Committee clears bill allowing electronic notarized power-of-attorney for total-loss vehicle settlements
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Summary
House Bill 2303 would permit an owner's notarized power of attorney for a total-loss vehicle settlement to be signed electronically using commercial identity-validation products; the committee gave the bill a due-pass recommendation with an agreed floor amendment to prohibit biometric requirements.
House Bill 2303 would allow a notarized power of attorney used in a total-loss vehicle settlement to be signed electronically and printed on hard copy when the electronic process uses a commercial identity-validation product.
Committee testimony from Carrie Hayden, representing Copart Inc., the salvage-auction company, said the change would speed insurance settlements and title conversion for totaled vehicles by allowing validated electronic identity verification rather than requiring in-person notarization. Hayden described the companies as partners with many insurers and said the ability to use commercial identity products "get[s] the money in the customer's hands to replace their vehicle much more quickly and allow us to use commercial products."
The sponsor and stakeholders agreed on a short floor amendment to add the words "without biometrics" after the word "authorization," to clarify that the commercial identity verification products would not require biometric identifiers such as face-recognition or fingerprint matching. Hayden explained the amendment is intended to keep the process aligned with National Institute of Standards and Technology (NIST) identity-assurance-level 2 methods (for example, a combination of email, phone and password confirmation) rather than higher-level biometric authentication, which the sponsor and industry said would undercut the bill's goal of simplifying the process.
Formal action: The committee returned HB 2303 with a due-pass recommendation after the sponsor and stakeholder agreed to the floor amendment. The secretary recorded a committee roll call with 7 ayes, 0 nays.
Why it matters: Supporters said the bill streamlines salvage transfers and total-loss settlements, reducing time to payment for consumers and allowing salvaged vehicles to be processed and sold more quickly; the amendment was added to address privacy and biometric concerns.
Next steps: HB 2303 will move forward with the agreed floor amendment; the sponsor indicated the amendment will be offered on the floor.
