House File 674 S-5196 Amend House File 674, as passed by the House, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 COUNTY VEHICLE REGISTRATION AND TITLING —— FEES 5 Section 1. Section 321.20, subsection 1, unnumbered 6 paragraph 1, Code 2024, is amended to read as follows: 7 Except as provided in this chapter , an owner of a vehicle , 8 or a lessor of a vehicle pursuant to chapter 321F which has a 9 gross vehicle weight of less than ten thousand pounds, which 10 is subject to registration , shall make application to the any 11 county treasurer of the county of the owner’s residence, or 12 if a nonresident, to the county treasurer of the county where 13 the primary users of the vehicle are located, or if a lessor 14 of the vehicle pursuant to chapter 321F which vehicle has a 15 gross vehicle weight of less than ten thousand pounds, to the 16 county treasurer of the county of the lessee’s residence, 17 or if a firm, association, or corporation with vehicles in 18 multiple counties, the owner may make application to the county 19 treasurer of the county where the primary user of the vehicle 20 is located, for the initial registration and issuance of a 21 certificate of title for the vehicle upon the appropriate form 22 furnished by the department. However, upon the transfer of 23 ownership, the owner of a vehicle subject to the apportioned 24 registration provisions of chapter 326 shall make application 25 for issuance of a certificate of title to either the department 26 or the appropriate any county treasurer. The owner of a 27 vehicle purchased pursuant to section 578A.7 shall present 28 documentation that such sale was completed in compliance 29 with that section. The application shall be accompanied by 30 a fee of twenty thirty dollars, and shall bear the owner’s 31 signature. A nonresident owner of two or more vehicles subject 32 to registration may make application for initial registration 33 and issuance of a certificate of title for all vehicles subject 34 to registration to the any county treasurer of the county where 35 -1- HF 674.4338 (3) 90 th/ns 1/ 23 #1.

the primary user of any of the vehicles is located . The owner 1 of a mobile home or manufactured home shall make application 2 for a certificate of title under this section from the county 3 treasurer of the county where the mobile home or manufactured 4 home is located. The application shall contain: 5 Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2024, 6 are amended to read as follows: 7 2. Notwithstanding contrary provisions of this chapter 8 or chapter 326 regarding titling and registration by means 9 other than electronic means, the department shall , by July 1, 10 2019, develop and implement a program to allow for electronic 11 applications, titling, registering initial registrations , and 12 funds transfers for vehicles subject to registration in order 13 to improve the efficiency and timeliness of the processes and 14 to reduce costs for all parties involved. The program shall 15 also provide for the electronic submission of any statement 16 required by this section , except where prohibited by federal 17 law. 18 3. The department shall adopt rules on pursuant to chapter 19 17A to administer this section, including rules relating to the 20 method for providing signatures for applications and statements 21 required by this section that are made by electronic means. 22 4. Notwithstanding this section or any other provision of 23 law to the contrary, if the program required by subsection 24 2 is not implemented by July 1, 2019, an owner of a vehicle 25 subject to registration may apply to the county treasurer of a 26 county contiguous to the county designated for the owner under 27 subsection 1 for registration and issuance of a certificate of 28 title. 29 Sec. 3. Section 321.20A, subsection 1, Code 2024, is amended 30 to read as follows: 31 1. Notwithstanding other provisions of this chapter , 32 the owner of a commercial vehicle subject to the apportioned 33 registration provisions of chapter 326 may make application 34 to the department or the appropriate any county treasurer 35 -2- HF 674.4338 (3) 90 th/ns 2/ 23

for a certificate of title. The owner of a commercial 1 vehicle purchased pursuant to section 578A.7 shall present 2 documentation that such sale was completed in compliance with 3 that section. The application for certificate of title shall 4 be made within thirty days of purchase or transfer and shall be 5 accompanied by a twenty dollar thirty-dollar title fee and the 6 appropriate fee for new registration. The department or the 7 county treasurer shall deliver the certificate of title to the 8 owner if there is no security interest. If there is a security 9 interest, the title, when issued, shall be delivered to the 10 first secured party. Delivery may be made using electronic 11 means. 12 Sec. 4. Section 321.23, subsection 1, paragraph a, Code 13 2024, is amended to read as follows: 14 a. If the vehicle to be registered is a specially 15 constructed vehicle, reconstructed vehicle, street rod, replica 16 vehicle, or foreign vehicle, such fact shall be stated in 17 the application. A fee of twenty thirty dollars shall be 18 paid by the person making the application upon issuance of 19 a certificate of title by the any county treasurer. For 20 a specially constructed vehicle, reconstructed vehicle, 21 street rod, or replica vehicle subject to registration, the 22 application shall be accompanied by a statement from the 23 department authorizing the motor vehicle to be titled and 24 registered in this state. The owner of a specially constructed 25 vehicle, reconstructed vehicle, street rod, replica vehicle, 26 or foreign vehicle purchased pursuant to section 578A.7 27 shall present documentation that such sale was completed in 28 compliance with that section. 29 Sec. 5. Section 321.23, subsections 3 and 4, Code 2024, are 30 amended to read as follows: 31 3. In the event an applicant for initial registration of 32 a foreign vehicle for which a certificate of title has been 33 issued is able to furnish evidence of being the registered 34 owner of the vehicle to the any county treasurer of the owner’s 35 -3- HF 674.4338 (3) 90 th/ns 3/ 23

residence , although unable to surrender such certificate 1 of title, the county treasurer may issue a registration 2 receipt and plates upon receipt of the required annual 3 registration fee and the fee for new registration but shall 4 not issue a certificate of title thereto. Upon surrender of 5 the certificate of title from the foreign state, the county 6 treasurer shall issue a certificate of title to the owner, 7 or person entitled thereto, of such vehicle as provided in 8 this chapter . The owner of a vehicle registered under this 9 subsection shall not be required to obtain a certificate of 10 title in this state and may transfer ownership of the vehicle 11 to a motor vehicle dealer licensed under chapter 322 or an 12 insurance carrier authorized to do business in this state 13 if, at the time of the transfer, the certificate of title is 14 held by a secured party and the dealer or insurance carrier, 15 as applicable, has forwarded to the secured party the sum 16 necessary to discharge the security interest pursuant to 17 section 321.48, subsection 1 . 18 4. A vehicle which does not meet the equipment requirements 19 of this chapter due to the particular use for which it is 20 designed or intended, may be registered by the department 21 upon payment of appropriate fees and after inspection and 22 certification by the department that the vehicle is not 23 in an unsafe condition. A person is not required to have 24 a certificate of title to register a vehicle under this 25 subsection . If the owner elects to have a certificate of title 26 issued for the vehicle, a fee of twenty thirty dollars shall be 27 paid by the person making the application upon issuance of a 28 certificate of title. If the department’s inspection reveals 29 that the vehicle may be safely operated only under certain 30 conditions or on certain types of roadways, the department may 31 restrict the registration to limit operation of the vehicle to 32 the appropriate conditions or roadways. This subsection does 33 not apply to snowmobiles as defined in section 321G.1 . Section 34 321.382 does not apply to a vehicle registered under this 35 -4- HF 674.4338 (3) 90 th/ns 4/ 23

subsection which is operated exclusively by a person with a 1 disability who has obtained a persons with disabilities parking 2 permit as provided in section 321L.2 , if the persons with 3 disabilities parking permit is carried in or on the vehicle and 4 shown to a peace officer on request. 5 Sec. 6. Section 321.25, subsection 1, Code 2024, is amended 6 to read as follows: 7 1. A vehicle may be operated upon the highways of this 8 state without registration plates for a period of forty-five 9 days after the date of delivery of the vehicle to the purchaser 10 from a dealer if a card bearing the words “registration applied 11 for” is attached on the rear of the vehicle. The card shall 12 have plainly stamped or stenciled the registration number of 13 the dealer from whom the vehicle was purchased and the date 14 of delivery of the vehicle. In addition, a dealer licensed 15 to sell new motor vehicles may attach the card to a new motor 16 vehicle delivered by the dealer to the purchaser even if the 17 vehicle was purchased from an out-of-state dealer and the card 18 shall bear the registration number of the dealer that delivered 19 the vehicle. A dealer shall not issue a card to a person known 20 to the dealer to be in possession of registration plates which 21 may be attached to the vehicle. A dealer shall not issue a card 22 unless an application for initial registration and certificate 23 of title has been made by the purchaser and a receipt issued to 24 the purchaser of the vehicle showing the fee paid by the person 25 making the application. Dealers’ records shall indicate the 26 agency to which the fee is sent and the date the fee is sent. 27 The dealer shall forward the application by the purchaser to 28 the county treasurer or state office within thirty calendar 29 days from the date of delivery of the vehicle. However, if the 30 vehicle is subject to a security interest and has been offered 31 for sale pursuant to section 321.48, subsection 1 , the dealer 32 shall forward the application by the purchaser to the county 33 treasurer or state office within thirty calendar days from the 34 date of the delivery of the vehicle to the purchaser. 35 -5- HF 674.4338 (3) 90 th/ns 5/ 23

Sec. 7. Section 321.26, subsection 2, Code 2024, is amended 1 to read as follows: 2 2. The county treasurer may adjust the registration renewal 3 or expiration date of vehicles registered in the county for 4 which the county treasurer is responsible for renewal under 5 section 321.40 when deemed necessary to equalize the number 6 of vehicles registered in each twelve-month period or for the 7 administrative efficiency of the county treasurer’s office. 8 The adjustment shall be accomplished by delivery of a written 9 notice to the vehicle owner of the adjustment and allowance of 10 a credit for the remaining months of the unused portion of the 11 annual registration fee, rounded to the nearest whole dollar, 12 which amount shall be deducted from the annual registration 13 fee due at the time of registration. Upon receipt of the 14 notification the owner shall, within thirty days, surrender 15 the registration card and registration plates to a any county 16 treasurer, except that the registration plates shall not be 17 surrendered if validation stickers or other emblems are used 18 to designate the month and year of expiration of registration. 19 Upon payment of the annual registration fee, less the credit 20 allowed for the remaining months of the unused portion of the 21 annual registration fee, the county treasurer of the county 22 where the vehicle is registered that adjusted the registration 23 renewal or expiration date of the vehicle shall issue a new 24 registration card and registration plates, validation stickers, 25 or emblems which indicate the month and year of expiration of 26 registration. 27 Sec. 8. Section 321.29, Code 2024, is amended to read as 28 follows: 29 321.29 Renewal not permitted. 30 Any vehicle that was once registered in the state, but which 31 was removed from and no longer subject to registration in this 32 state, shall, upon being returned to this state and becoming 33 again subject to registration, be initially registered again in 34 accordance with section 321.20 . 35 -6- HF 674.4338 (3) 90 th/ns 6/ 23

Sec. 9. Section 321.34, subsection 1, Code 2024, is amended 1 to read as follows: 2 1. Plates issued. The county treasurer upon receiving 3 application, accompanied by proper fee, for registration of a 4 vehicle shall issue to the owner one registration plate for 5 a motorcycle, motorized bicycle, autocycle, truck tractor, 6 trailer, or semitrailer and two registration plates for every 7 other motor vehicle. The registration plates, including 8 special registration plates, shall be assigned to the owner of 9 a vehicle. When the owner of a registered vehicle transfers or 10 assigns ownership of the vehicle to another person, the owner 11 shall remove the registration plates from the vehicle. The 12 owner shall forward the plates to a any county treasurer or the 13 owner may have the plates assigned to another vehicle within 14 thirty days after transfer, upon payment of the fees required 15 by law. The owner shall immediately affix registration plates 16 retained by the owner to another vehicle owned or acquired by 17 the owner, providing the owner complies with section 321.46 . 18 The department shall adopt rules providing for the assignment 19 of registration plates to the transferee of a vehicle for which 20 a credit is allowed under section 321.46, subsection 6 . 21 Sec. 10. Section 321.40, subsection 1, Code 2024, is amended 22 to read as follows: 23 1. Application for renewal for a vehicle registered under 24 this chapter shall be made on or after the first day of the 25 month prior to the month of expiration of registration and up 26 to and including the last day of the month following the month 27 of expiration of registration. The application for renewal 28 shall be submitted to the county treasurer of the county of 29 the owner’s residence; or if a nonresident, to the county 30 treasurer of the county where the primary users of the vehicle 31 are located; or if a lessor of the vehicle pursuant to chapter 32 321F which has a gross vehicle weight of less than ten thousand 33 pounds, to the county treasurer of the county of the lessee’s 34 residence; or if a firm, association, or corporation with 35 -7- HF 674.4338 (3) 90 th/ns 7/ 23

vehicles in multiple counties, to the county treasurer of the 1 county where the primary user of the vehicle is located. The 2 registration shall be renewed upon payment of the appropriate 3 annual registration fee. Application for renewal for a vehicle 4 registered under chapter 326 shall be made on or after the 5 first day of the month prior to the month of expiration of 6 registration and up to and including the last day of the month 7 of expiration of registration. 8 Sec. 11. Section 321.42, subsection 2, paragraphs a, c, and 9 d, Code 2024, are amended to read as follows: 10 a. If a certificate of title is lost or destroyed, the 11 owner or lienholder shall apply for a replacement copy of the 12 original certificate of title. The owner or lienholder of a 13 motor vehicle may also apply for a replacement copy of the 14 original certificate of title upon surrender of the original 15 certificate of title with the application. The application 16 shall be made to the department or any county treasurer who 17 issued the original certificate of title . The application 18 shall be signed by the owner or lienholder and accompanied by a 19 fee of twenty thirty dollars. 20 c. If a security interest noted on the face of an original 21 certificate of title was released by the lienholder on a 22 separate form pursuant to section 321.50, subsection 5 , and 23 the signature of the lienholder, or the person executing the 24 release on behalf of the lienholder, is notarized, but the 25 lienholder has not delivered the original certificate to the 26 appropriate party as provided in section 321.50, subsection 5 , 27 the owner may apply for and receive a replacement certificate 28 of title without the released security interest noted thereon. 29 The lienholder shall return the original certificate of title 30 to the department or to the any county treasurer of the county 31 where the title was issued . 32 d. A new purchaser or transferee is entitled to receive 33 an original title upon presenting the assigned replacement 34 copy to the any county treasurer of the county where the new 35 -8- HF 674.4338 (3) 90 th/ns 8/ 23

purchaser or transferee resides . At the time of purchase, a 1 purchaser may require the seller to indemnify the purchaser and 2 all future purchasers of the vehicle against any loss which 3 may be suffered due to claims on the original certificate. A 4 person recovering an original certificate of title for which 5 a replacement has been issued shall surrender the original 6 certificate to the county treasurer or the department. 7 Sec. 12. Section 321.46, subsections 1, 2, and 5, Code 2024, 8 are amended to read as follows: 9 1. The transferee shall, within thirty calendar days after 10 purchase or transfer, apply for and obtain from the any county 11 treasurer of the person’s residence, or if a nonresident, the 12 county treasurer of the county where the primary users of the 13 vehicle are located or the county where all other vehicles 14 owned by the nonresident are registered, or in the case of a 15 mobile home or manufactured home, the county treasurer of the 16 county where the mobile home or manufactured home is located, 17 or if a firm, association, or corporation with vehicles in 18 multiple counties, the transferee may apply for and obtain from 19 the county treasurer of the county where the primary user of 20 the vehicle is located, a new initial registration and a new 21 certificate of title for the vehicle, except as provided in 22 section 321.25 , 321.48 , or 322G.12 , or when the transferee 23 obtains the vehicle pursuant to section 321.52, subsection 2 , 24 paragraph “b” . In the case of a mobile home or manufactured 25 home, the transferee shall, within thirty calendar days after 26 purchase or transfer, apply for and obtain from the county 27 treasurer of the county where the mobile home or manufactured 28 home is located a new certificate of title. The transferee 29 shall present with the application the certificate of title 30 endorsed and assigned by the previous owner and shall indicate 31 the name of the county in which the vehicle was last registered 32 and the registration expiration date. 33 2. Upon filing the application for a new initial 34 registration and a new title, the applicant shall pay a title 35 -9- HF 674.4338 (3) 90 th/ns 9/ 23

fee of twenty thirty dollars, an annual registration fee 1 prorated for the remaining unexpired months of the registration 2 year, and a fee for new registration if applicable. A 3 manufacturer applying for a certificate of title pursuant 4 to section 322G.12 shall pay a title fee of ten twenty 5 dollars. However, a title fee shall not be charged to a 6 manufactured or mobile home retailer applying for a certificate 7 of title for a used mobile home or manufactured home, titled 8 in Iowa, as required under section 321.45, subsection 4 . 9 The county treasurer, if satisfied of the genuineness and 10 regularity of the application, and in the case of a mobile 11 home or manufactured home, that taxes are not owing under 12 chapter 435 , and that applicant has complied with all the 13 requirements of this chapter , shall issue a new certificate 14 of title and, except for a mobile home, manufactured home, 15 or a vehicle returned to and accepted by a manufacturer as 16 described in section 322G.12 , a registration card to the 17 purchaser or transferee, shall cancel the prior registration 18 for the vehicle, and shall forward the necessary copies to the 19 department on the date of issuance, as prescribed in section 20 321.24 . Mobile homes or manufactured homes titled under 21 chapter 448 that have been subject under section 446.18 to a 22 public bidder sale in a county shall be titled in the county’s 23 name, with no fee, and the county treasurer shall issue the 24 title. 25 5. The seller or transferor may file an affidavit on 26 forms prescribed and provided by the department with the any 27 county treasurer of the county where the vehicle is registered 28 certifying the sale or transfer of ownership of the vehicle 29 and the assignment and delivery of the certificate of title 30 for the vehicle. Upon receipt of the affidavit, the county 31 treasurer shall file the affidavit with the copy of the 32 registration receipt for the vehicle on file in the treasurer’s 33 office and on that day the treasurer shall note receipt of the 34 affidavit in the vehicle registration and titling system. Upon 35 -10- HF 674.4338 (3) 90 th/ns 10/ 23

filing the affidavit, it shall be presumed that the seller or 1 transferor has assigned and delivered the certificate of title 2 for the vehicle. For a leased vehicle, the lessor licensed 3 pursuant to chapter 321F or the lessee may file an affidavit 4 as provided in this subsection certifying that the lease has 5 expired or been terminated and the date that the leased vehicle 6 was surrendered to the lessor. 7 Sec. 13. Section 321.47, subsections 1 and 3, Code 2024, are 8 amended to read as follows: 9 1. If ownership of a vehicle is transferred by operation of 10 law upon inheritance, devise or bequest, dissolution decree, 11 order in bankruptcy, insolvency, replevin, foreclosure or 12 execution sale, abandoned vehicle sale, or when the engine of a 13 motor vehicle is replaced by another engine, or a vehicle is 14 sold or transferred to satisfy an artisan’s lien as provided 15 in chapter 577 , a landlord’s lien as provided in chapter 570 , 16 a self-service storage facility lien as provided in section 17 578A.7 , a storage lien as provided in chapter 579 , a judgment 18 in an action for abandonment of a manufactured or mobile home 19 as provided in chapter 555B , upon presentation of an affidavit 20 relating to the disposition of a valueless mobile, modular, or 21 manufactured home as provided in chapter 555C , or repossession 22 is had upon default in performance of the terms of a security 23 agreement, the any county treasurer in the transferee’s county 24 of residence or, in the case of a mobile home or manufactured 25 home, the county treasurer of the county where the mobile home 26 or manufactured home is located, upon the surrender of the 27 prior certificate of title or the manufacturer’s or importer’s 28 certificate, or when that is not possible, upon presentation 29 of satisfactory proof to the county treasurer of ownership and 30 right of possession to the vehicle and upon payment of a fee of 31 twenty thirty dollars and the presentation of an application 32 for initial registration and certificate of title, may issue 33 to the applicant a registration card for the vehicle and a 34 certificate of title to the vehicle. A person entitled to 35 -11- HF 674.4338 (3) 90 th/ns 11/ 23

ownership of a vehicle under a decree of dissolution shall 1 surrender a reproduction of a certified copy of the dissolution 2 and upon fulfilling the other requirements of this chapter is 3 entitled to a certificate of title and registration receipt 4 issued in the person’s name. 5 3. Whenever ownership of a vehicle is transferred under 6 the provisions of this section , the registration plates shall 7 be removed and forwarded to a any county treasurer, or to the 8 department if the vehicle is owned by a nonresident. Upon 9 transfer the vehicle shall not be operated upon the highways 10 of this state until the person entitled to possession of the 11 vehicle applies for and obtains initial registration for the 12 vehicle. 13 Sec. 14. Section 321.48, subsection 2, Code 2024, is amended 14 to read as follows: 15 2. A foreign registered vehicle purchased or otherwise 16 acquired by a dealer for the purpose of resale shall be issued 17 a certificate of title for the vehicle by the any county 18 treasurer of the dealer’s residence upon proper application 19 as provided in this chapter and upon payment of a fee of five 20 fifteen dollars and the dealer is exempt from the payment of 21 any and all registration fees for the vehicle. The application 22 for certificate of title shall be made within thirty days 23 after the vehicle comes within the border of the state. 24 However, a dealer acquiring a vehicle registered in another 25 state which permits Iowa dealers to reassign that state’s 26 certificates of title shall not be required to obtain a new 27 initial registration or a new certificate of title and upon 28 transferring title or interest to another person shall execute 29 an assignment upon the certificate of title for the vehicle 30 to the person to whom the transfer is made and deliver the 31 assigned certificate of title to the person. 32 Sec. 15. Section 321.49, subsection 1, Code 2024, is amended 33 to read as follows: 34 1. Except as provided in section 321.52 , if an application 35 -12- HF 674.4338 (3) 90 th/ns 12/ 23

for transfer of registration and certificate of title is not 1 submitted to the any county treasurer of the residence of 2 the transferee within thirty days of the date of assignment 3 or transfer of title, or within thirty days of the date of 4 delivery to the purchaser if the vehicle is subject to a 5 security interest and was offered for sale pursuant to section 6 321.48, subsection 1 , a penalty of ten dollars shall accrue 7 against the applicant, and no registration card or certificate 8 of title shall be issued to the applicant for the vehicle until 9 the penalty is paid. 10 Sec. 16. Section 321.50, subsections 1 and 6, Code 2024, are 11 amended to read as follows: 12 1. A security interest in a vehicle subject to registration 13 under the laws of this state or a mobile home or manufactured 14 home , except trailers whose empty weight is two thousand 15 pounds or less, and except new or used vehicles held by a 16 dealer or manufacturer as inventory for sale, is perfected by 17 the delivery to the any county treasurer of the county where 18 the certificate of title was issued or, in the case of a new 19 certificate, to the county treasurer where the certificate will 20 be issued, of an application for certificate of title which 21 lists the security interest, or an application for notation 22 of security interest signed by the owner or by one owner of 23 a vehicle owned jointly by more than one person, or signed 24 through electronic means as determined by the department, or a 25 certificate of title from another jurisdiction which shows the 26 security interest, and payment of a fee of ten twenty dollars 27 for each security interest shown. The security interest in a 28 mobile home or manufactured home is perfected by the delivery 29 to the county treasurer of the county where the certificate 30 of title was issued or, in the case of a new certificate, to 31 the county treasurer where the certificate will be issued, 32 of an application for certificate of title which lists the 33 security interest, or an application for notation of security 34 interest signed by the owner or by one owner when owned jointly 35 -13- HF 674.4338 (3) 90 th/ns 13/ 23

by more than one person, or signed through electronic means 1 as determined by the department, or a certificate of title 2 from another jurisdiction which shows the security interest, 3 and payment of a fee of twenty dollars for each security 4 interest shown. The department shall require the federal 5 employer identification number of a secured party who is a 6 firm, association, or corporation or, if a natural person, 7 the social security number. Upon delivery of the application 8 and payment of the fee, the county treasurer shall note the 9 date of delivery on the application. If the delivery is by 10 electronic means and the time is electronically recorded on the 11 application along with the date, the time shall be included 12 with the date on all subsequent documents and records where the 13 date of perfection is required under this chapter . The date 14 of delivery shall be the date of perfection of the security 15 interest in the vehicle, regardless of the date the security 16 interest is noted on the certificate of title. Up to three 17 security interests may be perfected against a vehicle and shown 18 on an Iowa certificate of title. If the owner or secured party 19 is in possession of the certificate of title, it must also be 20 delivered at this time. If a vehicle is subject to a security 21 interest when brought into this state, the validity of the 22 security interest and the date of perfection is determined by 23 section 554.9303 . Delivery as provided in this subsection 24 constitutes perfection of a security interest on a certificate 25 of title for purposes of this chapter and chapter 554 . 26 6. Notwithstanding subsection 5 , when an application for 27 registration and issuance of a certificate of title is made 28 by the means described in section 321.20, subsection 2 , and 29 the application includes a certificate of title upon which a 30 security interest has been discharged by the secured party 31 and the cancellation of the security interest is noted by the 32 secured party on the certificate of title above the secured 33 party’s signature, the county treasurer shall not require any 34 other notation of the cancellation of the security interest 35 -14- HF 674.4338 (3) 90 th/ns 14/ 23

on the face of the certificate of title, and , if applicable, 1 the county treasurer shall notify the county treasurer of 2 the county where the certificate of title was issued that 3 the security interest has been released as of the specified 4 date and shall update such release on the applicable program 5 or computer system. A dealer licensed under chapter 322 or 6 chapter 322C is authorized to sell such a vehicle pursuant to 7 section 321.48, subsection 1 , paragraph “b” . 8 Sec. 17. Section 321.50, subsection 5, paragraphs a and c, 9 Code 2024, are amended to read as follows: 10 a. Except as provided in section 321.48, subsection 1 , 11 paragraph “b” , when a security interest is discharged, the 12 holder shall note a cancellation of the security interest 13 on the face of the certificate of title over the holder’s 14 signature or may note the cancellation of the security interest 15 on a separate, notarized release form or letter. The holder 16 shall deliver the certificate of title and the form or letter, 17 if applicable, to the any county treasurer where the title 18 was issued . In the case of a security interest that has been 19 delivered by electronic means, the holder shall notify the 20 department or the county treasurer, in a manner prescribed 21 by the department, of the release of the security interest. 22 The county treasurer shall immediately note the cancellation 23 of the security interest on the face of the certificate of 24 title, if applicable, and in the county records system. The 25 county treasurer shall on the same day deliver the certificate 26 of title, if applicable, and the separate, notarized release 27 form or letter, if applicable, to the then first secured party 28 or, if there is no such person, to the person as directed by 29 the owner, in writing, on a form prescribed by the department 30 or, if there is no person designated, then to the owner. The 31 cancellation of the security interest shall be noted on the 32 certificate of title by the county treasurer without charge. 33 The holder of a security interest discharged by payment who 34 fails to release the security interest within fifteen days 35 -15- HF 674.4338 (3) 90 th/ns 15/ 23

after being requested in writing to do so shall forfeit to the 1 person making the payment the sum of twenty-five dollars. 2 c. When a security interest is discharged, the lienholder 3 shall note the cancellation of the security interest on the 4 face of the title and, if applicable, may note the cancellation 5 of the security interest on a form prescribed by the department 6 and deliver a copy of the form in lieu of the title to the 7 department or to the any county treasurer of the county in 8 which the title was issued . The form may be delivered by 9 electronic means. The department or county treasurer shall 10 note the release of the security interest upon the statewide 11 computer system and the county’s records. A copy of the form, 12 if used, shall be attached to the title by the lienholder, if 13 the title is held by the lienholder, and shall be evidence of 14 the release of the security interest. If the title is held 15 by the lienholder, the lienholder shall deliver the title to 16 the first lienholder, or if there is no such person, to the 17 person as designated by the owner, or if there is no such 18 person designated, to the owner. If a certificate of title 19 has not been issued, upon release of a security interest, the 20 lienholder shall notify the department or the county treasurer, 21 in a manner prescribed by the department, of the release of the 22 security interest. 23 Sec. 18. Section 321.52, subsection 2, paragraph a, Code 24 2024, is amended to read as follows: 25 a. The purchaser or transferee of a motor vehicle subject to 26 registration for which a certificate of title is issued which 27 is sold for scrap or junk shall surrender the certificate of 28 title, properly endorsed and signed by the previous owner, to 29 the any county treasurer of the county of residence of the 30 transferee , and shall apply for a junking certificate from the 31 county treasurer, within thirty days after assignment of the 32 certificate of title, except when the vehicle is disposed of 33 pursuant to paragraph “b” . The county treasurer shall issue 34 to such person without fee a junking certificate. A junking 35 -16- HF 674.4338 (3) 90 th/ns 16/ 23

certificate shall authorize the holder to possess, transport, 1 or transfer by endorsement the ownership of the junked vehicle. 2 A certificate of title shall not again be issued for the 3 vehicle subsequent to the issuance of a junking certificate 4 except as provided in subsection 3 . The county treasurer shall 5 cancel the record of the vehicle. The junking certificate 6 shall be printed on the registration receipt form and shall be 7 imprinted with the words “junking certificate”, as prescribed 8 by the department. A space for transfer by endorsement 9 shall be on the junking certificate. A separate form for the 10 notation of the transfer of component parts shall be attached 11 to the junking certificate when the certificate is issued. 12 Sec. 19. Section 321.52, subsection 4, paragraphs a and b, 13 Code 2024, are amended to read as follows: 14 a. Notwithstanding any other provision of law to the 15 contrary, an insurer may apply for and be issued a salvage 16 certificate of title for a motor vehicle without surrendering 17 the certificate of title or manufacturer’s or importer’s 18 statement of origin properly assigned if ownership of the 19 vehicle was transferred, or will transfer, to the insurer 20 pursuant to a settlement with the previous owner of the vehicle 21 arising from circumstances involving damage to the vehicle, 22 and at least thirty days have expired since the effective 23 date of such settlement. To obtain a salvage certificate 24 of title pursuant to this paragraph “a” , the insurer shall 25 submit an application for a salvage certificate of title to 26 the any county treasurer of the county in which the vehicle 27 is stored by or on behalf of the insurer . The application 28 shall be accompanied by an affidavit from the insurer in 29 which the insurer certifies it has made at least two written 30 attempts to obtain a properly assigned certificate of title 31 or manufacturer’s or importer’s statement of origin for the 32 vehicle by contacting the previous owner of the vehicle and all 33 lienholders of record by certified mail or a similar service 34 that provides proof of service using a return receipt, and 35 -17- HF 674.4338 (3) 90 th/ns 17/ 23