House Study Bill 167 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON CARLSON) A BILL FOR An Act relating to insurers in possession of salvage motor 1 vehicles. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2647YC (2) 87 ns/nh

H.F. _____ Section 1. Section 321.45, subsection 2, paragraph a, Code 1 2017, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (6) An insurer obtains a salvage 3 certificate of title for a vehicle pursuant to section 321.52, 4 subsection 4, paragraph “0a” . 5 Sec. 2. Section 321.52, subsection 4, Code 2017, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . 0a. Notwithstanding any other provision of 8 law to the contrary, an insurer may apply for and be issued 9 a salvage certificate of title for a motor vehicle without 10 surrendering the certificate of title or manufacturer’s or 11 importer’s statement of origin properly assigned if ownership 12 of the vehicle was transferred, or will transfer, to the 13 insurer pursuant to a settlement with the previous owner of 14 the vehicle arising from circumstances involving damage to 15 the vehicle, and at least thirty days have expired since 16 the effective date of such settlement. To obtain a salvage 17 certificate of title pursuant to this paragraph “0a” , the 18 insurer shall submit an application for a salvage certificate 19 of title to the county treasurer of the county in which 20 the vehicle is stored by or on behalf of the insurer. The 21 application shall be accompanied by an affidavit from the 22 insurer that the insurer has made at least two written 23 attempts to obtain a properly assigned certificate of title 24 or manufacturer’s or importer’s statement of origin for the 25 vehicle, and has been unable to do so. The application shall 26 also be accompanied by the application fee required under 27 paragraph “a” , and proof of payment of the total amount of 28 the settlement by the insurer to the previous owner of the 29 vehicle. Upon receiving an application that complies with this 30 paragraph “0a” , the county treasurer shall issue a salvage 31 certificate of title to the insurer which shall bear the word 32 “SALVAGE” stamped or printed on the face of the title in a 33 manner prescribed by the department. 34 Sec. 3. Section 321.67, Code 2017, is amended to read as 35 -1- LSB 2647YC (2) 87 ns/nh 1/ 3

H.F. _____ follows: 1 321.67 Certificate of title must be executed. 2 1. No person, except as provided in sections 321.23 and 3 321.45 , and section 321.52, subsection 2 , paragraph “b” , and 4 section 321.52, subsection 4, paragraph “0a” , shall sell 5 or otherwise dispose of a registered vehicle or a vehicle 6 subject to registration without delivering to the purchaser or 7 transferee thereof a certificate of title with such assignment 8 thereon as may be necessary to show title in the purchaser. 9 2. No person shall purchase or otherwise acquire or bring 10 into this state a registered vehicle or a vehicle subject to 11 registration without obtaining a certificate of title thereto 12 except for temporary use or as provided in sections 321.23 and 13 321.45 , and section 321.52, subsection 2 , paragraph “b” , and 14 section 321.52, subsection 4, paragraph “0a” . 15 Sec. 4. Section 321.104, subsection 4, Code 2017, is amended 16 to read as follows: 17 4. To sell, offer for sale, or transfer a motor vehicle, 18 trailer, or semitrailer, except as provided in section 321.47 19 or 321.48 , or section 321.52, subsection 2 , paragraph “b” , 20 or section 321.52, subsection 4, paragraph “0a” , without 21 obtaining a certificate of title in the name of the seller or 22 transferor or without delivering to the purchaser or transferee 23 a certificate of title or a manufacturer’s or importer’s 24 certificate duly assigned to the purchaser or transferee as 25 provided in this chapter . 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill provides that an insurer may apply for and be 30 issued a salvage certificate of title for a motor vehicle 31 without surrendering the certificate of title or manufacturer’s 32 or importer’s statement of origin properly assigned if 33 ownership of the vehicle was transferred, or will transfer, 34 to the insurer pursuant to a settlement with the previous 35 -2- LSB 2647YC (2) 87 ns/nh 2/ 3

H.F. _____ owner of the vehicle arising from circumstances involving 1 damage to the vehicle, and at least 30 days have expired since 2 the effective date of such settlement. To obtain a salvage 3 certificate of title pursuant to the bill, the insurer must 4 submit an application for a salvage certificate of title to 5 the county treasurer of the county in which the vehicle is 6 stored by or on behalf of the insurer. The application must be 7 accompanied by an affidavit from the insurer that the insurer 8 has made at least two written attempts to obtain a properly 9 assigned certificate of title or manufacturer’s or importer’s 10 statement of origin for the vehicle, and has been unable to do 11 so. The application must also be accompanied by the required 12 application fee and proof of payment of the total amount of the 13 settlement by the insurer to the previous owner of the vehicle. 14 Upon receiving a proper application, the county treasurer 15 is required to issue a salvage certificate of title to the 16 insurer. 17 The bill exempts such insurers from prohibitions under 18 current law against acquiring a vehicle without also obtaining 19 the vehicle’s certificate of title or manufacturer’s or 20 importer’s certificate. 21 -3- LSB 2647YC (2) 87 ns/nh 3/ 3