Bill Text: IA HF870 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act regarding the registration and titling of motor vehicles, including by providing for initial registration and titling by any county treasurer and by modifying related fees and the amount of fees retained by county treasurers.(Formerly HF 810, HSB 262; See HF 2570.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2022-03-22 - Committee report approving bill, renumbered as HF 2570. [HF870 Detail]

Download: Iowa-2021-HF870-Introduced.html
House File 870 - Introduced HOUSE FILE 870 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 810) (SUCCESSOR TO HSB 262) 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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2767HZ (2) 89 th/ns
H.F. 870 Section 1. Section 321.20, subsection 1, unnumbered 1 paragraph 1, Code 2021, 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 with 24 that section. The application shall be accompanied by a fee 25 of twenty twenty-five 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 2767HZ (2) 89 th/ns 1/ 23
H.F. 870 Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2021, 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 2021, 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 35 -2- LSB 2767HZ (2) 89 th/ns 2/ 23
H.F. 870 be accompanied by a twenty dollar twenty-five-dollar title fee 1 and the appropriate fee for new registration. The department 2 or the county treasurer shall deliver the certificate of title 3 to the owner if there is no security interest. If there is a 4 security interest, the title, when issued, shall be delivered 5 to the first secured party. Delivery may be made using 6 electronic means. 7 Sec. 4. Section 321.23, subsections 3 and 4, Code 2021, 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 if, at the 25 time of the transfer, the certificate of title is held by a 26 secured party and the dealer has forwarded to the secured party 27 the sum necessary to discharge the security interest pursuant 28 to section 321.48, subsection 1 . 29 4. A vehicle which does not meet the equipment requirements 30 of this chapter due to the particular use for which it is 31 designed or intended, may be registered by the department 32 upon payment of appropriate fees and after inspection and 33 certification by the department that the vehicle is not 34 in an unsafe condition. A person is not required to have 35 -3- LSB 2767HZ (2) 89 th/ns 3/ 23
H.F. 870 a certificate of title to register a vehicle under this 1 subsection . If the owner elects to have a certificate of 2 title issued for the vehicle, a fee of twenty twenty-five 3 dollars shall be paid by the person making the application 4 upon issuance of a certificate of title. If the department’s 5 inspection reveals that the vehicle may be safely operated only 6 under certain conditions or on certain types of roadways, the 7 department may restrict the registration to limit operation of 8 the vehicle to the appropriate conditions or roadways. This 9 subsection does not apply to snowmobiles as defined in section 10 321G.1 . Section 321.382 does not apply to a vehicle registered 11 under this subsection which is operated exclusively by a person 12 with a disability who has obtained a persons with disabilities 13 parking permit as provided in section 321L.2 , if the persons 14 with disabilities parking permit is carried in or on the 15 vehicle and shown to a peace officer on request. 16 Sec. 5. Section 321.25, subsection 1, Code 2021, is amended 17 to read as follows: 18 1. A vehicle may be operated upon the highways of this 19 state without registration plates for a period of forty-five 20 days after the date of delivery of the vehicle to the purchaser 21 from a dealer if a card bearing the words “registration applied 22 for” is attached on the rear of the vehicle. The card shall 23 have plainly stamped or stenciled the registration number of 24 the dealer from whom the vehicle was purchased and the date 25 of delivery of the vehicle. In addition, a dealer licensed 26 to sell new motor vehicles may attach the card to a new motor 27 vehicle delivered by the dealer to the purchaser even if the 28 vehicle was purchased from an out-of-state dealer and the card 29 shall bear the registration number of the dealer that delivered 30 the vehicle. A dealer shall not issue a card to a person known 31 to the dealer to be in possession of registration plates which 32 may be attached to the vehicle. A dealer shall not issue a card 33 unless an application for initial registration and certificate 34 of title has been made by the purchaser and a receipt issued to 35 -4- LSB 2767HZ (2) 89 th/ns 4/ 23
H.F. 870 the purchaser of the vehicle showing the fee paid by the person 1 making the application. Dealers’ records shall indicate the 2 agency to which the fee is sent and the date the fee is sent. 3 The dealer shall forward the application by the purchaser to 4 the county treasurer or state office within thirty calendar 5 days from the date of delivery of the vehicle. However, if the 6 vehicle is subject to a security interest and has been offered 7 for sale pursuant to section 321.48, subsection 1 , the dealer 8 shall forward the application by the purchaser to the county 9 treasurer or state office within thirty calendar days from the 10 date of the delivery of the vehicle to the purchaser. 11 Sec. 6. Section 321.29, Code 2021, is amended to read as 12 follows: 13 321.29 Renewal not permitted. 14 Any vehicle once registered in the state and by removal no 15 longer subject to registration in this state, shall upon being 16 returned to this state and subject to registration be again 17 initially registered in accordance with section 321.20 . 18 Sec. 7. Section 321.34, subsection 1, Code 2021, is amended 19 to read as follows: 20 1. Plates issued. The county treasurer upon receiving 21 application, accompanied by proper fee, for registration of a 22 vehicle shall issue to the owner one registration plate for 23 a motorcycle, motorized bicycle, autocycle, truck tractor, 24 trailer, or semitrailer and two registration plates for every 25 other motor vehicle. The registration plates, including 26 special registration plates, shall be assigned to the owner of 27 a vehicle. When the owner of a registered vehicle transfers 28 or assigns ownership of the vehicle to another person, the 29 owner shall remove the registration plates from the vehicle. 30 The owner shall forward the plates to the any county treasurer 31 where the vehicle is registered or the owner may have the 32 plates assigned to another vehicle within thirty days after 33 transfer, upon payment of the fees required by law. The 34 owner shall immediately affix registration plates retained 35 -5- LSB 2767HZ (2) 89 th/ns 5/ 23
H.F. 870 by the owner to another vehicle owned or acquired by the 1 owner, providing the owner complies with section 321.46 . The 2 department shall adopt rules providing for the assignment of 3 registration plates to the transferee of a vehicle for which a 4 credit is allowed under section 321.46, subsection 6 . 5 Sec. 8. Section 321.40, subsection 1, Code 2021, is amended 6 to read as follows: 7 1. Application for renewal for a vehicle registered under 8 this chapter shall be made on or after the first day of the 9 month prior to the month of expiration of registration and up 10 to and including the last day of the month following the month 11 of expiration of registration. The application for renewal 12 shall be submitted to the county treasurer of the county of 13 the owner’s residence; or if a nonresident, to the county 14 treasurer of the county where the primary users of the vehicle 15 are located; or if a lessor of the vehicle pursuant to chapter 16 321F which has a gross vehicle weight of less than ten thousand 17 pounds, to the county treasurer of the county of the lessee’s 18 residence; or if a firm, association, or corporation with 19 vehicles in multiple counties, to the county treasurer of the 20 county where the primary user of the vehicle is located. The 21 registration shall be renewed upon payment of the appropriate 22 annual registration fee. Application for renewal for a vehicle 23 registered under chapter 326 shall be made on or after the 24 first day of the month prior to the month of expiration of 25 registration and up to and including the last day of the month 26 of expiration of registration. 27 Sec. 9. Section 321.42, subsection 2, paragraphs a, c, and 28 d, Code 2021, are amended to read as follows: 29 a. If a certificate of title is lost or destroyed, the 30 owner or lienholder shall apply for a replacement copy of the 31 original certificate of title. The owner or lienholder of a 32 motor vehicle may also apply for a replacement copy of the 33 original certificate of title upon surrender of the original 34 certificate of title with the application. The application 35 -6- LSB 2767HZ (2) 89 th/ns 6/ 23
H.F. 870 shall be made to the department or any county treasurer who 1 issued the original certificate of title . The application 2 shall be signed by the owner or lienholder and accompanied by a 3 fee of twenty twenty-five dollars. 4 c. If a security interest noted on the face of an original 5 certificate of title was released by the lienholder on a 6 separate form pursuant to section 321.50, subsection 5 , and 7 the signature of the lienholder, or the person executing the 8 release on behalf of the lienholder, is notarized, but the 9 lienholder has not delivered the original certificate to the 10 appropriate party as provided in section 321.50, subsection 5 , 11 the owner may apply for and receive a replacement certificate 12 of title without the released security interest noted thereon. 13 The lienholder shall return the original certificate of title 14 to the department or to the any county treasurer of the county 15 where the title was issued . 16 d. A new purchaser or transferee is entitled to receive 17 an original title upon presenting the assigned replacement 18 copy to the any county treasurer of the county where the new 19 purchaser or transferee resides . At the time of purchase, a 20 purchaser may require the seller to indemnify the purchaser and 21 all future purchasers of the vehicle against any loss which 22 may be suffered due to claims on the original certificate. A 23 person recovering an original certificate of title for which 24 a replacement has been issued shall surrender the original 25 certificate to the county treasurer or the department. 26 Sec. 10. Section 321.46, subsections 1, 2, and 5, Code 2021, 27 are amended to read as follows: 28 1. The transferee shall, within thirty calendar days after 29 purchase or transfer, apply for and obtain from the any county 30 treasurer of the person’s residence, or if a nonresident, the 31 county treasurer of the county where the primary users of the 32 vehicle are located or the county where all other vehicles 33 owned by the nonresident are registered, or in the case of a 34 mobile home or manufactured home, the county treasurer of the 35 -7- LSB 2767HZ (2) 89 th/ns 7/ 23
H.F. 870 county where the mobile home or manufactured home is located, 1 or if a firm, association, or corporation with vehicles in 2 multiple counties, the transferee may apply for and obtain from 3 the county treasurer of the county where the primary user of 4 the vehicle is located, a new initial registration and a new 5 certificate of title for the vehicle, except as provided in 6 section 321.25 , 321.48 , or 322G.12 , or when the transferee 7 obtains the vehicle pursuant to section 321.52, subsection 2 , 8 paragraph “b” . In the case of a mobile home or manufactured 9 home, the transferee shall, within thirty calendar days after 10 purchase or transfer, apply for and obtain from the county 11 treasurer of the county where the mobile home or manufactured 12 home is located a new certificate of title. The transferee 13 shall present with the application the certificate of title 14 endorsed and assigned by the previous owner and shall indicate 15 the name of the county in which the vehicle was last registered 16 and the registration expiration date. 17 2. Upon filing the application for a new initial 18 registration and a new title, the applicant shall pay a title 19 fee of twenty twenty-five dollars, an annual registration fee 20 prorated for the remaining unexpired months of the registration 21 year, and a fee for new registration if applicable. A 22 manufacturer applying for a certificate of title pursuant 23 to section 322G.12 shall pay a title fee of ten fifteen 24 dollars. However, a title fee shall not be charged to a 25 manufactured or mobile home retailer applying for a certificate 26 of title for a used mobile home or manufactured home, titled 27 in Iowa, as required under section 321.45, subsection 4 . 28 The county treasurer, if satisfied of the genuineness and 29 regularity of the application, and in the case of a mobile 30 home or manufactured home, that taxes are not owing under 31 chapter 435 , and that applicant has complied with all the 32 requirements of this chapter , shall issue a new certificate 33 of title and, except for a mobile home, manufactured home, 34 or a vehicle returned to and accepted by a manufacturer as 35 -8- LSB 2767HZ (2) 89 th/ns 8/ 23
H.F. 870 described in section 322G.12 , a registration card to the 1 purchaser or transferee, shall cancel the prior registration 2 for the vehicle, and shall forward the necessary copies to the 3 department on the date of issuance, as prescribed in section 4 321.24 . Mobile homes or manufactured homes titled under 5 chapter 448 that have been subject under section 446.18 to a 6 public bidder sale in a county shall be titled in the county’s 7 name, with no fee, and the county treasurer shall issue the 8 title. 9 5. The seller or transferor may file an affidavit on 10 forms prescribed and provided by the department with the any 11 county treasurer of the county where the vehicle is registered 12 certifying the sale or transfer of ownership of the vehicle 13 and the assignment and delivery of the certificate of title 14 for the vehicle. Upon receipt of the affidavit, the county 15 treasurer shall file the affidavit with the copy of the 16 registration receipt for the vehicle on file in the treasurer’s 17 office and on that day the treasurer shall note receipt of the 18 affidavit in the vehicle registration and titling system. Upon 19 filing the affidavit, it shall be presumed that the seller or 20 transferor has assigned and delivered the certificate of title 21 for the vehicle. For a leased vehicle, the lessor licensed 22 pursuant to chapter 321F or the lessee may file an affidavit 23 as provided in this subsection certifying that the lease has 24 expired or been terminated and the date that the leased vehicle 25 was surrendered to the lessor. 26 Sec. 11. Section 321.47, subsections 1 and 3, Code 2021, are 27 amended to read as follows: 28 1. If ownership of a vehicle is transferred by operation of 29 law upon inheritance, devise or bequest, dissolution decree, 30 order in bankruptcy, insolvency, replevin, foreclosure or 31 execution sale, abandoned vehicle sale, or when the engine of a 32 motor vehicle is replaced by another engine, or a vehicle is 33 sold or transferred to satisfy an artisan’s lien as provided 34 in chapter 577 , a landlord’s lien as provided in chapter 570 , 35 -9- LSB 2767HZ (2) 89 th/ns 9/ 23
H.F. 870 a self-service storage facility lien as provided in section 1 578A.7 , a storage lien as provided in chapter 579 , a judgment 2 in an action for abandonment of a manufactured or mobile home 3 as provided in chapter 555B , upon presentation of an affidavit 4 relating to the disposition of a valueless mobile, modular, or 5 manufactured home as provided in chapter 555C , or repossession 6 is had upon default in performance of the terms of a security 7 agreement, the any county treasurer in the transferee’s county 8 of residence or, in the case of a mobile home or manufactured 9 home, the county treasurer of the county where the mobile home 10 or manufactured home is located, upon the surrender of the 11 prior certificate of title or the manufacturer’s or importer’s 12 certificate, or when that is not possible, upon presentation 13 of satisfactory proof to the county treasurer of ownership 14 and right of possession to the vehicle and upon payment of a 15 fee of twenty twenty-five dollars and the presentation of an 16 application for initial registration and certificate of title, 17 may issue to the applicant a registration card for the vehicle 18 and a certificate of title to the vehicle. A person entitled 19 to ownership of a vehicle under a decree of dissolution shall 20 surrender a reproduction of a certified copy of the dissolution 21 and upon fulfilling the other requirements of this chapter is 22 entitled to a certificate of title and registration receipt 23 issued in the person’s name. 24 3. Whenever ownership of a vehicle is transferred under the 25 provisions of this section , the registration plates shall be 26 removed and forwarded to the any county treasurer of the county 27 where the vehicle is registered or to the department if the 28 vehicle is owned by a nonresident. Upon transfer the vehicle 29 shall not be operated upon the highways of this state until the 30 person entitled to possession of the vehicle applies for and 31 obtains initial registration for the vehicle. 32 Sec. 12. Section 321.48, subsection 2, Code 2021, is amended 33 to read as follows: 34 2. A foreign registered vehicle purchased or otherwise 35 -10- LSB 2767HZ (2) 89 th/ns 10/ 23
H.F. 870 acquired by a dealer for the purpose of resale shall be issued 1 a certificate of title for the vehicle by the any county 2 treasurer of the dealer’s residence upon proper application 3 as provided in this chapter and upon payment of a fee of five 4 ten dollars and the dealer is exempt from the payment of any 5 and all registration fees for the vehicle. The application 6 for certificate of title shall be made within thirty days 7 after the vehicle comes within the border of the state. 8 However, a dealer acquiring a vehicle registered in another 9 state which permits Iowa dealers to reassign that state’s 10 certificates of title shall not be required to obtain a new 11 initial registration or a new certificate of title and upon 12 transferring title or interest to another person shall execute 13 an assignment upon the certificate of title for the vehicle 14 to the person to whom the transfer is made and deliver the 15 assigned certificate of title to the person. 16 Sec. 13. Section 321.49, subsection 1, Code 2021, is amended 17 to read as follows: 18 1. Except as provided in section 321.52 , if an application 19 for transfer of registration and certificate of title is not 20 submitted to the any county treasurer of the residence of 21 the transferee within thirty days of the date of assignment 22 or transfer of title, or within thirty days of the date of 23 delivery to the purchaser if the vehicle is subject to a 24 security interest and was offered for sale pursuant to section 25 321.48, subsection 1 , a penalty of ten dollars shall accrue 26 against the applicant, and no registration card or certificate 27 of title shall be issued to the applicant for the vehicle until 28 the penalty is paid. 29 Sec. 14. Section 321.50, subsection 1, Code 2021, is amended 30 to read as follows: 31 1. A security interest in a vehicle subject to registration 32 under the laws of this state or a mobile home or manufactured 33 home , except trailers whose empty weight is two thousand 34 pounds or less, and except new or used vehicles held by a 35 -11- LSB 2767HZ (2) 89 th/ns 11/ 23
H.F. 870 dealer or manufacturer as inventory for sale, is perfected by 1 the delivery to the any county treasurer of the county where 2 the certificate of title was issued or, in the case of a new 3 certificate, to the county treasurer where the certificate will 4 be issued, of an application for certificate of title which 5 lists the security interest, or an application for notation 6 of security interest signed by the owner or by one owner of 7 a vehicle owned jointly by more than one person, or signed 8 through electronic means as determined by the department, or a 9 certificate of title from another jurisdiction which shows the 10 security interest, and payment of a fee of ten fifteen dollars 11 for each security interest shown. The security interest in a 12 mobile home or manufactured home is perfected by the delivery 13 to the county treasurer of the county where the certificate 14 of title was issued or, in the case of a new certificate, to 15 the county treasurer where the certificate will be issued, 16 of an application for certificate of title which lists the 17 security interest, or an application for notation of security 18 interest signed by the owner or by one owner when owned jointly 19 by more than one person, or signed through electronic means 20 as determined by the department, or a certificate of title 21 from another jurisdiction which shows the security interest, 22 and payment of a fee of fifteen dollars for each security 23 interest shown. The department shall require the federal 24 employer identification number of a secured party who is a 25 firm, association, or corporation or, if a natural person, 26 the social security number. Upon delivery of the application 27 and payment of the fee, the county treasurer shall note the 28 date of delivery on the application. If the delivery is by 29 electronic means and the time is electronically recorded on the 30 application along with the date, the time shall be included 31 with the date on all subsequent documents and records where the 32 date of perfection is required under this chapter . The date 33 of delivery shall be the date of perfection of the security 34 interest in the vehicle, regardless of the date the security 35 -12- LSB 2767HZ (2) 89 th/ns 12/ 23
H.F. 870 interest is noted on the certificate of title. Up to three 1 security interests may be perfected against a vehicle and shown 2 on an Iowa certificate of title. If the owner or secured party 3 is in possession of the certificate of title, it must also be 4 delivered at this time. If a vehicle is subject to a security 5 interest when brought into this state, the validity of the 6 security interest and the date of perfection is determined by 7 section 554.9303 . Delivery as provided in this subsection 8 constitutes perfection of a security interest on a certificate 9 of title for purposes of this chapter and chapter 554 . 10 Sec. 15. Section 321.50, subsection 5, paragraphs a and c, 11 Code 2021, are amended to read as follows: 12 a. When a security interest is discharged, the holder 13 shall note a cancellation of the security interest on the 14 face of the certificate of title over the holder’s signature 15 or may note the cancellation of the security interest on a 16 separate, notarized release form or letter. The holder shall 17 deliver the certificate of title and the form or letter, if 18 applicable, to the any county treasurer where the title was 19 issued . In the case of a security interest that has been 20 delivered by electronic means, the holder shall notify the 21 department or the county treasurer, in a manner prescribed 22 by the department, of the release of the security interest. 23 The county treasurer shall immediately note the cancellation 24 of the security interest on the face of the certificate of 25 title, if applicable, and in the county records system. The 26 county treasurer shall on the same day deliver the certificate 27 of title, if applicable, and the separate, notarized release 28 form or letter, if applicable, to the then first secured party 29 or, if there is no such person, to the person as directed by 30 the owner, in writing, on a form prescribed by the department 31 or, if there is no person designated, then to the owner. The 32 cancellation of the security interest shall be noted on the 33 certificate of title by the county treasurer without charge. 34 The holder of a security interest discharged by payment who 35 -13- LSB 2767HZ (2) 89 th/ns 13/ 23
H.F. 870 fails to release the security interest within fifteen days 1 after being requested in writing to do so shall forfeit to the 2 person making the payment the sum of twenty-five dollars. 3 c. When a security interest is discharged, the lienholder 4 shall note the cancellation of the security interest on the 5 face of the title and, if applicable, may note the cancellation 6 of the security interest on a form prescribed by the department 7 and deliver a copy of the form in lieu of the title to the 8 department or to the any county treasurer of the county in 9 which the title was issued . The form may be delivered by 10 electronic means. The department or county treasurer shall 11 note the release of the security interest upon the statewide 12 computer system and the county’s records. A copy of the form, 13 if used, shall be attached to the title by the lienholder, if 14 the title is held by the lienholder, and shall be evidence of 15 the release of the security interest. If the title is held 16 by the lienholder, the lienholder shall deliver the title to 17 the first lienholder, or if there is no such person, to the 18 person as designated by the owner, or if there is no such 19 person designated, to the owner. If a certificate of title 20 has not been issued, upon release of a security interest, the 21 lienholder shall notify the department or the county treasurer, 22 in a manner prescribed by the department, of the release of the 23 security interest. 24 Sec. 16. Section 321.52, subsection 2, paragraph a, Code 25 2021, is amended to read as follows: 26 a. The purchaser or transferee of a motor vehicle subject to 27 registration for which a certificate of title is issued which 28 is sold for scrap or junk shall surrender the certificate of 29 title, properly endorsed and signed by the previous owner, to 30 the any county treasurer of the county of residence of the 31 transferee , and shall apply for a junking certificate from the 32 county treasurer, within thirty days after assignment of the 33 certificate of title, except when the vehicle is disposed of 34 pursuant to paragraph “b” . The county treasurer shall issue 35 -14- LSB 2767HZ (2) 89 th/ns 14/ 23
H.F. 870 to such person without fee a junking certificate. A junking 1 certificate shall authorize the holder to possess, transport, 2 or transfer by endorsement the ownership of the junked vehicle. 3 A certificate of title shall not again be issued for the 4 vehicle subsequent to the issuance of a junking certificate 5 except as provided in subsection 3 . The county treasurer shall 6 cancel the record of the vehicle. The junking certificate 7 shall be printed on the registration receipt form and shall be 8 imprinted with the words “junking certificate”, as prescribed 9 by the department. A space for transfer by endorsement 10 shall be on the junking certificate. A separate form for the 11 notation of the transfer of component parts shall be attached 12 to the junking certificate when the certificate is issued. 13 Sec. 17. Section 321.52, subsection 4, paragraphs a and b, 14 Code 2021, are amended to read as follows: 15 a. Notwithstanding any other provision of law to the 16 contrary, an insurer may apply for and be issued a salvage 17 certificate of title for a motor vehicle without surrendering 18 the certificate of title or manufacturer’s or importer’s 19 statement of origin properly assigned if ownership of the 20 vehicle was transferred, or will transfer, to the insurer 21 pursuant to a settlement with the previous owner of the vehicle 22 arising from circumstances involving damage to the vehicle, 23 and at least thirty days have expired since the effective 24 date of such settlement. To obtain a salvage certificate 25 of title pursuant to this paragraph “a” , the insurer shall 26 submit an application for a salvage certificate of title to 27 the any county treasurer of the county in which the vehicle 28 is stored by or on behalf of the insurer . The application 29 shall be accompanied by an affidavit from the insurer in 30 which the insurer certifies it has made at least two written 31 attempts to obtain a properly assigned certificate of title 32 or manufacturer’s or importer’s statement of origin for the 33 vehicle by contacting the previous owner of the vehicle and all 34 lienholders of record by certified mail or a similar service 35 -15- LSB 2767HZ (2) 89 th/ns 15/ 23
H.F. 870 that provides proof of service using a return receipt, and 1 has been unable to obtain the title or statement of origin. 2 The failure of a previous owner or lienholder to provide a 3 properly assigned certificate of title or manufacturer’s or 4 importer’s statement of origin shall be deemed to be a waiver 5 by the previous owner or lienholder of all rights, title, 6 claim, and interest in the vehicle. The application shall also 7 be accompanied by the application fee required under paragraph 8 “b” , and proof of payment of the total amount of the settlement 9 by the insurer to the previous owner of the vehicle. Upon 10 receiving an application that complies with this paragraph “a” , 11 the county treasurer shall issue a salvage certificate of title 12 to the insurer which shall be free and clear of all liens and 13 claims of ownership and shall bear the word “SALVAGE” stamped 14 or printed on the face of the title in a manner prescribed by 15 the department. 16 b. A vehicle rebuilder or a person engaged in the business 17 of buying, selling, or exchanging vehicles of a type required 18 to be registered in this state, upon acquisition of a wrecked 19 or salvage vehicle, shall surrender the certificate of 20 title or manufacturer’s or importer’s statement of origin 21 properly assigned, together with an application for a salvage 22 certificate of title, to the any county treasurer of the county 23 of residence of the purchaser or transferee within thirty days 24 after the date of assignment of the certificate of title for 25 the wrecked or salvage motor vehicle. This subsection applies 26 only to vehicles with a fair market value of five hundred 27 dollars or more, based on the value before the vehicle became 28 wrecked or salvage. Upon payment of a fee of ten fifteen 29 dollars, the county treasurer shall issue a salvage certificate 30 of title which shall bear the word “SALVAGE” stamped or 31 printed on the face of the title in a manner prescribed by the 32 department. A salvage certificate of title may be assigned 33 to an educational institution, a new motor vehicle dealer 34 licensed under chapter 322 , a person engaged in the business 35 -16- LSB 2767HZ (2) 89 th/ns 16/ 23
H.F. 870 of purchasing bodies, parts of bodies, frames or component 1 parts of vehicles for sale as scrap metal, a salvage pool, or 2 an authorized vehicle recycler licensed under chapter 321H . An 3 authorized vehicle recycler licensed under chapter 321H or a 4 new motor vehicle dealer licensed under chapter 322 may assign 5 or reassign an Iowa salvage certificate of title or a salvage 6 certificate of title from another state to any person, and the 7 provisions of section 321.24, subsection 5 , requiring issuance 8 of an Iowa salvage certificate of title shall not apply. A 9 vehicle on which ownership has transferred to an insurer of 10 the vehicle as a result of a settlement with the owner of the 11 vehicle arising out of damage to, or unrecovered theft of, the 12 vehicle shall be deemed to be a wrecked or salvage vehicle 13 and the insurer shall comply with this subsection to obtain a 14 salvage certificate of title within thirty days after the date 15 of assignment of the certificate of title of the vehicle. 16 Sec. 18. Section 321.105A, subsection 2, unnumbered 17 paragraph 1, Code 2021, is amended to read as follows: 18 In addition to the annual registration fee required under 19 section 321.105 , a “fee for new registration” is imposed in 20 the amount of five dollars plus five percent of the purchase 21 price for each vehicle subject to registration. The fee for 22 new registration shall be paid by the owner of the vehicle to 23 the county treasurer at the time application is made for a new 24 initial registration and certificate of title, if applicable. 25 A new registration receipt shall not be issued until the 26 fee has been paid. The county treasurer or the department 27 of transportation shall require every applicant for a new 28 registration receipt for a vehicle subject to registration to 29 supply information as the county treasurer or the director 30 deems necessary as to the time of purchase, the purchase 31 price, and other information relative to the purchase of the 32 vehicle. On or before the tenth day of each month, the county 33 treasurer or the department of transportation shall remit 34 to the department of revenue the amount of the fees for new 35 -17- LSB 2767HZ (2) 89 th/ns 17/ 23
H.F. 870 registration collected during the preceding month. 1 Sec. 19. Section 321.105A, subsection 3, paragraph a, Code 2 2021, is amended to read as follows: 3 a. A fee for new registration is imposed in an amount equal 4 to five dollars plus five percent of the leased price for each 5 vehicle subject to registration with a gross vehicle weight 6 rating of less than sixteen thousand pounds which is leased 7 by a lessor licensed pursuant to chapter 321F for a period of 8 twelve months or more. The fee for new registration shall 9 be paid by the owner of the vehicle to the county treasurer 10 from whom the registration receipt or certificate of title is 11 obtained. A registration receipt for a vehicle subject to 12 registration or issuance of a certificate of title shall not 13 be issued until the fee for new registration is paid in the 14 initial instance. 15 Sec. 20. Section 321.109, subsection 1, paragraph a, Code 16 2021, is amended to read as follows: 17 a. The annual fee for all motor vehicles including vehicles 18 designated by manufacturers as station wagons, 1993 and 19 subsequent model year multipurpose vehicles, and 2010 and 20 subsequent model year motor trucks with an unladen weight of 21 ten thousand pounds or less, except motor trucks registered 22 under section 321.122 , business-trade trucks, special trucks, 23 motor homes, motorsports recreational vehicles, ambulances, 24 hearses, autocycles, motorcycles, motorized bicycles, and 1992 25 and older model year multipurpose vehicles, shall be equal 26 to one percent of the value as fixed by the department plus 27 forty cents for each one hundred pounds or fraction thereof 28 of weight of vehicle, as fixed by the department. The weight 29 of a motor vehicle, fixed by the department for registration 30 purposes, shall include the weight of a battery, heater, 31 bumpers, spare tire, and wheel. Provided, however, that for 32 any new vehicle purchased in this state by a nonresident 33 for removal to the nonresident’s state of residence the 34 purchaser may make application to the any county treasurer 35 -18- LSB 2767HZ (2) 89 th/ns 18/ 23
H.F. 870 in the county of purchase for a transit plate for which a 1 fee of ten dollars shall be paid. And provided, however, 2 that for any used vehicle held by a registered dealer and 3 not currently registered in this state, or for any vehicle 4 held by an individual and currently registered in this state, 5 when purchased in this state by a nonresident for removal 6 to the nonresident’s state of residence, the purchaser may 7 make application to the any county treasurer in the county 8 of purchase for a transit plate for which a fee of three 9 dollars shall be paid. The county treasurer shall issue a 10 nontransferable certificate of registration for which no 11 refund shall be allowed; and the transit plates shall be void 12 thirty days after issuance. Such purchaser may apply for a 13 certificate of title by surrendering the manufacturer’s or 14 importer’s certificate or certificate of title, duly assigned 15 as provided in this chapter . In this event, the county 16 treasurer in the county of purchase shall, when satisfied 17 with the genuineness and regularity of the application, and 18 upon payment of a fee of twenty twenty-five dollars, issue a 19 certificate of title in the name and address of the nonresident 20 purchaser delivering the title to the owner. If there is a 21 security interest noted on the title, the county treasurer 22 shall mail to the secured party an acknowledgment of the 23 notation of the security interest. The county treasurer 24 shall not release a security interest that has been noted on 25 a title issued to a nonresident purchaser as provided in this 26 paragraph. The application requirements of section 321.20 27 apply to a title issued as provided in this subsection , except 28 that a natural person who applies for a certificate of title 29 shall provide either the person’s social security number, 30 passport number, or driver’s license number, whether the 31 license was issued by this state, another state, or another 32 country. The provisions of this subsection relating to 33 multipurpose vehicles are effective for all 1993 and subsequent 34 model years. The annual registration fee for multipurpose 35 -19- LSB 2767HZ (2) 89 th/ns 19/ 23
H.F. 870 vehicles that are 1992 model years and older shall be in 1 accordance with section 321.124 . 2 Sec. 21. Section 321.109, subsection 3, Code 2021, is 3 amended to read as follows: 4 3. The owner of an unregistered motor vehicle or motor 5 vehicle for which the registration is delinquent may make 6 application to the any county treasurer of the county of 7 residence or, if the unregistered or delinquent motor vehicle 8 is purchased by a nonresident of the state, to the county 9 treasurer in the county of purchase, for a temporary thirty-day 10 permit for a fee of twenty-five dollars. The permit shall 11 authorize the motor vehicle to be driven or towed upon the 12 highway, but shall not authorize a motor truck or truck tractor 13 to haul or tow a load. The permit fee shall not be considered a 14 registration fee or exempt the owner from payment of all other 15 fees, registration fees, and penalties due. If the annual 16 registration fee for the motor vehicle is delinquent, the 17 annual registration fee and penalty shall continue to accrue 18 until paid. The permit fee shall not be prorated, refunded, or 19 used as credit as provided under section 321.46 . The permit 20 shall be displayed in the upper left-hand corner of the rear 21 window of all motor vehicles, except motorcycles. Permits 22 issued for a motorcycle shall be attached to the rear of the 23 motorcycle. 24 Sec. 22. Section 321.126, subsection 1, paragraph g, Code 25 2021, is amended to read as follows: 26 g. If the vehicle was leased and an affidavit was filed 27 by the lessor or the lessee as provided in section 321.46 , 28 the lessor or the lessee, as applicable, may make a claim for 29 a refund with the county treasurer of the county where the 30 vehicle was registered within six months of the vehicle’s 31 surrender to the lessor. The refund shall be paid to either 32 the lessor or the lessee, as specified on the application for 33 title and initial registration pursuant to section 321.20 . 34 Sec. 23. Section 321.152, subsection 1, paragraphs b, d, and 35 -20- LSB 2767HZ (2) 89 th/ns 20/ 23
H.F. 870 f, Code 2021, are amended to read as follows: 1 b. Two Seven dollars and fifty cents from each fee collected 2 for certificates of title. 3 d. Sixty percent Eleven dollars of all fees each fee 4 collected for perfection of security interests. 5 f. One dollar Six dollars from each fee for new registration 6 collected pursuant to section 321.105A . 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, only certain county treasurers are 11 allowed to do certain actions relating to motor vehicle 12 registration and titling. This bill provides that any county 13 treasurer can do any of the following: accept applications 14 for initial registration and issue initial registrations 15 and certificates of title to owners of vehicles, owners of 16 commercial vehicles, owners of certain foreign vehicles, 17 owners of transferred vehicles, owners of vehicles with a 18 lost or damaged certificate of title, owners of vehicles 19 transferred by law, and nonresident purchasers of vehicles; 20 receive forwarded plates from the owner of a registered vehicle 21 who has transferred or assigned ownership of the vehicle to 22 another person; accept the return of an original certificate 23 of title from a lienholder; issue an original certificate of 24 title to a new purchaser or transferee who presents an assigned 25 replacement copy; receive affidavits certifying the sale or 26 transfer of ownership of a vehicle; receive registration plates 27 from a vehicle that has been transferred by operation of law; 28 issue certificates of title to dealers in possession of foreign 29 registered vehicles; receive applications for the transfer 30 of registration and certificates of title; perfect security 31 interests; accept certificates of title, or other forms, 32 noting that a security interest has been discharged; receive 33 certificates of title of vehicles that have been sold for scrap 34 or junk; accept applications for salvage certificates of title; 35 -21- LSB 2767HZ (2) 89 th/ns 21/ 23
H.F. 870 receive certificates of title of a wrecked or salvage vehicle; 1 and accept applications and issue temporary permits for 2 vehicles that are unregistered or have delinquent registration. 3 The bill increases the following fees from $20 to $25: 4 applications for initial registration and issuance of a 5 certificate of title for a vehicle, applications for initial 6 registration and issuance of a certificate of title for a 7 commercial vehicle, applications for initial registration 8 of a vehicle failing to meet the equipment requirements of 9 Code chapter 321, applications for a replacement copy of an 10 original certificate of title, applications for a new initial 11 registration and a new title upon transfer, applications for 12 initial registration and issuance of a certificate of title for 13 a vehicle transferred by operation of law, and applications for 14 certificate of title to a nonresident purchaser. 15 The bill increases the following fees from $10 to $15: 16 applications by a manufacturer for a certificate of title 17 pursuant to Code section 322G.12, applications to perfect 18 a security interest in a vehicle by delivery to a county 19 treasurer, and applications for the issuance of a salvage 20 certificate of title. 21 The bill increases the fee for applications for certificates 22 of title by a dealer for a foreign registered vehicle from $5 23 to $10. 24 An application for renewal of registration for a vehicle 25 shall be submitted to the county treasurer of the county of the 26 owner’s residence, or if a nonresident or a firm association or 27 corporation with vehicles in multiple counties, to the county 28 treasurer of the county where the primary users of the vehicle 29 are located, or if a lessor of the vehicle, to the county 30 treasurer of the county of the lessee’s residence. However, 31 the bill does not change the requirement under Code section 32 321.166 that every registration plate issued by a county 33 treasurer must display the name of the county where the plate 34 is issued. Under the bill, a person may register a vehicle 35 -22- LSB 2767HZ (2) 89 th/ns 22/ 23
H.F. 870 other than by renewal in any county. 1 The bill amends Code section 321.20(2) by striking the 2 current date by which the department of transportation (DOT) 3 is required to develop and implement a program to allow for 4 electronic applications, titling, initial registrations, and 5 funds transfers for vehicles subject to registration. 6 Current law provides that, in addition to the annual 7 registration fee, a fee for new registration is imposed 8 in the amount of 5 percent of the purchase price for each 9 vehicle subject to registration. The bill increases the fee 10 by providing that the fee for new registration is $5 plus 11 5 percent of the purchase price of each vehicle subject to 12 registration. Furthermore, the bill increases the fee for 13 new registration of leased vehicles by imposing a $5 fee in 14 addition to 5 percent of the leased price. 15 Lastly, the bill changes the amounts of certain fees a 16 county treasurer may retain for deposit in the county general 17 fund. The bill provides the treasurer may retain $7.50 from 18 each fee collected for certificates of title, $11 from each 19 fee collected for perfection of security interests, and $6 20 from each fee for new registration. The bill makes conforming 21 changes to Code sections 321.25, 321.29, and 321.126. 22 -23- LSB 2767HZ (2) 89 th/ns 23/ 23
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