Legislative Update

AZ, IN, KY, ME & NJ Enact Salvage Legislation

States Tackle Titles, ELT, and Power of Attorney

Published April 26, 2022 - Written by IAA, Inc.

Summary

IAA’s April Legislative Update looks at recently enacted salvage industry legislation fromAZ, IN, KY, ME & NJ. Key issues covered include titles, ELT, and Power of Attorney no longer requiring notarization.

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. 

Enacted Legislation

Arizona House Bill 2171

Effective on the 91st day after adjournment (projected adjourn date is April 23, 2022)

This act specifies that a notarized signature is not required on the certificate of title or any supporting documents for a salvage, stolen or nonrepairable certificate of title for a vehicle acquired by an insurance company as a result of a total loss insurance settlement.  

The act also makes certain changes to the Alternative Title Process. It states that the application shall attest that the insurance company or its authorized agent has made two or more written attempts to obtain the properly endorsed certificate of title and, if applicable, lien satisfaction. 

The written attempts are required only to be sent to a lienholder or owner of a vehicle that has not provided the required document.

IAA’s Position: Support

View Bill

Indiana House Bill 1167

Effective dates: 03/14/2022, 07/01/2022, 01/01/2023

This act relates to Bureau of Motor Vehicles. The act amends certain dates regarding the statewide electronic lien and title system (system). The bureau shall require that the statewide electronic lien system made available be used for recording and release of liens after June 30, 2023.  

The statewide electronic title system capable of processing vehicle titles through electronic means must be made available for voluntary use by vehicle dealers, lienholders, and owners not later than July 1, 2025. The bureau shall require that the statewide electronic title system be used for processing vehicle titles after June 30, 2026.  

In addition, the act provides that the bureau and participating qualified service providers or lienholders may charge certain system fees.  

IAA’s Position: Neutral

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Kentucky House Bill 284

Effective January 1, 2024

This act requires 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 House Bill 1364

Effective 90 days after adjournment (projected adjourn date is April 20, 2022)

This act allows the Secretary of State to use an electronic lien and titling program for the purposes of the state motor vehicle certificate of title and antitheft act. 

IAA’s Position: Support

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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 

View Bill

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

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