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House Co-Sponsorship Memoranda
House of Representatives
Session of 2019 - 2020
Regular Session
MEMORANDUM
| Posted: | June 22, 2020 03:26 PM |
|---|---|
| From: | Representative Louis C. Schmitt, Jr. |
| To: | All House members |
| Subject: | Modify how wholesale vehicle auctions handle abandoned vehicles that were left at an auction by licensed dealers |
| In the near future, I plan on introducing legislation that would modify how wholesale vehicle auctions handle abandoned vehicles that were left at an auction by licensed dealers, without the approval of the auction. Licensed wholesale vehicle auctions are a special class of private property owner. They handle thousands of dealership-owned vehicles every week that are bought and sold by licensed vehicle dealers to each other at the wholesale vehicle auction. Sometimes, vehicles are abandoned by the dealers, who either go out of business or for other reasons do not claim vehicles they have brought to auction for sale or more often purchased at auction but do not remove from the auction location to their dealerships. Some wholesale vehicle auctions experience tens and hundreds of vehicles apparently abandoned by dealers, which takes up space where other vehicles could be stored. Dealers are licensed by the State and contract with the licensed wholesale vehicle auctions for the sale of their vehicles. My legislation would allow a wholesale vehicle auction to remove or have a salvor remove vehicles abandoned by dealers within 3 business days of the vehicle not being authorized to remain or be on the wholesale vehicle auction’s lot. Also, the legislation would authorize the auction to charge and collect storage fees as a condition of storing and releasing or recovering costs of the abandoned vehicle. Finally, my legislation allows the auction to sell the vehicle and certify to PennDOT for title processing purposes that the vehicle was abandoned and that title is being transferred on that basis on authority of the auction as the, in effect, custodian of the abandoned vehicle. In this way, economic waste is avoided, incentive for dealers not to abandon vehicles at auctions is increased, licensed auctions entities entrusted with vehicles to auction between licensed dealer buyers and dealer sellers can reduce lost funds from likely unpaid storage fees and potentially recover storage fees through sale of the vehicle, and the cash for clunkers type waste of older vehicles (which are the majority of abandoned vehicles) can be avoided through possible sale of the vehicle. Please join me in co-sponsoring this legislation. |
Introduced as HB2870