House File 482 - Introduced




                                 HOUSE FILE       
                                 BY  KAUFMANN

                                      A BILL FOR

  1 An Act relating to vehicle recyclers, including the transfer of
  2    motor vehicles to vehicle recyclers and compliance with the
  3    national motor vehicle title information system, and making
  4    penalties applicable.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2328YH (3) 86
    ns/nh

PAG LIN



  1  1    Section 1.  Section 321.45, subsection 2, paragraph a, Code
  1  2 2015, is amended by adding the following new subparagraph:
  1  3    NEW SUBPARAGRAPH.  (5)  The vehicle is disposed of pursuant
  1  4 to section 321.52, subsection 2, paragraph "b".
  1  5    Sec. 2.  Section 321.46, subsection 1, Code 2015, is amended
  1  6 to read as follows:
  1  7    1.  The transferee shall, within thirty calendar days after
  1  8 purchase or transfer, apply for and obtain from the county
  1  9 treasurer of the person's residence, or if a nonresident, the
  1 10 county treasurer of the county where the primary users of the
  1 11 vehicle are located or the county where all other vehicles
  1 12 owned by the nonresident are registered, or in the case of a
  1 13 mobile home or manufactured home, the county treasurer of the
  1 14 county where the mobile home or manufactured home is located,
  1 15 or if a firm, association, or corporation with vehicles in
  1 16 multiple counties, the transferee may apply for and obtain
  1 17 from the county treasurer of the county where the primary
  1 18 user of the vehicle is located, a new registration and a new
  1 19 certificate of title for the vehicle except as provided in
  1 20 section 321.25, 321.48, or 322G.12, or when the transferee
  1 21 obtains the vehicle pursuant to section 321.52, subsection
  1 22 2, paragraph "b". The transferee shall present with the
  1 23 application the certificate of title endorsed and assigned by
  1 24 the previous owner and shall indicate the name of the county
  1 25 in which the vehicle was last registered and the registration
  1 26 expiration date.
  1 27    Sec. 3.  Section 321.52, subsection 2, Code 2015, is amended
  1 28 to read as follows:
  1 29    2.  a.  The purchaser or transferee of a motor vehicle
  1 30 subject to registration for which a certificate of title is
  1 31 issued which is sold for scrap or junk shall surrender the
  1 32 certificate of title, properly endorsed and signed by the
  1 33 previous owner, to the county treasurer of the county of
  1 34 residence of the transferee, and shall apply for a junking
  1 35 certificate from the county treasurer, within thirty days after
  2  1 assignment of the certificate of title, except when the vehicle
  2  2 is disposed of pursuant to paragraph "b". The county treasurer
  2  3 shall issue to such person without fee a junking certificate.
  2  4 A junking certificate shall authorize the holder to possess,
  2  5 transport, or transfer by endorsement the ownership of the
  2  6 junked vehicle. A certificate of title shall not again be
  2  7 issued for the vehicle subsequent to the issuance of a junking
  2  8 certificate except as provided in subsection 3. The county
  2  9 treasurer shall cancel the record of the vehicle. The junking
  2 10 certificate shall be printed on the registration receipt form
  2 11 and shall be imprinted with the words "junking certificate",
  2 12 as prescribed by the department. A space for transfer by
  2 13 endorsement shall be on the junking certificate. A separate
  2 14 form for the notation of the transfer of component parts shall
  2 15 be attached to the junking certificate when the certificate is
  2 16 issued.
  2 17    b.  The owner of a motor vehicle subject to registration that
  2 18 does not have a certificate of title or a junking certificate
  2 19 may dispose of the vehicle to a vehicle recycler licensed under
  2 20 chapter 321H for scrap or junk if the vehicle is twelve model
  2 21 years old or older and is valued for scrap at less than one
  2 22 thousand dollars.
  2 23    Sec. 4.  Section 321.52, subsection 3, paragraph a, Code
  2 24 2015, is amended to read as follows:
  2 25    a.  When a vehicle for which a certificate of title is issued
  2 26 is junked or dismantled by the owner, the owner shall detach
  2 27 the registration plates and surrender the plates to the county
  2 28 treasurer, unless the plates are properly assigned to another
  2 29 vehicle. The owner shall also surrender the certificate of
  2 30 title to the county treasurer except when the vehicle is
  2 31 disposed of pursuant to subsection 2, paragraph "b".
  2 32    Sec. 5.  Section 321.67, Code 2015, is amended to read as
  2 33 follows:
  2 34    321.67  Certificate of title must be executed.
  2 35    1.  No person, except as provided in sections 321.23 and
  3  1 321.45, and section 321.52, subsection 2, paragraph "b", shall
  3  2 sell or otherwise dispose of a registered vehicle or a vehicle
  3  3 subject to registration without delivering to the purchaser or
  3  4 transferee thereof a certificate of title with such assignment
  3  5 thereon as may be necessary to show title in the purchaser.
  3  6    2.  No person shall purchase or otherwise acquire or bring
  3  7 into this state a registered vehicle or a vehicle subject to
  3  8 registration without obtaining a certificate of title thereto
  3  9 except for temporary use or as provided in sections 321.23 and
  3 10 321.45, and section 321.52, subsection 2, paragraph "b".
  3 11    Sec. 6.  Section 321.104, subsection 4, Code 2015, is amended
  3 12 to read as follows:
  3 13    4.  To sell, offer for sale, or transfer a motor vehicle,
  3 14 trailer, or semitrailer, except as provided in section 321.47
  3 15 or 321.48, or section 321.52, subsection 2, paragraph "b",
  3 16  without obtaining a certificate of title in the name of the
  3 17 seller or transferor or without delivering to the purchaser
  3 18 or transferee a certificate of title or a manufacturer's or
  3 19 importer's certificate duly assigned to the purchaser or
  3 20 transferee as provided in this chapter.
  3 21    Sec. 7.  Section 321H.2, Code 2015, is amended by adding the
  3 22 following new subsection:
  3 23    NEW SUBSECTION.  3A.  "National motor vehicle title
  3 24 information system" means the federally mandated motor vehicle
  3 25 title history database maintained by the United States
  3 26 department of justice that links the states' motor vehicle
  3 27 title records, including the department's title records, and
  3 28 that requires the reporting of junk and salvage motor vehicles
  3 29 in order to ensure that states, law enforcement agencies,
  3 30 insurers, and consumers have access to information that enables
  3 31 the verification of a vehicle's history, and the accuracy and
  3 32 legality of a motor vehicle's title, before a purchase or title
  3 33 transfer occurs.
  3 34    Sec. 8.  Section 321H.4, subsection 2, paragraph a, Code
  3 35 2015, is amended to read as follows:
  4  1    a.  Application for a license as an authorized vehicle
  4  2 recycler shall be made to the department on forms provided by
  4  3 the department. The application shall be accompanied by a
  4  4 fee of seventy dollars for a two=year period or part thereof
  4  5 and proof of registration with the national motor vehicle
  4  6 title information system. The license shall be approved or
  4  7 disapproved within thirty days after application for the
  4  8 license. A license expires on December 31 of even=numbered
  4  9 years. A licensee shall have the month of expiration and the
  4 10 month after the month of expiration to renew the license. A
  4 11 person who fails to renew a license by the end of this time
  4 12 period and desires to hold a license shall file a new license
  4 13 application and pay the required fee. A separate license shall
  4 14 be obtained for each county in which an applicant conducts
  4 15 operations.
  4 16    Sec. 9.  NEW SECTION.  321H.4A  National motor vehicle title
  4 17 information system.
  4 18    1.  A vehicle recycler licensed under this chapter and
  4 19 subject to the requirements of 28 C.F.R. {25.56 shall register
  4 20 with the national motor vehicle title information system.
  4 21    2.  a.  Except as provided in paragraph "b", for any vehicle
  4 22 subject to registration under chapter 321 purchased by a
  4 23 vehicle recycler licensed under this chapter and subject to the
  4 24 requirements of 28 C.F.R. {25.56, the vehicle recycler shall
  4 25 comply with the reporting requirements of 28 C.F.R. {25.56
  4 26 within forty=eight hours of purchasing the vehicle. Records of
  4 27 the vehicle recycler's compliance shall be kept by the vehicle
  4 28 recycler for at least three years after the purchase of the
  4 29 vehicle, and shall be open for inspection by any peace officer
  4 30 during normal business hours. The department shall adopt rules
  4 31 to implement this section, including but not limited to rules
  4 32 requiring the retention of records not required by 28 C.F.R.
  4 33 {25.56.
  4 34    b.  Paragraph "a" does not apply to a vehicle that has
  4 35 been crushed or flattened by mechanical means in such a way
  5  1 that it no longer resembles the vehicle described by the
  5  2 certificate of title if the vehicle recycler who purchased the
  5  3 vehicle verifies that the seller of the vehicle has met the
  5  4 requirements of paragraph "a". The department shall adopt rules
  5  5 relating to the form of the verification, and the manner in
  5  6 which the verification shall be retained.
  5  7    Sec. 10.  Section 321H.5, Code 2015, is amended to read as
  5  8 follows:
  5  9    321H.5  Display of license.
  5 10    A license issued under the provisions of this chapter shall
  5 11 specify the location of the principal place of business, the
  5 12 location of each extension within the county of the principal
  5 13 place of business and the, and the licensee's registration
  5 14 number for the national motor vehicle title information system.
  5 15 The license shall be conspicuously displayed at the principal
  5 16 place of business except during periods when the license is
  5 17 surrendered for modifications.
  5 18    Sec. 11.  Section 321H.6, unnumbered paragraph 1, Code 2015,
  5 19 is amended to read as follows:
  5 20    The license of a person issued under the provisions of
  5 21 this chapter may be denied, revoked, or suspended, and an
  5 22 application for a license under this chapter may be denied, if
  5 23 the department finds any of the following:
  5 24    Sec. 12.  Section 321H.6, Code 2015, is amended by adding the
  5 25 following new subsection:
  5 26    NEW SUBSECTION.  7.  The licensee has failed to comply with
  5 27 section 321H.4A or 28 C.F.R. {25.56.
  5 28                           EXPLANATION
  5 29 The inclusion of this explanation does not constitute agreement with
  5 30 the explanation's substance by the members of the general assembly.
  5 31    This bill relates to vehicle recyclers, including the
  5 32 transfer of motor vehicles to vehicle recyclers and compliance
  5 33 with the national motor vehicle title information system.
  5 34    The bill provides that the owner of a motor vehicle that
  5 35 does not have a certificate of title or a junking certificate
  6  1 may dispose of the vehicle to a vehicle recycler licensed
  6  2 under Code chapter 321H for scrap or junk if the vehicle is 12
  6  3 model years old or older and is valued for scrap at less than
  6  4 $1,000. The bill exempts vehicles disposed of this way from
  6  5 certain title application, delivery, surrender, and transfer
  6  6 requirements.
  6  7    The bill defines "national motor vehicle title information
  6  8 system" (NMVTIS) as the federally mandated motor vehicle title
  6  9 history database maintained by the United States department of
  6 10 justice that links the states' motor vehicle title records,
  6 11 including the department of transportation's title records, and
  6 12 that requires the reporting of junk and salvage motor vehicles
  6 13 in order to ensure that states, law enforcement agencies,
  6 14 insurers, and consumers have access to information that enables
  6 15 the verification of a vehicle's history, and the accuracy and
  6 16 legality of a motor vehicle's title, before a purchase or title
  6 17 transfer occurs.
  6 18    The bill requires applicants seeking to become an authorized
  6 19 vehicle recycler to provide proof of registration with the
  6 20 NMVTIS.  In addition, the bill requires a vehicle recycler
  6 21 license to state the licensee's registration number for the
  6 22 NMVTIS.
  6 23    The bill requires a licensed vehicle recycler subject to
  6 24 federal regulations relating to the NMVTIS to register with the
  6 25 NMVTIS, and for any vehicle purchased by the vehicle recycler,
  6 26 to comply with the federal reporting requirements within 48
  6 27 hours of purchasing the vehicle. Records of the vehicle
  6 28 recycler's compliance shall be kept by the vehicle recycler for
  6 29 at least three years after the purchase of the vehicle, and
  6 30 shall be open for inspection by any peace officer during normal
  6 31 business hours. The bill provides that the department of
  6 32 transportation shall adopt rules to implement these provisions,
  6 33 including but not limited to rules requiring the retention of
  6 34 records not required by federal regulations relating to the
  6 35 NMVTIS.  These requirements do not apply to a vehicle that
  7  1 has been crushed or flattened by mechanical means in such a
  7  2 way that it no longer resembles the vehicle described by the
  7  3 certificate of title if the vehicle recycler who purchased
  7  4 the vehicle verifies that the seller of the vehicle has met
  7  5 the requirements. The bill provides that the department of
  7  6 transportation shall adopt rules relating to the form of the
  7  7 verification, and the manner in which the verification shall
  7  8 be retained. A violation of these provisions is a serious
  7  9 misdemeanor punishable by a fine of at least $315, but not to
  7 10 exceed $1,875, and imprisonment not to exceed one year.
  7 11    The bill provides that an authorized vehicle recycler
  7 12 license, or an application for such a license, may be denied,
  7 13 revoked, or suspended if the department of transportation finds
  7 14 that the licensee has not complied with the provisions of the
  7 15 bill or with federal regulations relating to the NMVTIS.
       LSB 2328YH (3) 86
       ns/nh