New Legislation from CA, CT, GA, LA, MN, MO, NJ & VA
Latest Bills Focus on Titling Issues, Vehicle Inspections and More
Published March 29, 2022 - Written by IAA, Inc.
IAA’s March 2022 Legislative Update reviews recently introduced legislation from CA, CT, GA, LA, MN, MO, NJ & VA affecting the auto auction industry.
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.
California Assembly Bill 2330
Introduced February 16, 2022
This bill pertains to total loss salvage vehicles. The bill would make the alternative title process more efficient. It would allow an insurer to apply for a salvage title within 15 days instead of 30 days after the owner accepted a total loss settlement. The bill would only require an attestation that the requester has attempted to obtain the certificate of ownership, as specified. The bill would also require the insurance company' s notice to obtain the certificate of title to be provided concurrently with the payment of the claim or by mail, as specified, other commercially available delivery service showing proof of delivery, or electronic mail.
IAA’s Position: Support
Connecticut House Bill 5365
Introduced March 3, 2022
The bill provides that the Commissioner of Motor Vehicles may enter into an agreement or agreements with one or more qualified independent contractors to implement the use of electronic certificates of title in the state.
IAA’s Position: Support
Connecticut House Bill 5366
Introduced March 3, 2022
Among other changes, this bill would revise the requirements for obtaining a salvage title when the original certificate of title could not be obtained. An insurance company will be required to send at least one notice requesting the certificate of title. The notice may be sent by commercial delivery service that provides evidence of delivery. The insurance company has to attest that it complied with the notice requirements and had paid the claim to the owner or lienholder.
In addition, the bill would allow a used car dealer who takes possession of a vehicle that is subject to an insurance claim and subsequently a total loss claim is not paid by the insurance company with respect to such motor vehicle, to apply for a certificate of title in the dealer’s name, if such motor vehicle has been abandoned at the place of business of the used car dealer for more than thirty days.
IAA’s Position: Support the above provisions.
Georgia House Bill 1395
Introduced February 17, 2022
This bill pertains to application for first certificate of title for motor vehicles. It allows the acceptance of electronic copies of certificates of title issued in another state or country if such electronic copy has been certified by the issuing state or country as complying with the laws and regulations relative to the issuance of certificate of title of such state or country.
IAA’s Position: Neutral
Louisiana House Bill 604/House Bill 790
Introduced March 4, 2022
These bills relate to notarization requirements of certain documents necessary to transfer ownership of a vehicle to an insurer resulting from the settlement of a total loss claim.
In addition, House Bill 790 provides that If a lien is not released within seven days of satisfaction, an insurance company or its authorized agent may submit proof of payment of the claim and a copy of a letter of guarantee from each holder of a lien that has not been released indicating the payoff amount.
IAA’s Position: There are some issues in both bills. We are currently working to address these.
Minnesota House File 3296
Introduced February 10, 2022
This bill makes numerous changes to the titling of salvage vehicles and disclosure requirements. The bill provides new definitions of a “salvage vehicle” and “recovered intact vehicle.” Under this bill, an insurer is required to obtain a “prior salvage” branded title when an insurer acquires ownership of a vehicle through payment of damages and the vehicle is not a “late model” or “high-value” vehicle. This would include a “recovered intact vehicle.” Current law requires the seller to provide damage disclosure for a late-model vehicle if the vehicle sustained damage, which exceeds 80 percent of the value of the vehicle. The bill expands the disclosure requirement for older model cars.
IAA’s Position: IAA expressed concerns with the bill and has proposed numerous amendments. Some of the requested amendments include an exemption from the “salvage” or “prior salvage” branding of a “recovered intact vehicle” and a stamping option for the “prior salvage” brand.
Missouri House Bill 2777
Introduced February 24, 2022
This bill would require a motor vehicle inspection each time a used motor vehicle is sold, regardless of the age or mileage of the vehicle. The new section 307.350 does not exempt vehicles sold for junk, salvage or rebuilding and it is in conflict with section 307.380(2).
IAA’s Position: Oppose. We are seeking some revisions to the bill to limit the scope of the new section to retail sales and to integrate the exemptions in section 307.380(2) in section 307.350.
New Jersey Assembly Bill 2946
Introduced February 28, 2022
This bill would prohibit the sale of a motor vehicle with outstanding recalls. Under the bill, a person would not be able to sell a vehicle without first contacting, or accessing information provided by, the vehicle manufacturer or the National Highway Traffic Safety Administration to determine if there are any recalls on the vehicle, which have not been corrected or addressed. In the event that a recall is discovered, the recall would have to be appropriately corrected or addressed prior to the sale of the vehicle.
IAA’s Position: Oppose
Virginia Senate Bill 215
Introduced January 10, 2022
This bill permits the Department of Motor Vehicles to expand the existing electronic titling program for new motor vehicles to all applications for original motor vehicle titles, thereby authorizing person-to-person online titling. The bill authorizes the Department to charge certain fees. The bill also allows for the online registration of such motor vehicles, allows for the issuance of a temporary certificate of registration valid for no more than 30 days, and makes discretionary the current requirement to search a nationally recognized motor vehicle title database prior to transfer of vehicle ownership.
IAA’s Position: Neutral
For more information about IAA's legislative and regulatory activities, contact:
Director of Government Affairs, IAA
Legislative UpdateNovember Salvage Industry Legislative Update Looks at NJ, MI Bills
November 29, 2022
Legislative UpdateAugust Legislative Update Covers Enacted Bills from California, Louisiana
August 23, 2022
Legislative UpdateJune Legislative Update: Six States Introduce or Pass Electronic Titling Bills
June 23, 2022