House File 206 - Introduced



                                       HOUSE FILE       
                                       BY  H. MILLER


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

                                      A BILL FOR

  1 An Act relating to titling requirements for trailers with an
  2    empty weight of two thousand pounds or less.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1012YH 82
  5 dea/je/5

PAG LIN



  1  1    Section 1.  Section 321.50, subsection 1, Code 2007, is
  1  2 amended to read as follows:
  1  3    1.  A security interest in a vehicle subject to
  1  4 registration under the laws of this state or a mobile home or
  1  5 manufactured home, except trailers whose a trailer with an
  1  6 empty weight is of two thousand pounds or less if the trailer
  1  7 was acquired before January 1, 2008, and the owner does not
  1  8 elect to receive a certificate of title, and except new or
  1  9 used vehicles held by a dealer or manufacturer as inventory
  1 10 for sale, is perfected by the delivery to the county treasurer
  1 11 of the county where the certificate of title was issued or, in
  1 12 the case of a new certificate, to the county treasurer where
  1 13 the certificate will be issued, of an application for
  1 14 certificate of title which lists the security interest, or an
  1 15 application for notation of security interest signed by the
  1 16 owner or by one owner of a vehicle owned jointly by more than
  1 17 one person, or signed through electronic means as determined
  1 18 by the department, or a certificate of title from another
  1 19 jurisdiction which shows the security interest, and payment of
  1 20 a fee of ten dollars for each security interest shown.  The
  1 21 department shall require the federal employer identification
  1 22 number of a secured party who is a firm, association, or
  1 23 corporation or, if a natural person, the social security
  1 24 number.  Upon delivery of the application and payment of the
  1 25 fee, the county treasurer shall note the date of delivery on
  1 26 the application.  If the delivery is by electronic means and
  1 27 the time is electronically recorded on the application along
  1 28 with the date, the time shall be included with the date on all
  1 29 subsequent documents and records where the date of perfection
  1 30 is required under this chapter.  The date of delivery shall be
  1 31 the date of perfection of the security interest in the
  1 32 vehicle, regardless of the date the security interest is noted
  1 33 on the certificate of title.  Up to three security interests
  1 34 may be perfected against a vehicle and shown on an Iowa
  1 35 certificate of title.  If the owner or secured party is in
  2  1 possession of the certificate of title, it must also be
  2  2 delivered at this time.  If a vehicle is subject to a security
  2  3 interest when brought into this state, the validity of the
  2  4 security interest and the date of perfection is determined by
  2  5 section 554.9303.  Delivery as provided in this subsection
  2  6 constitutes perfection of a security interest on a certificate
  2  7 of title for purposes of this chapter and chapter 554.
  2  8    Sec. 2.  Section 321.123, unnumbered paragraph 1, Code
  2  9 2007, is amended to read as follows:
  2 10    All trailers except farm trailers, mobile homes, and
  2 11 manufactured homes, unless otherwise provided in this section,
  2 12 are subject to a registration fee of ten dollars.  Trailers
  2 13 acquired before January 1, 2008, for which the empty weight is
  2 14 two thousand pounds or less are exempt from the certificate of
  2 15 title and lien provisions of this chapter.  However, a person
  2 16 who owns a trailer with an empty weight of two thousand pounds
  2 17 or less that is not required to have a certificate of title
  2 18 may apply for and receive a certificate of title for the
  2 19 trailer and, subsequently, the trailer shall be subject to the
  2 20 requirements of this chapter as if the trailer were required
  2 21 to be titled.  Fees collected under this section shall not be
  2 22 reduced or prorated under chapter 326.
  2 23                           EXPLANATION
  2 24    This bill requires the owner of a trailer with an empty
  2 25 weight of 2,000 pounds or less that is acquired on or after
  2 26 January 1, 2008, to apply for a certificate of title along
  2 27 with the application for registration of the trailer.  The
  2 28 bill also allows the owner of such a trailer that was acquired
  2 29 prior to January 1, 2008, to obtain a certificate of title for
  2 30 the trailer.  A trailer with a certificate of title would be
  2 31 subject to security interest provisions that apply to other
  2 32 vehicles with a certificate of title.  Under current law,
  2 33 trailers weighing 2,000 pounds or less are exempt from
  2 34 certificate of title and lien provisions otherwise applicable
  2 35 to larger trailers.  The bill preserves that exemption for
  3  1 trailers acquired before January 1, 2008, unless the owner
  3  2 elects to obtain a title.
  3  3    A certificate of title for a trailer is issued by a county
  3  4 treasurer for a title fee of $10, plus a $5 surcharge.
  3  5 LSB 1012YH 82
  3  6 dea:nh/je/5