LEGISLATIVE UPDATE
Salvage Title Statute to Be Scrutinized by Kevin Walli & Sam Richie, AASP-MN Lobbyists
For the last several years, proposals have been introduced to amend Minnesota’s Salvage Title Statute. Proponents have argued that Minnesota is a “title washing” state and the salvage title laws must be tightened up to address the problem. As the advocates have presented their case – primarily in the Republican-controlled Senate, AASPMN and several other stakeholder organizations were meeting with members of the DFL-controlled House to consider whether the changes proposed were needed and whether they would actually “fix” any problems regarding issuance of titles for out-of-state vehicles. The diverse coalition focusing attention and efforts on the House side included AASP-MN, the Insurance Federation of Minnesota, the Auto Auctions and staff from the Minnesota Department of Public
6 | September 2021
Safety (Division of Vehicle Services). This coalition was joined with bipartisan support by Representative Cheryl Youakim (DFL-Hopkins) and Representative Eric Lucero (R-Dayton). The advocates for change made several proposals, the last of which involved eliminating the use of terms such as “late model” and “high value” in the statute. We believe the proposed changes would have negatively affected consumers, repair shops and insurers. None of the proposals advanced by the Senate were found to be acceptable by the House members with whom we were working. This was an item that was discussed in the Transportation and Public Safety Conference Committee. Ultimately, language was included in the Omnibus Bill which calls for a working group to examine the salvage title statute and determine
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whether any change is needed at all and, if so, what those changes should be. The legislation calls for two Senators (one DFL, one GOP) and two Representatives (one DFL, one GOP) to participate in this working group. It is less specific about who else may participate – although it will be an open process and AASP-MN will continue to weigh in. Also unclear is how often the group will meet, but the first meeting must be convened by September 1. AASP-MN has reached out to the staff at Driver and Vehicle Services to indicate our desire to participate in the process and to seek clarification on the timing. We will be asking members of the association to join in these conversations which are expected to take place in the fall as lawmakers begin to plan for the 2022 Legislative Session.
