Legislative Update

CO, CT, FL and RI Enact Auto Auction Industry Legislation

Bills Affecting Registration, Titling, Total Loss Claims and Much More

Published July 29, 2021 - Written by IAA, Inc.


IAA’s July 2021 Legislative Update reviews enacted bills affecting the auto auction industry from Colorado, Connecticut, Florida and Rhode Island. 

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. 

Enacted Legislation

Colorado Senate Bill 76 

Effective July 7, 2021

This act provides up-front funding and a mechanism for ongoing funding for the DMV’s electronic motor vehicle registration and titling program that is already in statute as of 2018. The act jumpstarts DMV’s modernization process by infusing the electronic registration and titling program with state moneys to fund initial implementation costs which are estimated around $1.6M. The General Fund will pay for the initial costs of the program and once up and running, the General Fund will be repaid with user fees from the program, which can be “up to $3 per transaction.” 

IAA’s Position: Support 

View Bill

Connecticut Senate Bill 261 

Effective October 1, 2021  

This act revises numerous motor vehicle statutes. Among other changes, the act removes the notarization requirement for a Power of Attorney (“POA”) related to insurance total loss claims for a motor vehicle and allows the POA to be signed electronically in certain circumstances. 

 This act also allows an insurance company to obtain a certificate of title, salvage title or salvage parts only title when the insurance company has paid a total loss claim and acquired ownership of the vehicle, but the vehicle owner or lienholder did not provide the certificate of title to the insurance company.  

IAA’s Position: IAA actively lobbied in support of these changes.  

View Bill - (see sec. 39) 

Florida Senate Bill 1194 

Effective July 1, 2021 

This act makes a change to the alternative title process for insurance companies and documentation they need to submit to DMV. An insurance company or its authorized agent shall attest on a form provided by the DMV that a payment of a total loss claim has been distributed and state the attempts that have been made to obtain the certificate of title. This form replaces the requirement for the insurer to provide proof of payment of the claim.  

IAA’s Position: Support 

View Bill

Rhode Island House Bill 6188 

Effective July 20, 2021

This bill was introduced per request of IAA. The act provides 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. In addition, the act allows a salvage pool to obtain a salvage title for a vehicle that was abandoned at the salvage pool’s facility for more than 30 days. 

IAA’s Position: Support. The alternative title process will help insurers expedite the receipt of an ownership document in their name and implement the salvage laws in a timely manner. 

View Bill

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

Katerina Dotzeva
Director of Government Affairs, IAA