Bill Text: IA HF674 | 2023-2024 | 90th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to vehicles, including by providing for registration and titling of motor vehicles by any county treasurer, by modifying related fees and the amount of fees retained by county treasurers, and the definitions of terms for purposes of motor vehicle franchisers, and including effective date provisions. (Formerly HF 344, HF 55.) Effective date: 07/01/2024, 01/01/2025.

Spectrum: Committee Bill

Status: (Passed) 2024-05-08 - Signed by Governor. H.J. 935. [HF674 Detail]

Download: Iowa-2023-HF674-Introduced.html
House File 674 - Introduced HOUSE FILE 674 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 344) (SUCCESSOR TO HF 55) A BILL FOR An Act regarding the registration and titling of motor 1 vehicles, including by providing for initial registration 2 and titling by any county treasurer and by modifying related 3 fees and the amount of fees retained by county treasurers, 4 and including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1245HZ (2) 90 th/ns
H.F. 674 Section 1. Section 321.20, subsection 1, unnumbered 1 paragraph 1, Code 2023, is amended to read as follows: 2 Except as provided in this chapter , an owner of a vehicle , 3 or a lessor of a vehicle pursuant to chapter 321F which has a 4 gross vehicle weight of less than ten thousand pounds, which 5 is subject to registration , shall make application to the any 6 county treasurer of the county of the owner’s residence, or 7 if a nonresident, to the county treasurer of the county where 8 the primary users of the vehicle are located, or if a lessor 9 of the vehicle pursuant to chapter 321F which vehicle has a 10 gross vehicle weight of less than ten thousand pounds, to the 11 county treasurer of the county of the lessee’s residence, 12 or if a firm, association, or corporation with vehicles in 13 multiple counties, the owner may make application to the county 14 treasurer of the county where the primary user of the vehicle 15 is located, for the initial registration and issuance of a 16 certificate of title for the vehicle upon the appropriate form 17 furnished by the department. However, upon the transfer of 18 ownership, the owner of a vehicle subject to the apportioned 19 registration provisions of chapter 326 shall make application 20 for issuance of a certificate of title to either the department 21 or the appropriate any county treasurer. The owner of a 22 vehicle purchased pursuant to section 578A.7 shall present 23 documentation that such sale was completed in compliance 24 with that section. The application shall be accompanied by 25 a fee of twenty thirty dollars, and shall bear the owner’s 26 signature. A nonresident owner of two or more vehicles subject 27 to registration may make application for initial registration 28 and issuance of a certificate of title for all vehicles subject 29 to registration to the any county treasurer of the county where 30 the primary user of any of the vehicles is located . The owner 31 of a mobile home or manufactured home shall make application 32 for a certificate of title under this section from the county 33 treasurer of the county where the mobile home or manufactured 34 home is located. The application shall contain: 35 -1- LSB 1245HZ (2) 90 th/ns 1/ 24
H.F. 674 Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2023, 1 are amended to read as follows: 2 2. Notwithstanding contrary provisions of this chapter 3 or chapter 326 regarding titling and registration by means 4 other than electronic means, the department shall , by July 1, 5 2019, develop and implement a program to allow for electronic 6 applications, titling, registering initial registrations , and 7 funds transfers for vehicles subject to registration in order 8 to improve the efficiency and timeliness of the processes and 9 to reduce costs for all parties involved. The program shall 10 also provide for the electronic submission of any statement 11 required by this section , except where prohibited by federal 12 law. 13 3. The department shall adopt rules on pursuant to chapter 14 17A to administer this section, including rules relating to the 15 method for providing signatures for applications and statements 16 required by this section that are made by electronic means. 17 4. Notwithstanding this section or any other provision of 18 law to the contrary, if the program required by subsection 19 2 is not implemented by July 1, 2019, an owner of a vehicle 20 subject to registration may apply to the county treasurer of a 21 county contiguous to the county designated for the owner under 22 subsection 1 for registration and issuance of a certificate of 23 title. 24 Sec. 3. Section 321.20A, subsection 1, Code 2023, is amended 25 to read as follows: 26 1. Notwithstanding other provisions of this chapter , 27 the owner of a commercial vehicle subject to the apportioned 28 registration provisions of chapter 326 may make application 29 to the department or the appropriate any county treasurer 30 for a certificate of title. The owner of a commercial 31 vehicle purchased pursuant to section 578A.7 shall present 32 documentation that such sale was completed in compliance with 33 that section. The application for certificate of title shall 34 be made within thirty days of purchase or transfer and shall be 35 -2- LSB 1245HZ (2) 90 th/ns 2/ 24
H.F. 674 accompanied by a twenty dollar thirty-dollar title fee and the 1 appropriate fee for new registration. The department or the 2 county treasurer shall deliver the certificate of title to the 3 owner if there is no security interest. If there is a security 4 interest, the title, when issued, shall be delivered to the 5 first secured party. Delivery may be made using electronic 6 means. 7 Sec. 4. Section 321.23, subsections 3 and 4, Code 2023, are 8 amended to read as follows: 9 3. In the event an applicant for initial registration of 10 a foreign vehicle for which a certificate of title has been 11 issued is able to furnish evidence of being the registered 12 owner of the vehicle to the any county treasurer of the owner’s 13 residence , although unable to surrender such certificate 14 of title, the county treasurer may issue a registration 15 receipt and plates upon receipt of the required annual 16 registration fee and the fee for new registration but shall 17 not issue a certificate of title thereto. Upon surrender of 18 the certificate of title from the foreign state, the county 19 treasurer shall issue a certificate of title to the owner, 20 or person entitled thereto, of such vehicle as provided in 21 this chapter . The owner of a vehicle registered under this 22 subsection shall not be required to obtain a certificate of 23 title in this state and may transfer ownership of the vehicle 24 to a motor vehicle dealer licensed under chapter 322 or an 25 insurance carrier authorized to do business in this state 26 if, at the time of the transfer, the certificate of title is 27 held by a secured party and the dealer or insurance carrier, 28 as applicable, has forwarded to the secured party the sum 29 necessary to discharge the security interest pursuant to 30 section 321.48, subsection 1 . 31 4. A vehicle which does not meet the equipment requirements 32 of this chapter due to the particular use for which it is 33 designed or intended, may be registered by the department 34 upon payment of appropriate fees and after inspection and 35 -3- LSB 1245HZ (2) 90 th/ns 3/ 24
H.F. 674 certification by the department that the vehicle is not 1 in an unsafe condition. A person is not required to have 2 a certificate of title to register a vehicle under this 3 subsection . If the owner elects to have a certificate of title 4 issued for the vehicle, a fee of twenty thirty dollars shall be 5 paid by the person making the application upon issuance of a 6 certificate of title. If the department’s inspection reveals 7 that the vehicle may be safely operated only under certain 8 conditions or on certain types of roadways, the department may 9 restrict the registration to limit operation of the vehicle to 10 the appropriate conditions or roadways. This subsection does 11 not apply to snowmobiles as defined in section 321G.1 . Section 12 321.382 does not apply to a vehicle registered under this 13 subsection which is operated exclusively by a person with a 14 disability who has obtained a persons with disabilities parking 15 permit as provided in section 321L.2 , if the persons with 16 disabilities parking permit is carried in or on the vehicle and 17 shown to a peace officer on request. 18 Sec. 5. Section 321.25, subsection 1, Code 2023, is amended 19 to read as follows: 20 1. A vehicle may be operated upon the highways of this 21 state without registration plates for a period of forty-five 22 days after the date of delivery of the vehicle to the purchaser 23 from a dealer if a card bearing the words “registration applied 24 for” is attached on the rear of the vehicle. The card shall 25 have plainly stamped or stenciled the registration number of 26 the dealer from whom the vehicle was purchased and the date 27 of delivery of the vehicle. In addition, a dealer licensed 28 to sell new motor vehicles may attach the card to a new motor 29 vehicle delivered by the dealer to the purchaser even if the 30 vehicle was purchased from an out-of-state dealer and the card 31 shall bear the registration number of the dealer that delivered 32 the vehicle. A dealer shall not issue a card to a person known 33 to the dealer to be in possession of registration plates which 34 may be attached to the vehicle. A dealer shall not issue a card 35 -4- LSB 1245HZ (2) 90 th/ns 4/ 24
H.F. 674 unless an application for initial registration and certificate 1 of title has been made by the purchaser and a receipt issued to 2 the purchaser of the vehicle showing the fee paid by the person 3 making the application. Dealers’ records shall indicate the 4 agency to which the fee is sent and the date the fee is sent. 5 The dealer shall forward the application by the purchaser to 6 the county treasurer or state office within thirty calendar 7 days from the date of delivery of the vehicle. However, if the 8 vehicle is subject to a security interest and has been offered 9 for sale pursuant to section 321.48, subsection 1 , the dealer 10 shall forward the application by the purchaser to the county 11 treasurer or state office within thirty calendar days from the 12 date of the delivery of the vehicle to the purchaser. 13 Sec. 6. Section 321.26, subsection 2, Code 2023, is amended 14 to read as follows: 15 2. The county treasurer may adjust the registration renewal 16 or expiration date of vehicles registered in the county for 17 which the county treasurer is responsible for renewal under 18 section 321.40 when deemed necessary to equalize the number 19 of vehicles registered in each twelve-month period or for the 20 administrative efficiency of the county treasurer’s office. 21 The adjustment shall be accomplished by delivery of a written 22 notice to the vehicle owner of the adjustment and allowance of 23 a credit for the remaining months of the unused portion of the 24 annual registration fee, rounded to the nearest whole dollar, 25 which amount shall be deducted from the annual registration 26 fee due at the time of registration. Upon receipt of the 27 notification the owner shall, within thirty days, surrender 28 the registration card and registration plates to a any county 29 treasurer, except that the registration plates shall not be 30 surrendered if validation stickers or other emblems are used 31 to designate the month and year of expiration of registration. 32 Upon payment of the annual registration fee, less the credit 33 allowed for the remaining months of the unused portion of the 34 annual registration fee, the county treasurer of the county 35 -5- LSB 1245HZ (2) 90 th/ns 5/ 24
H.F. 674 where the vehicle is registered that adjusted the registration 1 renewal or expiration date of the vehicle shall issue a new 2 registration card and registration plates, validation stickers, 3 or emblems which indicate the month and year of expiration of 4 registration. 5 Sec. 7. Section 321.29, Code 2023, is amended to read as 6 follows: 7 321.29 Renewal not permitted. 8 Any vehicle once registered in the state and by removal no 9 longer subject to registration in this state, shall upon being 10 returned to this state and subject to registration be again 11 initially registered in accordance with section 321.20 . 12 Sec. 8. Section 321.34, subsection 1, Code 2023, is amended 13 to read as follows: 14 1. Plates issued. The county treasurer upon receiving 15 application, accompanied by proper fee, for registration of a 16 vehicle shall issue to the owner one registration plate for 17 a motorcycle, motorized bicycle, autocycle, truck tractor, 18 trailer, or semitrailer and two registration plates for every 19 other motor vehicle. The registration plates, including 20 special registration plates, shall be assigned to the owner of 21 a vehicle. When the owner of a registered vehicle transfers or 22 assigns ownership of the vehicle to another person, the owner 23 shall remove the registration plates from the vehicle. The 24 owner shall forward the plates to a any county treasurer or the 25 owner may have the plates assigned to another vehicle within 26 thirty days after transfer, upon payment of the fees required 27 by law. The owner shall immediately affix registration plates 28 retained by the owner to another vehicle owned or acquired by 29 the owner, providing the owner complies with section 321.46 . 30 The department shall adopt rules providing for the assignment 31 of registration plates to the transferee of a vehicle for which 32 a credit is allowed under section 321.46, subsection 6 . 33 Sec. 9. Section 321.40, subsection 1, Code 2023, is amended 34 to read as follows: 35 -6- LSB 1245HZ (2) 90 th/ns 6/ 24
H.F. 674 1. Application for renewal for a vehicle registered under 1 this chapter shall be made on or after the first day of the 2 month prior to the month of expiration of registration and up 3 to and including the last day of the month following the month 4 of expiration of registration. The application for renewal 5 shall be submitted to the county treasurer of the county of 6 the owner’s residence; or if a nonresident, to the county 7 treasurer of the county where the primary users of the vehicle 8 are located; or if a lessor of the vehicle pursuant to chapter 9 321F which has a gross vehicle weight of less than ten thousand 10 pounds, to the county treasurer of the county of the lessee’s 11 residence; or if a firm, association, or corporation with 12 vehicles in multiple counties, to the county treasurer of the 13 county where the primary user of the vehicle is located. The 14 registration shall be renewed upon payment of the appropriate 15 annual registration fee. Application for renewal for a vehicle 16 registered under chapter 326 shall be made on or after the 17 first day of the month prior to the month of expiration of 18 registration and up to and including the last day of the month 19 of expiration of registration. 20 Sec. 10. Section 321.42, subsection 2, paragraphs a, c, and 21 d, Code 2023, are amended to read as follows: 22 a. If a certificate of title is lost or destroyed, the 23 owner or lienholder shall apply for a replacement copy of the 24 original certificate of title. The owner or lienholder of a 25 motor vehicle may also apply for a replacement copy of the 26 original certificate of title upon surrender of the original 27 certificate of title with the application. The application 28 shall be made to the department or any county treasurer who 29 issued the original certificate of title . The application 30 shall be signed by the owner or lienholder and accompanied by a 31 fee of twenty thirty dollars. 32 c. If a security interest noted on the face of an original 33 certificate of title was released by the lienholder on a 34 separate form pursuant to section 321.50, subsection 5 , and 35 -7- LSB 1245HZ (2) 90 th/ns 7/ 24
H.F. 674 the signature of the lienholder, or the person executing the 1 release on behalf of the lienholder, is notarized, but the 2 lienholder has not delivered the original certificate to the 3 appropriate party as provided in section 321.50, subsection 5 , 4 the owner may apply for and receive a replacement certificate 5 of title without the released security interest noted thereon. 6 The lienholder shall return the original certificate of title 7 to the department or to the any county treasurer of the county 8 where the title was issued . 9 d. A new purchaser or transferee is entitled to receive 10 an original title upon presenting the assigned replacement 11 copy to the any county treasurer of the county where the new 12 purchaser or transferee resides . At the time of purchase, a 13 purchaser may require the seller to indemnify the purchaser and 14 all future purchasers of the vehicle against any loss which 15 may be suffered due to claims on the original certificate. A 16 person recovering an original certificate of title for which 17 a replacement has been issued shall surrender the original 18 certificate to the county treasurer or the department. 19 Sec. 11. Section 321.46, subsections 1, 2, and 5, Code 2023, 20 are amended to read as follows: 21 1. The transferee shall, within thirty calendar days after 22 purchase or transfer, apply for and obtain from the any county 23 treasurer of the person’s residence, or if a nonresident, the 24 county treasurer of the county where the primary users of the 25 vehicle are located or the county where all other vehicles 26 owned by the nonresident are registered, or in the case of a 27 mobile home or manufactured home, the county treasurer of the 28 county where the mobile home or manufactured home is located, 29 or if a firm, association, or corporation with vehicles in 30 multiple counties, the transferee may apply for and obtain from 31 the county treasurer of the county where the primary user of 32 the vehicle is located, a new initial registration and a new 33 certificate of title for the vehicle, except as provided in 34 section 321.25 , 321.48 , or 322G.12 , or when the transferee 35 -8- LSB 1245HZ (2) 90 th/ns 8/ 24
H.F. 674 obtains the vehicle pursuant to section 321.52, subsection 2 , 1 paragraph “b” . In the case of a mobile home or manufactured 2 home, the transferee shall, within thirty calendar days after 3 purchase or transfer, apply for and obtain from the county 4 treasurer of the county where the mobile home or manufactured 5 home is located a new certificate of title. The transferee 6 shall present with the application the certificate of title 7 endorsed and assigned by the previous owner and shall indicate 8 the name of the county in which the vehicle was last registered 9 and the registration expiration date. 10 2. Upon filing the application for a new initial 11 registration and a new title, the applicant shall pay a title 12 fee of twenty thirty dollars, an annual registration fee 13 prorated for the remaining unexpired months of the registration 14 year, and a fee for new registration if applicable. A 15 manufacturer applying for a certificate of title pursuant 16 to section 322G.12 shall pay a title fee of ten twenty 17 dollars. However, a title fee shall not be charged to a 18 manufactured or mobile home retailer applying for a certificate 19 of title for a used mobile home or manufactured home, titled 20 in Iowa, as required under section 321.45, subsection 4 . 21 The county treasurer, if satisfied of the genuineness and 22 regularity of the application, and in the case of a mobile 23 home or manufactured home, that taxes are not owing under 24 chapter 435 , and that applicant has complied with all the 25 requirements of this chapter , shall issue a new certificate 26 of title and, except for a mobile home, manufactured home, 27 or a vehicle returned to and accepted by a manufacturer as 28 described in section 322G.12 , a registration card to the 29 purchaser or transferee, shall cancel the prior registration 30 for the vehicle, and shall forward the necessary copies to the 31 department on the date of issuance, as prescribed in section 32 321.24 . Mobile homes or manufactured homes titled under 33 chapter 448 that have been subject under section 446.18 to a 34 public bidder sale in a county shall be titled in the county’s 35 -9- LSB 1245HZ (2) 90 th/ns 9/ 24
H.F. 674 name, with no fee, and the county treasurer shall issue the 1 title. 2 5. The seller or transferor may file an affidavit on 3 forms prescribed and provided by the department with the any 4 county treasurer of the county where the vehicle is registered 5 certifying the sale or transfer of ownership of the vehicle 6 and the assignment and delivery of the certificate of title 7 for the vehicle. Upon receipt of the affidavit, the county 8 treasurer shall file the affidavit with the copy of the 9 registration receipt for the vehicle on file in the treasurer’s 10 office and on that day the treasurer shall note receipt of the 11 affidavit in the vehicle registration and titling system. Upon 12 filing the affidavit, it shall be presumed that the seller or 13 transferor has assigned and delivered the certificate of title 14 for the vehicle. For a leased vehicle, the lessor licensed 15 pursuant to chapter 321F or the lessee may file an affidavit 16 as provided in this subsection certifying that the lease has 17 expired or been terminated and the date that the leased vehicle 18 was surrendered to the lessor. 19 Sec. 12. Section 321.47, subsections 1 and 3, Code 2023, are 20 amended to read as follows: 21 1. If ownership of a vehicle is transferred by operation of 22 law upon inheritance, devise or bequest, dissolution decree, 23 order in bankruptcy, insolvency, replevin, foreclosure or 24 execution sale, abandoned vehicle sale, or when the engine of a 25 motor vehicle is replaced by another engine, or a vehicle is 26 sold or transferred to satisfy an artisan’s lien as provided 27 in chapter 577 , a landlord’s lien as provided in chapter 570 , 28 a self-service storage facility lien as provided in section 29 578A.7 , a storage lien as provided in chapter 579 , a judgment 30 in an action for abandonment of a manufactured or mobile home 31 as provided in chapter 555B , upon presentation of an affidavit 32 relating to the disposition of a valueless mobile, modular, or 33 manufactured home as provided in chapter 555C , or repossession 34 is had upon default in performance of the terms of a security 35 -10- LSB 1245HZ (2) 90 th/ns 10/ 24
H.F. 674 agreement, the any county treasurer in the transferee’s county 1 of residence or, in the case of a mobile home or manufactured 2 home, the county treasurer of the county where the mobile home 3 or manufactured home is located, upon the surrender of the 4 prior certificate of title or the manufacturer’s or importer’s 5 certificate, or when that is not possible, upon presentation 6 of satisfactory proof to the county treasurer of ownership and 7 right of possession to the vehicle and upon payment of a fee of 8 twenty thirty dollars and the presentation of an application 9 for initial registration and certificate of title, may issue 10 to the applicant a registration card for the vehicle and a 11 certificate of title to the vehicle. A person entitled to 12 ownership of a vehicle under a decree of dissolution shall 13 surrender a reproduction of a certified copy of the dissolution 14 and upon fulfilling the other requirements of this chapter is 15 entitled to a certificate of title and registration receipt 16 issued in the person’s name. 17 3. Whenever ownership of a vehicle is transferred under 18 the provisions of this section , the registration plates shall 19 be removed and forwarded to a any county treasurer, or to the 20 department if the vehicle is owned by a nonresident. Upon 21 transfer the vehicle shall not be operated upon the highways 22 of this state until the person entitled to possession of the 23 vehicle applies for and obtains initial registration for the 24 vehicle. 25 Sec. 13. Section 321.48, subsection 2, Code 2023, is amended 26 to read as follows: 27 2. A foreign registered vehicle purchased or otherwise 28 acquired by a dealer for the purpose of resale shall be issued 29 a certificate of title for the vehicle by the any county 30 treasurer of the dealer’s residence upon proper application 31 as provided in this chapter and upon payment of a fee of five 32 fifteen dollars and the dealer is exempt from the payment of 33 any and all registration fees for the vehicle. The application 34 for certificate of title shall be made within thirty days 35 -11- LSB 1245HZ (2) 90 th/ns 11/ 24
H.F. 674 after the vehicle comes within the border of the state. 1 However, a dealer acquiring a vehicle registered in another 2 state which permits Iowa dealers to reassign that state’s 3 certificates of title shall not be required to obtain a new 4 initial registration or a new certificate of title and upon 5 transferring title or interest to another person shall execute 6 an assignment upon the certificate of title for the vehicle 7 to the person to whom the transfer is made and deliver the 8 assigned certificate of title to the person. 9 Sec. 14. Section 321.49, subsection 1, Code 2023, is amended 10 to read as follows: 11 1. Except as provided in section 321.52 , if an application 12 for transfer of registration and certificate of title is not 13 submitted to the any county treasurer of the residence of 14 the transferee within thirty days of the date of assignment 15 or transfer of title, or within thirty days of the date of 16 delivery to the purchaser if the vehicle is subject to a 17 security interest and was offered for sale pursuant to section 18 321.48, subsection 1 , a penalty of ten dollars shall accrue 19 against the applicant, and no registration card or certificate 20 of title shall be issued to the applicant for the vehicle until 21 the penalty is paid. 22 Sec. 15. Section 321.50, subsection 1, Code 2023, is amended 23 to read as follows: 24 1. A security interest in a vehicle subject to registration 25 under the laws of this state or a mobile home or manufactured 26 home , except trailers whose empty weight is two thousand 27 pounds or less, and except new or used vehicles held by a 28 dealer or manufacturer as inventory for sale, is perfected by 29 the delivery to the any county treasurer of the county where 30 the certificate of title was issued or, in the case of a new 31 certificate, to the county treasurer where the certificate will 32 be issued, of an application for certificate of title which 33 lists the security interest, or an application for notation 34 of security interest signed by the owner or by one owner of 35 -12- LSB 1245HZ (2) 90 th/ns 12/ 24
H.F. 674 a vehicle owned jointly by more than one person, or signed 1 through electronic means as determined by the department, or a 2 certificate of title from another jurisdiction which shows the 3 security interest, and payment of a fee of ten twenty dollars 4 for each security interest shown. The security interest in a 5 mobile home or manufactured home is perfected by the delivery 6 to the county treasurer of the county where the certificate 7 of title was issued or, in the case of a new certificate, to 8 the county treasurer where the certificate will be issued, 9 of an application for certificate of title which lists the 10 security interest, or an application for notation of security 11 interest signed by the owner or by one owner when owned jointly 12 by more than one person, or signed through electronic means 13 as determined by the department, or a certificate of title 14 from another jurisdiction which shows the security interest, 15 and payment of a fee of twenty dollars for each security 16 interest shown. The department shall require the federal 17 employer identification number of a secured party who is a 18 firm, association, or corporation or, if a natural person, 19 the social security number. Upon delivery of the application 20 and payment of the fee, the county treasurer shall note the 21 date of delivery on the application. If the delivery is by 22 electronic means and the time is electronically recorded on the 23 application along with the date, the time shall be included 24 with the date on all subsequent documents and records where the 25 date of perfection is required under this chapter . The date 26 of delivery shall be the date of perfection of the security 27 interest in the vehicle, regardless of the date the security 28 interest is noted on the certificate of title. Up to three 29 security interests may be perfected against a vehicle and shown 30 on an Iowa certificate of title. If the owner or secured party 31 is in possession of the certificate of title, it must also be 32 delivered at this time. If a vehicle is subject to a security 33 interest when brought into this state, the validity of the 34 security interest and the date of perfection is determined by 35 -13- LSB 1245HZ (2) 90 th/ns 13/ 24
H.F. 674 section 554.9303 . Delivery as provided in this subsection 1 constitutes perfection of a security interest on a certificate 2 of title for purposes of this chapter and chapter 554 . 3 Sec. 16. Section 321.50, subsection 5, paragraphs a and c, 4 Code 2023, are amended to read as follows: 5 a. When a security interest is discharged, the holder 6 shall note a cancellation of the security interest on the 7 face of the certificate of title over the holder’s signature 8 or may note the cancellation of the security interest on a 9 separate, notarized release form or letter. The holder shall 10 deliver the certificate of title and the form or letter, if 11 applicable, to the any county treasurer where the title was 12 issued . In the case of a security interest that has been 13 delivered by electronic means, the holder shall notify the 14 department or the county treasurer, in a manner prescribed 15 by the department, of the release of the security interest. 16 The county treasurer shall immediately note the cancellation 17 of the security interest on the face of the certificate of 18 title, if applicable, and in the county records system. The 19 county treasurer shall on the same day deliver the certificate 20 of title, if applicable, and the separate, notarized release 21 form or letter, if applicable, to the then first secured party 22 or, if there is no such person, to the person as directed by 23 the owner, in writing, on a form prescribed by the department 24 or, if there is no person designated, then to the owner. The 25 cancellation of the security interest shall be noted on the 26 certificate of title by the county treasurer without charge. 27 The holder of a security interest discharged by payment who 28 fails to release the security interest within fifteen days 29 after being requested in writing to do so shall forfeit to the 30 person making the payment the sum of twenty-five dollars. 31 c. When a security interest is discharged, the lienholder 32 shall note the cancellation of the security interest on the 33 face of the title and, if applicable, may note the cancellation 34 of the security interest on a form prescribed by the department 35 -14- LSB 1245HZ (2) 90 th/ns 14/ 24
H.F. 674 and deliver a copy of the form in lieu of the title to the 1 department or to the any county treasurer of the county in 2 which the title was issued . The form may be delivered by 3 electronic means. The department or county treasurer shall 4 note the release of the security interest upon the statewide 5 computer system and the county’s records. A copy of the form, 6 if used, shall be attached to the title by the lienholder, if 7 the title is held by the lienholder, and shall be evidence of 8 the release of the security interest. If the title is held 9 by the lienholder, the lienholder shall deliver the title to 10 the first lienholder, or if there is no such person, to the 11 person as designated by the owner, or if there is no such 12 person designated, to the owner. If a certificate of title 13 has not been issued, upon release of a security interest, the 14 lienholder shall notify the department or the county treasurer, 15 in a manner prescribed by the department, of the release of the 16 security interest. 17 Sec. 17. Section 321.52, subsection 2, paragraph a, Code 18 2023, is amended to read as follows: 19 a. The purchaser or transferee of a motor vehicle subject to 20 registration for which a certificate of title is issued which 21 is sold for scrap or junk shall surrender the certificate of 22 title, properly endorsed and signed by the previous owner, to 23 the any county treasurer of the county of residence of the 24 transferee , and shall apply for a junking certificate from the 25 county treasurer, within thirty days after assignment of the 26 certificate of title, except when the vehicle is disposed of 27 pursuant to paragraph “b” . The county treasurer shall issue 28 to such person without fee a junking certificate. A junking 29 certificate shall authorize the holder to possess, transport, 30 or transfer by endorsement the ownership of the junked vehicle. 31 A certificate of title shall not again be issued for the 32 vehicle subsequent to the issuance of a junking certificate 33 except as provided in subsection 3 . The county treasurer shall 34 cancel the record of the vehicle. The junking certificate 35 -15- LSB 1245HZ (2) 90 th/ns 15/ 24
H.F. 674 shall be printed on the registration receipt form and shall be 1 imprinted with the words “junking certificate”, as prescribed 2 by the department. A space for transfer by endorsement 3 shall be on the junking certificate. A separate form for the 4 notation of the transfer of component parts shall be attached 5 to the junking certificate when the certificate is issued. 6 Sec. 18. Section 321.52, subsection 4, paragraphs a and b, 7 Code 2023, are amended to read as follows: 8 a. Notwithstanding any other provision of law to the 9 contrary, an insurer may apply for and be issued a salvage 10 certificate of title for a motor vehicle without surrendering 11 the certificate of title or manufacturer’s or importer’s 12 statement of origin properly assigned if ownership of the 13 vehicle was transferred, or will transfer, to the insurer 14 pursuant to a settlement with the previous owner of the vehicle 15 arising from circumstances involving damage to the vehicle, 16 and at least thirty days have expired since the effective 17 date of such settlement. To obtain a salvage certificate 18 of title pursuant to this paragraph “a” , the insurer shall 19 submit an application for a salvage certificate of title to 20 the any county treasurer of the county in which the vehicle 21 is stored by or on behalf of the insurer . The application 22 shall be accompanied by an affidavit from the insurer in 23 which the insurer certifies it has made at least two written 24 attempts to obtain a properly assigned certificate of title 25 or manufacturer’s or importer’s statement of origin for the 26 vehicle by contacting the previous owner of the vehicle and all 27 lienholders of record by certified mail or a similar service 28 that provides proof of service using a return receipt, and 29 has been unable to obtain the title or statement of origin. 30 The failure of a previous owner or lienholder to provide a 31 properly assigned certificate of title or manufacturer’s or 32 importer’s statement of origin shall be deemed to be a waiver 33 by the previous owner or lienholder of all rights, title, 34 claim, and interest in the vehicle. The application shall also 35 -16- LSB 1245HZ (2) 90 th/ns 16/ 24
H.F. 674 be accompanied by the application fee required under paragraph 1 “b” , and proof of payment of the total amount of the settlement 2 by the insurer to the previous owner of the vehicle. Upon 3 receiving an application that complies with this paragraph “a” , 4 the county treasurer shall issue a salvage certificate of title 5 to the insurer which shall be free and clear of all liens and 6 claims of ownership and shall bear the word “SALVAGE” stamped 7 or printed on the face of the title in a manner prescribed by 8 the department. 9 b. A vehicle rebuilder or a person engaged in the business 10 of buying, selling, or exchanging vehicles of a type required 11 to be registered in this state, upon acquisition of a wrecked 12 or salvage vehicle, shall surrender the certificate of 13 title or manufacturer’s or importer’s statement of origin 14 properly assigned, together with an application for a salvage 15 certificate of title, to the any county treasurer of the county 16 of residence of the purchaser or transferee within thirty 17 days after the date of assignment of the certificate of title 18 for the wrecked or salvage motor vehicle. This subsection 19 applies only to vehicles with a fair market value of five 20 hundred dollars or more, based on the value before the vehicle 21 became wrecked or salvage. Upon payment of a fee of ten twenty 22 dollars, the county treasurer shall issue a salvage certificate 23 of title which shall bear the word “SALVAGE” stamped or 24 printed on the face of the title in a manner prescribed by the 25 department. A salvage certificate of title may be assigned 26 to an educational institution, a new motor vehicle dealer 27 licensed under chapter 322 , a person engaged in the business of 28 purchasing bodies, parts of bodies, frames or component parts 29 of vehicles for sale as scrap metal, a salvage pool, or an 30 authorized vehicle recycler licensed under chapter 321H . An 31 authorized vehicle recycler licensed under chapter 321H or a 32 new motor vehicle dealer licensed under chapter 322 may assign 33 or reassign an Iowa salvage certificate of title or a salvage 34 certificate of title from another state to any person, and the 35 -17- LSB 1245HZ (2) 90 th/ns 17/ 24
H.F. 674 provisions of section 321.24, subsection 5 , requiring issuance 1 of an Iowa salvage certificate of title shall not apply. A 2 vehicle on which ownership has transferred to an insurer of 3 the vehicle as a result of a settlement with the owner of the 4 vehicle arising out of damage to, or unrecovered theft of, the 5 vehicle shall be deemed to be a wrecked or salvage vehicle 6 and the insurer shall comply with this subsection to obtain a 7 salvage certificate of title within thirty days after the date 8 of assignment of the certificate of title of the vehicle. 9 Sec. 19. Section 321.105A, subsection 2, unnumbered 10 paragraph 1, Code 2023, is amended to read as follows: 11 In addition to the annual registration fee required under 12 section 321.105 , a “fee for new registration” is imposed in 13 the amount of ten dollars plus five percent of the purchase 14 price for each vehicle subject to registration. The fee for 15 new registration shall be paid by the owner of the vehicle to 16 the county treasurer at the time application is made for a new 17 initial registration and certificate of title, if applicable. 18 A new registration receipt shall not be issued until the 19 fee has been paid. The county treasurer or the department 20 of transportation shall require every applicant for a new 21 registration receipt for a vehicle subject to registration to 22 supply information as the county treasurer or the director 23 deems necessary as to the time of purchase, the purchase 24 price, and other information relative to the purchase of the 25 vehicle. On or before the tenth day of each month, the county 26 treasurer or the department of transportation shall remit 27 to the department of revenue the amount of the fees for new 28 registration collected during the preceding month. 29 Sec. 20. Section 321.105A, subsection 3, paragraph a, Code 30 2023, is amended to read as follows: 31 a. A fee for new registration is imposed in an amount equal 32 to ten dollars plus five percent of the leased price for each 33 vehicle subject to registration which is leased by a lessor 34 licensed pursuant to chapter 321F for a period of six months 35 -18- LSB 1245HZ (2) 90 th/ns 18/ 24
H.F. 674 or more. The fee for new registration shall be paid by the 1 owner of the vehicle to the county treasurer from whom the 2 registration receipt or certificate of title is obtained. A 3 registration receipt for a vehicle subject to registration or 4 issuance of a certificate of title shall not be issued until 5 the fee for new registration is paid in the initial instance. 6 Sec. 21. Section 321.109, subsection 1, paragraph a, Code 7 2023, is amended to read as follows: 8 a. The annual fee for all motor vehicles including vehicles 9 designated by manufacturers as station wagons, 1993 and 10 subsequent model year multipurpose vehicles, and 2010 and 11 subsequent model year motor trucks with an unladen weight of 12 ten thousand pounds or less, except motor trucks registered 13 under section 321.122 , business-trade trucks, special trucks, 14 motor homes, motorsports recreational vehicles, ambulances, 15 hearses, autocycles, motorcycles, motorized bicycles, and 1992 16 and older model year multipurpose vehicles, shall be equal 17 to one percent of the value as fixed by the department plus 18 forty cents for each one hundred pounds or fraction thereof 19 of weight of vehicle, as fixed by the department. The weight 20 of a motor vehicle, fixed by the department for registration 21 purposes, shall include the weight of a battery, heater, 22 bumpers, spare tire, and wheel. Provided, however, that for 23 any new vehicle purchased in this state by a nonresident 24 for removal to the nonresident’s state of residence the 25 purchaser may make application to the any county treasurer 26 in the county of purchase for a transit plate for which a 27 fee of ten dollars shall be paid. And provided, however, 28 that for any used vehicle held by a registered dealer and 29 not currently registered in this state, or for any vehicle 30 held by an individual and currently registered in this state, 31 when purchased in this state by a nonresident for removal 32 to the nonresident’s state of residence, the purchaser may 33 make application to the any county treasurer in the county 34 of purchase for a transit plate for which a fee of three 35 -19- LSB 1245HZ (2) 90 th/ns 19/ 24
H.F. 674 dollars shall be paid. The county treasurer shall issue a 1 nontransferable certificate of registration for which no 2 refund shall be allowed; and the transit plates shall be void 3 thirty days after issuance. Such purchaser may apply for a 4 certificate of title by surrendering the manufacturer’s or 5 importer’s certificate or certificate of title, duly assigned 6 as provided in this chapter . In this event, the county 7 treasurer in the county of purchase shall, when satisfied with 8 the genuineness and regularity of the application, and upon 9 payment of a fee of twenty thirty dollars, issue a certificate 10 of title in the name and address of the nonresident purchaser 11 delivering the title to the owner. If there is a security 12 interest noted on the title, the county treasurer shall mail 13 to the secured party an acknowledgment of the notation of the 14 security interest. The county treasurer shall not release a 15 security interest that has been noted on a title issued to 16 a nonresident purchaser as provided in this paragraph. The 17 application requirements of section 321.20 apply to a title 18 issued as provided in this subsection , except that a natural 19 person who applies for a certificate of title shall provide 20 either the person’s social security number, passport number, 21 or driver’s license number, whether the license was issued by 22 this state, another state, or another country. The provisions 23 of this subsection relating to multipurpose vehicles are 24 effective for all 1993 and subsequent model years. The annual 25 registration fee for multipurpose vehicles that are 1992 model 26 years and older shall be in accordance with section 321.124 . 27 Sec. 22. Section 321.109, subsection 3, Code 2023, is 28 amended to read as follows: 29 3. The owner of an unregistered motor vehicle or motor 30 vehicle for which the registration is delinquent may make 31 application to the any county treasurer of the county of 32 residence or, if the unregistered or delinquent motor vehicle 33 is purchased by a nonresident of the state, to the county 34 treasurer in the county of purchase, for a temporary thirty-day 35 -20- LSB 1245HZ (2) 90 th/ns 20/ 24
H.F. 674 permit for a fee of twenty-five dollars. The permit shall 1 authorize the motor vehicle to be driven or towed upon the 2 highway, but shall not authorize a motor truck or truck tractor 3 to haul or tow a load. The permit fee shall not be considered a 4 registration fee or exempt the owner from payment of all other 5 fees, registration fees, and penalties due. If the annual 6 registration fee for the motor vehicle is delinquent, the 7 annual registration fee and penalty shall continue to accrue 8 until paid. The permit fee shall not be prorated, refunded, or 9 used as credit as provided under section 321.46 . The permit 10 shall be displayed in the upper left-hand corner of the rear 11 window of all motor vehicles, except motorcycles. Permits 12 issued for a motorcycle shall be attached to the rear of the 13 motorcycle. 14 Sec. 23. Section 321.126, subsection 1, paragraph g, Code 15 2023, is amended to read as follows: 16 g. If the vehicle was leased and an affidavit was filed 17 by the lessor or the lessee as provided in section 321.46 , 18 the lessor or the lessee, as applicable, may make a claim for 19 a refund with the county treasurer of the county where the 20 vehicle was registered within six months of the vehicle’s 21 surrender to the lessor. The refund shall be paid to either 22 the lessor or the lessee, as specified on the application for 23 title and initial registration pursuant to section 321.20 . 24 Sec. 24. Section 321.152, subsection 1, paragraphs b, d, and 25 f, Code 2023, are amended to read as follows: 26 b. Two Twelve dollars and fifty cents from each fee 27 collected for certificates of title. 28 d. Sixty percent Sixteen dollars of all fees each fee 29 collected for perfection of security interests. 30 f. One dollar Eleven dollars from each fee for new 31 registration collected pursuant to section 321.105A . 32 Sec. 25. EFFECTIVE DATE. This Act takes effect January 1, 33 2024. 34 EXPLANATION 35 -21- LSB 1245HZ (2) 90 th/ns 21/ 24
H.F. 674 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 Under current law, only certain county treasurers are 3 allowed to do certain actions relating to motor vehicle 4 registration and titling. This bill provides that any county 5 treasurer can do any of the following: accept applications 6 for initial registration and issue initial registrations 7 and certificates of title to owners of vehicles, owners of 8 commercial vehicles, owners of certain foreign vehicles, owners 9 of transferred vehicles, owners of vehicles with a lost or 10 damaged certificate of title, owners of vehicles transferred by 11 law, and nonresident purchasers of vehicles; accept the return 12 of an original certificate of title from a lienholder; issue an 13 original certificate of title to a new purchaser or transferee 14 who presents an assigned replacement copy; receive affidavits 15 certifying the sale or transfer of ownership of a vehicle; 16 issue certificates of title to dealers in possession of foreign 17 registered vehicles; receive applications for the transfer 18 of registration and certificates of title; perfect security 19 interests; accept certificates of title, or other forms, 20 noting that a security interest has been discharged; receive 21 certificates of title of vehicles that have been sold for scrap 22 or junk; accept applications for salvage certificates of title; 23 receive certificates of title of a wrecked or salvage vehicle; 24 and accept applications and issue temporary permits for 25 vehicles that are unregistered or have delinquent registration. 26 The bill increases the following fees from $20 to $30: 27 applications for initial registration and issuance of a 28 certificate of title for a vehicle, applications for initial 29 registration and issuance of a certificate of title for a 30 commercial vehicle, applications for initial registration 31 of a vehicle failing to meet the equipment requirements of 32 Code chapter 321, applications for a replacement copy of an 33 original certificate of title, applications for a new initial 34 registration and a new title upon transfer, applications for 35 -22- LSB 1245HZ (2) 90 th/ns 22/ 24
H.F. 674 initial registration and issuance of a certificate of title for 1 a vehicle transferred by operation of law, and applications for 2 certificate of title to a nonresident purchaser. 3 The bill increases the following fees from $10 to $20: 4 applications by a manufacturer for a certificate of title 5 pursuant to Code section 322G.12, applications to perfect 6 a security interest in a vehicle by delivery to a county 7 treasurer, and applications for the issuance of a salvage 8 certificate of title. 9 The bill increases the fee for applications for certificates 10 of title by a dealer for a foreign registered vehicle from $5 11 to $15. 12 Pursuant to current law, the bill requires an application 13 for renewal of registration for a vehicle to be submitted to 14 the county treasurer of the county of the owner’s residence, 15 or if a nonresident or a firm, association, or corporation 16 with vehicles in multiple counties, to the county treasurer of 17 the county where the primary users of the vehicle are located, 18 or if a lessor of the vehicle, to the county treasurer of the 19 county of the lessee’s residence. However, the bill does not 20 change the requirement under Code section 321.166 that every 21 registration plate issued by a county treasurer must display 22 the name of the county where the plate is issued. Under the 23 bill, a person may register a vehicle other than by renewal in 24 any county. 25 The bill amends Code section 321.20(2) by striking the 26 current date by which the department of transportation (DOT) 27 is required to develop and implement a program to allow for 28 electronic applications, titling, initial registrations, and 29 funds transfers for vehicles subject to registration. 30 Current law provides that, in addition to the annual 31 registration fee, a fee for new registration is imposed 32 in the amount of 5 percent of the purchase price for each 33 vehicle subject to registration. The bill increases the fee 34 by providing that the fee for new registration is $10 plus 35 -23- LSB 1245HZ (2) 90 th/ns 23/ 24
H.F. 674 5 percent of the purchase price of each vehicle subject to 1 registration. Furthermore, the bill increases the fee for 2 new registration of leased vehicles by imposing a $10 fee in 3 addition to 5 percent of the leased price. 4 Lastly, the bill changes the amounts of certain fees a county 5 treasurer may retain for deposit in the county general fund. 6 The bill provides the treasurer may retain $12.50 from each 7 fee collected for certificates of title, $16 from each fee 8 collected for perfection of security interests, and $11 from 9 each fee for new registration. Article VII, section 8, of the 10 Iowa Constitution requires a county to use the amount retained 11 from fees for new registration for purposes of administering 12 motor vehicle registration fees. 13 The bill makes conforming changes to Code sections 321.25, 14 321.26, 321.29, and 321.126. 15 The bill takes effect January 1, 2024. 16 -24- LSB 1245HZ (2) 90 th/ns 24/ 24
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