documents used for ownership conveyance to an insurance company do not require notarization and can be signed electronically. Overall, the legislation aims to streamline the process for handling nonrepairable vehicles and clarify the roles of vehicle owners and insurance companies in this context.