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Minutes for HB2501 - Committee on Transportation
Short Title
Allowing salvage vehicle pools to apply for ownership documents for vehicles that are disclaimed by insurance companies.
Minutes Content for Thu, Mar 5, 2020
The Chairperson called the meeting to order at 8:31 a.m.
On a Point of Personal Privilege, Senator Goddard introduced Mattaya Gibbs, a senior from Labette High School; she is accompanying the senator for the day to learn more about the legislative process.
The Chair opened the hearing on SB2501.
Staff Adam Siebers briefed the Committee on the bill. He explained that the bill would authorize a salvage vehicle pool to apply for an ownership document for a vehicle if certain conditions were met: the pool has possession of the vehicle at the request of an insurance company; the insurance company has not paid a claim on the vehicle; and the vehicle has been abandoned for more than 30 days. Those conditions being met, the salvage pool must attempt to notify any previous owners and, failing that, post a notice in the official county paper. Responding to a question, Mr. Siebers replied that the term abandoned was not defined in the bill.
John Peterson, Capitol Strategies, representing Insurance Auto Auctions (IAA), testified as a proponent for the bill. He said the bill addresses a specific issue that handicaps salvage pools: the insurer pays the value of a totaled vehicle, but the owner retains title to the vehicle and subsequently abandons the vehicle at the salvage pool, an action that leaves the salvage pool with no means to dispose of the vehicle. He noted that the bill passed the House with 119 votes (Attachment 1).
Mr. Peterson responded to members' questions:
- The sequential steps required before a salvage pool can dispose of a vehicle would take at least three months.
- Usually a vehicle is in the pool for 60-90 days before any action is initiated.
- Although SB374 also deals with salvage pools and VIN inspections, each bill addresses a different issue.
Vince Donohoe, Area Manager, (IAA), explained that vehicles arrive at the salvage pool under assignment from an insurance company even if the insurance company does not hold title to the vehicle.
Members, in consultation with Mr. Siebers, agreed that the or on page 6, line 33, should read and.
Peter Greenwood, Copart, Inc., spoke in support of the bill. He reported that the bill addresses 1% of the 75,000 vehicles that are processed by salvage pools each year and that most vehicle values are less than $1000. Many have been sitting in the pool for 700-1000 days; the bill will enable a salvage pool to dispose of these vehicles (Attachment 2).
Rudy Rosenmayer, Government Affairs Specialist, LKQ Corporation, testified in support of the bill. Noting that LKQ operates 10 locations in Kansas and employs 384 individuals, he stated that the bill will facilitate individuals in obtaining recycled parts to repair their vehicles. He proposed an amendment to the bill: add "salvage vehicle dealers" to the bill's language to allow licensed salvage vehicle dealers the same recourse as salvage pools (Attachment 3).
The hearing on HB2501 was closed.
