IAA : HI, KS, MN and NY Introduce Salvage Industry Bills

The February 2021 Legislative Update looks at proposed legislation dealing with transfers, towing, salvage standards, and eSignatures affecting the salvage industry.

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

Hawaii House Bill 159/Senate Bill 432

Introduced January 21, 2021

The bills provide that, for many motor vehicle transfers, the transferor and transferee are to appear in-person before a clerk at the "respective" county Department of Motor Vehicles to execute the transfer. The bills further provide that, if the transferor is not available to appear in-person, the transferor shall sign the certificate of ownership before a notary public and then the transferee and the transferor's representative shall both appear in-person at the county Department of Motor Vehicles.

IAA's Position: Oppose. IAA testified in opposition because this requirement is unworkable and impractical. We also offered some exemptions, which were included in the amended version of the bill. See the link below. The house bill was deferred, which means it is dead for the session, however the senate bill is still alive.

View Bill

Kansas Senate Bill 158

Introduced February 4, 2021

This bill states that a person providing towing services shall not tow a vehicle to a location outside of Kansas without the consent of the driver or owner of the motor vehicle or without the consent of a motor club of which the driver or owner of the motor vehicle is a member.

IAA's Position: IAA has requested that an insurance company processing a claim with respect to the motor vehicle or the agent of such insurance company may consent to the out-of-state tow.

View Bill

Minnesota House Bill 757

Introduced February 4, 2021

This bill would eliminate the "late model or high value" standard for requiring a "salvage" brand. This will cause vastly more vehicles to be branded "salvage."

In addition, this bill establishes four different salvage standards, each one based on the nature of the owner. Subdivision 1(a) sets forth one standard for insurers. Subdivision 1(b) sets forth a different standard for one who acquires a vehicle with an out-of-state title. Subdivision 1(c) sets forth another standard for a self-insured owner. Subdivision 1(d) sets forth yet another standard for an owner who retains a total loss vehicle.

IAA Position: Oppose. The same bill was introduced last year and was successfully opposed by IAA.

View Bill

New York Senate Bill 4697

Introduced February 9, 2021

This bill would allow the use of an electronic signature for the purpose of transferring a salvage certificate of title and the execution of an odometer and disclosure statement in connection with such title. The electronic execution of a power of attorney shall be permissible provided that signature is authenticated.

IAA's Position: Support

View Bill