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u LEGISLATIVE UPDATE

Rep. Louis Schmitt (R-Blair)

introduces House Bill 2372

Modifying Management of Abandoned Vehicles at
Auction

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

State Rep. Louis Schmitt has introduced House Bill 2372, which was referred to the House
Transportation Committee, to address the problem that some wholesale vehicle auctions
experience where hundreds of vehicles being abandoned at auction by dealers.
ERIK A. ROSS, SENIOR ASSOCIATE
MILLIRON & GOODMAN 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
Erik Ross brings over 30 years of dealers to other vehicle dealers at the wholesale auction.
experience in state government and
lobbying to Milliron Goodman. Vehicles are often abandoned by auto dealers. In some cases, it is because they simply go out of
He specializes in state government business. In other cases, they auction a vehicle for sale with no success. More often, they purchase
relations with a focus on them at auction and then do not transport them to their dealerships by the deadline. This in turn
transportation, energy, environmental, takes up space where other vehicles could be stored. Dealers are licensed by the State and have a
and public utility issues in one of contract with the licensed wholesale vehicle auctions for the sale of their vehicles.
the most innovative regulatory House Bill 2372 amends Title 75 (Vehicles), authorizing a wholesale vehicle auction, or salvor,
environments in the country. His to remove vehicles that have been abandoned by dealers after three business days of the vehicle
duties include lobbying members remaining without consent. It would also authorize the auction to charge and collect storage
and staff of the Pennsylvania General fees as well as the releasing or recovering costs of the abandoned vehicle.
Assembly, executive departments, and
regulatory agencies on behalf of clients. Specifically, the proposed legislation would allow the auction to sell the vehicle after certifying
In addition, he serves as a liaison to PennDOT that the vehicle was abandoned and obtaining an abandoned vehicle title.
between clients and state government The wholesale vehicle auction shall be reimbursed for the cost of storing, providing notice,
officials and assists in the drafting or obtaining title, and processing the vehicle, while the remaining proceeds of the sale shall be
amending of legislative and regulatory paid to PennDOT and transmitted to the State Treasurer for deposit in the Motor License Fund.
proposals. It also establishes a removal process in § 7311.3 (c) where the wholesale vehicle auction can
use a salvor to remove the vehicle under existing law or, if the auction intends to sell or legally
Erik’s public sector experience obtain ownership, it establishes a process to do that. Again, when the abandoned vehicle has
includes positions as Research been transferred to a salvor and the vehicle is subsequently sold at auction:
Analyst to the Chairman of the Senate • The salvor shall recover the appropriate costs of towing and storage.
Majority Policy Committee and • The wholesale vehicle auction shall be reimbursed for the cost of storing, providing notice,
Senate Environmental Resources & obtaining title, and processing related to the vehicle when the additional funds are available
Energy Committee; and Legislative as a result of the salvor’s auction.
Assistant and Executive Assistant to • The remaining proceeds of the sale shall be paid to PennDOT and transmitted to the state
the Pennsylvania Senate Majority Treasurer for deposit in the Motor License Fund.
Whip Mike Fisher from 1989 to 1993.
His duties included management In this way, economic waste is avoided and encourages the dealers not to abandon their vehicles
legislative/policy development; at auction. In addition, licensed auctions entities are entrusted with these vehicles to auction
drafting legislation, amendments, and between licensed dealer buyers and dealer sellers. This sale can reduce the loss of funds that
correspondence; assisting the Majority come from unpaid storage fees and can potentially combat the cash for clunkers type of waste
from older vehicles in which are most abandoned vehicles. n
Whip on the Senate floor; and assisting
the Senate Majority Leader’s staff on Milliron & Goodman will keep you apprised of any activity related to this bill by the House
caucus-related projects. Transportation Committee.
1 House Bill 2372, https://www.legis.state.pa.us/cfdocs/billInfo/billInfo.
cfm?sYear=2021&sInd=0&body=h&type=b&bn=2372

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