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Minutes for SB36 - Committee on Transportation
Short Title
Permitting employees of salvage vehicle pools to perform vehicle identification number inspections and salvage vehicle pools and dealers to apply for ownership documents for vehicles that are disclaimed by insurance companies.
Minutes Content for Mon, Jan 25, 2021
The Chair opened the hearing on SB 36.
Assistant Revisor Adam Siebers reviewed the salient information in the bill (Attachment 1). He said that the bill combines provision from two bills from the 2020 legislative session (2020) SB 374 and (2020) HB2501. He explained that Section 1 allows qualified employees of salvage vehicle pools to perform checks on stored vehicles prior to submitting an application for a salvage title if the pool sells at least 2000 vehicles annually. The pool is required to maintain a $50,000 bond. He stated that Section 2 allows both salvage pools and salvage vehicle dealers to apply for vehicle titles from the Division of Vehicles after those vehicles have met certain criteria. He noted a balloon amendment that addresses certain technical issues in the bill (Attachment 2).
Brad Smoot, representing Copart Inc., testified as a proponent for the bill (Attachment 3). He commented that the bill contains the provisions of two bills from the previous legislative session and noted the amendments added by the Senate Transportation Committee last year (a $50,000 bond and the over-2000-vehicle requirement). He explained that abandoned vehicles in salvage pools create costly capacity issues; the bill addresses that issue and relieves the Kansas Highway Patrol (KHP) from a service that can be easily performed by qualified pool employees.
Mr. Smoot responded to members' questions:
- The public is protected by two safeguards: the application is screened by the Kansas Highway Patrol to determine that the vehicle was not stolen, and the $50,000 bond offers assurance for any exigencies.
- Nothing in the bill prohibits the KHP from random inspections to determine that the titling process is followed.
A member suggested that the bill could assure KHP oversight by including a provision in the Patrol's rules and regulations.
Peter Greenwood, Regional Manager, Copart, Inc., spoke as a proponent for the bill (Attachment 4). He noted that his company processes 40,000 vehicles each year and that, although abandoned vehicles represent only a small part of that number, they incrementally create a financial drain on the company when they cannot be disposed of in a timely manner. Answering questions, Mr.Greenwood replied that obtaining a title for abandoned vehicles allows the company to sell them at an auction. He added that last year's two bills have been incorporated into this bill.
Two members commented that the bill addresses an important issue.
John Peterson, representing Insurance Auto Auctions, testified via Webex supporting the bill (Attachment 5). He commented that occasionally a vehicle arrives in a salvage pool's or salvage dealer's location without an accompanying title from an insurance company. The bill requires a reasonable effort on the part of a pool to obtain a title (two certified letters to the owner's address and publication in a newspaper) and at least three months' lapse of time. Responding to a question, he replied that certified letters stipulate only the U. S. Postal Service; there is no provision for electronic mail.
Catalina Jelkh Pareja, Government Affairs, LKQ Corporation, provided written-only testimony as a proponent (Attachment 6).
Two opponents to the bill provided written-only testimony:
- Colonel Herman Jones, Kansas Highway Patrol (Attachment 7);
- Ed Klumpp, Legislative Liaison, Kansas Chief of Police, Kansas Sheriff's Association, and Kansas Peace Officers Association (Attachment 8)
The Chairperson closed the hearing on SB 36.
The meeting was adjourned at 9:09 a.m. The next meeting is scheduled for Tuesday, January 26, 2021.
