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Minutes for HB2147 - Committee on Transportation
Short Title
Requiring any individual or agency selling an abandoned or towed vehicle to acquire a certificate of title from the division of vehicles before the sale and exempting such vehicles from vehicle registration requirements.
Minutes Content for Tue, Mar 21, 2023
Chairperson Petersen called the meeting to order at 8:33 a.m. and invited members to consider HB2335 - Authorizing loans or grants for qualified track maintenance in the rail service improvement program and increasing the transfer from the state highway fund to the rail service improvement fund.
Assistant Revisor Adam Siebers outlined the basics of the bill (Attachment 1). He explained that the bill authorizes loans and grants for track maintenance in the Rail Service Improvement Program and increases the transfer from the State Highway Fund to the Rail Service Improvement Fund. Kansas Department of Transportation is allowed to provide funds for Class II and Class II (short-line) railroads with the funding increasing from $5 million to $10 million.
A motion was made by Senator Petersen and seconded by Senator Corson to amend the bill by moving the effective date to publication in the Kansas Register. The motion passed.
A motion was made by Senator Corson and seconded by Senator Bowers to recommend the bill as amended to be favorable for passage. The motion passed.
The Chair opened the hearing on HB2147.
Mr. Siebers briefed the Committee on the bill (Attachment 2). He explained that the bill adds new sections to require a towing service to provide a certification of compliance to a purchaser upon the sale and transfer of a vehicle; a $20 fee must accompany the transaction. The same requirement will also apply to a public agency when selling an abandoned vehicle.
Representative Francis Awerkamp, District 61, testified as a proponent for the bill (Attachment 3). He traced the procedures from when an abandoned vehicle is towed through the purchase/title process to when the vehicle is crushed, and he reviewed the requirements for transferring a title, especially noting the responsibility of a tow service to provide a possessory lien affidavit to a salvage yard or an auction service. He stated that there is no verification in place to assure a purchaser of a clean title. The bill will verify that crucial requirement is met by a towing service so that a prospective purchaser will not have to obtain a title through a more complex and costly process. He noted that the House Transportation Committee simplified and clarified the process.
Deann Williams, Executive Director, Kansas Motor Carriers Association, spoke in support of the bill (Attachment 4). She said the Association has worked with members to minimize the cost of following the Certification of Compliance regulations and has agreed to the $20 fee as reasonable compromise in order to support the bill.
Steven Denton, President of Denton Auto Salvage, provided proponent testimony that was originally given at the House Transportation Committee meeting on February 13, 2023 (Attachment 5). He stated that the bill offers a solution to a gap in the titling process for abandoned vehicles. He cited stories from his experience illustrating how tow companies fail to provide the required documents, failures which result in significant additional costs in time and money for salvage companies to meet the legal stipulations for abandoned vehicles.
Heather Klamm, A & A Auto & Truck Parts, Inc., testified in favor of the bill (Attachment 6). As manager for two salvage yards in Topeka, she recounted tow companies who fail to provide the possessory lien affidavit and create complex and costly actions in order to obtain titles for abandoned vehicles. She cited one incident where she submitted 48 titles and 36 were rejected because of inadequate documentation caused by tow companies. Ms. Klamm commented that after working with various tow companies, the Kansas Motor Carriers Association, the Kansas Department of Revenue, and various salvage yards, she sees the Certification of Compliance as the best option to address this issue.
Members and conferees offered several comments about certain aspects of the bill:
- The fifteen-day mail notice seems restrictive.
- A car can be identified as stolen by requesting a law-enforcement report.
- If the process is not followed, the bill allows the tow company a second opportunity to provide the required documentation.
- The bill requires accountability from the tow company by documents of verification.
The hearing on HB2147 was closed.
The Chair adjourned the meeting at 9:12 a.m. The next meeting is scheduled for Wednesday, March 22, 2023.
