(a) As used in this section, "designee" means a person or entity that:

(1) The Department of Arkansas State Police determines is appropriately suited for serving as a designee; and

(2) Agrees to perform vehicle identification number verifications under this section on behalf of the Department of Arkansas State Police.

(b) Except as provided under subsection (h) of this section, an application for registration or certificate of title for a motor vehicle shall be accompanied by a verification of the vehicle identification number if the owner of the motor vehicle:

(1) Does not have a properly endorsed and assigned certificate of title or manufacturer's certificate of origin and may only obtain title to the motor vehicle through:

(A) A court order; or

(B) The bonded title procedure of this state as set forth under § 27-14-409(c); or

(2) Presents a title or other ownership document from another state that bears any of the following designations:

(A) Salvage;

(B) Prior salvage;

(C) Damaged;

(D) Prior damaged;

(E) Junked;

(F) Nonrepairable; or

(G) Any other designation that is substantially similar to the designations stated in this subdivision (b)(2).

(c)

(1) The Department of Arkansas State Police shall perform vehicle identification number verifications under this section.

(2) A vehicle identification number verification is only valid under this section if it is performed by one (1) of the following:

(A) The Department of Arkansas State Police;

(B) The designee of the Department of Arkansas State Police; or

(C) A local law enforcement agency.

(d)

(1) The Department of Arkansas State Police, a local law enforcement agency, or the designee of the Department of Arkansas State Police may charge a fee for the vehicle identification number verification not to exceed twenty-five dollars ($25.00).

(2) A fee owed to the Department of Arkansas State Police shall be:

(A) Collected by the Revenue Division of the Department of Finance and Administration at the time of application for title; and

(B) Deposited into the State Treasury as special revenue to the credit of the Department of Arkansas State Police Fund.

(3) A fee owed to a local law enforcement agency or a designee may be collected and retained by the agency or the designee at the time of the inspection.

(e) A designee under this section shall provide notice to the Department of Arkansas State Police as to which persons are conducting vehicle identification number verifications on behalf of the designee.

(f) A local law enforcement agency or its employees are not required to perform vehicle identification number verifications under this section.

(g)

(1) The Department of Arkansas State Police shall adopt a form that is to be used for all vehicle identification number verifications in the state.

(2) The Department of Arkansas State Police may adopt:

(A) Reasonable rules to ensure that the verification process is available at convenient times and locations; or

(B) Reasonable rules to ensure that the verification process does not unduly burden legitimate businesses or consumers in the state.

(h) This section shall not apply to a motor vehicle registered as a Class Two, Class Three, Class Four, Class Five, Class Six, Class Seven, or Class Eight truck under § 27-14-601(a)(3).

(i) If information is received from another state which indicates that a motor vehicle title issued by the Department of Finance and Administration under this chapter does not accurately reflect the designation of the status of a motor vehicle such as those provided under subdivision (b)(2) of this section, then the Office of Motor Vehicle may cancel the motor vehicle title and issue a title that correctly designates the status of the motor vehicle.