Senate File 2070 - Introduced SENATE FILE 2070 BY ROWLEY A BILL FOR An Act relating to the transfer of ownership of certain foreign 1 vehicles. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5768XS (2) 89 th/ns
S.F. 2070 Section 1. Section 321.23, subsection 3, Code 2022, is 1 amended to read as follows: 2 3. In the event an applicant for registration of a foreign 3 vehicle for which a certificate of title has been issued is 4 able to furnish evidence of being the registered owner of the 5 vehicle to the county treasurer of the owner’s residence, 6 although unable to surrender such certificate of title, the 7 county treasurer may issue a registration receipt and plates 8 upon receipt of the required annual registration fee and the 9 fee for new registration but shall not issue a certificate of 10 title thereto. Upon surrender of the certificate of title 11 from the foreign state, the county treasurer shall issue a 12 certificate of title to the owner, or person entitled thereto, 13 of such vehicle as provided in this chapter . The owner of a 14 vehicle registered under this subsection shall not be required 15 to obtain a certificate of title in this state and may transfer 16 ownership of the vehicle to a motor vehicle dealer licensed 17 under chapter 322 or an insurance carrier authorized to do 18 business in this state if, at the time of the transfer, the 19 certificate of title is held by a secured party and the dealer 20 or insurance carrier, as applicable, has forwarded to the 21 secured party the sum necessary to discharge the security 22 interest pursuant to section 321.48, subsection 1 . 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 Under current law, a person who owns but does not physically 27 possess the certificate of title to a foreign (out-of-state) 28 vehicle may apply to register the foreign vehicle and the 29 county treasurer may issue a registration receipt and 30 registration plates if the required registration fees are paid, 31 but cannot issue a certificate of title. A county treasurer 32 must issue a certificate of title when the certificate of title 33 from the foreign state is surrendered. Generally, an Iowa 34 certificate of title is required to transfer ownership of a 35 -1- LSB 5768XS (2) 89 th/ns 1/ 2
S.F. 2070 vehicle. However, in accordance with a listed exception, an 1 owner of a foreign vehicle is not required to obtain an Iowa 2 certificate of title to transfer ownership of the vehicle to a 3 licensed motor vehicle dealer if, at the time of the transfer, 4 the certificate of title is held by a secured party and the 5 dealer has forwarded to the secured party the sum necessary 6 to discharge the security interest pursuant to Code section 7 321.48. 8 This bill extends the exception to also include foreign 9 vehicles transferred to an insurance carrier authorized to do 10 business in Iowa. 11 -2- LSB 5768XS (2) 89 th/ns 2/ 2