Legislative Update

Enacted IL, NC Industry Bills Going into Effect Soon

New Legislation Covers Electronic Liens, eSignatures, Unregisterable Titles & More

Published September 28, 2021 - Written by IAA, Inc.


Summary

IAA’s September 2021 Legislative Update reviews enacted bills affecting the auto auction industry from Illinois and North Carolina. 

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

Illinois Senate Bill 573

Effective January 1, 2022

This act amends various provisions of the Vehicle Code. It requires the Secretary of State, no later than July 1, 2022, to implement, manage and administer an electronic lien and title system that will permit a lienholder to perfect, assign and release a lien under this code. Also, no later than July 1, 2022, the Secretary of State shall provide electronic notification to the lienholder submitter to verify the notation and perfection of the lienholder's security interest in a vehicle on the certificate of title required to be created as an electronic record under Section 3-100.1.

The Secretary, at the Secretary's discretion, may use any commercially available title history service to assist in determining the proper title designation of a motor vehicle before the issuance of a certificate of title.

Beginning January 1, 2022, the Secretary of State is authorized to issue a certificate of title in the name of the dealership to a licensed dealer under Chapter 5 for $20 if the surrendered certificate of title has no space to assign the certificate of title again.

Any licensee under Chapter 5 who sells, transfers or wholesales a vehicle out of state shall mail the certificate of title to the physical business address in the requisite jurisdiction in lieu of transferring title at the time of sale.

IAA’s Position: Neutral

View Bill

Illinois Senate Bill 1545

Effective January 1, 2022

This act amends the Vehicle Code by providing that a repossessed vehicle, fleet vehicle or flood vehicle that has been damaged in excess of 50% of its fair market value shall be considered to be salvage. Under current law, the damage threshold is 33 and 1/3%. The act also provides that a flood vehicle that has sustained damage greater than 50% of its fair market value with that damage shall be required to complete a successful inspection before being issued a new certificate of title.

IAA’s Position: Neutral

View Bill

Illinois Senate Bill 1611

Effective January 1, 2022

This act allows the Secretary of State to adopt rules to authorize the filing of documents with his or her office that have been signed by electronic means. It specifies the rules to be adopted. It also provides certification requirements for entities seeking to provide services to third parties for the execution of electronic signatures for filing with the Secretary of State. Finally, it specifies minimum requirements for the use of electronic signatures on documents.

IAA’s Position: Support

View Bill

North Carolina Senate Bill 379

Effective October 1, 2021

This act authorizes the Division of Motor Vehicles to issue an unregisterable certificate of title for certain vehicles. An insurance company which is unable to obtain the properly endorsed title, certificate of ownership, or other evidence of ownership to a vehicle registered in another state, may apply for an unregisterable certificate of title if certain conditions are met. Similarly, an agent or contractor of an insurance company who took possession of a vehicle with the permission of the vehicle owner may apply for an unregisterable certificate of title in the name of the agent or contractor, if the vehicle is abandoned at the agent’s or contractor’s facility.

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 

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