House
File
2316
-
Enrolled
House
File
2316
AN
ACT
PROVIDING
AN
ALTERNATIVE
TO
FILING
A
BOND
AS
A
CONDITION
OF
REGISTERING
AND
TITLING
CERTAIN
MOTOR
VEHICLES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
321.24,
subsection
11,
Code
2024,
is
amended
to
read
as
follows:
11.
If
the
county
treasurer
or
department
is
not
satisfied
as
to
the
ownership
of
the
vehicle
or
that
there
are
no
undisclosed
security
interests
in
it,
or
if
a
junking
certificate
has
been
issued
for
the
vehicle
but
a
certificate
of
title
will
not
be
reissued
under
section
321.52,
subsection
3
,
and
the
vehicle
qualifies
as
an
antique
vehicle
under
section
321.115,
subsection
1
,
the
county
treasurer
or
department
may
register
the
vehicle
but
shall,
as
a
condition
of
issuing
a
certificate
of
title
and
registration
receipt,
require
the
applicant
to
first
receive
approval
by
the
department.
a.
If
the
department
determines
the
value
of
the
vehicle
is
one
thousand
dollars
or
less
and
the
vehicle
is
twelve
model
years
old
or
older,
the
department
shall
notify
the
applicant,
House
File
2316,
p.
2
and
the
department
or
county
treasurer
may
issue
a
certificate
of
title
and
registration
receipt.
The
applicant
shall
apply
for
a
certificate
of
title
and
registration
within
thirty
days
of
the
department’s
notification
of
determination.
b.
If
the
department
determines
the
value
of
the
vehicle
is
more
than
one
thousand
dollars
or
the
vehicle
is
less
than
twelve
model
years
old,
the
applicant
shall
file
with
the
department
a
bond
in
the
form
prescribed
by
the
department
and
executed
by
the
applicant,
and
either
accompanied
by
the
deposit
of
cash
with
the
department
or
also
executed
by
a
person
authorized
to
conduct
a
surety
business
in
this
state.
The
owner
of
a
vehicle
subject
to
the
bond
requirements
of
this
subsection
shall
apply
for
a
certificate
of
title
and
registration
for
the
vehicle
at
the
county
treasurer’s
office
within
thirty
days
of
issuance
of
written
authorization
from
the
department.
The
bond
shall
be
in
an
amount
equal
to
one
and
one-half
times
the
current
value
of
the
vehicle
,
as
determined
by
the
department
,
and
conditioned
to
indemnify
any
prior
owner
and
secured
party
and
any
subsequent
purchaser
of
the
vehicle
or
person
acquiring
any
security
interest
in
it,
and
their
respective
successors
in
interest,
against
any
expense,
loss,
or
damage,
including
reasonable
attorney
fees,
by
reason
of
the
issuance
of
the
certificate
of
title
for
the
vehicle
or
on
account
of
any
defect
in
or
undisclosed
security
interest
upon
the
right,
title,
and
interest
of
the
applicant
in
and
to
the
vehicle.
Any
such
interested
person
has
a
right
of
action
to
recover
on
the
bond
for
any
breach
of
its
conditions,
but
the
aggregate
liability
of
the
surety
to
all
persons
shall
not
exceed
the
amount
of
the
bond.
The
bond,
and
any
deposit
accompanying
it,
shall
be
returned
at
the
end
of
three
years
or
earlier
if
the
vehicle
is
no
longer
registered
in
this
state
and
the
currently
valid
certificate
of
title
is
surrendered
to
the
department,
unless
the
department
has
been
notified
of
the
pendency
of
an
action
to
recover
on
the
bond.
The
department
may
authorize
issuance
of
a
certificate
of
title
as
provided
in
this
subsection
for
a
vehicle
with
an
unreleased
security
interest
upon
presentation
of
satisfactory
evidence
that
the
security
interest
has
been
extinguished
or
that
the
holder
of
House
File
2316,
p.
3
the
security
interest
cannot
be
located
to
release
the
security
interest
as
provided
in
section
321.50
.
c.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
implement
and
administer
this
subsection.
Sec.
2.
Section
321.52,
subsection
3,
paragraph
d,
Code
2024,
is
amended
to
read
as
follows:
d.
However,
upon
application
and
a
showing
of
good
cause,
the
department
may
issue
a
certificate
of
title
to
a
person
after
the
fourteen-day
period
for
a
junked
vehicle
for
which
a
junking
certificate
has
been
issued.
For
purposes
of
this
subsection
,
“good
cause”
means
that
the
junking
certificate
was
obtained
by
mistake
or
inadvertence.
If
a
person’s
application
to
the
department
is
denied,
the
person
may
make
application
for
a
certificate
of
title
under
the
bonding
procedure
as
provided
in
section
321.24
,
subsection
11,
if
the
vehicle
qualifies
as
an
antique
vehicle
under
section
321.115,
subsection
1
,
or
the
person
may
seek
judicial
review
as
provided
under
sections
17A.19
and
17A.20
.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2316,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor