Fall Legislative Session Preview

The Pennsylvania General Assembly returns to voting session in mid- to late September in a quick sprint to complete this two-year session prior to the election. As you may know, the two-year session of the General Assembly ends on November 30, 2024. All bills that are not sent to the Governor by the deadline die and will need to be reintroduced next year when the General Assembly reconvenes for a new two-year session.

This Fall, the House’s legislative session calendar was pushed to the end of September/beginning of October due to two special elections slated for September 17, 2024, to fill the vacant state House Legislative Districts in Philadelphia due to resignations in July. The vacancies in the House put the Democrats at 100 seats to the Republicans 101 seats in the 203-seat chamber. The vacant seats are considered safe Democrat districts, but the election results will need to be certified, and the winners sworn into office prior to the return to voting session so the House Democrats maintain their majority status. The following are the revised House and Senate’s Fall session days as currently scheduled:

HOUSE FALL VOTING SCHEDULE

• September 30
• October 1, 2, 7, 8, 9, 21, 22, 23
• November 11, 12, 13 (Reserved for internal cause leadership elections)

SENATE FALL VOTING SCHEDULE

• September 16, 17, 18, 30
• October 1, 2, 7, 8, 9, 21, 22, 23
• November 13, 14 (Reserved for internal cause leadership elections)

With only nine voting days scheduled in the House and twelve in the Senate, assuming days additional days are not canceled, the General Assembly will need to focus on what must get done. The following is a summary of some of the issues that we have outstanding:

MODIFYING MANAGEMENT OF ABANDONED VEHICLES AT AUCTION

Senate Bill 1129¹ (Flynn-D) amends Title 75 (Vehicles), authorizing a wholesale vehicle auction, or salvor, to begin the process to remove vehicles that have been abandoned at the wholesale auction without the wholesale auction’s consent. It would also authorize the wholesale auction to charge and collect storage fees as well as the releasing or recovering costs of the abandoned vehicle.

• Status: Passed Senate, 50-0, 7/2/2024 – In House Judiciary, 7/3/2024

Licensed wholesale vehicle auctions are a special class of private property owner. They oversee thousands of dealershipowned vehicles every week that are bought and sold by licensed vehicle dealers to other vehicle dealers at the wholesale auction.

Vehicles are often abandoned by auto dealers; even vehicles valued at $20,000 or more. In some cases, it is because they simply go out of business. In other cases, they place a vehicle at auction for sale with no success. More often, they purchase them at auction and then do not transport them to their dealerships by the deadline. While current law has a process to address abandoned vehicles that are usually then salvaged, it does not provide a way to address vehicles abandoned at wholesale auctions.

Specifically, the proposed legislation requires the wholesale vehicle auction to file a report, outlined in existing law at § 7311.1 (a), with the local police department declaring that an unauthorized vehicle has been left unattended on private property for a period exceeding three business days. If the wholesale vehicle auction elects to file such a report, it may remove, sell, or legally obtain the ownership and title of a vehicle that is declared an abandoned vehicle by PennDOT. The following shall apply:

• A wholesale vehicle auction that intends to sell or legally obtain ownership of an abandoned vehicle shall indicate that intention on the report filed.
• If the abandoned vehicle is unclaimed, the wholesale vehicle auction may apply for a certificate of title to PennDOT.
• If PennDOT determines that a new certificate of title should be issued, an abandoned branded title shall be issued to the wholesale vehicle auction.
• After the abandoned vehicle branded title is issued, the vehicle shall be offered for sale at auction by the wholesale vehicle auction. Notice shall be provided to prospective buyers that the title has been branded as a formerly abandoned vehicle.

The wholesale vehicle auction shall be reimbursed for all applicable costs related to the storage and processing of the vehicle from the proceeds of the sale of the vehicle. The remaining proceeds of the sale shall be paid to PennDOT and transmitted to the State Treasurer for deposit in the Motor License Fund.

In addition, if the wholesale vehicle auction does not intend to sell or legally obtain ownership of an abandoned vehicle, existing law at § 7311.1 (c) (Salvors) provides that an abandoned vehicle can be towed to a salvor’s property and the salvor may elect to file a report with the local police department.

Again, when the abandoned vehicle has been transferred to a salvor and the vehicle is subsequently sold at auction, the legislation provides that:

• The salvor shall recover the appropriate costs of towing and storage.
• The wholesale vehicle auction shall be reimbursed for the cost of storing, providing notice, obtaining title, and processing related to the vehicle when the additional funds are available because of the salvor’s auction.
• The remaining proceeds of the sale shall be paid to PennDOT and transmitted to the state Treasurer for deposit in the Motor License Fund.

In this way, economic waste is avoided, and it encourages the dealers not to abandon their vehicles at the wholesale vehicle auction. In addition, licensed auctions entities are entrusted with these vehicles to auction between licensed dealer buyers and dealer sellers. This sale can reduce the loss of funds that 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.

The bill, as originally drafted, 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.

REQUIREMENTS FOR SALE OF SCRAP MATERIALS/STOPPING CATALYTIC CONVERTER ROBBERIES

House Bill 791² (Isaacson-D) amends the Scrap Material Theft Prevention Act (Act 113 of 2008) to place additional requirements on scrap processors and recycling facility operators who purchase catalytic converters or scrap material that bears a name or mark under Title 54 Chapter 15 (reusable marked articles and receptacles).

• Status: Passed House, 119-84, 6/28/2023 – In Senate Consumer Protection & Professional Licensure, 7/17/2023

Section 3(a) is amended to add the requirement that scrap processors and recycling facility operators collect identification information if the scrap material bears a name or mark. The legislation imposes a new penalty for a scrap processor or recycling facility that fails to collect the required information in Section 3 (e).

An individual who violates this section would be guilty of a misdemeanor of the third degree. The amendment sets the minimum fine for a conviction at $5,000. A misdemeanor of the third degree is punishable by imprisonment not to exceed 1 year.

The legislation adds sections 3 (a.1) and 3 (c.1) which require that recycling facilities collect additional information and comply with a holding period for transactions that include a catalytic converter.

The legislation further adds section 7 (c) which makes it an offense for a person that is not affiliated with a commercial account to, without proper justification, intentionally possess a detached catalytic converter. This offense is a misdemeanor of the third degree and is punishable by up to one year in jail or a fine of up to $2,500.

This legislation would take effect in 60 days upon enactment.

EXPEDITING JUNK TITLING FOR ABANDONED VEHICLES

House Bill 2251³ (Neilson-D) amends Title 75 (Vehicles), in abandoned vehicles and cargos, further providing for notice to owner and lienholders of abandoned vehicles, for authorization for disposal of unclaimed vehicles and for processing of nonrepairable or salvage vehicles.

• Status: Passed House, 201-1, 6/3/2024 – In Senate Transportation, 6/4/2024

Adds language throughout the act to give the department 10 days to review the process around the issuance of junk titles and require the approval or denial of an application within 10 days. Effective in 60 days.

Please be assured that we will keep you apprised of these issues as they move through the legislative process. With a little luck, let us hope these issues get addressed before the end of the session.

1. Senate Bill 1129 https://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2023&sind=0&body=S&-type=B&bn=1129
2. House Bill 791 https://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2023&sInd=0&body=h&-type=b&bn=791
3. House Bill 2251 https://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2023&sInd=0&body=h&-type=b&bn=2251