Legislative Update

November Salvage Industry Legislative Update Looks at NJ, MI Bills

Legislation Nixes Tow Fees for Stolen Cars, Odometer Readings for Scrap Vehicles 

Published November 29, 2022 - Written by IAA, Inc.


The November edition of the Legislative Update reviews newly introduced New Jersey legislation that eliminates storage fees for stolen cars for 72-hours, and Enacted Michigan legislation that ends an odometer reading requirement for scrap vehicles.  

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 Jersey Senate Bill 3222/House Bill 4787 

Introduced October 27, 2022  

This bill prohibits towing companies from requiring the owner of a stolen motor vehicle to pay a fee to release the vehicle. 

Under this bill, the "Predatory Towing Prevention Act" is amended to prohibit a towing company from charging this fee to the owner of a stolen motor vehicle so long as the owner provides a copy of the stolen vehicle police report to the towing company. If the owner of a stolen motor vehicle has been contacted by law enforcement regarding the recovery of the owner's vehicle, the owner of the recovered vehicle will have 72 hours to retrieve the vehicle from a storage facility without incurring a direct fee. If 72 hours have passed and the owner of the recovered vehicle has not retrieved the vehicle, the towing company may charge the owner a fee for the days the vehicle has been kept at the storage facility beyond the 72-hour period. 

Notwithstanding any fee incurred by the 72-hour requirement, any fee to release the recovered vehicle from a storage facility will be paid by the insurance carrier insuring the vehicle or, if the vehicle is not insured, by the State Motor Vehicle Commission. The insurance carrier of the recovered vehicle may pay the fee to release the recovered vehicle directly to the towing company or may reimburse the vehicle owner for the cost.

IAA’s Position: Neutral

View Bill


Michigan Senate Bill 1064 

Effective January 23, 2023 

This act amends several sections of the Michigan Vehicle Code relating to vehicle registration and dealer licenses, and vehicle plates, among other changes relating to requirements on vehicle sellers. 

Section 233a requires certain disclosures and reporting of vehicle odometer readings when a vehicle is transferred. The act amends this section so that an odometer reading is no longer required if the title is being transferred for a scrap vehicle.  

The act authorizes the Department of State to accept odometer information electronically through a disclosure document that complies with all of the following: 

  • It is submitted on a form that is approved by the Department of State.  

  • It is electronically signed using software that provides anti-tamper and identification verification technology and is approved for this use by the Department of State. 

  • It is otherwise fully compliant with 49 CFR 580 (a federal regulation concerning odometer reading disclosures). 

IAA's Position: Support 

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

Katerina Dotzeva
Director of Government Affairs, IAA