IAA : States Consider Bills on Used Catalytic Converters, Definition of Salvage, and Much More

The January 2022 Legislative Update looks at introduced and enacted legislation from AZ, CO, IN, IA, KY, ME, OK and NJ 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 

Arizona House Bill 2171 

Introduced January 12, 2022 

This bill would exempt from notarization a certificate of title or any supporting document to transfer ownership of a salvage, stolen or non-repairable vehicle to an insurance company. 

IAA's Position: Support 

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Colorado Senate Bill 22-009 

Introduced January 12, 2022 

This bill pertains to catalytic converters. Section 2 states that on and after October 31, 2022, it is unlawful to install, sell, offer for sale, or advertise any used, recycled, or salvaged catalytic converter unless the catalytic converter is an aftermarket catalytic converter that has been certified for installation and sale by the division. 

IAA's Position: Oppose 

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Indiana Senate Bill 16 

Introduced January 4, 2022 

This bill provides that the owner of a vehicle that is at least 15 model years old does not have to apply for a certificate of authority before selling, giving, or disposing of the vehicle to an automotive salvage recycler. The bill removes the requirement that an automotive salvage recycler must be presented with, and maintain a copy of, a certificate of authority before scrapping a motor vehicle that is at least 15 model years old. 

IAA's Position: Neutral 

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Iowa Senate Study Bill 3001 

Introduced January 12, 2022 

This bill authorizes an owner of a wrecked or salvage vehicle to apply for, and be issued, a regular certificate of title without repairing cosmetic damage. The bill exempts a motor vehicle that is considered wrecked or salvage solely due to cosmetic damage from the salvage theft examination otherwise required, and the owner of such vehicle is not required to submit a salvage theft examination certificate when applying for a regular certificate of title. The bill defines "cosmetic damage" as the term is used in the bill. 

IAA's Position: Neutral 

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Kentucky House Bill 74 

Introduced January 4, 2022 

This bill would exempt motor vehicles purchased by members of the Armed Forces on duty in Kentucky and motor vehicles titled and registered in Kentucky by members of the Armed Forces on duty in Kentucky from motor vehicle usage tax. 

IAA's Position: Neutral 

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Kentucky Senate Bill 86 

Introduced January 12, 2022 

This bill would require the Transportation Cabinet to establish an electronic title application and registration system that allows submission of required forms and fees electronically. It allows approved entities to access the system to facilitate title transfers, fleet registrations, and permanent fleet registrations.  

IAA's Position: Support 

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Maine Legislative Document 1843 

Introduced January 5, 2022 

This bill defines the term "electronic lien titling program" under the Maine Motor Vehicle Certificate of Title and Antitheft Act as a program that permits the creation and exchange of an electronic record for maintaining lien information. It also allows the Secretary of State to use an electronic lien titling program for the purposes of that Act. 

IAA's Position: Neutral 

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Oklahoma Senate Bill 1243 

Introduced January 11, 2022 

This bill provides that an inspection of the vehicle identification number would not be required for vehicles that require a transfer to a salvage or junk title resulting from an insurance claim that utilizes an out-of-state or tribal title.   

In addition, the bill would allow certain documents needed to transfer ownership of a vehicle to an insurance company resulting from the settlement of a total loss claim to be signed electronically pursuant to Section 15-109 of Title 12A of the Oklahoma Statutes. 

IAA's Position: Support 

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Enacted Legislation 

New Jersey House Bill 4521 

Effective February 1, 2023 

This act states that a Power of Attorney or other document from the owner of a motor vehicle declared a total loss does not need to be notarized and such a document may be signed electronically. The chief administrator shall adopt regulations to implement the provisions of this law. 

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
[e-mail]