Legislative Update

Proposed PA Bill Could Impact Insurer Titling Requirements

DE, NY Introduce Salvage Industry Legislation

Published November 30, 2021 - Written by IAA, Inc.


Summary

The November 2021 Legislative Update looks at enacted and introduced legislation from DE, NY and PA 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. 

New Bills 

Pennsylvania House Bill 2064 

Introduced November 9, 2021 

This bill amends Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes. There is a new provision added to section 1161, captioned Certificate of salvage required. This provision states:

(c.1) Affirmation of vehicle ownership. -- The department shall require a person to obtain a motor vehicle title and vehicle registration record from the department or an authorized agent of the department, by electronic means if available, to affirm that the ownership of a vehicle is not being transferred as a salvage vehicle or a nonrepairable vehicle if a certificate of title is encumbered with an existing lien or lease.

It is our understanding that this provision will require insurance companies to obtain a motor vehicle title and vehicle registration record for each vehicle before they apply for a salvage or nonrepairable title.

IAA’s Position: This provision is unnecessary and wasteful when an insurer acquires a salvage vehicle after payment of a total loss claim. An exemption for insurers is warranted.  

View Bill


Enacted Legislation 

Delaware Senate Bill 157

Effective September 15, 2021 

This act creates a Power of Attorney (POA) for motor vehicle business that would allow for electronic signature verification if the verification system is acceptable to the Department. This act will enable businesses of all sizes to accelerate document turnaround time and reduce costs, while ensuring document security and privacy. The act clarifies when a POA becomes valid, the duration of the POA, and removes any potential conflict with an appointed guardian's responsibilities.

IAA has been in contact with DMV to learn more about the requirements for the POA form and the electronic signature. Once we have details on the above, we will communicate these with our customers.

IAA’s Position: Support 

View Bill


New York Senate Bill 1834 

Effective February 5, 2022

This act prohibits retail dealers of secondhand motor vehicles from selling a motor vehicle which is subject to federal motor vehicle safety standards for inflatable restraint systems unless such vehicle is equipped with an inflatable restraint system which conforms to the federal motor vehicle safety standard applicable to that vehicle and a readiness indicator light indicating a functioning inflatable restraint system. 

IAA’s Position: Neutral 

View Bill


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

Katerina Dotzeva
Director of Government Affairs, IAA
kdotzeva@iaai.com