Legislative Update

Legislative Update | February 2018

Published February 28, 2018 - Written by IAA, Inc.

Summary

Insurance Auto Auctions actively monitors and engages on legislative and regulatory matters to help promote responsible business conduct and continued healthy expansion of the salvage auto auction industry. IAA's Government Affairs Department works with lobbyists, insurance companies and others to support legislative bills that are beneficial to the industry and all of its participants.

New Bills

Hawaii House Bill 1933

Introduced Jan. 19, 2018

IAA opposed this bill; the bill was deferred in committee and most likely is dead for the session.
This bill would have required transferors and transferees of used motor vehicles, mopeds and trailers, including those owned by persons who do not intend to drive them on public highways, to appear in person before the county director of finance and present government-issued identification to finalize the transfer of the used motor vehicles, mopeds and trailers. IAA was concerned with how this would be applied where a business entity is either the transferor or transferee.

https://www.capitol.hawaii.gov/session2018/bills/HB1933_.HTM

Illinois House Bill 5159

Introduced Feb. 15, 2018

IAA opposes the bill, as it imposes unwarranted costs and burdens on the purchase of vehicles.
This bill would require an auto recycler, scrap processor, repairer or rebuilder to rapidly report the purchase of a vehicle or vehicle part to the Secretary of State, after having verified the theft status of the vehicle with the SOS before the purchase.

http://www.ilga.gov/legislation/100/HB/PDF/10000HB5159lv.pdf

Iowa House File 2409

Introduced Feb. 19, 2018

IAA is neutral.
Under current law, a wrecked or salvage vehicle means a damaged vehicle for which the cost of repairs exceeds 50% of the fair market value before the vehicle became damaged. This bill increases the cost of repair threshold to 75% of the fair market value of the vehicle.

https://www.legis.iowa.gov/docs/publications/LGI/87/HF2409.pdf

MO House Bill 2510

Introduced Feb. 20, 2018

IAA opposes the bill.
This bill would make it a crime if a person knowingly places a motor vehicle in an unsafe condition in the stream of commerce.
Defines “unsafe condition” as any mechanical, electronic or structural issue that would cause a vehicle to fail a motor vehicle safety inspection under section 307.350.

https://house.mo.gov/billtracking/bills181/hlrbillspdf/5152H.01I.pdf

Nebraska Legislative Bill 895

Introduced Jan 8, 2018

IAA is neutral.
This bill would allow the Department of Motor Vehicles (“department”) to remove a lien on a certificate of title in cases where the lien was improperly noted. Evidence of the improperly noted lien has to be submitted to the department. The department shall send notification prior to removal of the lien to the last-known address of the lienholder.
Additionally, a salvage vehicle would not include a flood damaged vehicle. A flood damaged vehicle will be issued a flood damage branded title.

https://nebraskalegislature.gov/FloorDocs/105/PDF/Intro/LB895.pdf

South Dakota House Bill 1236

Introduced Jan. 25, 2018

This bill was introduced on behalf of IAA and supported by the insurance industry.
It allows a salvage pool that is in possession of a vehicle that was brought to the salvage pool at the direction of an insurance company to apply for a salvage title if the insurance company has denied coverage and the vehicle is abandoned at the salvage pool facility by the vehicle owner or lienholder. In addition, it allows an insurance company to obtain a title in its name when it has paid a total loss claim on a vehicle but is unable to obtain the vehicle title from the owner.
The bill passed both houses and will be sent to the Governor for approval.

http://www.sdlegislature.gov/docs/legsession/2018/Bills/HB1236HCO.pdf

Enacted Bills

New Jersey Senate Bill 2968

Effective January 16, 2018

IAA was in support.
This act requires the New Jersey Motor Vehicle Commission (MVC) to complete a study to determine whether it has the resources and capability to establish and implement, within 12 months of the act's effective date, an electronic lien and title system to process and administer, in a cost-effective manner, the notification, recording, and release of security interests and titling information by the lienholders of motor vehicles in lieu of the current paper-based system.
If the MVC determines it has the resources and capability to establish and implement the system, it is to establish and implement the system within 12 months of the bill's effective date.
If the MVC determines it does not have the resources and capability to establish and implement the system, the MVC is required to contract with a qualified bidder to establish and implement the system for the State.

http://www.njleg.state.nj.us/2016/Bills/S3000/2968_R1.HTM

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

Katerina Dotzeva

Director of Government Affairs, Insurance Auto Auctions

800.821.4596

kdotzeva@iaai.com