The January 2021 IAA Legislative Update focuses on new state bills affecting VIN inspections, titling of hail-damaged vehicles, delinquent motor vehicle taxes, salvage title age exemptions, electronic signatures, salvage title fee collection requirements, and vehicle-titling fees. 

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 

Kansas Senate Bill 36

Introduced January 15, 2021

This bill would permit employees of salvage vehicle pools to perform vehicle identification number inspections. In addition, it would allow salvage vehicle pools and dealers to apply for ownership documents for vehicles that are disclaimed by insurance companies. 

IAA’s Position: Support. The bill is being promoted by IAA. 

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Kentucky House Bill 138 

Introduced January 5, 2021 

This bill provides that the title to a vehicle that has been damaged solely by hail, or has otherwise received cosmetic damage only, will be branded "Hail Damage /Cosmetic Damage" if all of the following applies: 

  • The vehicle can be legally operated on the highway; 
  • The total estimated or actual cost of parts and labor to rebuild or reconstruct the vehicle to its pre-hail or pre-cosmetic damage condition exceeds seventy- five percent (75%) of the retail value of the vehicle, as set forth in a current edition of the National Automobile Dealer's Association price guide; and, 
  • The owner intends to retain ownership of the vehicle. 

IAA’s Position: Neutral 

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Kentucky Senate Bill 71

Introduced January 5, 2021 

The bill amends KRS 281.010 to define automobile club, flatbed/rollback service, recovery, storage facility, tow truck, tow truck operator, towing, and towing company. It establishes provisions for emergency towing and private property towing; requires that rates be posted in the place of business of a tow company or storage facility; requires an itemized invoice. 

In addition, it provides an exemption for insurance companies from paying delinquent motor vehicle ad valorem tax when applying for a regular or salvage title or transferring ownership of the vehicle to another party. The owner of a motor vehicle that was transferred to an insurer or its agent shall be responsible for any delinquent motor vehicle ad valorem property taxes owed prior to the transfer. 

IAA’s Position: IAA supports the exemption for insurers from paying delinquent ad valorem tax. 

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Missouri Senate Bill 307 

Introduced January 5, 2021

Missouri law currently requires vehicles less than seven years old be branded with a “salvage” title if the damage to the vehicle exceeds 80% of the fair market value; older model vehicles are not required to have a salvage title. The bill eliminates the age exemption, which will cause vastly more vehicles to be branded “salvage.”  

In addition, the bill establishes different salvage standards based on the nature of the owner. For example, if an insurer totals a vehicle with damages in excess of 80% of the ACV and the insurer acquires ownership, the vehicle would be salvage. However, if the owner retains the vehicle, the vehicle would not be salvage. 

IAA Position: Oppose. The same bill was introduced last year and was successfully opposed by a coalition of IAA, insurance providers and an insurance trade association. 

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Missouri Senate Bill 370

Introduced January 11, 2021

This bill would allow the Department of Revenue to accept an electronically signed Secure Power of Attorney. In addition, the bill increases, from 10 years to 20 years, the maximum age of motor vehicle required to have its odometer readings recorded in certain circumstances.

IAA’s Position: Support

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Nevada Senate Bill 29

Introduced November 18, 2020

This bill authorizes the Department of Motor Vehicles to appoint by contract a person to issue salvage titles on behalf of the Department 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 has to ensure that a person has met certain requirements before entering into a contract with the person to act as an agent. This bill if enacted, would allow IAA to issue salvage titles for our insurance providers. This would speed up the receipt of salvage titles and the sale of salvage vehicles. 

IAA’s Position: Support

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South Carolina House Bill 3505/Senate Bill 148

Introduced December 16, 2020

These bills would establish a vehicle-titling fee of up to $500 for infrastructure maintenance when the vehicle is titled for the first time in South Carolina. This might affect insurance companies when they apply for a South Carolina salvage title for a vehicle that was titled in another state but totaled in South Carolina. 

IAA’s Position: Neutral 

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