Iowa-2015-HF482-Introduced
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