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u LEGAL FEATURE

Rep. Lynda Schlegel Culver

introduces House Bill 2064 -

Modifying the Process for Impound and Salvage

Vehicles

By Erik A. Ross, Senior Associate, Milliron & Goodman

State Rep. Lynda Schlegel Culver has introduced House Bill 2064, which was referred to the
House Transportation Committee on November 9, 2021.

SUMMARY OF HOUSE BILL 2064
ERIK A. ROSS, SENIOR ASSOCIATE The purpose of this legislation is to notify vehicle lienholders or lessors in a timely manner
MILLIRON & GOODMAN of the impoundment of a vehicle with their lien on it, and to allow the lienholder or lessor to
recover the vehicle in a reasonable expeditious and unencumbered manner.
Erik Ross brings over 30 years of
experience in state government and Currently in Pennsylvania, about 1,000 vehicles per month get hung up or go missing without
lobbying to Milliron Goodman. notification to the lienholder or lessor.
He specializes in state government
relations with a focus on Moreover, the legislation will allow lienholders and lessors an opportunity to prevent vehicles
transportation, energy, environmental, from being perpetually impounded and incurring storage fee costs by incorporating a process
and public utility issues in one of into law that enables an individual to get limited access to lienholder and lessor information
the most innovative regulatory so they can quickly determine if a vehicle can be crushed, scrapped, or sold at auction or if
environments in the country. His they need to contact the owner, lienholder, or lessor to notify them of the situation.
duties include lobbying members
and staff of the Pennsylvania General In addition, requiring lienholder or lessor notice will prevent “borrowers” who are not paying
Assembly, executive departments, and their car loans or leases from selling a liened or leased vehicle to a crusher or salvage dealer
regulatory agencies on behalf of clients. and having the vehicle crushed in exchange for cash.
In addition, he serves as a liaison
between clients and state government Finally, this legislation provides the appropriate balance between ensuring lienholders and
officials and assists in the drafting or lessors can recover their vehicle collateral while not placing an undue burden on individuals
amending of legislative and regulatory in possession of the vehicle.
proposals.
BACKGROUND
Erik’s public sector experience While the state Department of Transportation (PennDOT) strives for a less than a 2-week
includes positions as Research turnaround period to obtain a title, which is required under current law before a vehicle can
Analyst to the Chairman of the Senate be crushed, scrapped, or sold at auction, one of the problems is the accumulation of storage
Majority Policy Committee and fees and fines during that 2-week period (or longer) before a lienholder or lessor is notified.
Senate Environmental Resources &
Energy Committee; and Legislative Another problem is that salvors or scrapper may believe they have legitimately obtained a
Assistant and Executive Assistant to vehicle and are simply waiting for a clean title from PennDOT. If they jump the gun and
the Pennsylvania Senate Majority scrap or salvage the vehicle before receiving a clean title from PennDOT in a timely fashion,
Whip Mike Fisher from 1989 to 1993. there is little recourse for the lienholder or lessor since going to civil court for a $5,000 vehicle
His duties included management does not make sense because the court costs will overtake the loss of the vehicle.
legislative/policy development;
drafting legislation, amendments, and CONCLUSION
correspondence; assisting the Majority House Bill 2064 provides a timelier process to notify lienholders without running up big
Whip on the Senate floor; and assisting bills that cost the dealer, salvor or scrapper while waiting for verification. It also increases
the Senate Majority Leader’s staff on penalties for non-compliance to hold everyone accountable. t
caucus-related projects.
Milliron & Goodman will keep you apprised of any activity related to this bill by the House
Transportation Committee.

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