Legislative Update | July 2020

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

Pennsylvania House Bill 632

Presented to the Governor, July 13, 2020

The legislation adds subsection 7134(d.2) to outline when an insurance company can use a Secure Power of Attorney (SPOA). PennDOT shall permit an insurer to use a SPOA to transfer a salvage vehicle when:

• the certificate of title is encumbered with a lien
• the title has been lost by the transferor
• the insurer is applying for a duplicate title; and
• the manufactured certificate of origin for a new vehicle is in possession of the lienholder.

The SPOA need not be notarized and may be signed electronically. The department may, at its sole discretion, permit the use of a SPOA for the transfer of other vehicles in addition to salvage vehicles.

The department is not required to certify an electronic signature process or an electronic signature process vendor before accepting a SPOA that is executed with an electronic signature.

IAA Position: Support

View Bill

Enacted Legislation

Missouri House Bill 1963

Effective August 28, 2020

As previously reported, this act includes IAA’s language from House Bill 1952/Senate Bill 820 related to salvage vehicles abandoned at salvage pools. The act provides a process for a salvage pool to obtain a salvage title for a vehicle that had remained unclaimed at the salvage pool’s facility for more than thirty days for which the insurer did not pay a total loss claim.

In addition, the act provides a process for an insurer to obtain a title for a vessel if the insurer paid a total loss claim but is unable to obtain the certificate of title or other acceptable evidence of title from the vehicle owner or lienholder. The process is the same as the current process insurers follow to obtain a title for a motor vehicle when the certificate of title is unavailable.

Finally, the act allows a vehicle dealer to deliver the title to the purchaser within 30 days after delivery of the vehicle.  If the purchaser has not been provided with a properly assigned title, the purchaser may use a dealer-supplied copy of the purchase agreement to transfer his or her ownership of the vehicle to an insurance company in situations where the vehicle has been declared salvage or a total loss by the insurance company as a result of a settlement of a claim.  Such insurance company may apply for a salvage certificate of title or junking certificate under subsection 3 of section 301.193 (the alternative title process).

IAA Position: Support

View Bill (see sec. 301.193 on pages 36-41)

Vermont Senate Bill 339

Effective July 13, 2020

Among other changes to the law related to motor vehicles, this act amends the provision for exempt vehicle titles by allowing a Vermont resident to obtain an exempt vehicle title for a vehicle that is more than 15 years old. Previously, the exempt vehicle title option applied to vehicles that were more than 25 years old.

IAA Position: Neutral

View Bill (see sec. 13, 23 V.S.A. § 2013)