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

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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: (Enrolled) 2024-04-26 - Reported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 04/26. [HF674 Detail]

Download: Iowa-2023-HF674-Enrolled.html

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House File 674 - Enrolled
House File 674
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
COUNTY VEHICLE REGISTRATION AND TITLING —— FEES
Section 1. Section 321.20, subsection 1, unnumbered
paragraph 1, Code 2024, is amended to read as follows:
Except as provided in this chapter , an owner of a vehicle ,
or a lessor of a vehicle pursuant to chapter 321F which has a
gross vehicle weight of less than ten thousand pounds, which
is subject to registration , shall make application to the any
county treasurer of the county of the owner’s residence, or
if a nonresident, to the county treasurer of the county where
the primary users of the vehicle are located, or if a lessor
of the vehicle pursuant to chapter 321F which vehicle has a
gross vehicle weight of less than ten thousand pounds, to the
county treasurer of the county of the lessee’s residence,
or if a firm, association, or corporation with vehicles in
multiple counties, the owner may make application to the county
treasurer of the county where the primary user of the vehicle

House File 674, p. 2
is located, for the initial registration and issuance of a
certificate of title for the vehicle upon the appropriate form
furnished by the department. However, upon the transfer of
ownership, the owner of a vehicle subject to the apportioned
registration provisions of chapter 326 shall make application
for issuance of a certificate of title to either the department
or the appropriate any county treasurer. The owner of a
vehicle purchased pursuant to section 578A.7 shall present
documentation that such sale was completed in compliance
with that section. The application shall be accompanied by
a fee of twenty thirty dollars, and shall bear the owner’s
signature. A nonresident owner of two or more vehicles subject
to registration may make application for initial registration
and issuance of a certificate of title for all vehicles subject
to registration to the any county treasurer of the county where
the primary user of any of the vehicles is located . The owner
of a mobile home or manufactured home shall make application
for a certificate of title under this section from the county
treasurer of the county where the mobile home or manufactured
home is located. The application shall contain:
Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2024,
are amended to read as follows:
2. Notwithstanding contrary provisions of this chapter
or chapter 326 regarding titling and registration by means
other than electronic means, the department shall , by July 1,
2019, develop and implement a program to allow for electronic
applications, titling, registering initial registrations , and
funds transfers for vehicles subject to registration in order
to improve the efficiency and timeliness of the processes and
to reduce costs for all parties involved. The program shall
also provide for the electronic submission of any statement
required by this section , except where prohibited by federal
law.
3. The department shall adopt rules on pursuant to chapter
17A to administer this section, including rules relating to the
method for providing signatures for applications and statements
required by this section that are made by electronic means.
4. Notwithstanding this section or any other provision of
law to the contrary, if the program required by subsection

House File 674, p. 3
2 is not implemented by July 1, 2019, an owner of a vehicle
subject to registration may apply to the county treasurer of a
county contiguous to the county designated for the owner under
subsection 1 for registration and issuance of a certificate of
title.
Sec. 3. Section 321.20A, subsection 1, Code 2024, is amended
to read as follows:
1. Notwithstanding other provisions of this chapter ,
the owner of a commercial vehicle subject to the apportioned
registration provisions of chapter 326 may make application
to the department or the appropriate any county treasurer
for a certificate of title. The owner of a commercial
vehicle purchased pursuant to section 578A.7 shall present
documentation that such sale was completed in compliance with
that section. The application for certificate of title shall
be made within thirty days of purchase or transfer and shall be
accompanied by a twenty dollar thirty-dollar title fee and the
appropriate fee for new registration. The department or the
county treasurer shall deliver the certificate of title to the
owner if there is no security interest. If there is a security
interest, the title, when issued, shall be delivered to the
first secured party. Delivery may be made using electronic
means.
Sec. 4. Section 321.23, subsection 1, paragraph a, Code
2024, is amended to read as follows:
a. If the vehicle to be registered is a specially
constructed vehicle, reconstructed vehicle, street rod, replica
vehicle, or foreign vehicle, such fact shall be stated in
the application. A fee of twenty thirty dollars shall be
paid by the person making the application upon issuance of
a certificate of title by the any county treasurer. For
a specially constructed vehicle, reconstructed vehicle,
street rod, or replica vehicle subject to registration, the
application shall be accompanied by a statement from the
department authorizing the motor vehicle to be titled and
registered in this state. The owner of a specially constructed
vehicle, reconstructed vehicle, street rod, replica vehicle,
or foreign vehicle purchased pursuant to section 578A.7
shall present documentation that such sale was completed in

House File 674, p. 4
compliance with that section.
Sec. 5. Section 321.23, subsections 3 and 4, Code 2024, are
amended to read as follows:
3. In the event an applicant for initial registration of
a foreign vehicle for which a certificate of title has been
issued is able to furnish evidence of being the registered
owner of the vehicle to the any county treasurer of the owner’s
residence , although unable to surrender such certificate
of title, the county treasurer may issue a registration
receipt and plates upon receipt of the required annual
registration fee and the fee for new registration but shall
not issue a certificate of title thereto. Upon surrender of
the certificate of title from the foreign state, the county
treasurer shall issue a certificate of title to the owner,
or person entitled thereto, of such vehicle as provided in
this chapter . The owner of a vehicle registered under this
subsection shall not be required to obtain a certificate of
title in this state and may transfer ownership of the vehicle
to a motor vehicle dealer licensed under chapter 322 or an
insurance carrier authorized to do business in this state
if, at the time of the transfer, the certificate of title is
held by a secured party and the dealer or insurance carrier,
as applicable, has forwarded to the secured party the sum
necessary to discharge the security interest pursuant to
section 321.48, subsection 1 .
4. A vehicle which does not meet the equipment requirements
of this chapter due to the particular use for which it is
designed or intended, may be registered by the department
upon payment of appropriate fees and after inspection and
certification by the department that the vehicle is not
in an unsafe condition. A person is not required to have
a certificate of title to register a vehicle under this
subsection . If the owner elects to have a certificate of title
issued for the vehicle, a fee of twenty thirty dollars shall be
paid by the person making the application upon issuance of a
certificate of title. If the department’s inspection reveals
that the vehicle may be safely operated only under certain
conditions or on certain types of roadways, the department may
restrict the registration to limit operation of the vehicle to

House File 674, p. 5
the appropriate conditions or roadways. This subsection does
not apply to snowmobiles as defined in section 321G.1 . Section
321.382 does not apply to a vehicle registered under this
subsection which is operated exclusively by a person with a
disability who has obtained a persons with disabilities parking
permit as provided in section 321L.2 , if the persons with
disabilities parking permit is carried in or on the vehicle and
shown to a peace officer on request.
Sec. 6. Section 321.25, subsection 1, Code 2024, is amended
to read as follows:
1. A vehicle may be operated upon the highways of this
state without registration plates for a period of forty-five
days after the date of delivery of the vehicle to the purchaser
from a dealer if a card bearing the words “registration applied
for” is attached on the rear of the vehicle. The card shall
have plainly stamped or stenciled the registration number of
the dealer from whom the vehicle was purchased and the date
of delivery of the vehicle. In addition, a dealer licensed
to sell new motor vehicles may attach the card to a new motor
vehicle delivered by the dealer to the purchaser even if the
vehicle was purchased from an out-of-state dealer and the card
shall bear the registration number of the dealer that delivered
the vehicle. A dealer shall not issue a card to a person known
to the dealer to be in possession of registration plates which
may be attached to the vehicle. A dealer shall not issue a card
unless an application for initial registration and certificate
of title has been made by the purchaser and a receipt issued to
the purchaser of the vehicle showing the fee paid by the person
making the application. Dealers’ records shall indicate the
agency to which the fee is sent and the date the fee is sent.
The dealer shall forward the application by the purchaser to
the county treasurer or state office within thirty calendar
days from the date of delivery of the vehicle. However, if the
vehicle is subject to a security interest and has been offered
for sale pursuant to section 321.48, subsection 1 , the dealer
shall forward the application by the purchaser to the county
treasurer or state office within thirty calendar days from the
date of the delivery of the vehicle to the purchaser.
Sec. 7. Section 321.26, subsection 2, Code 2024, is amended

House File 674, p. 6
to read as follows:
2. The county treasurer may adjust the registration renewal
or expiration date of vehicles registered in the county for
which the county treasurer is responsible for renewal under
section 321.40 when deemed necessary to equalize the number
of vehicles registered in each twelve-month period or for the
administrative efficiency of the county treasurer’s office.
The adjustment shall be accomplished by delivery of a written
notice to the vehicle owner of the adjustment and allowance of
a credit for the remaining months of the unused portion of the
annual registration fee, rounded to the nearest whole dollar,
which amount shall be deducted from the annual registration
fee due at the time of registration. Upon receipt of the
notification the owner shall, within thirty days, surrender
the registration card and registration plates to a any county
treasurer, except that the registration plates shall not be
surrendered if validation stickers or other emblems are used
to designate the month and year of expiration of registration.
Upon payment of the annual registration fee, less the credit
allowed for the remaining months of the unused portion of the
annual registration fee, the county treasurer of the county
where the vehicle is registered that adjusted the registration
renewal or expiration date of the vehicle shall issue a new
registration card and registration plates, validation stickers,
or emblems which indicate the month and year of expiration of
registration.
Sec. 8. Section 321.29, Code 2024, is amended to read as
follows:
321.29 Renewal not permitted.
Any vehicle that was once registered in the state, but which
was removed from and no longer subject to registration in this
state, shall, upon being returned to this state and becoming
again subject to registration, be initially registered again in
accordance with section 321.20 .
Sec. 9. Section 321.34, subsection 1, Code 2024, is amended
to read as follows:
1. Plates issued. The county treasurer upon receiving
application, accompanied by proper fee, for registration of a
vehicle shall issue to the owner one registration plate for

House File 674, p. 7
a motorcycle, motorized bicycle, autocycle, truck tractor,
trailer, or semitrailer and two registration plates for every
other motor vehicle. The registration plates, including
special registration plates, shall be assigned to the owner of
a vehicle. When the owner of a registered vehicle transfers or
assigns ownership of the vehicle to another person, the owner
shall remove the registration plates from the vehicle. The
owner shall forward the plates to a any county treasurer or the
owner may have the plates assigned to another vehicle within
thirty days after transfer, upon payment of the fees required
by law. The owner shall immediately affix registration plates
retained by the owner to another vehicle owned or acquired by
the owner, providing the owner complies with section 321.46 .
The department shall adopt rules providing for the assignment
of registration plates to the transferee of a vehicle for which
a credit is allowed under section 321.46, subsection 6 .
Sec. 10. Section 321.40, subsection 1, Code 2024, is amended
to read as follows:
1. Application for renewal for a vehicle registered under
this chapter shall be made on or after the first day of the
month prior to the month of expiration of registration and up
to and including the last day of the month following the month
of expiration of registration. The application for renewal
shall be submitted to the county treasurer of the county of
the owner’s residence; or if a nonresident, to the county
treasurer of the county where the primary users of the vehicle
are located; or if a lessor of the vehicle pursuant to chapter
321F which has a gross vehicle weight of less than ten thousand
pounds, to the county treasurer of the county of the lessee’s
residence; or if a firm, association, or corporation with
vehicles in multiple counties, to the county treasurer of the
county where the primary user of the vehicle is located. The
registration shall be renewed upon payment of the appropriate
annual registration fee. Application for renewal for a vehicle
registered under chapter 326 shall be made on or after the
first day of the month prior to the month of expiration of
registration and up to and including the last day of the month
of expiration of registration.
Sec. 11. Section 321.42, subsection 2, paragraphs a, c, and

House File 674, p. 8
d, Code 2024, are amended to read as follows:
a. If a certificate of title is lost or destroyed, the
owner or lienholder shall apply for a replacement copy of the
original certificate of title. The owner or lienholder of a
motor vehicle may also apply for a replacement copy of the
original certificate of title upon surrender of the original
certificate of title with the application. The application
shall be made to the department or any county treasurer who
issued the original certificate of title . The application
shall be signed by the owner or lienholder and accompanied by a
fee of twenty thirty dollars.
c. If a security interest noted on the face of an original
certificate of title was released by the lienholder on a
separate form pursuant to section 321.50, subsection 5 , and
the signature of the lienholder, or the person executing the
release on behalf of the lienholder, is notarized, but the
lienholder has not delivered the original certificate to the
appropriate party as provided in section 321.50, subsection 5 ,
the owner may apply for and receive a replacement certificate
of title without the released security interest noted thereon.
The lienholder shall return the original certificate of title
to the department or to the any county treasurer of the county
where the title was issued .
d. A new purchaser or transferee is entitled to receive
an original title upon presenting the assigned replacement
copy to the any county treasurer of the county where the new
purchaser or transferee resides . At the time of purchase, a
purchaser may require the seller to indemnify the purchaser and
all future purchasers of the vehicle against any loss which
may be suffered due to claims on the original certificate. A
person recovering an original certificate of title for which
a replacement has been issued shall surrender the original
certificate to the county treasurer or the department.
Sec. 12. Section 321.46, subsections 1, 2, and 5, Code 2024,
are amended to read as follows:
1. The transferee shall, within thirty calendar days after
purchase or transfer, apply for and obtain from the any county
treasurer of the person’s residence, or if a nonresident, the
county treasurer of the county where the primary users of the

House File 674, p. 9
vehicle are located or the county where all other vehicles
owned by the nonresident are registered, or in the case of a
mobile home or manufactured home, the county treasurer of the
county where the mobile home or manufactured home is located,
or if a firm, association, or corporation with vehicles in
multiple counties, the transferee may apply for and obtain from
the county treasurer of the county where the primary user of
the vehicle is located, a new initial registration and a new
certificate of title for the vehicle, except as provided in
section 321.25 , 321.48 , or 322G.12 , or when the transferee
obtains the vehicle pursuant to section 321.52, subsection 2 ,
paragraph “b” . In the case of a mobile home or manufactured
home, the transferee shall, within thirty calendar days after
purchase or transfer, apply for and obtain from the county
treasurer of the county where the mobile home or manufactured
home is located a new certificate of title. The transferee
shall present with the application the certificate of title
endorsed and assigned by the previous owner and shall indicate
the name of the county in which the vehicle was last registered
and the registration expiration date.
2. Upon filing the application for a new initial
registration and a new title, the applicant shall pay a title
fee of twenty
thirty dollars, an annual registration fee
prorated for the remaining unexpired months of the registration
year, and a fee for new registration if applicable. A
manufacturer applying for a certificate of title pursuant
to section 322G.12 shall pay a title fee of ten twenty
dollars. However, a title fee shall not be charged to a
manufactured or mobile home retailer applying for a certificate
of title for a used mobile home or manufactured home, titled
in Iowa, as required under section 321.45, subsection 4 .
The county treasurer, if satisfied of the genuineness and
regularity of the application, and in the case of a mobile
home or manufactured home, that taxes are not owing under
chapter 435 , and that applicant has complied with all the
requirements of this chapter , shall issue a new certificate
of title and, except for a mobile home, manufactured home,
or a vehicle returned to and accepted by a manufacturer as
described in section 322G.12 , a registration card to the

House File 674, p. 10
purchaser or transferee, shall cancel the prior registration
for the vehicle, and shall forward the necessary copies to the
department on the date of issuance, as prescribed in section
321.24 . Mobile homes or manufactured homes titled under
chapter 448 that have been subject under section 446.18 to a
public bidder sale in a county shall be titled in the county’s
name, with no fee, and the county treasurer shall issue the
title.
5. The seller or transferor may file an affidavit on
forms prescribed and provided by the department with the any
county treasurer of the county where the vehicle is registered
certifying the sale or transfer of ownership of the vehicle
and the assignment and delivery of the certificate of title
for the vehicle. Upon receipt of the affidavit, the county
treasurer shall file the affidavit with the copy of the
registration receipt for the vehicle on file in the treasurer’s
office and on that day the treasurer shall note receipt of the
affidavit in the vehicle registration and titling system. Upon
filing the affidavit, it shall be presumed that the seller or
transferor has assigned and delivered the certificate of title
for the vehicle. For a leased vehicle, the lessor licensed
pursuant to chapter 321F or the lessee may file an affidavit
as provided in this subsection certifying that the lease has
expired or been terminated and the date that the leased vehicle
was surrendered to the lessor.
Sec. 13. Section 321.47, subsections 1 and 3, Code 2024, are
amended to read as follows:
1. If ownership of a vehicle is transferred by operation of
law upon inheritance, devise or bequest, dissolution decree,
order in bankruptcy, insolvency, replevin, foreclosure or
execution sale, abandoned vehicle sale, or when the engine of a
motor vehicle is replaced by another engine, or a vehicle is
sold or transferred to satisfy an artisan’s lien as provided
in chapter 577 , a landlord’s lien as provided in chapter 570 ,
a self-service storage facility lien as provided in section
578A.7 , a storage lien as provided in chapter 579 , a judgment
in an action for abandonment of a manufactured or mobile home
as provided in chapter 555B , upon presentation of an affidavit
relating to the disposition of a valueless mobile, modular, or

House File 674, p. 11
manufactured home as provided in chapter 555C , or repossession
is had upon default in performance of the terms of a security
agreement, the any county treasurer in the transferee’s county
of residence or, in the case of a mobile home or manufactured
home, the county treasurer of the county where the mobile home
or manufactured home is located, upon the surrender of the
prior certificate of title or the manufacturer’s or importer’s
certificate, or when that is not possible, upon presentation
of satisfactory proof to the county treasurer of ownership and
right of possession to the vehicle and upon payment of a fee of
twenty thirty dollars and the presentation of an application
for initial registration and certificate of title, may issue
to the applicant a registration card for the vehicle and a
certificate of title to the vehicle. A person entitled to
ownership of a vehicle under a decree of dissolution shall
surrender a reproduction of a certified copy of the dissolution
and upon fulfilling the other requirements of this chapter is
entitled to a certificate of title and registration receipt
issued in the person’s name.
3. Whenever ownership of a vehicle is transferred under
the provisions of this section , the registration plates shall
be removed and forwarded to a any county treasurer, or to the
department if the vehicle is owned by a nonresident. Upon
transfer the vehicle shall not be operated upon the highways
of this state until the person entitled to possession of the
vehicle applies for and obtains initial registration for the
vehicle.
Sec. 14. Section 321.48, subsection 2, Code 2024, is amended
to read as follows:
2. A foreign registered vehicle purchased or otherwise
acquired by a dealer for the purpose of resale shall be issued
a certificate of title for the vehicle by the any county
treasurer of the dealer’s residence upon proper application
as provided in this chapter and upon payment of a fee of five
fifteen dollars and the dealer is exempt from the payment of
any and all registration fees for the vehicle. The application
for certificate of title shall be made within thirty days
after the vehicle comes within the border of the state.
However, a dealer acquiring a vehicle registered in another

House File 674, p. 12
state which permits Iowa dealers to reassign that state’s
certificates of title shall not be required to obtain a new
initial registration or a new certificate of title and upon
transferring title or interest to another person shall execute
an assignment upon the certificate of title for the vehicle
to the person to whom the transfer is made and deliver the
assigned certificate of title to the person.
Sec. 15. Section 321.49, subsection 1, Code 2024, is amended
to read as follows:
1. Except as provided in section 321.52 , if an application
for transfer of registration and certificate of title is not
submitted to the any county treasurer of the residence of
the transferee within thirty days of the date of assignment
or transfer of title, or within thirty days of the date of
delivery to the purchaser if the vehicle is subject to a
security interest and was offered for sale pursuant to section
321.48, subsection 1 , a penalty of ten dollars shall accrue
against the applicant, and no registration card or certificate
of title shall be issued to the applicant for the vehicle until
the penalty is paid.
Sec. 16. Section 321.50, subsections 1 and 6, Code 2024, are
amended to read as follows:
1. A security interest in a vehicle subject to registration
under the laws of this state or a mobile home or manufactured
home , except trailers whose empty weight is two thousand
pounds or less, and except new or used vehicles held by a
dealer or manufacturer as inventory for sale, is perfected by
the delivery to the any county treasurer of the county where
the certificate of title was issued or, in the case of a new
certificate, to the county treasurer where the certificate will
be issued, of an application for certificate of title which
lists the security interest, or an application for notation
of security interest signed by the owner or by one owner of
a vehicle owned jointly by more than one person, or signed
through electronic means as determined by the department, or a
certificate of title from another jurisdiction which shows the
security interest, and payment of a fee of ten twenty dollars
for each security interest shown. The security interest in a
mobile home or manufactured home is perfected by the delivery

House File 674, p. 13
to the county treasurer of the county where the certificate
of title was issued or, in the case of a new certificate, to
the county treasurer where the certificate will be issued,
of an application for certificate of title which lists the
security interest, or an application for notation of security
interest signed by the owner or by one owner when owned jointly
by more than one person, or signed through electronic means
as determined by the department, or a certificate of title
from another jurisdiction which shows the security interest,
and payment of a fee of twenty dollars for each security
interest shown. The department shall require the federal
employer identification number of a secured party who is a
firm, association, or corporation or, if a natural person,
the social security number. Upon delivery of the application
and payment of the fee, the county treasurer shall note the
date of delivery on the application. If the delivery is by
electronic means and the time is electronically recorded on the
application along with the date, the time shall be included
with the date on all subsequent documents and records where the
date of perfection is required under this chapter . The date
of delivery shall be the date of perfection of the security
interest in the vehicle, regardless of the date the security
interest is noted on the certificate of title. Up to three
security interests may be perfected against a vehicle and shown
on an Iowa certificate of title. If the owner or secured party
is in possession of the certificate of title, it must also be
delivered at this time. If a vehicle is subject to a security
interest when brought into this state, the validity of the
security interest and the date of perfection is determined by
section 554.9303 . Delivery as provided in this subsection
constitutes perfection of a security interest on a certificate
of title for purposes of this chapter and chapter 554 .
6. Notwithstanding subsection 5 , when an application for
registration and issuance of a certificate of title is made
by the means described in section 321.20, subsection 2 , and
the application includes a certificate of title upon which a
security interest has been discharged by the secured party
and the cancellation of the security interest is noted by the
secured party on the certificate of title above the secured

House File 674, p. 14
party’s signature, the county treasurer shall not require any
other notation of the cancellation of the security interest
on the face of the certificate of title, and , if applicable,
the county treasurer shall notify the county treasurer of
the county where the certificate of title was issued that
the security interest has been released as of the specified
date and shall update such release on the applicable program
or computer system. A dealer licensed under chapter 322 or
chapter 322C is authorized to sell such a vehicle pursuant to
section 321.48, subsection 1 , paragraph “b” .
Sec. 17. Section 321.50, subsection 5, paragraphs a and c,
Code 2024, are amended to read as follows:
a. Except as provided in section 321.48, subsection 1 ,
paragraph “b” , when a security interest is discharged, the
holder shall note a cancellation of the security interest
on the face of the certificate of title over the holder’s
signature or may note the cancellation of the security interest
on a separate, notarized release form or letter. The holder
shall deliver the certificate of title and the form or letter,
if applicable, to the any county treasurer where the title
was issued . In the case of a security interest that has been
delivered by electronic means, the holder shall notify the
department or the county treasurer, in a manner prescribed
by the department, of the release of the security interest.
The county treasurer shall immediately note the cancellation
of the security interest on the face of the certificate of
title, if applicable, and in the county records system. The
county treasurer shall on the same day deliver the certificate
of title, if applicable, and the separate, notarized release
form or letter, if applicable, to the then first secured party
or, if there is no such person, to the person as directed by
the owner, in writing, on a form prescribed by the department
or, if there is no person designated, then to the owner. The
cancellation of the security interest shall be noted on the
certificate of title by the county treasurer without charge.
The holder of a security interest discharged by payment who
fails to release the security interest within fifteen days
after being requested in writing to do so shall forfeit to the
person making the payment the sum of twenty-five dollars.

House File 674, p. 15
c. When a security interest is discharged, the lienholder
shall note the cancellation of the security interest on the
face of the title and, if applicable, may note the cancellation
of the security interest on a form prescribed by the department
and deliver a copy of the form in lieu of the title to the
department or to the any county treasurer of the county in
which the title was issued . The form may be delivered by
electronic means. The department or county treasurer shall
note the release of the security interest upon the statewide
computer system and the county’s records. A copy of the form,
if used, shall be attached to the title by the lienholder, if
the title is held by the lienholder, and shall be evidence of
the release of the security interest. If the title is held
by the lienholder, the lienholder shall deliver the title to
the first lienholder, or if there is no such person, to the
person as designated by the owner, or if there is no such
person designated, to the owner. If a certificate of title
has not been issued, upon release of a security interest, the
lienholder shall notify the department or the county treasurer,
in a manner prescribed by the department, of the release of the
security interest.
Sec. 18. Section 321.52, subsection 2, paragraph a, Code
2024, is amended to read as follows:
a. The purchaser or transferee of a motor vehicle subject to
registration for which a certificate of title is issued which
is sold for scrap or junk shall surrender the certificate of
title, properly endorsed and signed by the previous owner, to
the any county treasurer of the county of residence of the
transferee , and shall apply for a junking certificate from the
county treasurer, within thirty days after assignment of the
certificate of title, except when the vehicle is disposed of
pursuant to paragraph “b” . The county treasurer shall issue
to such person without fee a junking certificate. A junking
certificate shall authorize the holder to possess, transport,
or transfer by endorsement the ownership of the junked vehicle.
A certificate of title shall not again be issued for the
vehicle subsequent to the issuance of a junking certificate
except as provided in subsection 3 . The county treasurer shall
cancel the record of the vehicle. The junking certificate

House File 674, p. 16
shall be printed on the registration receipt form and shall be
imprinted with the words “junking certificate”, as prescribed
by the department. A space for transfer by endorsement
shall be on the junking certificate. A separate form for the
notation of the transfer of component parts shall be attached
to the junking certificate when the certificate is issued.
Sec. 19. Section 321.52, subsection 4, paragraphs a and b,
Code 2024, are amended to read as follows:
a. Notwithstanding any other provision of law to the
contrary, an insurer may apply for and be issued a salvage
certificate of title for a motor vehicle without surrendering
the certificate of title or manufacturer’s or importer’s
statement of origin properly assigned if ownership of the
vehicle was transferred, or will transfer, to the insurer
pursuant to a settlement with the previous owner of the vehicle
arising from circumstances involving damage to the vehicle,
and at least thirty days have expired since the effective
date of such settlement. To obtain a salvage certificate
of title pursuant to this paragraph “a” , the insurer shall
submit an application for a salvage certificate of title to
the any county treasurer of the county in which the vehicle
is stored by or on behalf of the insurer . The application
shall be accompanied by an affidavit from the insurer in
which the insurer certifies it has made at least two written
attempts to obtain a properly assigned certificate of title
or manufacturer’s or importer’s statement of origin for the
vehicle by contacting the previous owner of the vehicle and all
lienholders of record by certified mail or a similar service
that provides proof of service using a return receipt, and
has been unable to obtain the title or statement of origin.
The failure of a previous owner or lienholder to provide a
properly assigned certificate of title or manufacturer’s or
importer’s statement of origin shall be deemed to be a waiver
by the previous owner or lienholder of all rights, title,
claim, and interest in the vehicle. The application shall also
be accompanied by the application fee required under paragraph
“b” , and proof of payment of the total amount of the settlement
by the insurer to the previous owner of the vehicle. Upon
receiving an application that complies with this paragraph “a” ,

House File 674, p. 17
the county treasurer shall issue a salvage certificate of title
to the insurer which shall be free and clear of all liens and
claims of ownership and shall bear the word “SALVAGE” stamped
or printed on the face of the title in a manner prescribed by
the department.
b. A vehicle rebuilder or a person engaged in the business
of buying, selling, or exchanging vehicles of a type required
to be registered in this state, upon acquisition of a wrecked
or salvage vehicle, shall surrender the certificate of
title or manufacturer’s or importer’s statement of origin
properly assigned, together with an application for a salvage
certificate of title, to the any county treasurer of the county
of residence of the purchaser or transferee within thirty
days after the date of assignment of the certificate of title
for the wrecked or salvage motor vehicle. This subsection
applies only to vehicles with a fair market value of five
hundred dollars or more, based on the value before the vehicle
became wrecked or salvage. Upon payment of a fee of ten twenty
dollars, the county treasurer shall issue a salvage certificate
of title which shall bear the word “SALVAGE” stamped or
printed on the face of the title in a manner prescribed by the
department. A salvage certificate of title may be assigned
to an educational institution, a new motor vehicle dealer
licensed under chapter 322 , a person engaged in the business of
purchasing bodies, parts of bodies, frames or component parts
of vehicles for sale as scrap metal, a salvage pool, or an
authorized vehicle recycler licensed under chapter 321H . An
authorized vehicle recycler licensed under chapter 321H or a
new motor vehicle dealer licensed under chapter 322 may assign
or reassign an Iowa salvage certificate of title or a salvage
certificate of title from another state to any person, and the
provisions of section 321.24, subsection 5 , requiring issuance
of an Iowa salvage certificate of title shall not apply. A
vehicle on which ownership has transferred to an insurer of
the vehicle as a result of a settlement with the owner of the
vehicle arising out of damage to, or unrecovered theft of, the
vehicle shall be deemed to be a wrecked or salvage vehicle
and the insurer shall comply with this subsection to obtain a
salvage certificate of title within thirty days after the date

House File 674, p. 18
of assignment of the certificate of title of the vehicle.
Sec. 20. Section 321.105A, subsection 2, unnumbered
paragraph 1, Code 2024, is amended to read as follows:
In addition to the annual registration fee required under
section 321.105 , a “fee for new registration” is imposed in
the amount of ten dollars plus five percent of the purchase
price for each vehicle subject to registration. The fee for
new registration shall be paid by the owner of the vehicle to
the county treasurer at the time application is made for a new
initial registration and certificate of title, if applicable.
A new registration receipt shall not be issued until the
fee has been paid. The county treasurer or the department
of transportation shall require every applicant for a new
registration receipt for a vehicle subject to registration to
supply information as the county treasurer or the director
deems necessary as to the time of purchase, the purchase
price, and other information relative to the purchase of the
vehicle. On or before the tenth day of each month, the county
treasurer or the department of transportation shall remit
to the department of revenue the amount of the fees for new
registration collected during the preceding month.
Sec. 21. Section 321.105A, subsection 3, paragraph a, Code
2024, is amended to read as follows:
a. A fee for new registration is imposed in an amount equal
to ten dollars plus five percent of the leased price for each
vehicle subject to registration which is leased by a lessor
licensed pursuant to chapter 321F for a period of six months
or more. The fee for new registration shall be paid by the
owner of the vehicle to the county treasurer from whom the
registration receipt or certificate of title is obtained. A
registration receipt for a vehicle subject to registration or
issuance of a certificate of title shall not be issued until
the fee for new registration is paid in the initial instance.
Sec. 22. Section 321.109, subsection 1, paragraph a, Code
2024, is amended to read as follows:
a. The annual fee for all motor vehicles including vehicles
designated by manufacturers as station wagons, 1993 and
subsequent model year multipurpose vehicles, and 2010 and
subsequent model year motor trucks with an unladen weight of

House File 674, p. 19
ten thousand pounds or less, except motor trucks registered
under section 321.122 , business-trade trucks, special trucks,
motor homes, motorsports recreational vehicles, ambulances,
hearses, autocycles, motorcycles, motorized bicycles, and 1992
and older model year multipurpose vehicles, shall be equal
to one percent of the value as fixed by the department plus
forty cents for each one hundred pounds or fraction thereof
of weight of vehicle, as fixed by the department. The weight
of a motor vehicle, fixed by the department for registration
purposes, shall include the weight of a battery, heater,
bumpers, spare tire, and wheel. Provided, however, that for
any new vehicle purchased in this state by a nonresident
for removal to the nonresident’s state of residence the
purchaser may make application to the any county treasurer
in the county of purchase for a transit plate for which a
fee of ten dollars shall be paid. And provided, however,
that for any used vehicle held by a registered dealer and
not currently registered in this state, or for any vehicle
held by an individual and currently registered in this state,
when purchased in this state by a nonresident for removal
to the nonresident’s state of residence, the purchaser may
make application to the any county treasurer in the county
of purchase for a transit plate for which a fee of three
dollars shall be paid. The county treasurer shall issue a
nontransferable certificate of registration for which no
refund shall be allowed; and the transit plates shall be void
thirty days after issuance. Such purchaser may apply for a
certificate of title by surrendering the manufacturer’s or
importer’s certificate or certificate of title, duly assigned
as provided in this chapter . In this event, the county
treasurer in the county of purchase shall, when satisfied with
the genuineness and regularity of the application, and upon
payment of a fee of twenty thirty dollars, issue a certificate
of title in the name and address of the nonresident purchaser
delivering the title to the owner. If there is a security
interest noted on the title, the county treasurer shall mail
to the secured party an acknowledgment of the notation of the
security interest. The county treasurer shall not release a
security interest that has been noted on a title issued to

House File 674, p. 20
a nonresident purchaser as provided in this paragraph. The
application requirements of section 321.20 apply to a title
issued as provided in this subsection , except that a natural
person who applies for a certificate of title shall provide
either the person’s social security number, passport number,
or driver’s license number, whether the license was issued by
this state, another state, or another country. The provisions
of this subsection relating to multipurpose vehicles are
effective for all 1993 and subsequent model years. The annual
registration fee for multipurpose vehicles that are 1992 model
years and older shall be in accordance with section 321.124 .
Sec. 23. Section 321.109, subsection 3, Code 2024, is
amended to read as follows:
3. The owner of an unregistered motor vehicle or motor
vehicle for which the registration is delinquent may make
application to the any county treasurer of the county of
residence or, if the unregistered or delinquent motor vehicle
is purchased by a nonresident of the state, to the county
treasurer in the county of purchase, for a temporary thirty-day
permit for a fee of twenty-five dollars. The permit shall
authorize the motor vehicle to be driven or towed upon the
highway, but shall not authorize a motor truck or truck tractor
to haul or tow a load. The permit fee shall not be considered a
registration fee or exempt the owner from payment of all other
fees, registration fees, and penalties due. If the annual
registration fee for the motor vehicle is delinquent, the
annual registration fee and penalty shall continue to accrue
until paid. The permit fee shall not be prorated, refunded, or
used as credit as provided under section 321.46 . The permit
shall be displayed in the upper left-hand corner of the rear
window of all motor vehicles, except motorcycles. Permits
issued for a motorcycle shall be attached to the rear of the
motorcycle.
Sec. 24. Section 321.126, subsection 1, paragraph g, Code
2024, is amended to read as follows:
g. If the vehicle was leased and an affidavit was filed
by the lessor or the lessee as provided in section 321.46 ,
the lessor or the lessee, as applicable, may make a claim for
a refund with the county treasurer of the county where the

House File 674, p. 21
vehicle was registered within six months of the vehicle’s
surrender to the lessor. The refund shall be paid to either
the lessor or the lessee, as specified on the application for
title and initial registration pursuant to section 321.20 .
Sec. 25. Section 321.152, subsection 1, paragraphs b, d, and
f, Code 2024, are amended to read as follows:
b. Two Twelve dollars and fifty cents from each fee
collected for certificates of title.
d. Sixty percent Sixteen dollars of all fees each fee
collected for perfection of security interests.
f. One dollar Eleven dollars from each fee for new
registration collected pursuant to section 321.105A .
Sec. 26. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2025.
DIVISION II
DEFINITIONS RELATING TO MOTOR VEHICLE FRANCHISERS
Sec. 27. Section 322A.1, unnumbered paragraph 1, Code 2024,
is amended to read as follows:
When The following words and phrases when used in this
chapter shall , unless the context otherwise requires for
the purpose of this chapter, have the meanings respectively
ascribed to them :
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 674, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor