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