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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 2, 2023 03:41 PM |
|---|---|
| From: | Senator Marty Flynn |
| To: | All Senate members |
| Subject: | Subject: Vehicle Recycling Titling Reform |
| In the near future, I intend to introduce legislation that will remove unnecessary steps in the re-titling process of vehicles sold between insurance companies and vehicle recycling companies. Currently, vehicles for which an insurance settlement has been paid and the insurance company has taken ownership of the vehicle, the vehicle must undergo the re-titling process several times before ultimately being disassembled for parts or destroyed for scrap. This includes when the vehicle is transferred from the customer to the insurer, the insurer to the salvage motor vehicle auction dealer, and the salvage motor vehicle auction dealer to the vehicle recycling company. An error in the process, which is not uncommon, further delays what is already a more cumbersome process than what vehicle recycling companies experience in other states. All this red tape for a vehicle destined to be disassembled into parts for resale and the remainder of the vehicle destroyed? The requirements in current law do more to frustrate businesses than protect Pennsylvanians. My legislation will establish a streamlined process for transferring vehicles between automobile insurers and vehicle recycling companies. Further, this legislation would be limited only to vehicles for which an insurer has made a total loss payment to the vehicle’s titleholder and only for vehicles destined for recycling. These vehicles will not be returned to the road. My legislation is pro-consumer. We constantly hear about how the COVID-19 pandemic has led to global supply chain delays and specifically how the delays have impacted the automobile industry, such as vehicle and parts shortages and a significant increase in price for available vehicles and parts. To further compound this problem, it has been reported by industry experts that auto suppliers are less focused on making aftermarket parts for repairs to vehicles on the road and more intent on building parts for new vehicles[1]. In fact, some in the automotive industry have called this the “biggest supply chain disruption since WW II.”[2] This change in this legislation will lessen the impacts of the supply chain disruptions that are anticipated for the foreseeable future by streamlining the process to get salvage, total loss and nonrepairable vehicles, and their hazardous fluids, recycled in Pennsylvania. Please join me in co-sponsoring this important piece of legislation. [1] Kalea Hall, “Auto parts shortages push repair shops to get creative, place “stress” on customers,” The Detroit Press, January 1, 2022.
[2] Scott Sturgis, “Car owners have been left stranded as auto repairs face biggest supply chain disruption since World War II,” Philadelphia Inquirer, February 21, 2023 |
Introduced as SB1129