Legislative Update

August Legislative Update Covers Enacted Bills from California, Louisiana

Latest Issue Reviews Salvage Certificates, Titles, and Alternative Titles Legislation

Published August 23, 2022 - Written by IAA, Inc.


Summary

The August edition of the Legislative Update reviews newly enacted legislation covering salvage certificates, titles and alternative titles from California and Louisiana.

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.

ENACTED LEGISLATION 

California Assembly Bill 2330 

Effective January 1, 2023 

This act authorizes an insurance company, or a salvage pool authorized by an insurance company, to request a salvage certificate or non-repairable vehicle certificate from the Department of Motor Vehicles (DMV) without a properly endorsed certificate of ownership within 15 days after the insurance company makes a total loss settlement on a total loss salvage vehicle so long as the company attests to DMV that it made a single attempt to receive a certificate of ownership from the previous owner of the vehicle. 

Current law authorizes such a company to request a certificate within 30 days after the company makes a total loss settlement on a vehicle, so long as the company includes and documents it made at least two written attempts to obtain a certificate of ownership from the previous owner of the vehicle. 

The act requires the attempt to obtain the certificate of ownership or other acceptable evidence of title be provided concurrently with the payment of the claim or by first-class mail, certificate of mailing, certified mail or other commercially available delivery service showing proof of delivery or electronic mail.  

IAA’s Position: Support 

View Bill


Louisiana House Bill 604 

Effective August 1, 2022 and January 1, 2023 

This act removes the notary requirement for a certificate of title or other document transferring ownership to an insurance company for a motor vehicle, which is subject to an insurance settlement. Current law exempts only vehicles declared as total losses when applying for salvage titles from the notarization requirement. The new law will exempt all vehicles that were acquired by insurers as payment of an insurance settlement, including these for which clear titles can be obtained. 

In addition, the new law will no longer require the signature of the seller to be notarized if the certificate of title or other document is transferring ownership to a dealer licensed by the Louisiana Motor Vehicle Commission or Louisiana Used Motor Vehicle commission or when transferring ownership from a licensed dealer to a purchaser. 

The above became effective August 1, 2022. 

In addition, some changes are made to sections 32:707 (D)(1)(a) and (J)(1)(c) by removing the requirement the statement of ownership to be “sworn” or the copy to be “duly certified.” 

These changes will be effective on January 1, 2023. 

IAA's Position: Support 

View Bill


Louisiana House Bill 790 

Effective August 1, 2022 

This act makes some changes to the alternative title process when a lien has not been released. 

If, after satisfaction of all liens, any lien that is not released after sixty days from the date of the loss, an insurance company or its authorized agent may submit proof of full payment, a copy of the most recent letter of guarantee from each holder of a lien that has not been released indicating the payoff amount, and evidence of two attempts to contact the lienholder.  

If payment is made by check, proof of payment shall consist of a copy of the front and back of the paid check listing all endorsements of the named payees. If payment is made by electronic transfer, proof of payment shall consist of evidence of the payment transaction from the account of the payer, including submission of a screenshot of payment. In addition, submission shall certify that any payoff funds were not returned by the lienholder. The insurance company shall sign a hold harmless affidavit, on a form approved by the department. The office of motor vehicles may charge a fee of no more than one hundred dollars for each transaction. 

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