Legislative Update

New State Bills Focus on Catalytic Converters, Definition of Salvage, and Much More

Industry Legislation Coming From CA, KY, NH, NJ, OK and RI

Published February 24, 2022 - Written by IAA, Inc.


The February 2022 Legislative Update reviews bills affecting the auto auction industry from CA, KY, NH, NJ, OK and RI. 

IAA, Inc. is dedicated to being proactive 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  

California Senate Bill 919 

Introduced February 2, 2022 

This bill would prohibit a dealer or retail seller from selling a motor vehicle equipped with a catalytic converter unless the catalytic converter has been engraved, etched, or otherwise permanently marked with the vehicle identification number of the vehicle to which it is attached.   

IAA’s Position: Oppose 

View Bill 

Kentucky House Bill 371 

Introduced January 26, 2022 

This bill would amend the definition of a salvage vehicle to include vehicles that are 10 model years or less. Older model cars will be exempt from the definition. 

IAA’s Position: Neutral 

View Bill 

New Hampshire Senate Bill 442 

Introduced January 5, 2022 

This bill requires the director of the division of motor vehicles to suspend an owner’s vehicle registration privileges until any unpaid tolls and administrative fees are paid. This bill also prevents an owner from transferring ownership of a vehicle until any unpaid tolls and fees are paid. 

IAA’s Position: Oppose  

View Bill 

New Jersey Assembly Bill 1274 

Introduced January 11, 2022 

This bill was filed per request of IAA. It would require the Motor Vehicle Commission to establish a system for salvage processors such as IAA to electronically process applications for salvage certificates of title or certificates of ownership on behalf of insurers and to be able to print titles at the salvage processors’ facilities. 

IAA’s Position: Support. IAA is seeking a more efficient and expeditious electronic title application process, in which IAA employees will input the information into the DMV system and print titles at IAA’s facilities. Such a process will result in a quicker title turnaround and disposition of total loss vehicles. 

View Bill  

Oklahoma Senate Bill 1554 

Introduced January 20, 2022 

The bill requires that insurer payment for a removal claim be made by check payable to the entity providing the removal and to the insured. The bill allows the insured 30 days to sign and remit the check to the party providing the removal. The bill would slow the resolution of auto insurance claims and would increase costs for vehicle owners and their insurers.   

IAA’s Position: Oppose 

View Bill  

Rhode Island Senate Bill 2098 

Introduced January 25, 2022 

This bill would eliminate the notarization requirement for a power of attorney or other document supporting an application for a certificate of title or salvage title for a vehicle acquired by an insurance company as a result of a total loss claim. The bill also allows such a power of attorney to be signed electronically.  

IAA’s Position: Support 

View Bill  

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

Katerina Dotzeva
Director of Government Affairs, IAA