S.F. 101 Section 1. Section 312.2, subsection 17, paragraph a, Code 1 2021, is amended to read as follows: 2 a. The treasurer of state, before making the allotments 3 provided for in this section , shall credit annually to the 4 TIME-21 fund created in section 312A.2 , the revenue accruing to 5 the road use tax fund from annual motor vehicle registration 6 fees for passenger cars, multipurpose vehicles, and motor 7 trucks in excess of three hundred ninety-two million dollars 8 annually. For purposes of this paragraph, “annual motor vehicle 9 registration fees” does not include the annual registration 10 surcharge imposed under section 321.105B. 11 Sec. 2. Section 312.2, Code 2021, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 18. Notwithstanding section 312.9 or 14 any other provision of law to the contrary, the treasurer 15 of state, before making the allotments provided for in this 16 section, shall credit monthly to the department of public 17 safety the revenue accruing to the road use tax fund from the 18 collection of the annual registration surcharge pursuant to 19 section 321.105B. Moneys credited under this subsection are 20 appropriated to the department of public safety to be used for 21 vehicles, equipment, and training expenses of the division of 22 state patrol related to the supervision of the highways of this 23 state. 24 Sec. 3. Section 321.1, subsection 59A, Code 2021, is amended 25 to read as follows: 26 59A. “Registration fees” , unless otherwise specified, 27 means both the annual vehicle registration fee , the annual 28 registration surcharge, and the fee for new registration, 29 to the extent applicable, for purposes of administering the 30 provisions of this chapter concerning vehicle registration 31 fees. 32 Sec. 4. Section 321.20A, subsection 2, Code 2021, is amended 33 to read as follows: 34 2. An owner of more than fifty commercial vehicles subject 35 -1- LSB 2000XS (2) 89 th/ns 1/ 9

S.F. 101 to the apportioned registration provisions of chapter 326 who 1 is issued a certificate of title under this section shall not 2 be subject to annual registration fees until the commercial 3 vehicle is driven or moved upon the highways. The annual 4 registration fee due shall be prorated for the remaining 5 unexpired months of the registration year. Ownership of the 6 commercial vehicle shall not be transferred until annual 7 registration fees and the annual registration surcharge have 8 been paid to the department. 9 Sec. 5. Section 321.23, subsection 3, Code 2021, is amended 10 to read as follows: 11 3. In the event an applicant for registration of a foreign 12 vehicle for which a certificate of title has been issued is 13 able to furnish evidence of being the registered owner of the 14 vehicle to the county treasurer of the owner’s residence, 15 although unable to surrender such certificate of title, the 16 county treasurer may issue a registration receipt and plates 17 upon receipt of the required annual registration fee , the 18 annual registration surcharge, and the fee for new registration 19 but shall not issue a certificate of title thereto. Upon 20 surrender of the certificate of title from the foreign state, 21 the county treasurer shall issue a certificate of title to the 22 owner, or person entitled thereto, of such vehicle as provided 23 in this chapter . The owner of a vehicle registered under this 24 subsection shall not be required to obtain a certificate of 25 title in this state and may transfer ownership of the vehicle 26 to a motor vehicle dealer licensed under chapter 322 if, at the 27 time of the transfer, the certificate of title is held by a 28 secured party and the dealer has forwarded to the secured party 29 the sum necessary to discharge the security interest pursuant 30 to section 321.48, subsection 1 . 31 Sec. 6. Section 321.24, subsection 10, Code 2021, is amended 32 to read as follows: 33 10. A vehicle shall be registered for the registration 34 year. A vehicle registered for the first time in this state 35 -2- LSB 2000XS (2) 89 th/ns 2/ 9

S.F. 101 shall be registered for the remaining unexpired months of the 1 registration year and pay an annual registration fee prorated 2 for the remaining unexpired months of the registration year 3 plus the annual registration surcharge pursuant to section 4 321.105B and a fee for new registration , if applicable , 5 pursuant to section 321.105A . Except for a vehicle registered 6 under chapter 326 , a vehicle registered for the first time 7 during the eleventh month of the owner’s registration year 8 may be registered for the remaining unexpired months of the 9 registration year as provided in this subsection or for the 10 remaining unexpired months of the registration year and for 11 the next registration year, upon payment of the applicable 12 registration fees. 13 Sec. 7. Section 321.30, subsection 3, Code 2021, is amended 14 to read as follows: 15 3. The department or the county treasurer shall refuse 16 registration of a vehicle if the applicant for registration of 17 the vehicle has failed to pay the required annual registration 18 fee , the annual registration surcharge, or the fee for new 19 registration of any vehicle owned or previously owned when the 20 fee was required to be paid by the applicant, and for which 21 vehicle the registration was suspended or revoked under section 22 321.101, subsection 1 , paragraph “d” , or section 321.101A , 23 until the fee is paid together with any accrued penalties. 24 Sec. 8. Section 321.40, subsection 1, Code 2021, is amended 25 to read as follows: 26 1. Application for renewal for a vehicle registered under 27 this chapter shall be made on or after the first day of the 28 month prior to the month of expiration of registration and 29 up to and including the last day of the month following the 30 month of expiration of registration. The registration shall 31 be renewed upon payment of the appropriate annual registration 32 fee and the annual registration surcharge . Application for 33 renewal for a vehicle registered under chapter 326 shall be 34 made on or after the first day of the month prior to the month 35 -3- LSB 2000XS (2) 89 th/ns 3/ 9

S.F. 101 of expiration of registration and up to and including the last 1 day of the month of expiration of registration. 2 Sec. 9. Section 321.40, subsection 6, paragraph b, Code 3 2021, is amended to read as follows: 4 b. The county treasurer of the county of the person’s 5 residence and in which the person’s vehicle is registered, 6 in cooperation with the department of revenue, may collect 7 delinquent taxes including penalties and interest owed to 8 the state from a person applying for renewal of a vehicle 9 registration. The applicant may remit full payment of the 10 taxes including applicable penalties and interest, along with 11 a processing fee of five dollars, to the county treasurer at 12 the time of registration renewal. Upon full payment of the 13 required taxes including applicable penalties and interest, 14 the processing fee, and the vehicle registration fee, and the 15 annual registration surcharge, the county treasurer shall issue 16 the registration to the person. A county treasurer collecting 17 on behalf of the department of revenue shall update the vehicle 18 registration records through the distributed teleprocessing 19 network on a daily basis for all persons who have paid taxes 20 pursuant to this subsection . A county treasurer shall forward 21 all funds collected for the department of revenue to the 22 department of revenue. 23 Sec. 10. Section 321.40, subsection 7, paragraph b, Code 24 2021, is amended to read as follows: 25 b. The county treasurer of the county of an applicant’s 26 residence and in which the applicant’s vehicle is registered, 27 in cooperation with the department, may collect a civil 28 penalty imposed on the applicant pursuant to section 321N.3, 29 subsection 3 , when the applicant applies for renewal of a 30 vehicle registration. The applicant may remit full payment of 31 the civil penalty, along with a processing fee of five dollars, 32 to the county treasurer at the time of registration renewal. 33 Upon full payment of the civil penalty, the processing fee, 34 and the vehicle registration fee, and the annual registration 35 -4- LSB 2000XS (2) 89 th/ns 4/ 9

S.F. 101 surcharge, the county treasurer shall issue the registration to 1 the applicant. A county treasurer collecting a civil penalty 2 on behalf of the department pursuant to this subsection shall 3 update the vehicle registration records through the distributed 4 teleprocessing network on a daily basis for all applicants 5 who have paid civil penalties pursuant to this subsection . A 6 county treasurer shall forward all funds collected on behalf of 7 the department to the department. 8 Sec. 11. Section 321.46, subsection 2, Code 2021, is amended 9 to read as follows: 10 2. Upon filing the application for a new registration 11 and a new title, the applicant shall pay a title fee of 12 twenty dollars, an annual registration fee prorated for the 13 remaining unexpired months of the registration year, an annual 14 registration surcharge, and a fee for new registration if 15 applicable. A manufacturer applying for a certificate of 16 title pursuant to section 322G.12 shall pay a title fee of 17 ten dollars. However, a title fee shall not be charged to a 18 manufactured or mobile home retailer applying for a certificate 19 of title for a used mobile home or manufactured home, titled 20 in Iowa, as required under section 321.45, subsection 4 . 21 The county treasurer, if satisfied of the genuineness and 22 regularity of the application, and in the case of a mobile 23 home or manufactured home, that taxes are not owing under 24 chapter 435 , and that applicant has complied with all the 25 requirements of this chapter , shall issue a new certificate 26 of title and, except for a mobile home, manufactured home, 27 or a vehicle returned to and accepted by a manufacturer as 28 described in section 322G.12 , a registration card to the 29 purchaser or transferee, shall cancel the prior registration 30 for the vehicle, and shall forward the necessary copies to the 31 department on the date of issuance, as prescribed in section 32 321.24 . Mobile homes or manufactured homes titled under 33 chapter 448 that have been subject under section 446.18 to a 34 public bidder sale in a county shall be titled in the county’s 35 -5- LSB 2000XS (2) 89 th/ns 5/ 9

S.F. 101 name, with no fee, and the county treasurer shall issue the 1 title. 2 Sec. 12. Section 321.70, Code 2021, is amended to read as 3 follows: 4 321.70 Dealer vehicles. 5 A dealer registered under this chapter shall not be required 6 to register any vehicle owned by the dealer which is being held 7 for sale or trade, provided the annual registration fee was and 8 the annual registration surcharge were not delinquent at the 9 time the vehicle was acquired by the dealer. When a dealer 10 ceases to hold any vehicle for sale or trade or the vehicle 11 otherwise becomes subject to registration under this chapter 12 the annual registration fee , the annual registration surcharge, 13 and delinquent annual registration fee or surcharge , if any, 14 shall be due for the registration year. 15 Sec. 13. Section 321.101, subsection 1, paragraph d, Code 16 2021, is amended to read as follows: 17 d. When the department determines that the required annual 18 registration fee or the annual registration surcharge has not 19 been paid and the fee or surcharge is not paid upon reasonable 20 notice and demand. 21 Sec. 14. Section 321.101A, Code 2021, is amended to read as 22 follows: 23 321.101A Revocation of registration by county treasurer. 24 The county treasurer may revoke the registration and 25 registration plates of a vehicle if the annual registration 26 fee , the annual registration surcharge, or the fee for new 27 registration is paid by check, electronic payment, or credit 28 card and the check, electronic payment, or credit card is 29 not honored by the payer’s financial institution or credit 30 card company, upon reasonable notice and demand. The owner 31 of the vehicle or person in possession of the registration 32 and registration plates for the vehicle shall immediately 33 return the revoked registration and registration plates to the 34 appropriate county treasurer’s office. 35 -6- LSB 2000XS (2) 89 th/ns 6/ 9

S.F. 101 Sec. 15. Section 321.105A, subsection 3, paragraph b, 1 subparagraph (2), Code 2021, is amended to read as follows: 2 (2) Annual registration fees and annual registration 3 surcharges . 4 Sec. 16. NEW SECTION . 321.105B Annual registration 5 surcharge. 6 1. In addition to the annual registration fee required 7 under section 321.105, an annual registration surcharge is 8 imposed in the amount of two dollars for each vehicle subject 9 to registration. The annual registration surcharge shall 10 be paid by the owner of the vehicle to the county treasurer 11 or the department at the time application is made for a new 12 registration and certificate of title for a vehicle and each 13 time application is made for renewal of registration for 14 a vehicle. If a vehicle’s registration fee is payable in 15 semiannual installments, the annual registration surcharge 16 shall be paid with the first installment. 17 2. The surcharge imposed under this section shall not 18 be considered in the calculation of the annual registration 19 fee for a vehicle, is not subject to proration, and is not 20 refundable except as provided in section 321.129. 21 3. This section does not apply to vehicles that are exempt 22 from annual registration fees. 23 Sec. 17. Section 321.151, Code 2021, is amended to read as 24 follows: 25 321.151 Duty and liability of treasurer. 26 The county treasurer shall collect the annual registration 27 fee, the annual registration surcharge, the fee for new 28 registration, and penalties on each vehicle registered by 29 the county treasurer and shall be responsible on the county 30 treasurer’s bond for such amount. The county treasurer shall 31 remit such amount to the treasurer of state as provided in this 32 chapter . Fees collected pursuant to participation in county 33 issuance of driver’s licenses under chapter 321M shall be 34 governed by the provisions of that chapter. 35 -7- LSB 2000XS (2) 89 th/ns 7/ 9

S.F. 101 Sec. 18. Section 321.152, subsection 1, paragraph a, Code 1 2021, is amended to read as follows: 2 a. Four percent of the total collection, excluding the 3 amount of any fee for new registration and annual registration 4 surcharge , for each annual or semiannual vehicle registration 5 and each duplicate registration card or plate issued. 6 Sec. 19. Section 326.2, subsection 5, Code 2021, is amended 7 to read as follows: 8 5. “Registration fee” means the annual motor vehicle 9 registration fee imposed pursuant to section 321.105 , unless 10 otherwise specified. “Registration fee” includes the annual 11 registration surcharge imposed pursuant to section 321.105B, in 12 accordance with the terms of that section. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill imposes an annual registration surcharge in 17 the amount of $2 for each vehicle subject to registration, 18 including both motor vehicles and trailers. The surcharge 19 is payable to the county treasurer or the department of 20 transportation the first time application is made for 21 registration and certificate of title for a vehicle and each 22 time registration is renewed. Revenues collected from the 23 annual registration surcharge accrue to the road use tax fund 24 and are appropriated to the department of public safety to be 25 used for vehicles, equipment, and training expenses of the 26 division of state patrol related to the supervision of the 27 highways of this state. 28 The bill amends the definition of “registration fees” for 29 purposes of Code chapter 321 to provide for administration 30 of the annual registration surcharge in conjunction with 31 administration of annual vehicle registration fees, and the 32 bill amends the definition of “registration fee” in Code 33 chapter 326 to provide for administration of the annual 34 registration surcharge in conjunction with administration of 35 -8- LSB 2000XS (2) 89 th/ns 8/ 9

S.F. 101 apportioned fees for commercial motor vehicles. In addition, 1 the bill makes conforming amendments to various Code sections 2 relating to vehicle registration fees and the distribution of 3 revenue from the road use tax fund. 4 It is a simple misdemeanor punishable by a scheduled fine of 5 $70 for a person to drive, move, or permit to be driven or moved 6 upon the highway a vehicle required to be registered that is 7 not registered or for which the appropriate fees have not been 8 paid, notwithstanding certain exceptions. 9 -9- LSB 2000XS (2) 89 th/ns 9/ 9