Iowa-2025-SF468-Introduced

S.F. 468 Section 1. Section 321.89, subsection 3, paragraphs a, e, 1 and f, Code 2025, are amended to read as follows: 2 a. A police authority or private entity that takes into 3 custody an abandoned vehicle shall send notice by certified 4 mail that the vehicle has been taken into custody no more than 5 twenty ten days after taking custody of the vehicle. Notice 6 shall be sent to the last known address of record of the last 7 known registered owner of the vehicle, all lienholders of 8 record, and any other known claimant to the vehicle. 9 e. If the persons receiving notice do not ask for a hearing 10 or exercise their right to reclaim the vehicle or personal 11 property within the ten-day twenty-day reclaiming period, the 12 owner, lienholders, or claimants shall no longer have any 13 right, title, claim, or interest in or to the vehicle or the 14 personal property. However, if notice is not provided to a 15 lienholder as required in this subsection, and a private entity 16 takes custody of the vehicle and sells the vehicle at auction, 17 the private entity shall pay the lienholder from the auction 18 proceeds as much as those proceeds can cover of the remainder 19 owed on the vehicle loan. The private entity shall pay the 20 lienholder before the private entity uses the auction proceeds 21 for any other purpose. 22 f. A court in any case in law or equity shall not 23 recognize any right, title, claim, or interest of the owner, 24 lienholders, or claimants after the expiration of the ten-day 25 twenty-day reclaiming period if notice is provided to the 26 owners, lienholders, and known claimants as required in this 27 subsection . 28 Sec. 2. Section 321.89, subsection 3, paragraph b, 29 subparagraph (3), Code 2025, is amended to read as follows: 30 (3) Information for the persons receiving the notice of 31 their right to reclaim the vehicle and personal property 32 contained therein within ten twenty days after the effective 33 date of the notice. Persons may reclaim the vehicle or 34 personal property upon payment of all towing, preservation, and 35 -1- LSB 2006SV (2) 91 th/ns 1/ 4

S.F. 468 storage charges resulting from placing the vehicle in custody 1 and upon payment of the costs of notice required pursuant to 2 this subsection . Persons may reclaim any personal property 3 that is not attached to a vehicle from the vehicle during the 4 normal business hours of the entity, by providing the entity 5 a list of the personal items inside the vehicle and paying 6 a fee of one hundred dollars, or the entity may allow the 7 vehicle owner five minutes on site to reclaim personal property 8 from inside the vehicle after paying a one hundred dollar 9 fee. The entity having custody of the vehicle shall choose 10 the option and inform the owner of the vehicle accordingly. 11 Reclaiming any personal property from inside the vehicle does 12 not constitute reclaiming the vehicle. 13 Sec. 3. Section 321.89, subsection 3, Code 2025, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . 0c. A lienholder or insurance company who 16 receives notice under this subsection may request information 17 regarding the condition of the vehicle upon payment of a fee 18 of one hundred dollars. If such a request is made, the entity 19 with custody of the vehicle may satisfy the request by allowing 20 a representative of the lienholder or insurance company onto 21 the premises to inspect the vehicle, or by providing the 22 lienholder or insurance company with photos of the vehicle 23 sufficient to reasonably ascertain the condition of the 24 vehicle. If requested, the entity with custody of the vehicle 25 shall provide photos or access to the vehicle prior to the 26 expiration of the twenty-day reclamation period. 27 Sec. 4. Section 321.89, subsection 4, Code 2025, is amended 28 to read as follows: 29 4. Reclamation of abandoned vehicles. An entity with 30 custody of an abandoned vehicle shall provide an itemized 31 account of all fees assessed when the vehicle is reclaimed. 32 Prior to driving an abandoned vehicle away from the premises, 33 a person who received , or who is reclaiming the vehicle on 34 behalf of a person who received , notice under subsection 3 35 -2- LSB 2006SV (2) 91 th/ns 2/ 4

S.F. 468 shall present to the police authority or private entity, as 1 applicable, the person’s valid driver’s license and proof of 2 financial liability coverage as provided in section 321.20B . 3 Sec. 5. Section 321.90, subsection 2, paragraph f, Code 4 2025, is amended to read as follows: 5 f. The owner of an abandoned motor vehicle and all 6 lienholders shall no longer have any right, title, claim, or 7 interest in or to the motor vehicle; and no court in any case 8 in law or equity shall recognize any right, title, claim, or 9 interest of any owner or lienholders after the disposal of the 10 motor vehicle to a demolisher , so long as notice in accordance 11 with section 321.89, subsection 3, was provided . 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Current law requires an entity that takes custody of an 16 abandoned vehicle to send notice of that fact to all known 17 claimants of the vehicle no more than 20 days after taking 18 custody of the vehicle. This bill requires such notice to be 19 sent no more than 10 days after the entity takes custody of an 20 abandoned vehicle. 21 Current law requires a person to ask for a hearing regarding 22 an abandoned vehicle or reclaim an abandoned vehicle and 23 personal property left inside such vehicle within 10 days. The 24 bill extends the reclamation period to 20 days. If notice 25 is not provided and a private entity takes custody of the 26 vehicle and sells the vehicle at auction, the bill requires the 27 private entity to pay the lienholder from the auction proceeds 28 as much as those proceeds can cover of the remainder owed on 29 the vehicle loan before the private entity uses the auction 30 proceeds for any other purpose. 31 The bill authorizes persons to reclaim any personal property 32 that is not attached to a vehicle from the vehicle during 33 the normal business hours of the entity with custody of the 34 vehicle, by providing the entity a list of the personal items 35 -3- LSB 2006SV (2) 91 th/ns 3/ 4

S.F. 468 inside the vehicle and paying a fee of $100. Alternatively, 1 the entity may allow the vehicle owner five minutes on site 2 to reclaim personal property from inside the vehicle after 3 the owner pays a $100 fee. The entity having custody of the 4 vehicle is required to choose the option and inform the owner 5 of the vehicle accordingly. 6 Under the bill, a lienholder or insurance company who 7 receives notice may request information regarding the condition 8 of the vehicle upon payment of a fee of $100. Following such 9 request, the entity with custody of the vehicle must allow a 10 representative of the lienholder or insurance company onto the 11 premises to inspect the vehicle, or provide the lienholder 12 or insurance company with photos of the vehicle sufficient 13 to reasonably ascertain the condition of the vehicle. If 14 requested, the entity with custody of the vehicle must provide 15 photos or access to the vehicle prior to the expiration of the 16 20-day reclamation period. 17 The bill requires an entity with custody of an abandoned 18 vehicle to provide an itemized account of all fees assessed 19 when the vehicle is reclaimed. 20 The bill provides that if notice is not provided, as required 21 in the bill, any known claimant does not forfeit the right to 22 reclaim the vehicle, and does not lose any right, title, claim, 23 or interest in the vehicle. 24 By operation of law, it is a simple misdemeanor for a person 25 to do an act forbidden or to fail to perform an act required 26 by Code chapter 321, including the provisions of the bill. A 27 simple misdemeanor is punishable by confinement for no more 28 than 30 days and a fine of at least $105 but not more than $855. 29 -4- LSB 2006SV (2) 91 th/ns 4/ 4