DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 790 Engrossed 2022 Regular Session Hollis
Abstract: Establishes alternative requirements for liens not released within seven days of
satisfaction.
Present law provides the requirements for an application for certificates of title, including salvage
title.
Present law specifies when, as the result of an insurance settlement, a motor vehicle is declared to
be a "total loss", as defined in present law, the insurance company, its authorized agent, or the
vehicle owner shall, within 30 days from the settlement of the property damages claim, send the
certificate of title, properly endorsed, to the office of motor vehicles along with an application for
a salvage title in the name of the insurance company, or its authorized agent, or the vehicle owner.
Present law provides the requirements for when an insurance company or its authorized agent may
submit an application for a salvage title and signed under penalty of perjury.
Proposed law retains present law and adds alternative requirements when a lien has not been released
within seven days of satisfaction.
Proposed law specifies an insurance company or its authorized agent may submit proof of full
payment and a copy of the most recent letter of guarantee from each holder of a lien that has not been
released indicating the payoff amount.
Proposed law specifies if payment is made by check, proof of payment must consist of the front and
back of the paid check listing all endorsements of the named payees. Further specifies the evidence
needed for electronic transfer payments, including a screenshot of payment submissions along with
a certification the payment was not returned.
(Amends R.S. 32:707(I)(1)(b)(iv))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation, Highways and
Public Works to the original bill:
1. Make technical changes. 2. Remove a provision that prohibited the notarized signature or electronic signature of the
owner who has received or is to receive a total loss settlement relative to any document,
including an original or certified copy of a power of attorney, supporting an application
for certificate of ownership or certificate of salvage title by an insurer or an agent of an
insurer.
3. Modify proof of payment language when a lien has not been released in seven days to
authorize the insurer or its agent to provide proof of full payment and a copy of the most
recent letter of guarantee from the lien holder indicating the payoff amount.
4. Clarify that payments made by check must consist of a copy of the front and back of the
paid check listing all endorsements of the named payees.
5. Add a requirement that any screenshot of payment submission certify that the payoff
funds were not returned by the lienholder.