SF 2103 (LSB 6073XS (2) 88)

SENATE FILE 2103

BY  SHIPLEY

A BILL FOR

An Act establishing an annual vehicle registration surcharge and appropriating the resulting revenue for certain expenses of the state patrol.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 312.2, subsection 17, paragraph a, Code 2020, is amended to read as follows:
   a.  The treasurer of state, before making the allotments provided for in this section, shall credit annually to the TIME-21 fund created in section 312A.2, the revenue accruing to the road use tax fund from annual motor vehicle registration fees for passenger cars, multipurpose vehicles, and motor trucks in excess of three hundred ninety-two million dollars annually.  For purposes of this paragraph, “annual motor vehicle registration fees” does not include the annual registration surcharge imposed under section 321.105B.
    Sec. 2.  Section 312.2, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  18.  Notwithstanding section 312.9 or any other provision of law to the contrary, the treasurer of state, before making the allotments provided for in this section, shall credit monthly to the department of public safety the revenue accruing to the road use tax fund from the collection of the annual registration surcharge pursuant to section 321.105B. Moneys credited under this subsection are appropriated to the department of public safety to be used for vehicles, equipment, and training expenses of the division of state patrol related to the supervision of the highways of this state.
    Sec. 3.  Section 321.1, subsection 59A, Code 2020, is amended to read as follows:
   59A.  “Registration fees”, unless otherwise specified, means both the annual vehicle registration fee, the annual registration surcharge, and the fee for new registration, to the extent applicable, for purposes of administering the provisions of this chapter concerning vehicle registration fees.
    Sec. 4.  Section 321.20A, subsection 2, Code 2020, is amended to read as follows:
   2.  An owner of more than fifty commercial vehicles subject to the apportioned registration provisions of chapter 326 who is issued a certificate of title under this section shall not be subject to annual registration fees until the commercial vehicle is driven or moved upon the highways. The annual registration fee due shall be prorated for the remaining unexpired months of the registration year. Ownership of the commercial vehicle shall not be transferred until annual registration fees and the annual registration surcharge have been paid to the department.
    Sec. 5.  Section 321.23, subsection 3, Code 2020, is amended to read as follows:
   3.  In the event an applicant for registration of a foreign vehicle for which a certificate of title has been issued is able to furnish evidence of being the registered owner of the vehicle to the county treasurer of the owner’s residence, although unable to surrender such certificate of title, the county treasurer may issue a registration receipt and plates upon receipt of the required annual registration fee, the annual registration surcharge, and the fee for new registration but shall not issue a certificate of title thereto. Upon surrender of the certificate of title from the foreign state, the county treasurer shall issue a certificate of title to the owner, or person entitled thereto, of such vehicle as provided in this chapter. The owner of a vehicle registered under this subsection shall not be required to obtain a certificate of title in this state and may transfer ownership of the vehicle to a motor vehicle dealer licensed under chapter 322 if, at the time of the transfer, the certificate of title is held by a secured party and the dealer has forwarded to the secured party the sum necessary to discharge the security interest pursuant to section 321.48, subsection 1.
    Sec. 6.  Section 321.24, subsection 10, Code 2020, is amended to read as follows:
   10.  A vehicle shall be registered for the registration year. A vehicle registered for the first time in this state shall be registered for the remaining unexpired months of the registration year and pay an annual registration fee prorated for the remaining unexpired months of the registration year plus the annual registration surcharge pursuant to section 321.105B and a fee for new registration, if applicable, pursuant to section 321.105A. Except for a vehicle registered under chapter 326, a vehicle registered for the first time during the eleventh month of the owner’s registration year may be registered for the remaining unexpired months of the registration year as provided in this subsection or for the remaining unexpired months of the registration year and for the next registration year, upon payment of the applicable registration fees.
    Sec. 7.  Section 321.30, subsection 3, Code 2020, is amended to read as follows:
   3.  The department or the county treasurer shall refuse registration of a vehicle if the applicant for registration of the vehicle has failed to pay the required annual registration fee, the annual registration surcharge, or the fee for new registration of any vehicle owned or previously owned when the fee was required to be paid by the applicant, and for which vehicle the registration was suspended or revoked under section 321.101, subsection 1, paragraph “d”, or section 321.101A, until the fee is paid together with any accrued penalties.
    Sec. 8.  Section 321.40, subsection 1, Code 2020, is amended to read as follows:
   1.  Application for renewal for a vehicle registered under this chapter shall be made on or after the first day of the month prior to the month of expiration of registration and up to and including the last day of the month following the month of expiration of registration. The registration shall be renewed upon payment of the appropriate annual registration fee and the annual registration surcharge. Application for renewal for a vehicle registered under chapter 326 shall be made on or after the first day of the month prior to the month of expiration of registration and up to and including the last day of the month of expiration of registration.
    Sec. 9.  Section 321.40, subsection 6, paragraph b, Code 2020, is amended to read as follows:
   b.  The county treasurer of the county of the person’s residence and in which the person’s vehicle is registered, in cooperation with the department of revenue, may collect delinquent taxes including penalties and interest owed to the state from a person applying for renewal of a vehicle registration. The applicant may remit full payment of the taxes including applicable penalties and interest, along with a processing fee of five dollars, to the county treasurer at the time of registration renewal. Upon full payment of the required taxes including applicable penalties and interest, the processing fee, and the vehicle registration fee, and the annual registration surcharge, the county treasurer shall issue the registration to the person. A county treasurer collecting on behalf of the department of revenue shall update the vehicle registration records through the distributed teleprocessing network on a daily basis for all persons who have paid taxes pursuant to this subsection. A county treasurer shall forward all funds collected for the department of revenue to the department of revenue. 
    Sec. 10.  Section 321.40, subsection 7, paragraph b, Code 2020, is amended to read as follows:
   b.  The county treasurer of the county of an applicant’s residence and in which the applicant’s vehicle is registered, in cooperation with the department, may collect a civil penalty imposed on the applicant pursuant to section 321N.3, subsection 3, when the applicant applies for renewal of a vehicle registration. The applicant may remit full payment of the civil penalty, along with a processing fee of five dollars, to the county treasurer at the time of registration renewal. Upon full payment of the civil penalty, the processing fee, and the vehicle registration fee, and annual the registration surcharge, the county treasurer shall issue the registration to the applicant. A county treasurer collecting a civil penalty on behalf of the department pursuant to this subsection shall update the vehicle registration records through the distributed teleprocessing network on a daily basis for all applicants who have paid civil penalties pursuant to this subsection. A county treasurer shall forward all funds collected on behalf of the department to the department.
    Sec. 11.  Section 321.46, subsection 2, Code 2020, is amended to read as follows:
   2.  Upon filing the application for a new registration and a new title, the applicant shall pay a title fee of twenty dollars, an annual registration fee prorated for the remaining unexpired months of the registration year, an annual registration surcharge, and a fee for new registration if applicable. A manufacturer applying for a certificate of title pursuant to section 322G.12 shall pay a title fee of ten dollars. However, a title fee shall not be charged to a manufactured or mobile home retailer applying for a certificate of title for a used mobile home or manufactured home, titled in Iowa, as required under section 321.45, subsection 4. The county treasurer, if satisfied of the genuineness and regularity of the application, and in the case of a mobile home or manufactured home, that taxes are not owing under chapter 435, and that applicant has complied with all the requirements of this chapter, shall issue a new certificate of title and, except for a mobile home, manufactured home, or a vehicle returned to and accepted by a manufacturer as described in section 322G.12, a registration card to the purchaser or transferee, shall cancel the prior registration for the vehicle, and shall forward the necessary copies to the department on the date of issuance, as prescribed in section 321.24. Mobile homes or manufactured homes titled under chapter 448 that have been subject under section 446.18 to a public bidder sale in a county shall be titled in the county’s name, with no fee, and the county treasurer shall issue the title.
    Sec. 12.  Section 321.70, Code 2020, is amended to read as follows:
   321.70  Dealer vehicles.
   A dealer registered under this chapter shall not be required to register any vehicle owned by the dealer which is being held for sale or trade, provided the annual registration fee was and the annual registration surcharge were not delinquent at the time the vehicle was acquired by the dealer. When a dealer ceases to hold any vehicle for sale or trade or the vehicle otherwise becomes subject to registration under this chapter the annual registration fee, the annual registration surcharge, and delinquent annual registration fee or surcharge, if any, shall be due for the registration year.
    Sec. 13.  Section 321.101, subsection 1, paragraph d, Code 2020, is amended to read as follows:
   d.  When the department determines that the required annual registration fee or the annual registration surcharge has not been paid and the fee or surcharge is not paid upon reasonable notice and demand.
    Sec. 14.  Section 321.101A, Code 2020, is amended to read as follows:
   321.101A  Revocation of registration by county treasurer.
   The county treasurer may revoke the registration and registration plates of a vehicle if the annual registration fee, the annual registration surcharge, or the fee for new registration is paid by check, electronic payment, or credit card and the check, electronic payment, or credit card is not honored by the payer’s financial institution or credit card company, upon reasonable notice and demand. The owner of the vehicle or person in possession of the registration and registration plates for the vehicle shall immediately return the revoked registration and registration plates to the appropriate county treasurer’s office.
    Sec. 15.  Section 321.105A, subsection 3, paragraph b, subparagraph (2), Code 2020, is amended to read as follows:
   (2)  Annual registration fees and annual registration surcharges.
    Sec. 16.  NEW SECTION.  321.105B  Annual registration surcharge.
   1.  In addition to the annual registration fee required under section 321.105, an annual registration surcharge is imposed in the amount of two dollars for each vehicle subject to registration. The annual registration surcharge shall be paid by the owner of the vehicle to the county treasurer or the department at the time application is made for a new registration and certificate of title for a vehicle and each time application is made for renewal of registration for a vehicle. If a vehicle’s registration fee is payable in semiannual installments, the annual registration surcharge shall be paid with the first installment.
   2.  The surcharge imposed under this section shall not be considered in the calculation of the annual registration fee for a vehicle, is not subject to proration, and is not refundable except as provided in section 321.129.
   3.  This section does not apply to vehicles that are exempt from annual registration fees.
    Sec. 17.  Section 321.151, Code 2020, is amended to read as follows:
   321.151  Duty and liability of treasurer.
   The county treasurer shall collect the annual registration fee, the annual registration surcharge, the fee for new registration, and penalties on each vehicle registered by the county treasurer and shall be responsible on the county treasurer’s bond for such amount. The county treasurer shall remit such amount to the treasurer of state as provided in this chapter. Fees collected pursuant to participation in county issuance of driver’s licenses under chapter 321M shall be governed by the provisions of that chapter.
    Sec. 18.  Section 321.152, subsection 1, paragraph a, Code 2020, is amended to read as follows:
   a.  Four percent of the total collection, excluding the amount of any fee for new registration and annual registration surcharge, for each annual or semiannual vehicle registration and each duplicate registration card or plate issued.
    Sec. 19.  Section 326.2, subsection 5, Code 2020, is amended to read as follows:
   5.  “Registration fee” means the annual motor vehicle registration fee imposed pursuant to section 321.105, unless otherwise specified.  “Registration fee” includes the annual registration surcharge imposed pursuant to section 321.105B, in accordance with the terms of that section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill imposes an annual registration surcharge in the amount of $2 for each vehicle subject to registration, including both motor vehicles and trailers. The surcharge is payable to the county treasurer or the department of transportation the first time application is made for registration and certificate of title for a vehicle and each time registration is renewed. Revenues collected from the annual registration surcharge accrue to the road use tax fund and are appropriated to the department of public safety to be used for vehicles, equipment, and training expenses of the division of state patrol related to the supervision of the highways of this state.
   The bill amends the definition of “registration fees” for purposes of Code chapter 321 to provide for administration of the annual registration surcharge in conjunction with administration of annual vehicle registration fees, and the bill amends the definition of “registration fee” in Code chapter 326 to provide for administration of the annual registration surcharge in conjunction with administration of apportioned fees for commercial motor vehicles. In addition, the bill makes conforming amendments to various Code sections relating to vehicle registration fees and the distribution of revenue from the road use tax fund.
   It is a simple misdemeanor punishable by a scheduled fine of $50 for a person to drive, move, or permit to be driven or moved upon the highway a vehicle required to be registered that is not registered or for which the appropriate fees have not been paid, notwithstanding certain exceptions.