Bill Text: IA HSB553 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing an alternative to filing a bond as a condition of registering and titling certain motor vehicles.(See HF 2316.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-05 - Committee report approving bill, renumbered as HF 2316. [HSB553 Detail]
Download: Iowa-2023-HSB553-Introduced.html
House
Study
Bill
553
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
TRANSPORTATION
BILL)
A
BILL
FOR
An
Act
providing
an
alternative
to
filing
a
bond
as
a
condition
1
of
registering
and
titling
certain
motor
vehicles.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
321.24,
subsection
11,
Code
2024,
is
1
amended
to
read
as
follows:
2
11.
If
the
county
treasurer
or
department
is
not
3
satisfied
as
to
the
ownership
of
the
vehicle
or
that
there
4
are
no
undisclosed
security
interests
in
it,
or
if
a
junking
5
certificate
has
been
issued
for
the
vehicle
but
a
certificate
6
of
title
will
not
be
reissued
under
section
321.52,
subsection
7
3
,
and
the
vehicle
qualifies
as
an
antique
vehicle
under
8
section
321.115,
subsection
1
,
the
county
treasurer
or
9
department
may
register
the
vehicle
but
shall,
as
a
condition
10
of
issuing
a
certificate
of
title
and
registration
receipt,
11
require
the
applicant
to
first
receive
approval
by
the
12
department.
13
a.
If
the
department
determines
the
value
of
the
vehicle
is
14
one
thousand
dollars
or
less
and
the
vehicle
is
twelve
model
15
years
old
or
older,
the
department
shall
notify
the
applicant,
16
and
the
department
or
county
treasurer
may
issue
a
certificate
17
of
title
and
registration
receipt.
The
applicant
shall
apply
18
for
a
certificate
of
title
and
registration
within
thirty
days
19
of
the
department’s
notification
of
determination.
20
b.
If
the
department
determines
the
value
of
the
vehicle
21
is
more
than
one
thousand
dollars
or
the
vehicle
is
less
than
22
twelve
model
years
old,
the
applicant
shall
file
with
the
23
department
a
bond
in
the
form
prescribed
by
the
department
24
and
executed
by
the
applicant,
and
either
accompanied
by
the
25
deposit
of
cash
with
the
department
or
also
executed
by
a
26
person
authorized
to
conduct
a
surety
business
in
this
state.
27
The
owner
of
a
vehicle
subject
to
the
bond
requirements
of
28
this
subsection
shall
apply
for
a
certificate
of
title
and
29
registration
for
the
vehicle
at
the
county
treasurer’s
office
30
within
thirty
days
of
issuance
of
written
authorization
from
31
the
department.
The
bond
shall
be
in
an
amount
equal
to
one
and
32
one-half
times
the
current
value
of
the
vehicle
,
as
determined
33
by
the
department
,
and
conditioned
to
indemnify
any
prior
owner
34
and
secured
party
and
any
subsequent
purchaser
of
the
vehicle
35
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or
person
acquiring
any
security
interest
in
it,
and
their
1
respective
successors
in
interest,
against
any
expense,
loss,
2
or
damage,
including
reasonable
attorney
fees,
by
reason
of
3
the
issuance
of
the
certificate
of
title
for
the
vehicle
or
4
on
account
of
any
defect
in
or
undisclosed
security
interest
5
upon
the
right,
title,
and
interest
of
the
applicant
in
and
to
6
the
vehicle.
Any
such
interested
person
has
a
right
of
action
7
to
recover
on
the
bond
for
any
breach
of
its
conditions,
but
8
the
aggregate
liability
of
the
surety
to
all
persons
shall
9
not
exceed
the
amount
of
the
bond.
The
bond,
and
any
deposit
10
accompanying
it,
shall
be
returned
at
the
end
of
three
years
or
11
earlier
if
the
vehicle
is
no
longer
registered
in
this
state
12
and
the
currently
valid
certificate
of
title
is
surrendered
to
13
the
department,
unless
the
department
has
been
notified
of
the
14
pendency
of
an
action
to
recover
on
the
bond.
The
department
15
may
authorize
issuance
of
a
certificate
of
title
as
provided
16
in
this
subsection
for
a
vehicle
with
an
unreleased
security
17
interest
upon
presentation
of
satisfactory
evidence
that
the
18
security
interest
has
been
extinguished
or
that
the
holder
of
19
the
security
interest
cannot
be
located
to
release
the
security
20
interest
as
provided
in
section
321.50
.
21
c.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
22
implement
and
administer
this
subsection.
23
Sec.
2.
Section
321.52,
subsection
3,
paragraph
d,
Code
24
2024,
is
amended
to
read
as
follows:
25
d.
However,
upon
application
and
a
showing
of
good
cause,
26
the
department
may
issue
a
certificate
of
title
to
a
person
27
after
the
fourteen-day
period
for
a
junked
vehicle
for
which
28
a
junking
certificate
has
been
issued.
For
purposes
of
this
29
subsection
,
“good
cause”
means
that
the
junking
certificate
30
was
obtained
by
mistake
or
inadvertence.
If
a
person’s
31
application
to
the
department
is
denied,
the
person
may
make
32
application
for
a
certificate
of
title
under
the
bonding
33
procedure
as
provided
in
section
321.24
,
subsection
11,
if
34
the
vehicle
qualifies
as
an
antique
vehicle
under
section
35
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321.115,
subsection
1
,
or
the
person
may
seek
judicial
review
1
as
provided
under
sections
17A.19
and
17A.20
.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
Under
current
law,
if
a
county
treasurer
or
the
department
of
6
transportation
(DOT)
is
not
satisfied
as
to
the
ownership
of
a
7
vehicle
or
that
there
are
no
undisclosed
security
interests
in
8
it,
or
if
a
junking
certificate
has
been
issued
for
the
vehicle
9
but
a
certificate
of
title
will
not
be
reissued
and
the
vehicle
10
is
25
years
old
or
older,
the
county
treasurer
or
DOT
may
11
register
the
vehicle.
However,
as
a
condition
of
registration,
12
and
before
issuing
a
certificate
of
title
and
registration
13
receipt,
the
county
treasurer
or
DOT
must
require
the
applicant
14
to
file
a
bond
with
the
DOT.
The
bond
must
be
accompanied
by
15
the
deposit
of
cash
with
the
DOT
or
also
executed
by
a
person
16
authorized
to
conduct
a
surety
business
in
Iowa.
17
This
bill
requires
a
person
applying
for
registration
18
and
certificate
of
title
for
such
a
vehicle
to
first
receive
19
approval
by
the
DOT
and,
depending
on
the
DOT’s
determination
20
on
the
value
and
age
of
the
vehicle,
the
applicant
may
not
be
21
required
to
file
a
bond.
22
If
the
DOT
determines
the
value
of
the
vehicle
is
$1,000
23
or
less
and
the
vehicle
is
12
model
years
old
or
older,
the
24
DOT
must
notify
the
applicant,
and
the
DOT
or
county
treasurer
25
may
issue
a
certificate
of
title
and
registration
receipt.
26
The
applicant
is
required
to
apply
for
a
certificate
of
title
27
and
registration
within
30
days
of
the
DOT’s
notification
of
28
determination.
However,
if
the
DOT
determines
the
value
of
29
the
vehicle
is
more
than
$1,000
or
the
vehicle
is
less
than
12
30
model
years
old,
the
applicant
is
required
to
file
bond
with
31
the
DOT
in
accordance
with
current
law.
32
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