HSB 630 (LSB 6003YC (1) 86)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON BYRNES)

A BILL FOR

An Act requiring security interest and lien checks before the disposal of motor vehicles for scrap or junk.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.52, subsection 2, paragraph b, Code 2016, is amended to read as follows:
   b.  The owner of a motor vehicle subject to registration that does not have a certificate of title or a junking certificate may dispose of the vehicle to a vehicle recycler licensed under chapter 321H for scrap or junk if all of the following apply:
   (1)  The vehicle is twelve model years old or older and.
   (2)  The vehicle is acquired by the vehicle recycler for reasonable consideration equaling less than one thousand dollars.
   (3)  The vehicle does not have any security interests or liens against the vehicle as certified by the county treasurer at the request of the vehicle recycler pursuant to section 321.50, subsection 7.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Under current law, the owner of a motor vehicle that does not have a certificate of title or a junking certificate may dispose of the vehicle to a vehicle recycler for scrap or junk if the vehicle is 12 model years old or older and is acquired by the vehicle recycler for less than $1,000. This bill requires that the vehicle must also have no security interests or liens against the vehicle as certified by the county treasurer at the request of the vehicle recycler.