House File 2033

                                       HOUSE FILE       
                                       BY  CONNORS


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to ownership of vehicles abandoned in repair
  2    shops.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5399HH 80
  5 dea/gg/14

PAG LIN

  1  1    Section 1.  Section 321.90, subsection 1, Code 2003, is
  1  2 amended to read as follows:
  1  3    1.  GARAGEKEEPERS AND ABANDONED MOTOR VEHICLES.
  1  4    a.  Any motor vehicle left in a garage operated for
  1  5 commercial purposes after the period for which the vehicle was
  1  6 to remain on the premises shall, after notice by certified
  1  7 mail to the last known registered owner of the vehicle
  1  8 addressed to the owner's last known address of record to
  1  9 reclaim the vehicle within ten days of the date of the notice,
  1 10 be deemed an abandoned motor vehicle and reported by the
  1 11 garagekeeper to the police authority unless reclaimed by the
  1 12 owner within such the ten=day period or the owner notifies the
  1 13 garagekeeper in writing within such the period of time that
  1 14 such the vehicle is not an abandoned motor vehicle and shall
  1 15 be reported by the garagekeeper to the police authority.  If
  1 16 the identity or address of the last registered owner of the
  1 17 motor vehicle cannot be determined, the vehicle shall be
  1 18 deemed an abandoned motor vehicle on the eleventh day after
  1 19 the period for which the vehicle was to remain on the premises
  1 20 and shall be reported by the garagekeeper to the police
  1 21 authority unless reclaimed by the owner within the ten=day
  1 22 period or the owner notifies the garagekeeper in writing
  1 23 within such the period of time that such the vehicle is not an
  1 24 abandoned motor vehicle and shall be reported by the
  1 25 garagekeeper to the police authority.
  1 26    b.  All abandoned motor vehicles left in garages may be
  1 27 taken into custody by a police authority upon the request of
  1 28 the garagekeeper and sold in accordance with the procedures
  1 29 set forth in section 321.89, subsection 4, unless the motor
  1 30 vehicle is reclaimed.  The proceeds of the sale shall be first
  1 31 applied to the garagekeeper's charges for towing, and storage,
  1 32 and repairs, and any surplus proceeds shall be distributed in
  1 33 accordance with section 321.89, subsection 4.  Nothing in this
  1 34 section shall be construed to impair any lien of a
  1 35 garagekeeper under the laws of this state, or the right of a
  2  1 garagekeeper to foreclose the garagekeeper's lien, provided
  2  2 that a garagekeeper shall be deemed to have abandoned the
  2  3 garagekeeper's artisan lien when such vehicle is taken into
  2  4 custody by the police authority.
  2  5    c.  If the garagekeeper is a repair shop that has performed
  2  6 repairs or services on an abandoned vehicle and considers the
  2  7 vehicle eligible for resale rather than demolition, the
  2  8 garagekeeper may seek to obtain ownership of the vehicle
  2  9 pursuant to this paragraph in lieu of seeking compensation
  2 10 from the proceeds of a sale as described in paragraph "b".
  2 11 After satisfying the notice requirements in paragraph "a", the
  2 12 garagekeeper shall report to the police authority the identity
  2 13 of the abandoned vehicle in the garagekeeper's custody and the
  2 14 amount owed for towing and storage and for repairs and
  2 15 services performed on the vehicle.  The police authority or a
  2 16 private entity designated by the police authority shall
  2 17 proceed under section 321.89, subsection 3, to notify all
  2 18 owners, lienholders, or claimants of their right to reclaim
  2 19 the vehicle as prescribed in section 321.89, subsection 3, and
  2 20 this paragraph.  If a party claims possession of the vehicle,
  2 21 the garagekeeper shall be entitled to reimbursement for the
  2 22 amount claimed for towing, storage, repairs, and services as a
  2 23 condition of releasing custody of the vehicle.  If the vehicle
  2 24 is not reclaimed, upon payment of the police authority's costs
  2 25 for providing notice, the garagekeeper shall take title free
  2 26 and clear of all liens and claims of ownership as if the
  2 27 vehicle had been sold at auction under section 321.89,
  2 28 subsection 4, and shall be entitled to register the vehicle
  2 29 and obtain a certificate of title.
  2 30    d.  For the purposes of this section, "garagekeeper" means
  2 31 any operator of a parking place or establishment, motor
  2 32 vehicle storage facility, or establishment for the servicing,
  2 33 repair, or maintenance of motor vehicles.
  2 34                           EXPLANATION
  2 35    This bill establishes a mechanism for a motor vehicle
  3  1 repair shop to obtain title to a vehicle abandoned by the
  3  2 owner.  Under the bill, if a garagekeeper is unable to contact
  3  3 the owner of a vehicle which has been left at the garage for
  3  4 service or repair, the garagekeeper may notify the police
  3  5 authority of the abandonment of the vehicle and of the amount
  3  6 owed for towing, storage, services, and repairs, and seek to
  3  7 claim title to the vehicle.  The police authority or a
  3  8 designated private entity shall provide notice to any owners,
  3  9 lienholders, or claimants of their right to reclaim the
  3 10 vehicle upon payment of costs incurred by the police authority
  3 11 and the amount owed to the garagekeeper.  If a claimant comes
  3 12 forward, the garagekeeper shall be compensated before
  3 13 releasing custody of the vehicle.  If no claimant comes
  3 14 forward, the garagekeeper shall be issued the certificate of
  3 15 title to the vehicle.
  3 16    Currently, a garagekeeper who has performed repairs on a
  3 17 wrecked vehicle that is abandoned at the repair shop must
  3 18 release custody of the vehicle for sale at auction or
  3 19 demolition and accept the resulting proceeds, regardless of
  3 20 the amount owed or the roadworthiness of the vehicle.
  3 21 LSB 5399HH 80
  3 22 dea/gg/14