Legislative Update

Legislative Update | May 2020

Published May 20, 2020 - Written by IAA, Inc.

Summary

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

California Assembly Bill 2996

Amended May 4, 2020

This bill would prohibit a dealer or an auto auction from selling a vehicle to an export buyer if the vehicle does not meet the criteria for import to the country where the vehicle will be imported. In addition, the bill would require a dealer to ask an export buyer where the vehicle is intended to be exported and send a record of those answers to the Department of Motor Vehicles no later than December 1st of each year. Finally, the bill would prohibit an export buyer from selling a vehicle purchased for export to a California resident in the state.

IAA Position: Oppose

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Illinois House Bill 5597

Introduced February 14, 2020

This bill would prohibit the re-assignment of salvage certificates. Once a salvage vehicle is sold to a rebuilder, the rebuilder will not be able to resell the salvage vehicle.

IAA Position: Oppose

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Oklahoma Senate Bill 1460

Amended March 10, 2020

The bill would require the Oklahoma Tax Commission to implement a program for mandatory electronic filing, storage and delivery of motor vehicle certificates of title and associated liens by July 1, 2021. The Tax Commission shall designate a vendor to provide necessary hardware, software and services to motor license agents who shall provide an electronic filing, storage and delivery system to be used by all applicants for a certificate of title and for filing a lien pursuant to the procedures prescribed by the Oklahoma Tax Commission. The provisions of this section apply to applications for certificates of title and liens filed on or after July 1, 2021.

IAA Position: IAA is seeking an amendment to allow for multiple service providers.

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Enacted Legislation

Kentucky House Bill 378

Effective July 14, 2020

This act exempts certain documents from notarization when a salvage vehicle is transferred from an owner to an insurer. The exemption applies to: (a) the transfer of ownership on the certificate of title; (b) any power of attorney required in connection with the transfer of ownership to the insurer; (c) any required odometer disclosure statement; (d) the application for a salvage certificate of title; and (e) the transfer of ownership on the salvage certificate of title issued.

IAA Position: Support

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New Mexico Senate Bill 151

Effective July 1, 2020

This act allows an application for vehicle registration and certificate of title to be signed electronically.

IAA Position: Support

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South Dakota House Bill 1079

Effective July 1, 2020

This act allows a county treasurer to collect an administrative fee not to exceed $25.00 for an application for a certificate of title that is received and processed by mail. No administration fee under this section may be charged to any insurance company or dealer licensed in South Dakota.

IAA Position: Neutral

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Utah Senate Bill 120

Effective May 12, 2020

Certain provisions in the bill were promoted by LKQ. The original bill would have required auto auctions, including insurance companies, to provide the prospective purchaser with written notification that the vehicle has been declared a total loss by an insurance company.

In addition, an advertisement for a vehicle declared a total loss by an insurance company should have disclosed that the vehicle had been declared a total loss by an insurance company. Lastly, when a salvage/total loss vehicle was resold, the seller was required to provide a specific disclosure that the vehicle was a salvage or total loss vehicle and that the manufacturer warranty might have been affected, etc. IAA worked with an industry partner to make sure that none of the above applied to salvage auctions and our providers.

IAA Position: Neutral

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