CT, IL, ME, RI, and TX Introduce Industry Bills

The March 2021 Legislative Update looks at the latest auto auction industry bills introduced in U.S. legislatures, which focus on Power of Attorney, re-assignment of salvage certificates, rebuilt vehicle inspections, tampering with emission control systems, title notary requirements, and provider access to motor vehicle records.

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

Connecticut Senate Bill 982

Introduced March 2, 2021

This bill would revise numerous motor vehicle statutes. Among other changes, the bill would remove the notarization requirement for a Power of Attorney (“POA”) related to insurance total loss claims for a motor vehicle and would allow the POA to be signed electronically in certain circumstances.

This bill would also allow an insurance company to obtain a certificate of title, salvage title or salvage parts-only title when the insurance company has paid a total loss claim and acquired ownership of the vehicle, but the vehicle owner or lienholder did not provide the certificate of title to the insurance company.

IAA’s Position: IAA is actively lobbying in support of these changes.

View Bill

Illinois House Bill 2527

Introduced February 17, 2021

This bill would prohibit the re-assignment of salvage certificates. Once a salvage vehicle is sold to a rebuilder, the rebuilder will not be able to resell the salvage vehicle.

IAA Position: Oppose

View Bill

Illinois House Bill 2525

Introduced February 17, 2021

This bill would require the Secretary of State to inspect a rebuilt vehicle that is four model years of age or newer, instead of eight model years of or newer. In addition, it provides that the Secretary of State shall authorize an individual having been consecutively licensed as an automotive parts recycler and a rebuilder for a minimum of five years and a member in good standing of an automotive trade association to inspect rebuilt vehicles.

IAA’s Position: Neutral

View Bill

Illinois House Bill 2526

Introduced February 17, 2021

This bill provides that a vehicle of four model years or older, rather than nine model years or older, may be retained by the registered owner after the insurance company makes a payment of damages on total loss claim for the vehicle.

IAA’s Position: Neutral

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Maine House Bill 640

Introduced March 4, 2021

This bill will prohibit tampering with the emission control system of a motor vehicle. In addition, it would prohibit a dealer from selling a motor vehicle if the emission control system was tampered with. IAA has concerns with this bill because it has no way of knowing whether there is an issue with a tampered emission control system.

IAA’s Position: Oppose. IAA will seek an exemption for sales of vehicles by or through an auction.

View Bill

Rhode Island House Bill 5964

Introduced February 26, 2021

This bill would eliminate the notarization requirement for a power of attorney or other document supporting an application for a certificate of title or salvage title for a vehicle acquired by an insurance company as a result of a total loss claim. The bill also allows such a power of attorney to be signed electronically.

IAA Position: Support

View Bill

Texas House Bill 2099

Introduced February 23, 2021

This bill would eliminate access to motor vehicle records by business entities, such as IAA and insurance companies. Such access is necessary to the conduct of IAA’s business and that of IAA’s insurance company customers.

IAA’s Position: Oppose

View Bill

Texas Senate Bill 15

Introduced March 1, 2021

This bill is similar to House Bill 2099 in that it would prohibit businesses, such as IAA and insurance companies, from obtaining vehicle owner and lienholder information from the DMV records.

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