S.F. _____ H.F. _____ Section 1. Section 321.24, subsection 11, Code 2024, is 1 amended to read as follows: 2 11. If the county treasurer or department is not 3 satisfied as to the ownership of the vehicle or that there 4 are no undisclosed security interests in it, or if a junking 5 certificate has been issued for the vehicle but a certificate 6 of title will not be reissued under section 321.52, subsection 7 3 , and the vehicle qualifies as an antique vehicle under 8 section 321.115, subsection 1 , the county treasurer or 9 department may register the vehicle but shall, as a condition 10 of issuing a certificate of title and registration receipt, 11 require the applicant to first receive approval by the 12 department. 13 a. If the department determines the value of the vehicle is 14 one thousand dollars or less and the vehicle is twelve model 15 years old or older, the department shall notify the applicant, 16 and the department or county treasurer may issue a certificate 17 of title and registration receipt. The applicant shall apply 18 for a certificate of title and registration within thirty days 19 of the department’s notification of determination. 20 b. If the department determines the value of the vehicle 21 is more than one thousand dollars or the vehicle is less than 22 twelve model years old, the applicant shall file with the 23 department a bond in the form prescribed by the department 24 and executed by the applicant, and either accompanied by the 25 deposit of cash with the department or also executed by a 26 person authorized to conduct a surety business in this state. 27 The owner of a vehicle subject to the bond requirements of 28 this subsection shall apply for a certificate of title and 29 registration for the vehicle at the county treasurer’s office 30 within thirty days of issuance of written authorization from 31 the department. The bond shall be in an amount equal to one and 32 one-half times the current value of the vehicle , as determined 33 by the department , and conditioned to indemnify any prior owner 34 and secured party and any subsequent purchaser of the vehicle 35 -1- LSB 5364DP (4) 90 th/ns 1/ 3

S.F. _____ H.F. _____ or person acquiring any security interest in it, and their 1 respective successors in interest, against any expense, loss, 2 or damage, including reasonable attorney fees, by reason of 3 the issuance of the certificate of title for the vehicle or 4 on account of any defect in or undisclosed security interest 5 upon the right, title, and interest of the applicant in and to 6 the vehicle. Any such interested person has a right of action 7 to recover on the bond for any breach of its conditions, but 8 the aggregate liability of the surety to all persons shall 9 not exceed the amount of the bond. The bond, and any deposit 10 accompanying it, shall be returned at the end of three years or 11 earlier if the vehicle is no longer registered in this state 12 and the currently valid certificate of title is surrendered to 13 the department, unless the department has been notified of the 14 pendency of an action to recover on the bond. The department 15 may authorize issuance of a certificate of title as provided 16 in this subsection for a vehicle with an unreleased security 17 interest upon presentation of satisfactory evidence that the 18 security interest has been extinguished or that the holder of 19 the security interest cannot be located to release the security 20 interest as provided in section 321.50 . 21 c. The department may adopt rules pursuant to chapter 17A to 22 implement and administer this subsection. 23 Sec. 2. Section 321.52, subsection 3, paragraph d, Code 24 2024, is amended to read as follows: 25 d. However, upon application and a showing of good cause, 26 the department may issue a certificate of title to a person 27 after the fourteen-day period for a junked vehicle for which 28 a junking certificate has been issued. For purposes of this 29 subsection , “good cause” means that the junking certificate 30 was obtained by mistake or inadvertence. If a person’s 31 application to the department is denied, the person may make 32 application for a certificate of title under the bonding 33 procedure as provided in section 321.24 , subsection 11, if 34 the vehicle qualifies as an antique vehicle under section 35 -2- LSB 5364DP (4) 90 th/ns 2/ 3

S.F. _____ H.F. _____ 321.115, subsection 1 , or the person may seek judicial review 1 as provided under sections 17A.19 and 17A.20 . 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 Under current law, if a county treasurer or the department of 6 transportation (DOT) is not satisfied as to the ownership of a 7 vehicle or that there are no undisclosed security interests in 8 it, or if a junking certificate has been issued for the vehicle 9 but a certificate of title will not be reissued and the vehicle 10 is 25 years old or older, the county treasurer or DOT may 11 register the vehicle. However, as a condition of registration, 12 and before issuing a certificate of title and registration 13 receipt, the county treasurer or DOT must require the applicant 14 to file a bond with the DOT. The bond must be accompanied by 15 the deposit of cash with the DOT or also executed by a person 16 authorized to conduct a surety business in Iowa. 17 This bill requires a person applying for registration 18 and certificate of title for such a vehicle to first receive 19 approval by the DOT and, depending on the DOT’s determination 20 on the value and age of the vehicle, the applicant may not be 21 required to file a bond. 22 If the DOT determines the value of the vehicle is $1,000 23 or less and the vehicle is 12 model years old or older, the 24 DOT must notify the applicant, and the DOT or county treasurer 25 may issue a certificate of title and registration receipt. 26 The applicant is required to apply for a certificate of title 27 and registration within 30 days of the DOT’s notification of 28 determination. However, if the DOT determines the value of 29 the vehicle is more than $1,000 or the vehicle is less than 12 30 model years old, the applicant is required to file bond with 31 the DOT in accordance with current law. 32 -3- LSB 5364DP (4) 90 th/ns 3/ 3