Legislative Update

New Legislative Update Includes MO and CA Bills

Topics Include Catalytic Converters, Exemptions and Inspections

Published January 24, 2023 - Written by IAA, Inc.

Summary

The January 2023 Legislative Update looks at a CA bill prohibiting a vehicle’s sale if the ID numbers on the catalytic converter and vehicle don’t match, and two MO bills pertaining to vehicle age exemptions and used car inspection requirements.

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 LEGISLATION

California Senate Bill 55

Introduced December 6, 2022

This bill would prohibit a dealer or retail seller from selling a motor vehicle equipped with a catalytic converter unless the catalytic converter has been engraved, etched, or otherwise permanently marked with the vehicle identification number of the vehicle to which it is attached.

IAA’s Position: Oppose. IAA will seek an exemption for salvage and non-repairable vehicles.

View Bill

Missouri House Bill 706

Introduced January 9, 2023

Missouri law currently requires vehicles less than seven years old to be branded with a “salvage” title if the damage to the vehicle exceeds 80% of the fair market value; older model vehicles are not required to have a salvage title. The bill eliminates the age exemption, which will cause vastly more vehicles to be branded “salvage.”

In addition, the bill establishes different salvage standards based on the nature of the owner. For example, if an insurer totals a vehicle with damages in excess of 80% of the ACV and the insurer acquires ownership, the vehicle would be salvage. However, if the owner retains the vehicle, the vehicle would not be salvage.

IAA’s Position: Oppose

View Bill

Missouri House Bill 229

Introduced January 4, 2023

This bill would require a motor vehicle inspection each time a used motor vehicle is sold, regardless of the age or mileage of the vehicle. The new section 307.350 does not exempt vehicles sold for junk, salvage or rebuilding and it is in conflict with section 307.380(2).

IAA’s Position: Oppose

View Bill

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

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