LEGISLATIVE UPDATE

Session Moves into Final Weeks

by Kevin Walli, AASP-MN Lobbyist As we close in on the final weeks of the 2021 legislative session, COVID-19 safety measures have made interactions Finally, proposals to change the Salvage Title statute continue to be a concern for AASP-MN. An amendment to the Senate transportation finance bill would remove the with legislators extremely challenging. There has been no terms “late-model” and “high-value” from the Salvage Title opportunity to speak directly to legislators or their staff. statute. The result would be many more vehicles required Everything is done by phone and Zoom. to secure a Salvage Title. Consumers would likely see a

There are three areas of concern on which we are devaluation of their vehicles and fewer vehicles would likely focusing most of our time and attention. First, in the area of be repaired. taxes, we are watching to see how the House and Senate The impetus for this legislation was a false argument omnibus tax bills treat tax liability for businesses that that Minnesota is a dumping ground for inappropriately received federal relief to respond to the pandemic. With titled vehicles from other states. The proposal pending in the the state revenue forecast having improved dramatically, Senate bill will do nothing to change the current processing it appears that the Legislature will protect businesses of out-of-state titles in Minnesota. The state currently adopts and individuals from tax liability associated with federal the title restrictions that have been imposed on a vehicle payments. We will report on the outcome of that measure at in other states when they are retitled in Minnesota. That the close of session. practice would continue in any case.

An issue which emerged over the last several months The House has not advanced the provision and our has gained considerable attention at the Legislature. The efforts are focused on having them hold their ground so that theft and resale of catalytic converters has become an there is a better opportunity for a broad discussion of the epidemic of its own. Legislators and law enforcement Salvage Title statute to ensure that any change is based on officials have been seeking ways to blunt this practice. Our real issues that consumers face. objective has been to scrutinize proposals to ensure that Again, these issues will likely play out in the final weeks repair shops are not unreasonably burdened in handling of session and we will provide a timely legislative report as catalytic converters. Be aware that the Legislature is soon as the session ends – hopefully on the constitutional working on this area and we are trying to keep the response adjournment date of May 17 – and not with a special session reasonable. We will report more fully on what emerges from which drags on into the summer months. the legislative process as the session draws to a close.

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