Legislative Update

Legislative Update | March 2019

Published March 27, 2019 - 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

Florida House Bill 1057/Senate Bill 974

Introduced March 5, 2019

Relates to an independent entity, which is in possession of a motor vehicle per request of an insurance company and wishes to dispose of that vehicle. Changes the notification methods to vehicle owners and lienholders for the removal of the vehicle. Under current law, a notice must be sent by certified mail, return receipt requested. Under the bill, the notice may be sent by another commercially available delivery service that provides proof of delivery. Amends the requirement for obtaining a lien release or satisfaction.

Additionally, the bill would allow electronic submission of salvage title applications through a 3rd party vendor.

IAA supports these changes. IAA was actively involved in drafting the changes to the independent entity section to address issues related to proof of delivery of the notice and lien satisfaction requirements, which prevented the independent entity from being able to dispose of motor vehicles in certain situations.

View Bill

Florida Senate Bill 1232

Introduced March 5, 2019

Section 6 of the bill would change the effective date of the alternative title process for insurers when a title is unavailable from July 1, 2023 to July 1, 2020. It also provides that an insurer may send the certificate of title to the department via electronic means or USPS. Finally, it states that an electronic signature that is consistent with chapter 668 satisfies any signature required under this subsection.

IAA supports these changes. IAA has been promoting the use of electronic signature and electronic title process to speed up the claim settlement process and the disposition of motor vehicles.

View Bill

Georgia House Bill 307

Introduced February 14, 2019 Amended February 26, 2019

The bill relates to abandoned motor vehicles. The introduced version was problematic for IAA and insurers. The bill was amended in the house committee. The new version includes a provision that would allow an insurance company, which is unable to obtain the certificate of title within 30 days after acceptance by the vehicle owner of a total loss claim to obtain a salvage title. The insurer will need to provide proof of payment of the claim and that it made two or more attempts to obtain the certificate of title.

IAA supports the above provision.

View Bill

Illinois House Bill 2921

Introduced February 14, 2019

Relates to motor vehicle accident towing. Requires a tower to provide the vehicle owner or operator with a written itemized estimate of all charges and services to be performed. It also requires a tower to obtain the vehicle owners or operator's signature on the itemized estimate and provide a copy to the person who signed the estimate. A tower shall not charge a towing, clean-up, service, or vehicle storage fee that is excessive or unfairly discriminatory.

IAA position is neutral.

View Bill

Illinois Senate Bill 1862

Introduced February 15, 2019 Amended March 5, 2019

A salvage auction would be prohibited from selling salvage vehicles to an out-of-state salvage vehicle buyer if the buyer does not provide a NMVTIS Number, social security or federal employer identification number and resale tax number.

IAA opposes the bill because foreign buyers will be prevented from buying salvage vehicles at our auctions. This bill would lessen competition at auctions.

View Bill

Kansas House Bill 2180/Senate Bill 139

Introduced February 7, 2019

Requires a service fee of $10 for a title, registration or renewal.

View Bill

Maine House Bill 764

Introduced February 26, 2019

Increases certain fees charged by the Secretary of State such as the fee for a certificate of title, certificate of salvage, and duplicate certificate to $43.00 from $33.00.

IAA position is neutral.

View Bill

Massachusetts House Bill 257

Introduced February 26, 2019

Proposed subsection (b) requires a $50.00 fee to be charged to an out-of-state buyer who purchases a vehicle at an auto auction in MA.

IAA opposes the bill. This requirement imposes additional cost on out-of-state buyers and this would lessen competition at auctions and is an unwarranted burden on interstate commerce.

View Bill

Massachusetts House Bill 259

Introduced February 26, 2019

Proposed subsection (b) requires a bidder or a purchaser to provide a criminal offender record information check from “the dealer license issuance state annually to the auction with which the bidder or purchaser is registering.” The auction is to submit any checks “that have issues” to the registry for review.

IAA opposes the bill. The proposal would be costly and time consuming for buyers, auctions and the registry.

View Bill

North Carolina House Bill 337

Introduced March 12, 2019

This bill would improve the overall salvage title application process by allowing electronic signatures on certain documents, electronic salvage title applications, and the removal of the notary requirements on specified related documents. It would also facilitate the issuance of a salvage title when a vehicle was titled in another state, but is located in NC and the insurer is unable to obtain the certificate of title from the vehicle owner after paying a total loss claim.

IAA supports this bill. IAA has drafted this bill to improve the efficiency of the salvage titling process and the disposal of salvage vehicles.

View Bill

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