House File 2570 - Introduced HOUSE FILE 2570 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 870) (SUCCESSOR TO HF 810) (SUCCESSOR TO HSB 262) A BILL FOR An Act regarding the registration and titling of motor 1 vehicles, including by providing for initial registration 2 and titling by any county treasurer and by modifying related 3 fees and the amount of fees retained by county treasurers. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2767HW (2) 89 th/ns

H.F. 2570 Section 1. Section 321.20, subsection 1, unnumbered 1 paragraph 1, Code 2022, is amended to read as follows: 2 Except as provided in this chapter , an owner of a vehicle , 3 or a lessor of a vehicle pursuant to chapter 321F which has a 4 gross vehicle weight of less than ten thousand pounds, which 5 is subject to registration , shall make application to the any 6 county treasurer of the county of the owner’s residence, or 7 if a nonresident, to the county treasurer of the county where 8 the primary users of the vehicle are located, or if a lessor 9 of the vehicle pursuant to chapter 321F which vehicle has a 10 gross vehicle weight of less than ten thousand pounds, to the 11 county treasurer of the county of the lessee’s residence, 12 or if a firm, association, or corporation with vehicles in 13 multiple counties, the owner may make application to the county 14 treasurer of the county where the primary user of the vehicle 15 is located, for the initial registration and issuance of a 16 certificate of title for the vehicle upon the appropriate form 17 furnished by the department. However, upon the transfer of 18 ownership, the owner of a vehicle subject to the apportioned 19 registration provisions of chapter 326 shall make application 20 for issuance of a certificate of title to either the department 21 or the appropriate any county treasurer. The owner of a 22 vehicle purchased pursuant to section 578A.7 shall present 23 documentation that such sale was completed in compliance 24 with that section. The application shall be accompanied by 25 a fee of twenty thirty dollars, and shall bear the owner’s 26 signature. A nonresident owner of two or more vehicles subject 27 to registration may make application for initial registration 28 and issuance of a certificate of title for all vehicles subject 29 to registration to the any county treasurer of the county where 30 the primary user of any of the vehicles is located . The owner 31 of a mobile home or manufactured home shall make application 32 for a certificate of title under this section from the county 33 treasurer of the county where the mobile home or manufactured 34 home is located. The application shall contain: 35 -1- LSB 2767HW (2) 89 th/ns 1/ 24

H.F. 2570 Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2022, 1 are amended to read as follows: 2 2. Notwithstanding contrary provisions of this chapter 3 or chapter 326 regarding titling and registration by means 4 other than electronic means, the department shall , by July 1, 5 2019, develop and implement a program to allow for electronic 6 applications, titling, registering initial registrations , and 7 funds transfers for vehicles subject to registration in order 8 to improve the efficiency and timeliness of the processes and 9 to reduce costs for all parties involved. The program shall 10 also provide for the electronic submission of any statement 11 required by this section , except where prohibited by federal 12 law. 13 3. The department shall adopt rules on pursuant to chapter 14 17A to administer this section, including rules relating to the 15 method for providing signatures for applications and statements 16 required by this section that are made by electronic means. 17 4. Notwithstanding this section or any other provision of 18 law to the contrary, if the program required by subsection 19 2 is not implemented by July 1, 2019, an owner of a vehicle 20 subject to registration may apply to the county treasurer of a 21 county contiguous to the county designated for the owner under 22 subsection 1 for registration and issuance of a certificate of 23 title. 24 Sec. 3. Section 321.20A, subsection 1, Code 2022, is amended 25 to read as follows: 26 1. Notwithstanding other provisions of this chapter , 27 the owner of a commercial vehicle subject to the apportioned 28 registration provisions of chapter 326 may make application 29 to the department or the appropriate any county treasurer 30 for a certificate of title. The owner of a commercial 31 vehicle purchased pursuant to section 578A.7 shall present 32 documentation that such sale was completed in compliance with 33 that section. The application for certificate of title shall 34 be made within thirty days of purchase or transfer and shall be 35 -2- LSB 2767HW (2) 89 th/ns 2/ 24

H.F. 2570 accompanied by a twenty dollar thirty-dollar title fee and the 1 appropriate fee for new registration. The department or the 2 county treasurer shall deliver the certificate of title to the 3 owner if there is no security interest. If there is a security 4 interest, the title, when issued, shall be delivered to the 5 first secured party. Delivery may be made using electronic 6 means. 7 Sec. 4. Section 321.23, subsections 3 and 4, Code 2022, are 8 amended to read as follows: 9 3. In the event an applicant for initial registration of 10 a foreign vehicle for which a certificate of title has been 11 issued is able to furnish evidence of being the registered 12 owner of the vehicle to the any county treasurer of the owner’s 13 residence , although unable to surrender such certificate 14 of title, the county treasurer may issue a registration 15 receipt and plates upon receipt of the required annual 16 registration fee and the fee for new registration but shall 17 not issue a certificate of title thereto. Upon surrender of 18 the certificate of title from the foreign state, the county 19 treasurer shall issue a certificate of title to the owner, 20 or person entitled thereto, of such vehicle as provided in 21 this chapter . The owner of a vehicle registered under this 22 subsection shall not be required to obtain a certificate of 23 title in this state and may transfer ownership of the vehicle 24 to a motor vehicle dealer licensed under chapter 322 if, at the 25 time of the transfer, the certificate of title is held by a 26 secured party and the dealer has forwarded to the secured party 27 the sum necessary to discharge the security interest pursuant 28 to section 321.48, subsection 1 . 29 4. A vehicle which does not meet the equipment requirements 30 of this chapter due to the particular use for which it is 31 designed or intended, may be registered by the department 32 upon payment of appropriate fees and after inspection and 33 certification by the department that the vehicle is not 34 in an unsafe condition. A person is not required to have 35 -3- LSB 2767HW (2) 89 th/ns 3/ 24

H.F. 2570 a certificate of title to register a vehicle under this 1 subsection . If the owner elects to have a certificate of title 2 issued for the vehicle, a fee of twenty thirty dollars shall be 3 paid by the person making the application upon issuance of a 4 certificate of title. If the department’s inspection reveals 5 that the vehicle may be safely operated only under certain 6 conditions or on certain types of roadways, the department may 7 restrict the registration to limit operation of the vehicle to 8 the appropriate conditions or roadways. This subsection does 9 not apply to snowmobiles as defined in section 321G.1 . Section 10 321.382 does not apply to a vehicle registered under this 11 subsection which is operated exclusively by a person with a 12 disability who has obtained a persons with disabilities parking 13 permit as provided in section 321L.2 , if the persons with 14 disabilities parking permit is carried in or on the vehicle and 15 shown to a peace officer on request. 16 Sec. 5. Section 321.25, subsection 1, Code 2022, is amended 17 to read as follows: 18 1. A vehicle may be operated upon the highways of this 19 state without registration plates for a period of forty-five 20 days after the date of delivery of the vehicle to the purchaser 21 from a dealer if a card bearing the words “registration applied 22 for” is attached on the rear of the vehicle. The card shall 23 have plainly stamped or stenciled the registration number of 24 the dealer from whom the vehicle was purchased and the date 25 of delivery of the vehicle. In addition, a dealer licensed 26 to sell new motor vehicles may attach the card to a new motor 27 vehicle delivered by the dealer to the purchaser even if the 28 vehicle was purchased from an out-of-state dealer and the card 29 shall bear the registration number of the dealer that delivered 30 the vehicle. A dealer shall not issue a card to a person known 31 to the dealer to be in possession of registration plates which 32 may be attached to the vehicle. A dealer shall not issue a card 33 unless an application for initial registration and certificate 34 of title has been made by the purchaser and a receipt issued to 35 -4- LSB 2767HW (2) 89 th/ns 4/ 24

H.F. 2570 the purchaser of the vehicle showing the fee paid by the person 1 making the application. Dealers’ records shall indicate the 2 agency to which the fee is sent and the date the fee is sent. 3 The dealer shall forward the application by the purchaser to 4 the county treasurer or state office within thirty calendar 5 days from the date of delivery of the vehicle. However, if the 6 vehicle is subject to a security interest and has been offered 7 for sale pursuant to section 321.48, subsection 1 , the dealer 8 shall forward the application by the purchaser to the county 9 treasurer or state office within thirty calendar days from the 10 date of the delivery of the vehicle to the purchaser. 11 Sec. 6. Section 321.26, subsection 2, Code 2022, is amended 12 to read as follows: 13 2. The county treasurer may adjust the registration renewal 14 or expiration date of vehicles registered in the county for 15 which the county treasurer is responsible for renewal under 16 section 321.40 when deemed necessary to equalize the number 17 of vehicles registered in each twelve-month period or for the 18 administrative efficiency of the county treasurer’s office. 19 The adjustment shall be accomplished by delivery of a written 20 notice to the vehicle owner of the adjustment and allowance of 21 a credit for the remaining months of the unused portion of the 22 annual registration fee, rounded to the nearest whole dollar, 23 which amount shall be deducted from the annual registration 24 fee due at the time of registration. Upon receipt of the 25 notification the owner shall, within thirty days, surrender 26 the registration card and registration plates to a any county 27 treasurer, except that the registration plates shall not be 28 surrendered if validation stickers or other emblems are used 29 to designate the month and year of expiration of registration. 30 Upon payment of the annual registration fee, less the credit 31 allowed for the remaining months of the unused portion of the 32 annual registration fee, the county treasurer of the county 33 where the vehicle is registered that adjusted the registration 34 renewal or expiration date of the vehicle shall issue a new 35 -5- LSB 2767HW (2) 89 th/ns 5/ 24

H.F. 2570 registration card and registration plates, validation stickers, 1 or emblems which indicate the month and year of expiration of 2 registration. 3 Sec. 7. Section 321.29, Code 2022, is amended to read as 4 follows: 5 321.29 Renewal not permitted. 6 Any vehicle once registered in the state and by removal no 7 longer subject to registration in this state, shall upon being 8 returned to this state and subject to registration be again 9 initially registered in accordance with section 321.20 . 10 Sec. 8. Section 321.34, subsection 1, Code 2022, is amended 11 to read as follows: 12 1. Plates issued. The county treasurer upon receiving 13 application, accompanied by proper fee, for registration of a 14 vehicle shall issue to the owner one registration plate for 15 a motorcycle, motorized bicycle, autocycle, truck tractor, 16 trailer, or semitrailer and two registration plates for every 17 other motor vehicle. The registration plates, including 18 special registration plates, shall be assigned to the owner of 19 a vehicle. When the owner of a registered vehicle transfers or 20 assigns ownership of the vehicle to another person, the owner 21 shall remove the registration plates from the vehicle. The 22 owner shall forward the plates to a any county treasurer or the 23 owner may have the plates assigned to another vehicle within 24 thirty days after transfer, upon payment of the fees required 25 by law. The owner shall immediately affix registration plates 26 retained by the owner to another vehicle owned or acquired by 27 the owner, providing the owner complies with section 321.46 . 28 The department shall adopt rules providing for the assignment 29 of registration plates to the transferee of a vehicle for which 30 a credit is allowed under section 321.46, subsection 6 . 31 Sec. 9. Section 321.40, subsection 1, Code 2022, is amended 32 to read as follows: 33 1. Application for renewal for a vehicle registered under 34 this chapter shall be made on or after the first day of the 35 -6- LSB 2767HW (2) 89 th/ns 6/ 24

H.F. 2570 month prior to the month of expiration of registration and up 1 to and including the last day of the month following the month 2 of expiration of registration. The application for renewal 3 shall be submitted to the county treasurer of the county of 4 the owner’s residence; or if a nonresident, to the county 5 treasurer of the county where the primary users of the vehicle 6 are located; or if a lessor of the vehicle pursuant to chapter 7 321F which has a gross vehicle weight of less than ten thousand 8 pounds, to the county treasurer of the county of the lessee’s 9 residence; or if a firm, association, or corporation with 10 vehicles in multiple counties, to the county treasurer of the 11 county where the primary user of the vehicle is located. The 12 registration shall be renewed upon payment of the appropriate 13 annual registration fee. Application for renewal for a vehicle 14 registered under chapter 326 shall be made on or after the 15 first day of the month prior to the month of expiration of 16 registration and up to and including the last day of the month 17 of expiration of registration. 18 Sec. 10. Section 321.42, subsection 2, paragraphs a, c, and 19 d, Code 2022, are amended to read as follows: 20 a. If a certificate of title is lost or destroyed, the 21 owner or lienholder shall apply for a replacement copy of the 22 original certificate of title. The owner or lienholder of a 23 motor vehicle may also apply for a replacement copy of the 24 original certificate of title upon surrender of the original 25 certificate of title with the application. The application 26 shall be made to the department or any county treasurer who 27 issued the original certificate of title . The application 28 shall be signed by the owner or lienholder and accompanied by a 29 fee of twenty thirty dollars. 30 c. If a security interest noted on the face of an original 31 certificate of title was released by the lienholder on a 32 separate form pursuant to section 321.50, subsection 5 , and 33 the signature of the lienholder, or the person executing the 34 release on behalf of the lienholder, is notarized, but the 35 -7- LSB 2767HW (2) 89 th/ns 7/ 24

H.F. 2570 lienholder has not delivered the original certificate to the 1 appropriate party as provided in section 321.50, subsection 5 , 2 the owner may apply for and receive a replacement certificate 3 of title without the released security interest noted thereon. 4 The lienholder shall return the original certificate of title 5 to the department or to the any county treasurer of the county 6 where the title was issued . 7 d. A new purchaser or transferee is entitled to receive 8 an original title upon presenting the assigned replacement 9 copy to the any county treasurer of the county where the new 10 purchaser or transferee resides . At the time of purchase, a 11 purchaser may require the seller to indemnify the purchaser and 12 all future purchasers of the vehicle against any loss which 13 may be suffered due to claims on the original certificate. A 14 person recovering an original certificate of title for which 15 a replacement has been issued shall surrender the original 16 certificate to the county treasurer or the department. 17 Sec. 11. Section 321.46, subsections 1, 2, and 5, Code 2022, 18 are amended to read as follows: 19 1. The transferee shall, within thirty calendar days after 20 purchase or transfer, apply for and obtain from the any county 21 treasurer of the person’s residence, or if a nonresident, the 22 county treasurer of the county where the primary users of the 23 vehicle are located or the county where all other vehicles 24 owned by the nonresident are registered, or in the case of a 25 mobile home or manufactured home, the county treasurer of the 26 county where the mobile home or manufactured home is located, 27 or if a firm, association, or corporation with vehicles in 28 multiple counties, the transferee may apply for and obtain from 29 the county treasurer of the county where the primary user of 30 the vehicle is located, a new initial registration and a new 31 certificate of title for the vehicle, except as provided in 32 section 321.25 , 321.48 , or 322G.12 , or when the transferee 33 obtains the vehicle pursuant to section 321.52, subsection 2 , 34 paragraph “b” . In the case of a mobile home or manufactured 35 -8- LSB 2767HW (2) 89 th/ns 8/ 24

H.F. 2570 home, the transferee shall, within thirty calendar days after 1 purchase or transfer, apply for and obtain from the county 2 treasurer of the county where the mobile home or manufactured 3 home is located a new certificate of title. The transferee 4 shall present with the application the certificate of title 5 endorsed and assigned by the previous owner and shall indicate 6 the name of the county in which the vehicle was last registered 7 and the registration expiration date. 8 2. Upon filing the application for a new initial 9 registration and a new title, the applicant shall pay a title 10 fee of twenty thirty dollars, an annual registration fee 11 prorated for the remaining unexpired months of the registration 12 year, and a fee for new registration if applicable. A 13 manufacturer applying for a certificate of title pursuant 14 to section 322G.12 shall pay a title fee of ten twenty 15 dollars. However, a title fee shall not be charged to a 16 manufactured or mobile home retailer applying for a certificate 17 of title for a used mobile home or manufactured home, titled 18 in Iowa, as required under section 321.45, subsection 4 . 19 The county treasurer, if satisfied of the genuineness and 20 regularity of the application, and in the case of a mobile 21 home or manufactured home, that taxes are not owing under 22 chapter 435 , and that applicant has complied with all the 23 requirements of this chapter , shall issue a new certificate 24 of title and, except for a mobile home, manufactured home, 25 or a vehicle returned to and accepted by a manufacturer as 26 described in section 322G.12 , a registration card to the 27 purchaser or transferee, shall cancel the prior registration 28 for the vehicle, and shall forward the necessary copies to the 29 department on the date of issuance, as prescribed in section 30 321.24 . Mobile homes or manufactured homes titled under 31 chapter 448 that have been subject under section 446.18 to a 32 public bidder sale in a county shall be titled in the county’s 33 name, with no fee, and the county treasurer shall issue the 34 title. 35 -9- LSB 2767HW (2) 89 th/ns 9/ 24

H.F. 2570 5. The seller or transferor may file an affidavit on 1 forms prescribed and provided by the department with the any 2 county treasurer of the county where the vehicle is registered 3 certifying the sale or transfer of ownership of the vehicle 4 and the assignment and delivery of the certificate of title 5 for the vehicle. Upon receipt of the affidavit, the county 6 treasurer shall file the affidavit with the copy of the 7 registration receipt for the vehicle on file in the treasurer’s 8 office and on that day the treasurer shall note receipt of the 9 affidavit in the vehicle registration and titling system. Upon 10 filing the affidavit, it shall be presumed that the seller or 11 transferor has assigned and delivered the certificate of title 12 for the vehicle. For a leased vehicle, the lessor licensed 13 pursuant to chapter 321F or the lessee may file an affidavit 14 as provided in this subsection certifying that the lease has 15 expired or been terminated and the date that the leased vehicle 16 was surrendered to the lessor. 17 Sec. 12. Section 321.47, subsections 1 and 3, Code 2022, are 18 amended to read as follows: 19 1. If ownership of a vehicle is transferred by operation of 20 law upon inheritance, devise or bequest, dissolution decree, 21 order in bankruptcy, insolvency, replevin, foreclosure or 22 execution sale, abandoned vehicle sale, or when the engine of a 23 motor vehicle is replaced by another engine, or a vehicle is 24 sold or transferred to satisfy an artisan’s lien as provided 25 in chapter 577 , a landlord’s lien as provided in chapter 570 , 26 a self-service storage facility lien as provided in section 27 578A.7 , a storage lien as provided in chapter 579 , a judgment 28 in an action for abandonment of a manufactured or mobile home 29 as provided in chapter 555B , upon presentation of an affidavit 30 relating to the disposition of a valueless mobile, modular, or 31 manufactured home as provided in chapter 555C , or repossession 32 is had upon default in performance of the terms of a security 33 agreement, the any county treasurer in the transferee’s county 34 of residence or, in the case of a mobile home or manufactured 35 -10- LSB 2767HW (2) 89 th/ns 10/ 24

H.F. 2570 home, the county treasurer of the county where the mobile home 1 or manufactured home is located, upon the surrender of the 2 prior certificate of title or the manufacturer’s or importer’s 3 certificate, or when that is not possible, upon presentation 4 of satisfactory proof to the county treasurer of ownership and 5 right of possession to the vehicle and upon payment of a fee of 6 twenty thirty dollars and the presentation of an application 7 for initial registration and certificate of title, may issue 8 to the applicant a registration card for the vehicle and a 9 certificate of title to the vehicle. A person entitled to 10 ownership of a vehicle under a decree of dissolution shall 11 surrender a reproduction of a certified copy of the dissolution 12 and upon fulfilling the other requirements of this chapter is 13 entitled to a certificate of title and registration receipt 14 issued in the person’s name. 15 3. Whenever ownership of a vehicle is transferred under 16 the provisions of this section, the registration plates shall 17 be removed and forwarded to a any county treasurer, or to the 18 department if the vehicle is owned by a nonresident. Upon 19 transfer the vehicle shall not be operated upon the highways 20 of this state until the person entitled to possession of the 21 vehicle applies for and obtains initial registration for the 22 vehicle. 23 Sec. 13. Section 321.48, subsection 2, Code 2022, is amended 24 to read as follows: 25 2. A foreign registered vehicle purchased or otherwise 26 acquired by a dealer for the purpose of resale shall be issued 27 a certificate of title for the vehicle by the any county 28 treasurer of the dealer’s residence upon proper application 29 as provided in this chapter and upon payment of a fee of five 30 fifteen dollars and the dealer is exempt from the payment of 31 any and all registration fees for the vehicle. The application 32 for certificate of title shall be made within thirty days 33 after the vehicle comes within the border of the state. 34 However, a dealer acquiring a vehicle registered in another 35 -11- LSB 2767HW (2) 89 th/ns 11/ 24

H.F. 2570 state which permits Iowa dealers to reassign that state’s 1 certificates of title shall not be required to obtain a new 2 initial registration or a new certificate of title and upon 3 transferring title or interest to another person shall execute 4 an assignment upon the certificate of title for the vehicle 5 to the person to whom the transfer is made and deliver the 6 assigned certificate of title to the person. 7 Sec. 14. Section 321.49, subsection 1, Code 2022, is amended 8 to read as follows: 9 1. Except as provided in section 321.52 , if an application 10 for transfer of registration and certificate of title is not 11 submitted to the any county treasurer of the residence of 12 the transferee within thirty days of the date of assignment 13 or transfer of title, or within thirty days of the date of 14 delivery to the purchaser if the vehicle is subject to a 15 security interest and was offered for sale pursuant to section 16 321.48, subsection 1 , a penalty of ten dollars shall accrue 17 against the applicant, and no registration card or certificate 18 of title shall be issued to the applicant for the vehicle until 19 the penalty is paid. 20 Sec. 15. Section 321.50, subsection 1, Code 2022, is amended 21 to read as follows: 22 1. A security interest in a vehicle subject to registration 23 under the laws of this state or a mobile home or manufactured 24 home , except trailers whose empty weight is two thousand 25 pounds or less, and except new or used vehicles held by a 26 dealer or manufacturer as inventory for sale, is perfected by 27 the delivery to the any county treasurer of the county where 28 the certificate of title was issued or, in the case of a new 29 certificate, to the county treasurer where the certificate will 30 be issued, of an application for certificate of title which 31 lists the security interest, or an application for notation 32 of security interest signed by the owner or by one owner of 33 a vehicle owned jointly by more than one person, or signed 34 through electronic means as determined by the department, or a 35 -12- LSB 2767HW (2) 89 th/ns 12/ 24

H.F. 2570 certificate of title from another jurisdiction which shows the 1 security interest, and payment of a fee of ten twenty dollars 2 for each security interest shown. The security interest in a 3 mobile home or manufactured home is perfected by the delivery 4 to the county treasurer of the county where the certificate 5 of title was issued or, in the case of a new certificate, to 6 the county treasurer where the certificate will be issued, 7 of an application for certificate of title which lists the 8 security interest, or an application for notation of security 9 interest signed by the owner or by one owner when owned jointly 10 by more than one person, or signed through electronic means 11 as determined by the department, or a certificate of title 12 from another jurisdiction which shows the security interest, 13 and payment of a fee of twenty dollars for each security 14 interest shown. The department shall require the federal 15 employer identification number of a secured party who is a 16 firm, association, or corporation or, if a natural person, 17 the social security number. Upon delivery of the application 18 and payment of the fee, the county treasurer shall note the 19 date of delivery on the application. If the delivery is by 20 electronic means and the time is electronically recorded on the 21 application along with the date, the time shall be included 22 with the date on all subsequent documents and records where the 23 date of perfection is required under this chapter . The date 24 of delivery shall be the date of perfection of the security 25 interest in the vehicle, regardless of the date the security 26 interest is noted on the certificate of title. Up to three 27 security interests may be perfected against a vehicle and shown 28 on an Iowa certificate of title. If the owner or secured party 29 is in possession of the certificate of title, it must also be 30 delivered at this time. If a vehicle is subject to a security 31 interest when brought into this state, the validity of the 32 security interest and the date of perfection is determined by 33 section 554.9303 . Delivery as provided in this subsection 34 constitutes perfection of a security interest on a certificate 35 -13- LSB 2767HW (2) 89 th/ns 13/ 24

H.F. 2570 of title for purposes of this chapter and chapter 554 . 1 Sec. 16. Section 321.50, subsection 5, paragraphs a and c, 2 Code 2022, are amended to read as follows: 3 a. When a security interest is discharged, the holder 4 shall note a cancellation of the security interest on the 5 face of the certificate of title over the holder’s signature 6 or may note the cancellation of the security interest on a 7 separate, notarized release form or letter. The holder shall 8 deliver the certificate of title and the form or letter, if 9 applicable, to the any county treasurer where the title was 10 issued . In the case of a security interest that has been 11 delivered by electronic means, the holder shall notify the 12 department or the county treasurer, in a manner prescribed 13 by the department, of the release of the security interest. 14 The county treasurer shall immediately note the cancellation 15 of the security interest on the face of the certificate of 16 title, if applicable, and in the county records system. The 17 county treasurer shall on the same day deliver the certificate 18 of title, if applicable, and the separate, notarized release 19 form or letter, if applicable, to the then first secured party 20 or, if there is no such person, to the person as directed by 21 the owner, in writing, on a form prescribed by the department 22 or, if there is no person designated, then to the owner. The 23 cancellation of the security interest shall be noted on the 24 certificate of title by the county treasurer without charge. 25 The holder of a security interest discharged by payment who 26 fails to release the security interest within fifteen days 27 after being requested in writing to do so shall forfeit to the 28 person making the payment the sum of twenty-five dollars. 29 c. When a security interest is discharged, the lienholder 30 shall note the cancellation of the security interest on the 31 face of the title and, if applicable, may note the cancellation 32 of the security interest on a form prescribed by the department 33 and deliver a copy of the form in lieu of the title to the 34 department or to the any county treasurer of the county in 35 -14- LSB 2767HW (2) 89 th/ns 14/ 24

H.F. 2570 which the title was issued . The form may be delivered by 1 electronic means. The department or county treasurer shall 2 note the release of the security interest upon the statewide 3 computer system and the county’s records. A copy of the form, 4 if used, shall be attached to the title by the lienholder, if 5 the title is held by the lienholder, and shall be evidence of 6 the release of the security interest. If the title is held 7 by the lienholder, the lienholder shall deliver the title to 8 the first lienholder, or if there is no such person, to the 9 person as designated by the owner, or if there is no such 10 person designated, to the owner. If a certificate of title 11 has not been issued, upon release of a security interest, the 12 lienholder shall notify the department or the county treasurer, 13 in a manner prescribed by the department, of the release of the 14 security interest. 15 Sec. 17. Section 321.52, subsection 2, paragraph a, Code 16 2022, is amended to read as follows: 17 a. The purchaser or transferee of a motor vehicle subject to 18 registration for which a certificate of title is issued which 19 is sold for scrap or junk shall surrender the certificate of 20 title, properly endorsed and signed by the previous owner, to 21 the any county treasurer of the county of residence of the 22 transferee , and shall apply for a junking certificate from the 23 county treasurer, within thirty days after assignment of the 24 certificate of title, except when the vehicle is disposed of 25 pursuant to paragraph “b” . The county treasurer shall issue 26 to such person without fee a junking certificate. A junking 27 certificate shall authorize the holder to possess, transport, 28 or transfer by endorsement the ownership of the junked vehicle. 29 A certificate of title shall not again be issued for the 30 vehicle subsequent to the issuance of a junking certificate 31 except as provided in subsection 3 . The county treasurer shall 32 cancel the record of the vehicle. The junking certificate 33 shall be printed on the registration receipt form and shall be 34 imprinted with the words “junking certificate”, as prescribed 35 -15- LSB 2767HW (2) 89 th/ns 15/ 24

H.F. 2570 by the department. A space for transfer by endorsement 1 shall be on the junking certificate. A separate form for the 2 notation of the transfer of component parts shall be attached 3 to the junking certificate when the certificate is issued. 4 Sec. 18. Section 321.52, subsection 4, paragraphs a and b, 5 Code 2022, are amended to read as follows: 6 a. Notwithstanding any other provision of law to the 7 contrary, an insurer may apply for and be issued a salvage 8 certificate of title for a motor vehicle without surrendering 9 the certificate of title or manufacturer’s or importer’s 10 statement of origin properly assigned if ownership of the 11 vehicle was transferred, or will transfer, to the insurer 12 pursuant to a settlement with the previous owner of the vehicle 13 arising from circumstances involving damage to the vehicle, 14 and at least thirty days have expired since the effective 15 date of such settlement. To obtain a salvage certificate 16 of title pursuant to this paragraph “a” , the insurer shall 17 submit an application for a salvage certificate of title to 18 the any county treasurer of the county in which the vehicle 19 is stored by or on behalf of the insurer . The application 20 shall be accompanied by an affidavit from the insurer in 21 which the insurer certifies it has made at least two written 22 attempts to obtain a properly assigned certificate of title 23 or manufacturer’s or importer’s statement of origin for the 24 vehicle by contacting the previous owner of the vehicle and all 25 lienholders of record by certified mail or a similar service 26 that provides proof of service using a return receipt, and 27 has been unable to obtain the title or statement of origin. 28 The failure of a previous owner or lienholder to provide a 29 properly assigned certificate of title or manufacturer’s or 30 importer’s statement of origin shall be deemed to be a waiver 31 by the previous owner or lienholder of all rights, title, 32 claim, and interest in the vehicle. The application shall also 33 be accompanied by the application fee required under paragraph 34 “b” , and proof of payment of the total amount of the settlement 35 -16- LSB 2767HW (2) 89 th/ns 16/ 24

H.F. 2570 by the insurer to the previous owner of the vehicle. Upon 1 receiving an application that complies with this paragraph “a” , 2 the county treasurer shall issue a salvage certificate of title 3 to the insurer which shall be free and clear of all liens and 4 claims of ownership and shall bear the word “SALVAGE” stamped 5 or printed on the face of the title in a manner prescribed by 6 the department. 7 b. A vehicle rebuilder or a person engaged in the business 8 of buying, selling, or exchanging vehicles of a type required 9 to be registered in this state, upon acquisition of a wrecked 10 or salvage vehicle, shall surrender the certificate of 11 title or manufacturer’s or importer’s statement of origin 12 properly assigned, together with an application for a salvage 13 certificate of title, to the any county treasurer of the county 14 of residence of the purchaser or transferee within thirty 15 days after the date of assignment of the certificate of title 16 for the wrecked or salvage motor vehicle. This subsection 17 applies only to vehicles with a fair market value of five 18 hundred dollars or more, based on the value before the vehicle 19 became wrecked or salvage. Upon payment of a fee of ten twenty 20 dollars, the county treasurer shall issue a salvage certificate 21 of title which shall bear the word “SALVAGE” stamped or 22 printed on the face of the title in a manner prescribed by the 23 department. A salvage certificate of title may be assigned 24 to an educational institution, a new motor vehicle dealer 25 licensed under chapter 322 , a person engaged in the business 26 of purchasing bodies, parts of bodies, frames or component 27 parts of vehicles for sale as scrap metal, a salvage pool, or 28 an authorized vehicle recycler licensed under chapter 321H . An 29 authorized vehicle recycler licensed under chapter 321H or a 30 new motor vehicle dealer licensed under chapter 322 may assign 31 or reassign an Iowa salvage certificate of title or a salvage 32 certificate of title from another state to any person, and the 33 provisions of section 321.24, subsection 5 , requiring issuance 34 of an Iowa salvage certificate of title shall not apply. A 35 -17- LSB 2767HW (2) 89 th/ns 17/ 24