SB 273 is a piece of legislation recently introduced in the Ohio State Senate which would open auto salvage auctions to unqualified buyers. This bill would have negative statewide impacts including killing Ohio jobs, putting consumer safety at risk, limiting law enforcement and damaging the environment.

Myth: Opening automotive salvage pool auctions to the public would encourage fair competition in the marketplace.
Fact: SB273 creates an un-level playing field in the Ohio auto salvage marketplace by granting unfair advantages to unqualified out-of-state and in-state bidders. As unqualified out-of-state competition drives up the price of salvage vehicles, Ohio businesses will be unable to compete and forced to reduce their workforces and close.

Myth: The Ohio auto industry will benefit from the passage of SB273.
Fact: SB 273 will force local Ohio auto recyclers to lay off dozens of workers and many will be forced out of businesses entirely. Hundreds of multi-generation, family-owned Ohio auto recycling businesses are united in their strong opposition to SB 273.

Myth: If profits from automotive salvage auctions were to rise under SB273 then that would benefit the state of Ohio.
Fact: Ohio will be deprived of much-needed tax income and in-state business revenues under SB273. The bill favors out-of-state buyers and allows them to purchase unlimited salvage vehicles at auction. All profits from these salvage purchases by out-of-state buyers will benefit the buyers’ home states, not Ohio.  Plus, the actual work to harvest usable parts would be done not by Ohio’s professional recyclers, but by out of state businesses.

Myth: SB273 would have no direct effect on the average Ohio resident.
Fact:  The safety of everyone traveling in Ohio would be threatened since SB273 would make it much easier for unsafe vehicles bought at salvage auctions to return to the roads. The bill also would leave consumers more vulnerable to auto fraud and deception by eliminating existing safeguards.

Myth: Automotive salvage auction buyers would have to meet established criteria to obtain severely damaged and potentially dangerous vehicles at auctions.
Fact: SB273 will open auto salvage auction to any and all unqualified members of the general public. By eliminating any state oversight, the bill also would give criminals unlimited access to salvage vehicles they can use for illegal purposes.

Myth: Senate Bill 273 poses no threat to the environment.
Fact: SB 273 would permit unqualified individuals to handle and dispose of environmentally-damaging materials such as mercury, oil, and gasoline. Many of these buyers are not even aware of how to properly handle and dispose of such hazardous materials.  Under the current system, the purchase of salvage vehicles is largely restricted to professional recyclers who adhere to stringent environmental safeguards.

Myth: Senate Bill 273 supports law enforcement and hinders criminals who prey on Ohio consumers.
Fact: With SB273’s reckless elimination of essential state oversight, law enforcement will not have valid and accurate information to track criminals. The law would allow scam artists to operate with virtual impunity until it is too late to trace their purchases and the illegal resale of auction vehicles to unsuspecting buyers in Ohio.

Myth: The passage of SB273 will decrease consumer auto insurance rates in Ohio
Fact: SB 273 will have no effect on individual auto premiums in Ohio. Auto insurance rates are not based upon incoming profits from salvage returns, but rather upon numerous risk variables associated with each driver.