House Study Bill 676 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act regarding the registration and titling of motor 1 vehicles, including by providing for registration and 2 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 5985YC (2) 88 mo/ns

H.F. _____ Section 1. Section 321.20, subsection 1, unnumbered 1 paragraph 1, Code 2020, 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 14 county treasurer of the county where the primary user of the 15 vehicle is located, for the 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 registration and 28 issuance of a certificate of title for all vehicles subject to 29 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 5985YC (2) 88 mo/ns 1/ 22

H.F. _____ Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2020, 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, and funds transfers for 7 vehicles subject to registration in order to improve the 8 efficiency and timeliness of the processes and to reduce costs 9 for all parties involved. The program shall also provide for 10 the electronic submission of any statement required by this 11 section , except where prohibited by federal law. 12 3. The department shall adopt rules on pursuant to chapter 13 17A to administer this section, including rules relating to the 14 method for providing signatures for applications and statements 15 required by this section that are made by electronic means. 16 4. Notwithstanding this section or any other provision of 17 law to the contrary, if the program required by subsection 18 2 is not implemented by July 1, 2019, an owner of a vehicle 19 subject to registration may apply to the county treasurer of a 20 county contiguous to the county designated for the owner under 21 subsection 1 for registration and issuance of a certificate of 22 title. If a transaction occurs under the program established 23 pursuant to subsection 2, the required documentation shall 24 be electronically submitted to the county treasurer of the 25 county of the owner’s residence; or if a nonresident, to the 26 county treasurer of the county where the primary users of the 27 vehicle are located; or if a lessor of the vehicle pursuant to 28 chapter 321F which has a gross vehicle weight of less than ten 29 thousand pounds, to the county treasurer of the county of the 30 lessee’s residence; or if a firm, association, or corporation 31 with vehicles in multiple counties, the county treasurer of the 32 county where the primary user of the vehicle is located. 33 Sec. 3. Section 321.20A, subsection 1, Code 2020, is amended 34 to read as follows: 35 -2- LSB 5985YC (2) 88 mo/ns 2/ 22

H.F. _____ 1. Notwithstanding other provisions of this chapter , 1 the owner of a commercial vehicle subject to the apportioned 2 registration provisions of chapter 326 may make application 3 to the department or the appropriate any county treasurer 4 for a certificate of title. The owner of a commercial 5 vehicle purchased pursuant to section 578A.7 shall present 6 documentation that such sale was completed in compliance with 7 that section. The application for certificate of title shall 8 be made within thirty days of purchase or transfer and shall be 9 accompanied by a twenty twenty-five dollar title fee and the 10 appropriate fee for new registration. The department or the 11 county treasurer shall deliver the certificate of title to the 12 owner if there is no security interest. If there is a security 13 interest, the title, when issued, shall be delivered to the 14 first secured party. Delivery may be made using electronic 15 means. 16 Sec. 4. Section 321.23, subsections 3 and 4, Code 2020, are 17 amended to read as follows: 18 3. In the event an applicant for registration of a foreign 19 vehicle for which a certificate of title has been issued is 20 able to furnish evidence of being the registered owner of the 21 vehicle to the any county treasurer of the owner’s residence , 22 although unable to surrender such certificate of title, the 23 county treasurer may issue a registration receipt and plates 24 upon receipt of the required annual registration fee and the 25 fee for new registration but shall not issue a certificate of 26 title thereto. Upon surrender of the certificate of title 27 from the foreign state, the county treasurer shall issue a 28 certificate of title to the owner, or person entitled thereto, 29 of such vehicle as provided in this chapter . The owner 30 of a vehicle registered under this subsection shall not be 31 required to obtain a certificate of title in this state and may 32 transfer ownership of the vehicle to a motor vehicle dealer 33 licensed under chapter 322 if, at the time of the transfer, 34 the certificate of title is held by a secured party and the 35 -3- LSB 5985YC (2) 88 mo/ns 3/ 22

H.F. _____ dealer has forwarded to the secured party the sum necessary to 1 discharge the security interest pursuant to section 321.48, 2 subsection 1 . 3 4. A vehicle which does not meet the equipment requirements 4 of this chapter due to the particular use for which it is 5 designed or intended, may be registered by the department 6 upon payment of appropriate fees and after inspection and 7 certification by the department that the vehicle is not 8 in an unsafe condition. A person is not required to have 9 a certificate of title to register a vehicle under this 10 subsection . If the owner elects to have a certificate of 11 title issued for the vehicle, a fee of twenty twenty-five 12 dollars shall be paid by the person making the application 13 upon issuance of a certificate of title. If the department’s 14 inspection reveals that the vehicle may be safely operated only 15 under certain conditions or on certain types of roadways, the 16 department may restrict the registration to limit operation of 17 the vehicle to the appropriate conditions or roadways. This 18 subsection does not apply to snowmobiles as defined in section 19 321G.1 . Section 321.382 does not apply to a vehicle registered 20 under this subsection which is operated exclusively by a person 21 with a disability who has obtained a persons with disabilities 22 parking permit as provided in section 321L.2 , if the persons 23 with disabilities parking permit is carried in or on the 24 vehicle and shown to a peace officer on request. 25 Sec. 5. Section 321.34, subsection 1, Code 2020, is amended 26 to read as follows: 27 1. Plates issued. The county treasurer upon receiving 28 application, accompanied by proper fee, for registration of a 29 vehicle shall issue to the owner one registration plate for 30 a motorcycle, motorized bicycle, autocycle, truck tractor, 31 trailer, or semitrailer and two registration plates for every 32 other motor vehicle. The registration plates, including 33 special registration plates, shall be assigned to the owner of 34 a vehicle. When the owner of a registered vehicle transfers 35 -4- LSB 5985YC (2) 88 mo/ns 4/ 22

H.F. _____ or assigns ownership of the vehicle to another person, the 1 owner shall remove the registration plates from the vehicle. 2 The owner shall forward the plates to the any county treasurer 3 where the vehicle is registered or the owner may have the 4 plates assigned to another vehicle within thirty days after 5 transfer, upon payment of the fees required by law. The 6 owner shall immediately affix registration plates retained 7 by the owner to another vehicle owned or acquired by the 8 owner, providing the owner complies with section 321.46 . The 9 department shall adopt rules providing for the assignment of 10 registration plates to the transferee of a vehicle for which a 11 credit is allowed under section 321.46, subsection 6 . 12 Sec. 6. Section 321.40, subsection 1, Code 2020, is amended 13 to read as follows: 14 1. Application for renewal for a vehicle registered under 15 this chapter shall be made on or after the first day of the 16 month prior to the month of expiration of registration and up 17 to and including the last day of the month following the month 18 of expiration of registration. The application for renewal 19 shall be submitted to the county treasurer of the county of 20 the owner’s residence; or if a nonresident, to the county 21 treasurer of the county where the primary users of the vehicle 22 are located; or if a lessor of the vehicle pursuant to chapter 23 321F which has a gross vehicle weight of less than ten thousand 24 pounds, to the county treasurer of the county of the lessee’s 25 residence; or if a firm, association, or corporation with 26 vehicles in multiple counties, to the county treasurer of the 27 county where the primary user of the vehicle is located. The 28 registration shall be renewed upon payment of the appropriate 29 annual registration fee. Application for renewal for a vehicle 30 registered under chapter 326 shall be made on or after the 31 first day of the month prior to the month of expiration of 32 registration and up to and including the last day of the month 33 of expiration of registration. 34 Sec. 7. Section 321.42, subsection 2, paragraphs a, c, and 35 -5- LSB 5985YC (2) 88 mo/ns 5/ 22

H.F. _____ d, Code 2020, are amended to read as follows: 1 a. If a certificate of title is lost or destroyed, the 2 owner or lienholder shall apply for a replacement copy of the 3 original certificate of title. The owner or lienholder of a 4 motor vehicle may also apply for a replacement copy of the 5 original certificate of title upon surrender of the original 6 certificate of title with the application. The application 7 shall be made to the department or any county treasurer who 8 issued the original certificate of title . The application 9 shall be signed by the owner or lienholder and accompanied by a 10 fee of twenty twenty-five dollars. 11 c. If a security interest noted on the face of an original 12 certificate of title was released by the lienholder on a 13 separate form pursuant to section 321.50, subsection 5 , and 14 the signature of the lienholder, or the person executing the 15 release on behalf of the lienholder, is notarized, but the 16 lienholder has not delivered the original certificate to the 17 appropriate party as provided in section 321.50, subsection 5 , 18 the owner may apply for and receive a replacement certificate 19 of title without the released security interest noted thereon. 20 The lienholder shall return the original certificate of title 21 to the department or to the any county treasurer of the county 22 where the title was issued . 23 d. A new purchaser or transferee is entitled to receive 24 an original title upon presenting the assigned replacement 25 copy to the any county treasurer of the county where the new 26 purchaser or transferee resides . At the time of purchase, a 27 purchaser may require the seller to indemnify the purchaser and 28 all future purchasers of the vehicle against any loss which 29 may be suffered due to claims on the original certificate. A 30 person recovering an original certificate of title for which 31 a replacement has been issued shall surrender the original 32 certificate to the county treasurer or the department. 33 Sec. 8. Section 321.46, subsections 1, 2, and 5, Code 2020, 34 are amended to read as follows: 35 -6- LSB 5985YC (2) 88 mo/ns 6/ 22

H.F. _____ 1. The transferee shall, within thirty calendar days after 1 purchase or transfer, apply for and obtain from the any county 2 treasurer of the person’s residence, or if a nonresident, the 3 county treasurer of the county where the primary users of the 4 vehicle are located or the county where all other vehicles 5 owned by the nonresident are registered, or in the case of a 6 mobile home or manufactured home, the county treasurer of the 7 county where the mobile home or manufactured home is located, 8 or if a firm, association, or corporation with vehicles in 9 multiple counties, the transferee may apply for and obtain 10 from the county treasurer of the county where the primary 11 user of the vehicle is located, a new registration and a new 12 certificate of title for the vehicle, except as provided in 13 section 321.25 , 321.48 , or 322G.12 , or when the transferee 14 obtains the vehicle pursuant to section 321.52, subsection 2 , 15 paragraph “b” . In the case of a mobile home or manufactured 16 home, the transferee shall, within thirty calendar days after 17 purchase or transfer, apply for and obtain from the county 18 treasurer of the county where the mobile home or manufactured 19 home is located a new certificate of title. The transferee 20 shall present with the application the certificate of title 21 endorsed and assigned by the previous owner and shall indicate 22 the name of the county in which the vehicle was last registered 23 and the registration expiration date. 24 2. Upon filing the application for a new registration and 25 a new title, the applicant shall pay a title fee of twenty 26 twenty-five dollars, an annual registration fee prorated for 27 the remaining unexpired months of the registration year, and 28 a fee for new registration if applicable. A manufacturer 29 applying for a certificate of title pursuant to section 322G.12 30 shall pay a title fee of ten fifteen dollars. However, a 31 title fee shall not be charged to a manufactured or mobile 32 home retailer applying for a certificate of title for a used 33 mobile home or manufactured home, titled in Iowa, as required 34 under section 321.45, subsection 4 . The county treasurer, if 35 -7- LSB 5985YC (2) 88 mo/ns 7/ 22

H.F. _____ satisfied of the genuineness and regularity of the application, 1 and in the case of a mobile home or manufactured home, that 2 taxes are not owing under chapter 435 , and that applicant has 3 complied with all the requirements of this chapter , shall issue 4 a new certificate of title and, except for a mobile home, 5 manufactured home, or a vehicle returned to and accepted by a 6 manufacturer as described in section 322G.12 , a registration 7 card to the purchaser or transferee, shall cancel the prior 8 registration for the vehicle, and shall forward the necessary 9 copies to the department on the date of issuance, as prescribed 10 in section 321.24 . Mobile homes or manufactured homes titled 11 under chapter 448 that have been subject under section 446.18 12 to a public bidder sale in a county shall be titled in the 13 county’s name, with no fee, and the county treasurer shall 14 issue the title. 15 5. The seller or transferor may file an affidavit on 16 forms prescribed and provided by the department with the any 17 county treasurer of the county where the vehicle is registered 18 certifying the sale or transfer of ownership of the vehicle 19 and the assignment and delivery of the certificate of title 20 for the vehicle. Upon receipt of the affidavit, the county 21 treasurer shall file the affidavit with the copy of the 22 registration receipt for the vehicle on file in the treasurer’s 23 office and on that day the treasurer shall note receipt of the 24 affidavit in the vehicle registration and titling system. Upon 25 filing the affidavit, it shall be presumed that the seller or 26 transferor has assigned and delivered the certificate of title 27 for the vehicle. For a leased vehicle, the lessor licensed 28 pursuant to chapter 321F or the lessee may file an affidavit 29 as provided in this subsection certifying that the lease has 30 expired or been terminated and the date that the leased vehicle 31 was surrendered to the lessor. 32 Sec. 9. Section 321.47, subsections 1 and 3, Code 2020, are 33 amended to read as follows: 34 1. If ownership of a vehicle is transferred by operation of 35 -8- LSB 5985YC (2) 88 mo/ns 8/ 22

H.F. _____ law upon inheritance, devise or bequest, dissolution decree, 1 order in bankruptcy, insolvency, replevin, foreclosure or 2 execution sale, abandoned vehicle sale, or when the engine of a 3 motor vehicle is replaced by another engine, or a vehicle is 4 sold or transferred to satisfy an artisan’s lien as provided 5 in chapter 577 , a landlord’s lien as provided in chapter 570 , 6 a self-service storage facility lien as provided in section 7 578A.7 , a storage lien as provided in chapter 579 , a judgment 8 in an action for abandonment of a manufactured or mobile home 9 as provided in chapter 555B , upon presentation of an affidavit 10 relating to the disposition of a valueless mobile, modular, or 11 manufactured home as provided in chapter 555C , or repossession 12 is had upon default in performance of the terms of a security 13 agreement, the any county treasurer in the transferee’s county 14 of residence or, in the case of a mobile home or manufactured 15 home, the county treasurer of the county where the mobile home 16 or manufactured home is located, upon the surrender of the 17 prior certificate of title or the manufacturer’s or importer’s 18 certificate, or when that is not possible, upon presentation 19 of satisfactory proof to the county treasurer of ownership 20 and right of possession to the vehicle and upon payment of a 21 fee of twenty twenty-five dollars and the presentation of an 22 application for registration and certificate of title, may 23 issue to the applicant a registration card for the vehicle 24 and a certificate of title to the vehicle. A person entitled 25 to ownership of a vehicle under a decree of dissolution shall 26 surrender a reproduction of a certified copy of the dissolution 27 and upon fulfilling the other requirements of this chapter is 28 entitled to a certificate of title and registration receipt 29 issued in the person’s name. 30 3. Whenever ownership of a vehicle is transferred under the 31 provisions of this section , the registration plates shall be 32 removed and forwarded to the any county treasurer of the county 33 where the vehicle is registered or to the department if the 34 vehicle is owned by a nonresident. Upon transfer the vehicle 35 -9- LSB 5985YC (2) 88 mo/ns 9/ 22

H.F. _____ shall not be operated upon the highways of this state until the 1 person entitled to possession of the vehicle applies for and 2 obtains registration for the vehicle. 3 Sec. 10. Section 321.48, subsection 2, Code 2020, is amended 4 to read as follows: 5 2. A foreign registered vehicle purchased or otherwise 6 acquired by a dealer for the purpose of resale shall be issued 7 a certificate of title for the vehicle by the any county 8 treasurer of the dealer’s residence upon proper application as 9 provided in this chapter and upon payment of a fee of five ten 10 dollars and the dealer is exempt from the payment of any and 11 all registration fees for the vehicle. The application for 12 certificate of title shall be made within thirty days after 13 the vehicle comes within the border of the state. However, a 14 dealer acquiring a vehicle registered in another state which 15 permits Iowa dealers to reassign that state’s certificates 16 of title shall not be required to obtain a new registration 17 or a new certificate of title and upon transferring title or 18 interest to another person shall execute an assignment upon the 19 certificate of title for the vehicle to the person to whom the 20 transfer is made and deliver the assigned certificate of title 21 to the person. 22 Sec. 11. Section 321.49, subsection 1, Code 2020, is amended 23 to read as follows: 24 1. Except as provided in section 321.52 , if an application 25 for transfer of registration and certificate of title is not 26 submitted to the any county treasurer of the residence of 27 the transferee within thirty days of the date of assignment 28 or transfer of title, or within thirty days of the date of 29 delivery to the purchaser if the vehicle is subject to a 30 security interest and was offered for sale pursuant to section 31 321.48, subsection 1 , a penalty of ten dollars shall accrue 32 against the applicant, and no registration card or certificate 33 of title shall be issued to the applicant for the vehicle until 34 the penalty is paid. 35 -10- LSB 5985YC (2) 88 mo/ns 10/ 22

H.F. _____ Sec. 12. Section 321.50, subsection 1, Code 2020, is amended 1 to read as follows: 2 1. A security interest in a vehicle subject to registration 3 under the laws of this state or a mobile home or manufactured 4 home , except trailers whose empty weight is two thousand 5 pounds or less, and except new or used vehicles held by a 6 dealer or manufacturer as inventory for sale, is perfected by 7 the delivery to the any county treasurer of the county where 8 the certificate of title was issued or, in the case of a new 9 certificate, to the county treasurer where the certificate will 10 be issued, of an application for certificate of title which 11 lists the security interest, or an application for notation 12 of security interest signed by the owner or by one owner of 13 a vehicle owned jointly by more than one person, or signed 14 through electronic means as determined by the department, or a 15 certificate of title from another jurisdiction which shows the 16 security interest, and payment of a fee of ten fifteen dollars 17 for each security interest shown. The security interest in a 18 mobile home or manufactured home is perfected by the delivery 19 to the county treasurer of the county where the certificate 20 of title was issued or, in the case of a new certificate, to 21 the county treasurer where the certificate will be issued, 22 of an application for certificate of title which lists the 23 security interest, or an application for notation of security 24 interest signed by the owner or by one owner when owned jointly 25 by more than one person, or signed through electronic means 26 as determined by the department, or a certificate of title 27 from another jurisdiction which shows the security interest, 28 and payment of a fee of fifteen dollars for each security 29 interest shown. The department shall require the federal 30 employer identification number of a secured party who is a 31 firm, association, or corporation or, if a natural person, 32 the social security number. Upon delivery of the application 33 and payment of the fee, the county treasurer shall note the 34 date of delivery on the application. If the delivery is by 35 -11- LSB 5985YC (2) 88 mo/ns 11/ 22

H.F. _____ electronic means and the time is electronically recorded on the 1 application along with the date, the time shall be included 2 with the date on all subsequent documents and records where the 3 date of perfection is required under this chapter . The date 4 of delivery shall be the date of perfection of the security 5 interest in the vehicle, regardless of the date the security 6 interest is noted on the certificate of title. Up to three 7 security interests may be perfected against a vehicle and shown 8 on an Iowa certificate of title. If the owner or secured party 9 is in possession of the certificate of title, it must also be 10 delivered at this time. If a vehicle is subject to a security 11 interest when brought into this state, the validity of the 12 security interest and the date of perfection is determined by 13 section 554.9303 . Delivery as provided in this subsection 14 constitutes perfection of a security interest on a certificate 15 of title for purposes of this chapter and chapter 554 . 16 Sec. 13. Section 321.50, subsection 5, paragraphs a and c, 17 Code 2020, are amended to read as follows: 18 a. When a security interest is discharged, the holder 19 shall note a cancellation of the security interest on the 20 face of the certificate of title over the holder’s signature 21 or may note the cancellation of the security interest on a 22 separate, notarized release form or letter. The holder shall 23 deliver the certificate of title and the form or letter, if 24 applicable, to the any county treasurer where the title was 25 issued . In the case of a security interest that has been 26 delivered by electronic means, the holder shall notify the 27 department or the county treasurer, in a manner prescribed 28 by the department, of the release of the security interest. 29 The county treasurer shall immediately note the cancellation 30 of the security interest on the face of the certificate of 31 title, if applicable, and in the county records system. The 32 county treasurer shall on the same day deliver the certificate 33 of title, if applicable, and the separate, notarized release 34 form or letter, if applicable, to the then first secured party 35 -12- LSB 5985YC (2) 88 mo/ns 12/ 22

H.F. _____ or, if there is no such person, to the person as directed by 1 the owner, in writing, on a form prescribed by the department 2 or, if there is no person designated, then to the owner. The 3 cancellation of the security interest shall be noted on the 4 certificate of title by the county treasurer without charge. 5 The holder of a security interest discharged by payment who 6 fails to release the security interest within fifteen days 7 after being requested in writing to do so shall forfeit to the 8 person making the payment the sum of twenty-five dollars. 9 c. When a security interest is discharged, the lienholder 10 shall note the cancellation of the security interest on the 11 face of the title and, if applicable, may note the cancellation 12 of the security interest on a form prescribed by the department 13 and deliver a copy of the form in lieu of the title to the 14 department or to the any county treasurer of the county in 15 which the title was issued . The form may be delivered by 16 electronic means. The department or county treasurer shall 17 note the release of the security interest upon the statewide 18 computer system and the county’s records. A copy of the form, 19 if used, shall be attached to the title by the lienholder, if 20 the title is held by the lienholder, and shall be evidence of 21 the release of the security interest. If the title is held 22 by the lienholder, the lienholder shall deliver the title to 23 the first lienholder, or if there is no such person, to the 24 person as designated by the owner, or if there is no such 25 person designated, to the owner. If a certificate of title 26 has not been issued, upon release of a security interest, the 27 lienholder shall notify the department or the county treasurer, 28 in a manner prescribed by the department, of the release of the 29 security interest. 30 Sec. 14. Section 321.52, subsection 2, paragraph a, Code 31 2020, is amended to read as follows: 32 a. The purchaser or transferee of a motor vehicle subject to 33 registration for which a certificate of title is issued which 34 is sold for scrap or junk shall surrender the certificate of 35 -13- LSB 5985YC (2) 88 mo/ns 13/ 22

H.F. _____ title, properly endorsed and signed by the previous owner, to 1 the any county treasurer of the county of residence of the 2 transferee , and shall apply for a junking certificate from the 3 county treasurer, within thirty days after assignment of the 4 certificate of title, except when the vehicle is disposed of 5 pursuant to paragraph “b” . The county treasurer shall issue 6 to such person without fee a junking certificate. A junking 7 certificate shall authorize the holder to possess, transport, 8 or transfer by endorsement the ownership of the junked vehicle. 9 A certificate of title shall not again be issued for the 10 vehicle subsequent to the issuance of a junking certificate 11 except as provided in subsection 3 . The county treasurer shall 12 cancel the record of the vehicle. The junking certificate 13 shall be printed on the registration receipt form and shall be 14 imprinted with the words “junking certificate”, as prescribed 15 by the department. A space for transfer by endorsement 16 shall be on the junking certificate. A separate form for the 17 notation of the transfer of component parts shall be attached 18 to the junking certificate when the certificate is issued. 19 Sec. 15. Section 321.52, subsection 4, paragraphs a and b, 20 Code 2020, are amended to read as follows: 21 a. Notwithstanding any other provision of law to the 22 contrary, an insurer may apply for and be issued a salvage 23 certificate of title for a motor vehicle without surrendering 24 the certificate of title or manufacturer’s or importer’s 25 statement of origin properly assigned if ownership of the 26 vehicle was transferred, or will transfer, to the insurer 27 pursuant to a settlement with the previous owner of the vehicle 28 arising from circumstances involving damage to the vehicle, 29 and at least thirty days have expired since the effective 30 date of such settlement. To obtain a salvage certificate 31 of title pursuant to this paragraph “a” , the insurer shall 32 submit an application for a salvage certificate of title to 33 the any county treasurer of the county in which the vehicle 34 is stored by or on behalf of the insurer . The application 35 -14- LSB 5985YC (2) 88 mo/ns 14/ 22

H.F. _____ shall be accompanied by an affidavit from the insurer in 1 which the insurer certifies it has made at least two written 2 attempts to obtain a properly assigned certificate of title 3 or manufacturer’s or importer’s statement of origin for the 4 vehicle by contacting the previous owner of the vehicle and all 5 lienholders of record by certified mail or a similar service 6 that provides proof of service using a return receipt, and 7 has been unable to obtain the title or statement of origin. 8 The failure of a previous owner or lienholder to provide a 9 properly assigned certificate of title or manufacturer’s or 10 importer’s statement of origin shall be deemed to be a waiver 11 by the previous owner or lienholder of all rights, title, 12 claim, and interest in the vehicle. The application shall also 13 be accompanied by the application fee required under paragraph 14 “b” , and proof of payment of the total amount of the settlement 15 by the insurer to the previous owner of the vehicle. Upon 16 receiving an application that complies with this paragraph “a” , 17 the county treasurer shall issue a salvage certificate of title 18 to the insurer which shall be free and clear of all liens and 19 claims of ownership and shall bear the word “SALVAGE” stamped 20 or printed on the face of the title in a manner prescribed by 21 the department. 22 b. A vehicle rebuilder or a person engaged in the business 23 of buying, selling, or exchanging vehicles of a type required 24 to be registered in this state, upon acquisition of a wrecked 25 or salvage vehicle, shall surrender the certificate of 26 title or manufacturer’s or importer’s statement of origin 27 properly assigned, together with an application for a salvage 28 certificate of title, to the any county treasurer of the county 29 of residence of the purchaser or transferee within thirty days 30 after the date of assignment of the certificate of title for 31 the wrecked or salvage motor vehicle. This subsection applies 32 only to vehicles with a fair market value of five hundred 33 dollars or more, based on the value before the vehicle became 34 wrecked or salvage. Upon payment of a fee of ten fifteen 35 -15- LSB 5985YC (2) 88 mo/ns 15/ 22

H.F. _____ dollars, the county treasurer shall issue a salvage certificate 1 of title which shall bear the word “SALVAGE” stamped or 2 printed on the face of the title in a manner prescribed by the 3 department. A salvage certificate of title may be assigned 4 to an educational institution, a new motor vehicle dealer 5 licensed under chapter 322 , a person engaged in the business of 6 purchasing bodies, parts of bodies, frames or component parts 7 of vehicles for sale as scrap metal, a salvage pool, or an 8 authorized vehicle recycler licensed under chapter 321H . An 9 authorized vehicle recycler licensed under chapter 321H or a 10 new motor vehicle dealer licensed under chapter 322 may assign 11 or reassign an Iowa salvage certificate of title or a salvage 12 certificate of title from another state to any person, and the 13 provisions of section 321.24, subsection 5 , requiring issuance 14 of an Iowa salvage certificate of title shall not apply. A 15 vehicle on which ownership has transferred to an insurer of 16 the vehicle as a result of a settlement with the owner of the 17 vehicle arising out of damage to, or unrecovered theft of, the 18 vehicle shall be deemed to be a wrecked or salvage vehicle 19 and the insurer shall comply with this subsection to obtain a 20 salvage certificate of title within thirty days after the date 21 of assignment of the certificate of title of the vehicle. 22 Sec. 16. Section 321.105A, subsection 2, unnumbered 23 paragraph 1, Code 2020, is amended to read as follows: 24 In addition to the annual registration fee required under 25 section 321.105 , a “fee for new registration” is imposed in 26 the amount of five dollars plus five percent of the purchase 27 price for each vehicle subject to registration. The fee for 28 new registration shall be paid by the owner of the vehicle to 29 the county treasurer at the time application is made for a new 30 registration and certificate of title, if applicable. A new 31 registration receipt shall not be issued until the fee has been 32 paid. The county treasurer or the department of transportation 33 shall require every applicant for a new registration receipt 34 for a vehicle subject to registration to supply information as 35 -16- LSB 5985YC (2) 88 mo/ns 16/ 22

H.F. _____ the county treasurer or the director deems necessary as to the 1 time of purchase, the purchase price, and other information 2 relative to the purchase of the vehicle. On or before the 3 tenth day of each month, the county treasurer or the department 4 of transportation shall remit to the department of revenue the 5 amount of the fees for new registration collected during the 6 preceding month. 7 Sec. 17. Section 321.105A, subsection 3, paragraph a, Code 8 2020, is amended to read as follows: 9 a. A fee for new registration is imposed in an amount equal 10 to five dollars plus five percent of the leased price for each 11 vehicle subject to registration with a gross vehicle weight 12 rating of less than sixteen thousand pounds which is leased 13 by a lessor licensed pursuant to chapter 321F for a period of 14 twelve months or more. The fee for new registration shall 15 be paid by the owner of the vehicle to the county treasurer 16 from whom the registration receipt or certificate of title is 17 obtained. A registration receipt for a vehicle subject to 18 registration or issuance of a certificate of title shall not 19 be issued until the fee for new registration is paid in the 20 initial instance. 21 Sec. 18. Section 321.109, subsection 1, paragraph a, Code 22 2020, is amended to read as follows: 23 a. The annual fee for all motor vehicles including vehicles 24 designated by manufacturers as station wagons, 1993 and 25 subsequent model year multipurpose vehicles, and 2010 and 26 subsequent model year motor trucks with an unladen weight of 27 ten thousand pounds or less, except motor trucks registered 28 under section 321.122 , business-trade trucks, special trucks, 29 motor homes, motorsports recreational vehicles, ambulances, 30 hearses, autocycles, motorcycles, motorized bicycles, and 1992 31 and older model year multipurpose vehicles, shall be equal 32 to one percent of the value as fixed by the department plus 33 forty cents for each one hundred pounds or fraction thereof 34 of weight of vehicle, as fixed by the department. The weight 35 -17- LSB 5985YC (2) 88 mo/ns 17/ 22