Latest Industry Bills Cover Re-Titling, Alternate Titles, Vehicle Taxes & More

The April 2021 Legislative Update looks at the latest auto auction industry bills introduced in U.S. legislatures, as well as enacted legislation taking effect soon. New bills cover salvage vehicle re-titling and registration, and an alternative title process.

IAA, Inc. is dedicated to being pro-active when monitoring legislative and regulatory matters that affect our customers and our industry. We believe being engaged with the legislative process is critical to the auto auction industry to promote responsible business conduct and continued healthy expansion. IAA works with lobbyists, insurance companies and other industry participants towards seeing our customers’ needs are met when it comes to legislative matters that may affect the industry. 

New Bills  

North Carolina Senate Bill 536 

Introduced April 6, 2021 

Current North Carolina law requires that, when a salvage vehicle is to be re-titled and eligible for registration, the vehicle, if it is a newer vehicle (i.e., not more than six model years old) must receive a preliminary and final inspection by the Enforcement Section of the Division.  The statute states that these inspections “serve as antitheft measures and do not certify the safety or road-worthiness of a vehicle.”   

This bill would remove the age limitation on this requirement, and thus, impose the requirement on all salvage vehicles, regardless of age.  Additionally, the bill would restrict the existing ability to obtain an unbranded title for lesser-damaged older vehicles. 

IAA’s Position: Oppose. To add the expense and burden of these inspections to the process of repairing older model cars, will mean that fewer of these cars will be repaired.  Rather, they will needlessly become “parts cars,” and net less revenue for our customers. 

View Bill

Rhode Island House Bill 6188 

Introduced March 31, 2021 

Per IAA’s request, this bill was introduced to provide an alternative title process for insurers to obtain a salvage title without delivering the certificate of title to DMV, upon the satisfaction of certain conditions. 

IAA’s Position: Support 

View Bill 

Enacted Legislation 

Iowa Senate Bill 230 

Effective July 1, 2021 

This act amends the definition of a “wrecked or salvage vehicle” to mean a vehicle for which the cost of repairs exceeds 70% of the ACV. 

IAA’s Position: Neutral 

View Bill

Kentucky Senate Bill 71 

Effective June 28, 2021 

This law will relieve insurers from paying a delinquent motor vehicle ad valorem property tax on vehicles they acquire as a result of a claim settlement. Insurers are still responsible for paying this tax for vehicles they own on January 1, either because of paying a claim settlement or as part of their business operations. 

In addition, there are new sections related to towing of motor vehicles. One of these sections states that upon payment of all costs incurred to tow or store a motor vehicle, the towing company or storage facility shall release the motor vehicle to an authorized representative of the insurance company or its contracted service provider if the: 

1. Motor vehicle is covered by an active policy of insurance and the insurance representative provides proof of coverage; or 

2. Owner of the motor vehicle approves release of the vehicle to the insurance company representative. 

IAA’s Position: Support 

View Bill  

Mississippi Senate Bill 2603 

Effective July 1, 2021 

This law modifies the alternative title process for insurance companies in the following way: 

• It reduces the timeframe from 30 days to 15 days after payment of the claim when the insurer may apply for a salvage title or parts-only certificate of title in his name when the title is not made available
• It allows an agent for the insurer to complete the necessary forms
• The insurer or its agent shall attest on the form that the insurer or its agents sent at least two attempts to obtain the certificate of title 
• Notice shall be provided as follows: 
  • Concurrently with the payment of the claim (even though not specifically stated, in our opinion this should apply to the first notice); or  
  • By first-class mail; other commercially available delivery service; or electronic means 
   

In addition, the new law sets forth a process for an auction firm to obtain a title for an abandoned vehicle. 

IAA’s Position: Support 

View Bill 

Nevada Senate Bill 29 

Effective October 1, 2021 

This law authorizes DMV to appoint by contract a person to issue salvage titles on behalf of the Department under such circumstances as an agent of the Department and requires that agent to collect the fee for the issuance of a salvage title and remit it to the Department. The Department shall ensure that the agent meets certain requirements before entering into a contract with the agent. Finally, the Department may investigate, audit and inspect the premises of the agent.  

IAA’s Position: Support. IAA actively lobbied in support of this bill. 

View Bill

For more information about IAA's legislative and regulatory activities, contact: 

Katerina Dotzeva
Director of Government Affairs, IAA
kdotzeva@iaai.com