House File 2268 - Introduced HOUSE FILE 2268 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 512) A BILL FOR An Act relating to the administration and regulation of matters 1 associated with the operation, registration, and titling of 2 motor vehicles, making penalties applicable, and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5412HV (2) 91 th/ns

H.F. 2268 DIVISION I 1 CHAUFFEUR’S INSTRUCTION PERMITS 2 Section 1. Section 321.1, subsection 20A, Code 2026, is 3 amended to read as follows: 4 20A. “Driver’s license” means any license or permit issued 5 to a person to operate a motor vehicle on the highways of 6 this state, including but not limited to a restricted work, 7 special minor’s restricted, temporary restricted, or temporary 8 license and an instruction, chauffeur’s instruction, commercial 9 learner’s, or temporary permit. For purposes of license 10 suspension, revocation, bar, disqualification, cancellation, or 11 denial under this chapter and chapters 321A , 321C , and 321J , 12 “driver’s license” includes any privilege to operate a motor 13 vehicle. 14 Sec. 2. Section 321.180, subsection 3, Code 2026, is amended 15 by striking the subsection. 16 Sec. 3. Section 321.180, subsection 4, Code 2026, is amended 17 to read as follows: 18 4. The instruction permit , chauffeur’s instruction permit, 19 and commercial learner’s permit are subject to suspension or 20 revocation for the same reasons and in the same manner as 21 suspension or revocation of a driver’s license. 22 Sec. 4. Section 321.191, subsection 1, Code 2026, is amended 23 to read as follows: 24 1. Instruction permits. The fee for an instruction 25 permit, other than a special instruction permit , chauffeur’s 26 instruction permit, or commercial learner’s permit, is six 27 dollars. The fee for a special instruction permit is ten 28 dollars. The fee for a chauffeur’s instruction permit or 29 commercial learner’s permit is twelve dollars. 30 Sec. 5. Section 321.196, subsection 1, Code 2026, is amended 31 to read as follows: 32 1. Except as otherwise provided, if the licensee is between 33 the ages of seventeen years eleven months and seventy-eight 34 years on the date of issuance of the license, a driver’s 35 -1- LSB 5412HV (2) 91 th/ns 1/ 27

H.F. 2268 license, other than an instruction permit , chauffeur’s 1 instruction permit, or commercial learner’s permit issued 2 under section 321.180 , expires eight years from the licensee’s 3 birthday anniversary occurring in the year of issuance, but 4 not to exceed the licensee’s eightieth birthday. If the 5 licensee is under the age of seventeen years eleven months 6 or age seventy-eight or over, the license is effective for a 7 period of two years from the licensee’s birthday anniversary 8 occurring in the year of issuance. A licensee whose license is 9 restricted due to vision or other physical deficiencies may be 10 required to renew the license every two years. If a licensee 11 is a foreign national who is temporarily present in this state, 12 the license shall be issued only for the length of time the 13 foreign national is authorized to be present as verified by the 14 department, not to exceed two years. 15 Sec. 6. Section 321J.1, subsection 7, Code 2026, is amended 16 to read as follows: 17 7. “Driver’s license” means any license or permit issued 18 to a person to operate a motor vehicle on the highways of this 19 state, including but not limited to a driver’s, commercial 20 driver’s, temporary restricted, or temporary license and an 21 instruction, chauffeur’s instruction, commercial learner’s, or 22 temporary permit. 23 Sec. 7. Section 321M.1, subsection 5, Code 2026, is amended 24 to read as follows: 25 5. “Driver’s license” means any license or permit issued 26 to a person to operate a motor vehicle on the highways of this 27 state, including but not limited to a driver’s, commercial 28 driver’s, temporary restricted, or temporary license and an 29 instruction, chauffeur’s instruction, commercial learner’s, or 30 temporary permit. 31 Sec. 8. CHAUFFEUR’S INSTRUCTION PERMIT VALIDITY. A 32 chauffeur’s instruction permit issued before the effective 33 date of this division of this Act shall remain valid until the 34 expiration date listed on the permit. Until the expiration 35 -2- LSB 5412HV (2) 91 th/ns 2/ 27

H.F. 2268 of the permit, the permittee may continue to operate a motor 1 vehicle in accordance with section 321.180, subsection 3, Code 2 2026. 3 DIVISION II 4 MOTOR VEHICLE ACCIDENT REPORTS 5 Sec. 9. Section 321.266, subsections 2 and 3, Code 2026, are 6 amended to read as follows: 7 2. The driver of a vehicle involved in an accident resulting 8 in injury to or death of any person, or total property damage 9 to an apparent extent of one five thousand five hundred dollars 10 or more , or the driver of a vehicle involved in an accident 11 regardless of injury, death, or property damage if the vehicle 12 does not have financial liability coverage in effect, shall , 13 submit a written report of the accident to the department 14 within seventy-two hours after the accident , forward a written 15 report of the accident to the department . However, such report 16 is not required when the accident is investigated by a law 17 enforcement agency. 18 3. Every law enforcement officer who, in the regular course 19 of duty, investigates a motor vehicle accident of which report 20 must be made as required in subsections 1 and 2 , either at 21 the time of and at the scene of the accident or thereafter 22 by interviewing participants or witnesses , shall , within 23 twenty-four hours after completing such investigation, forward 24 submit a written report of such accident to the department. 25 Sec. 10. Section 321.271, subsections 1 and 2, Code 2026, 26 are amended to read as follows: 27 1. All accident reports filed by a driver of a vehicle 28 involved in an accident as required under section 321.266 shall 29 be in writing. The report must be in an electronic format and 30 submitted in a manner approved by the department. The report 31 shall be without prejudice to the individual so reporting and 32 shall be for the confidential use of the department, except 33 that upon the request of any person involved in the accident, 34 the person’s insurance company or its agent, or the attorney 35 -3- LSB 5412HV (2) 91 th/ns 3/ 27

H.F. 2268 for such person, the department shall disclose the identity 1 and address of other persons involved in the accident and may 2 disclose the name of the insurance companies with whom the 3 other persons have liability insurance. The department, upon 4 written request of the person making the report, shall provide 5 the person with a copy of that person’s report. The written 6 report filed with the department shall not be admissible in or 7 used in evidence in any civil or criminal case arising out of 8 the facts on which the report is based. 9 2. All written reports filed by a law enforcement officer 10 as required under section 321.266 , or by an officer’s or 11 emergency responder’s employer under section 321.267A, shall 12 be in writing. The report must be in an electronic format and 13 submitted in a manner approved by the department. A report 14 filed pursuant to section 321.266 shall be made available to 15 any party to an accident, the party’s insurance company or 16 its agent, the party’s attorney, the federal motor carrier 17 safety administration, or the attorney general, on written 18 request to the department and the payment of a fee of four 19 dollars for each copy. If a copy of an investigating officer’s 20 report of a motor vehicle accident filed with the department 21 is retained by the law enforcement agency of the officer 22 who filed the report, a copy shall be made available to any 23 party to the accident, the party’s insurance company or its 24 agent, the party’s attorney, the federal motor carrier safety 25 administration, other law enforcement agencies, or the attorney 26 general, on written request and the payment of a fee. However, 27 the attorney general and the federal motor carrier safety 28 administration shall not be required by the department or the 29 law enforcement agency to pay a fee for a copy of a report filed 30 by a law enforcement or investigating officer. 31 Sec. 11. Section 321A.5, subsection 1, Code 2026, is amended 32 to read as follows: 33 1. The department shall, immediately or within sixty days 34 after the receipt of a report of a motor vehicle accident 35 -4- LSB 5412HV (2) 91 th/ns 4/ 27

H.F. 2268 within this state which has resulted in bodily injury or death 1 to any person, or property damage to the property of any 2 one person in the amount of one five thousand five hundred 3 dollars or more, suspend the license of each operator and all 4 registrations of each owner of a motor vehicle in any manner 5 involved in the accident, and if the operator is a nonresident 6 the privilege of operating a motor vehicle within this state, 7 and if the owner is a nonresident the privilege of the use 8 within this state of any motor vehicle owned by the owner, 9 unless the operator or owner or both shall deposit security 10 in a sum which shall be sufficient in the judgment of the 11 department to satisfy any judgment or judgments for damages 12 resulting from the accident as may be recovered against the 13 operator or owner; provided notice of the suspension shall be 14 sent by the department to the operator and owner not less than 15 ten days prior to the effective date of the suspension and 16 shall state the amount required as security. 17 Sec. 12. Section 321I.11, Code 2026, is amended to read as 18 follows: 19 321I.11 Accident reports. 20 If an all-terrain vehicle is involved in an accident 21 resulting in injury or death to anyone any person, or property 22 damage amounting to one five thousand five hundred dollars or 23 more, either the operator or someone acting for the operator 24 shall immediately notify the county sheriff or another law 25 enforcement agency in the state. If the accident occurred on 26 public land, public ice, or a designated riding trail under the 27 jurisdiction of the commission, the operator shall file with 28 the commission a report of the accident, within seventy-two 29 hours, containing information as the commission may require. 30 All other accidents shall be reported as required under section 31 321.266 . 32 DIVISION III 33 ELECTRONIC APPLICATIONS FOR DRIVER’S LICENSES AND NONOPERATOR’S 34 IDENTIFICATION CARDS 35 -5- LSB 5412HV (2) 91 th/ns 5/ 27

H.F. 2268 Sec. 13. Section 321.189, subsection 3, Code 2026, is 1 amended by striking the subsection. 2 Sec. 14. Section 321.190, Code 2026, is amended by adding 3 the following new subsections: 4 NEW SUBSECTION . 3. Renewal. A person may renew a 5 nonoperator’s identification card and, if eligible pursuant to 6 rules adopted by the department, may do so electronically. The 7 department shall renew a nonoperator’s identification card upon 8 payment of the required fee. 9 NEW SUBSECTION . 4. Rules. The department shall adopt rules 10 pursuant to chapter 17A to administer this section. 11 Sec. 15. Section 321.195, Code 2026, is amended to read as 12 follows: 13 321.195 Replacement of driver’s licenses and nonoperator’s 14 identification cards. 15 1. A Prior to the expiration of a driver’s license or 16 nonoperator’s identification card, a person may apply for a 17 replacement, and may do so electronically if eligible pursuant 18 to rules adopted by the department. The fee of ten dollars 19 shall be charged for the replacement of a driver’s license or 20 nonoperator’s identification card is ten dollars . 21 2. If a person’s driver’s license or nonoperator’s 22 identification card contains inaccurate information, the 23 person shall return the driver’s license or nonoperator’s 24 identification card to the department and the department 25 shall issue a replacement license or identification card, as 26 applicable. 27 3. If a driver’s license or nonoperator’s identification 28 card issued under this chapter is lost or destroyed, the person 29 to whom the license or card was issued must furnish proof 30 satisfactory to the department that the driver’s license or 31 nonoperator’s identification card has been lost or destroyed in 32 order to obtain a replacement. 33 4. The department shall adopt rules pursuant to chapter 17A 34 to administer this section. 35 -6- LSB 5412HV (2) 91 th/ns 6/ 27

H.F. 2268 Sec. 16. APPLICABILITY. This division of this Act applies 1 on and after March 1, 2027, or the date the department of 2 transportation submits to the Iowa administrative code editor 3 for publication in the Iowa administrative bulletin a statement 4 by the director of transportation that the applicable phase 5 of the department of transportation’s new records system is 6 implemented, whichever is earlier. The department shall also 7 forward a copy of the statement to the Iowa Code editor. 8 DIVISION IV 9 RECORDS SYSTEM 10 Sec. 17. Section 321.1, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 059A. “Records system” means the records 13 system described in section 321.31. 14 Sec. 18. Section 321.24, subsections 2 and 9, Code 2026, are 15 amended to read as follows: 16 2. The county treasurer shall maintain in the county record 17 records system information contained on the registration 18 receipt. The information shall be accessible by registration 19 number and shall be open for public inspection during 20 reasonable business hours. Copies Information the department 21 requires shall be sent to the department in the manner and at 22 the time the department directs. 23 9. The county treasurer or the department , as applicable, 24 shall maintain in the county or department records system the 25 information contained on the certificate of title and the name 26 and address of the previous owner. The information must be 27 accessible by title certificate number for a period of three 28 years from the date of notification of cancellation of title 29 or date that a new title has been issued as provided in this 30 chapter . Copies Information the department requires shall 31 be sent to the department in the manner and at the time the 32 department directs. The department shall designate a uniform 33 system of title numbers to indicate the county of issuance. 34 Sec. 19. Section 321.31, Code 2026, is amended to read as 35 -7- LSB 5412HV (2) 91 th/ns 7/ 27

H.F. 2268 follows: 1 321.31 Records system. 2 A state and county records system shall be maintained in the 3 following manner: 4 1. State records system. 5 a. The department shall install and maintain a records 6 system which for use by the department and county treasurers. 7 The records system must contain records of vehicle 8 registrations and certificates of title, and information 9 from those documents, including the registration certificate 10 number, the dates of perfection and cancellation of security 11 interests, as applicable, information from the registration 12 receipt, any supporting documents, the name and address of 13 the vehicle owner, current and previous registration number, 14 vehicle identification number, make, model, style, date of 15 purchase, registration certificate number, maximum gross 16 weight, weight, list price or value of the vehicle as fixed by 17 the department, fees paid, date of payment, and the name and 18 address of the previous owner. The records system must contain 19 records relating to the department’s duties under section 20 307.27. The records system must may also contain a record of 21 the certificate of title including such other information as 22 the department deems necessary. The information to be kept in 23 the records system shall be entered within forty-eight hours 24 after receipt insofar as is practical practicable . The records 25 system shall constitute constitutes the permanent record of 26 ownership of each vehicle titled under the laws of this state. 27 b. 2. The department may make photostatic, microfilm, or 28 other photographic copies , including electronic copies, of 29 certificates of title, registration receipts, or other records, 30 reports , or documents which are required to be retained by 31 the department. When copies have been made, the department 32 may destroy the original records in such manner as prescribed 33 by the director. The photostatic, microfilm, or other 34 photographic copies, when no longer of use, may be destroyed in 35 -8- LSB 5412HV (2) 91 th/ns 8/ 27

H.F. 2268 the manner prescribed by the director, subject to the approval 1 of the state records commission. Photostatic, microfilm, or 2 other photographic copies Copies of records shall be admissible 3 in evidence when duly certified and authenticated by the 4 officer having custody and control of the copies of records. 5 Records of vehicle certificates of title may be destroyed seven 6 years after the date of issue or five years after the date of 7 issuance if the vehicle’s registration has been delinquent for 8 five or more consecutive years . 9 c. 3. The director shall maintain a in the records 10 system a record of delinquent accounts owed to the state 11 using information provided through the computerized data bank 12 established in section 421.17 . The department and county 13 treasurers shall use the information maintained in the records 14 system to determine if applicants for renewal of registration 15 have delinquent accounts, charges, fees, loans, taxes, or 16 other indebtedness owed to or being collected by the state as 17 provided pursuant to section 421.65 . The director and the 18 director of revenue shall establish procedures for updating 19 the delinquent accounts records to add and remove accounts, as 20 applicable. 21 2. County records system. 22 a. Each county treasurer’s office shall maintain a county 23 records system for vehicle registration and certificate 24 of title documents. The records system must consist of 25 information from the certificate of title, including the 26 date of perfection and cancellation of security interests, 27 information from the registration receipt, and the name and 28 address of the previous owner. The information shall be 29 maintained in a manner approved by the department. 30 b. Records of vehicle certificates of title for vehicles 31 that are delinquent for five or more consecutive years may be 32 destroyed by the county treasurer. Automated files, optical 33 disks, microfiche records, and photostatic, microfilm or other 34 photographic copies of records shall be admissible in evidence 35 -9- LSB 5412HV (2) 91 th/ns 9/ 27

H.F. 2268 when duly certified and authenticated by the officer having 1 custody and control of the records. 2 Sec. 20. Section 321.40, subsections 4, 6, 7, and 8, Code 3 2026, are amended to read as follows: 4 4. The county treasurer shall refuse to renew the 5 registration of a vehicle registered to a person when notified 6 by the department through the distributed teleprocessing 7 network records system that the person has not paid restitution 8 as defined under section 910.1, subsection 10 , to a clerk 9 of the court located within the state. Each clerk of court 10 shall, on a daily basis, notify the department through the Iowa 11 court information system of the full name and social security 12 number of all persons who owe delinquent restitution and whose 13 restitution obligation has been satisfied or canceled. This 14 subsection does not apply to the transfer of a registration or 15 the issuance of a new registration. 16 6. a. The department or the county treasurer shall refuse 17 to renew the registration of a vehicle registered to the 18 applicant if the department or the county treasurer knows that 19 the applicant has a delinquent account, charge, fee, loan, 20 taxes, or other indebtedness owed to or being collected by the 21 state, from information provided pursuant to sections 421.17 22 and 421.65 . An applicant may contest this action by initiating 23 a contested case proceeding with the agency that referred the 24 debt for collection pursuant to section 421.65 . The department 25 of revenue and the department of transportation shall notify 26 the county treasurers through the distributed teleprocessing 27 network records system of persons who owe such a delinquent 28 account, charge, fee, loan, taxes, or other indebtedness. 29 b. A county treasurer, in cooperation with the department 30 of revenue, may collect from a person applying for renewal of 31 a vehicle registration delinquent taxes, including penalties 32 and interest owed to the state, and nontax liabilities being 33 collected by the central collection unit of the department 34 of revenue pursuant to section 421.17, subsection 27 . The 35 -10- LSB 5412HV (2) 91 th/ns 10/ 27

H.F. 2268 applicant may remit full payment of the balance owed including 1 applicable penalties and interest, along with a processing 2 fee of five dollars, to the county treasurer at the time of 3 registration renewal. Upon full payment of the required 4 balance owed including applicable penalties and interest, the 5 processing fee, and the vehicle registration fee, the county 6 treasurer shall issue the registration to the person. A county 7 treasurer collecting on behalf of the department of revenue 8 shall update the vehicle registration records through the 9 distributed teleprocessing network records system on a daily 10 basis for all persons who have paid taxes or other balances 11 owed pursuant to this subsection . A county treasurer shall 12 forward all funds collected for the department of revenue to 13 the department of revenue. 14 7. a. The department or the county treasurer shall 15 refuse to renew the registration of a vehicle registered 16 to an applicant if the department or the county treasurer 17 knows that the applicant has not paid a civil penalty imposed 18 on the applicant pursuant to section 321N.3, subsection 19 3 . An applicant may contest this action by initiating a 20 contested case proceeding with the department. The department 21 shall notify the county treasurers through the distributed 22 teleprocessing network records system of persons who have not 23 paid such civil penalties. 24 b. The county treasurer of the county of an applicant’s 25 residence and in which the applicant’s vehicle is registered, 26 in cooperation with the department, may collect a civil 27 penalty imposed on the applicant pursuant to section 321N.3, 28 subsection 3 , when the applicant applies for renewal of a 29 vehicle registration. The applicant may remit full payment of 30 the civil penalty, along with a processing fee of five dollars, 31 to the county treasurer at the time of registration renewal. 32 Upon full payment of the civil penalty, the processing fee, 33 and the vehicle registration fee, the county treasurer shall 34 issue the registration to the applicant. A county treasurer 35 -11- LSB 5412HV (2) 91 th/ns 11/ 27

H.F. 2268 collecting a civil penalty on behalf of the department pursuant 1 to this subsection shall update the vehicle registration 2 records through the distributed teleprocessing network records 3 system on a daily basis for all applicants who have paid civil 4 penalties pursuant to this subsection . A county treasurer 5 shall forward all funds collected on behalf of the department 6 to the department. 7 8. The county treasurer shall refuse to renew the 8 registration of a vehicle registered to an applicant if the 9 county treasurer knows that the applicant has one or more 10 uncontested, delinquent parking tickets issued pursuant 11 to section 321.236, subsection 1 , paragraph “b” , owing to 12 the county, or owing to a city with which the county has 13 an agreement authorized under section 331.553 . However, a 14 county treasurer may renew the registration if the treasurer 15 determines that an error was made by the county or city in 16 identifying the vehicle involved in the parking violation or 17 if the citation has been dismissed as against the owner of the 18 vehicle pursuant to section 321.484 . This subsection does 19 not apply to the transfer of a registration or the issuance 20 of a new registration. Notwithstanding section 28E.10 , a 21 county treasurer may shall utilize the department’s vehicle 22 registration and titling records system to facilitate the 23 purposes of this subsection . 24 Sec. 21. Section 321.46, subsections 2 and 5, Code 2026, are 25 amended to read as follows: 26 2. Upon filing the application for a new initial 27 registration and a new title, the applicant shall pay a title 28 fee of thirty dollars, an annual registration fee prorated 29 for the remaining unexpired months of the registration year, 30 and a fee for new registration if applicable. A manufacturer 31 applying for a certificate of title pursuant to section 32 322G.12 shall pay a title fee of twenty dollars. However, a 33 title fee shall not be charged to a manufactured or mobile 34 home retailer applying for a certificate of title for a used 35 -12- LSB 5412HV (2) 91 th/ns 12/ 27

H.F. 2268 mobile home or manufactured home, titled in Iowa, as required 1 under section 321.45, subsection 4 . The county treasurer, if 2 satisfied of the genuineness and regularity of the application, 3 and in the case of a mobile home or manufactured home, that 4 taxes are not owing under chapter 435 , and that applicant has 5 complied with all the requirements of this chapter , shall issue 6 a new certificate of title and, except for a mobile home, 7 manufactured home, or a vehicle returned to and accepted by a 8 manufacturer as described in section 322G.12 , a registration 9 card to the purchaser or transferee, shall cancel the prior 10 registration for the vehicle, and shall forward the necessary 11 copies to the department use the records system to update the 12 necessary information on the date of issuance , as prescribed 13 in section 321.24 . Mobile homes or manufactured homes titled 14 under chapter 448 that have been subject under section 446.18 15 to a public bidder sale in a county shall be titled in the 16 county’s name, with no fee, and the county treasurer shall 17 issue the title. 18 5. The seller or transferor may file an affidavit on forms 19 prescribed and provided by the department with any county 20 treasurer certifying the sale or transfer of ownership of the 21 vehicle and the assignment and delivery of the certificate of 22 title for the vehicle. Upon receipt of the affidavit, the 23 county treasurer shall file the affidavit with the copy of the 24 registration receipt for the vehicle on file in the treasurer’s 25 office and on that day the treasurer shall note receipt of 26 the affidavit in the vehicle registration and titling records 27 system. Upon filing the affidavit, it shall be presumed 28 that the seller or transferor has assigned and delivered the 29 certificate of title for the vehicle. For a leased vehicle, 30 the lessor licensed pursuant to chapter 321F or the lessee may 31 file an affidavit as provided in this subsection certifying 32 that the lease has expired or been terminated and the date that 33 the leased vehicle was surrendered to the lessor. 34 Sec. 22. Section 321.47, subsection 2, paragraph a, Code 35 -13- LSB 5412HV (2) 91 th/ns 13/ 27

H.F. 2268 2026, is amended to read as follows: 1 a. The persons entitled under the laws of descent and 2 distribution to the possession and ownership of a vehicle 3 owned in whole or in part by a decedent who died intestate, 4 upon filing an affidavit stating the name and date of death 5 of the decedent, the right to possession and ownership of 6 the persons filing the affidavit, and that there has been no 7 administration of the decedent’s estate, which instrument must 8 also contain an agreement by the affiant to indemnify creditors 9 of the decedent who would be entitled to levy execution upon 10 the motor vehicle to the extent of the value of the motor 11 vehicle, shall, upon complying with the other title transfer 12 requirements of this chapter , be issued a registration card 13 for the decedent’s interest in the vehicle and a certificate 14 of title to the vehicle. If a decedent died testate, and 15 either the will is not probated or is admitted to probate 16 without administration, the persons entitled to the possession 17 and ownership of a vehicle owned in whole or in part by the 18 decedent may file an affidavit and, upon complying with the 19 other title transfer requirements of this chapter , shall be 20 issued a registration card for the decedent’s interest in 21 the vehicle and a certificate of title to the vehicle. The 22 affidavit must contain the same information and indemnity 23 agreement as is required in cases of intestacy under this 24 subsection . For a death occurring before January 1, 2025, a 25 requirement of chapter 450 shall not be considered satisfied by 26 the filing of the affidavit provided for in this subsection . 27 If, from upon review of the records in the office of the county 28 treasurer system , there appear to be any liens on the vehicle, 29 the certificate of title must contain a statement of the liens 30 unless the application is accompanied by proper evidence of 31 the satisfaction or extinction of such liens. Evidence of 32 extinction includes but is not limited to an affidavit of the 33 applicant stating that a security interest was foreclosed as 34 provided in chapter 554, article 9, part 6 . The department 35 -14- LSB 5412HV (2) 91 th/ns 14/ 27

H.F. 2268 shall waive the certificate of title fee and surcharge required 1 under sections 321.20 , 321.20A , 321.23 , 321.46 , 321.52 , and 2 321.52A if the person entitled to possession and ownership of 3 a vehicle, as provided in this subsection , is the surviving 4 spouse of a decedent. 5 Sec. 23. Section 321.50, subsections 3, 5, and 6, Code 2026, 6 are amended to read as follows: 7 3. Upon receipt of the application, the certificate of 8 title, if any, and the required fee, the county treasurer shall 9 note the security interest and the date of perfection of the 10 security interest on the certificate of title. The county 11 treasurer shall also note the security interest and the date 12 of perfection of the security interest in the county records 13 system. Upon receipt of a certificate of title issued by a 14 foreign jurisdiction, on which a security interest has been 15 noted, the county treasurer shall note the security interest 16 and the date the security interest was noted on the foreign 17 certificate of title, if available, or if not, the date of 18 issuance of the foreign certificate of title, on the face of 19 the new certificate of title. The county treasurer shall also 20 note the security interest and the date that was noted on the 21 certificate of title in the county records system. The county 22 treasurer shall then deliver the certificate of title to the 23 first secured party as shown thereon. 24 5. a. Except as provided in section 321.48, subsection 25 1 , paragraph “b” , when a security interest is discharged, the 26 holder shall note a cancellation of the security interest 27 on the face of the certificate of title over the holder’s 28 signature or may note the cancellation of the security interest 29 on a separate, notarized release form or letter. The holder 30 shall deliver the certificate of title and the form or letter, 31 if applicable, to any county treasurer. In the case of a 32 security interest that has been delivered by electronic means, 33 the holder shall notify the department or the county treasurer, 34 in a manner prescribed by the department, of the release of 35 -15- LSB 5412HV (2) 91 th/ns 15/ 27

H.F. 2268 the security interest. The county treasurer shall immediately 1 note the cancellation of the security interest on the face of 2 the certificate of title, if applicable, and in the county 3 records system. The county treasurer shall on the same day 4 deliver the certificate of title, if applicable, and the 5 separate, notarized release form or letter, if applicable, 6 to the then first secured party or, if there is no such 7 person, to the person as directed by the owner, in writing, 8 on a form prescribed by the department or, if there is no 9 person designated, then to the owner. The cancellation of 10 the security interest shall be noted on the certificate of 11 title by the county treasurer without charge. The holder of a 12 security interest discharged by payment who fails to release 13 the security interest within fifteen days after being requested 14 in writing to do so shall forfeit to the person making the 15 payment the sum of twenty-five dollars. 16 b. If a lien has been released by the lienholder but has 17 not been sent to the county of record for clearance of the 18 lien, any county may note the release on the face of the title 19 and shall notify the county of record that the lien has been 20 released as of the specified date and make entry upon the 21 computer records system. Notification to the county of record 22 shall be made by an automated statewide in the records system 23 or by sending a photocopy of the released title to the county 24 of record. 25 c. When a security interest is discharged, the lienholder 26 shall note the cancellation of the security interest on 27 the face of the title and, if applicable, may note the 28 cancellation of the security interest on a form prescribed 29 by the department and deliver a copy of the form in lieu of 30 the title to the department or to any county treasurer. The 31 form may be delivered by electronic means. The department or 32 county treasurer , as applicable, shall note the release of the 33 security interest upon in the statewide computer records system 34 and the county’s records . A copy of the form, if used, shall be 35 -16- LSB 5412HV (2) 91 th/ns 16/ 27

H.F. 2268 attached to the title by the lienholder, if the title is held 1 by the lienholder, and shall be evidence of the release of the 2 security interest. If the title is held by the lienholder, the 3 lienholder shall deliver the title to the first lienholder, 4 or if there is no such person, to the person as designated by 5 the owner, or if there is no such person designated, to the 6 owner. If a certificate of title has not been issued, upon 7 release of a security interest, the lienholder shall notify the 8 department or the county treasurer, in a manner prescribed by 9 the department, of the release of the security interest. 10 d. For purposes of this subsection , a security interest 11 noted on an Iowa certificate of title and appearing in the 12 statewide computer records system and the county’s records 13 shall be presumed to be discharged upon presentation of a 14 valid certificate of title subsequently issued by a foreign 15 jurisdiction on which the security interest is no longer noted. 16 6. Notwithstanding subsection 5 , when an application for 17 registration and issuance of a certificate of title is made 18 by the means described in section 321.20, subsection 2 , and 19 the application includes a certificate of title upon which a 20 security interest has been discharged by the secured party 21 and the cancellation of the security interest is noted by the 22 secured party on the certificate of title above the secured 23 party’s signature, the county treasurer shall not require any 24 other notation of the cancellation of the security interest on 25 the face of the certificate of title, and the county treasurer 26 shall update such release on the applicable program or computer 27 records system. A dealer licensed under chapter 322 or chapter 28 322C is authorized to sell such a vehicle pursuant to section 29 321.48, subsection 1 , paragraph “b” . 30 Sec. 24. Section 321.153, subsection 2, Code 2026, is 31 amended to read as follows: 32 2. The distributed teleprocessing network records system 33 shall be used in the collection, receipting, accounting, and 34 reporting of any fee collected through the registration renewal 35 -17- LSB 5412HV (2) 91 th/ns 17/ 27

H.F. 2268 or title process, with sufficient time and financial resources 1 provided for implementation. 2 Sec. 25. Section 321.198, subsection 3, Code 2026, is 3 amended to read as follows: 4 3. A person whose period of validity of the person’s 5 driver’s license is extended under this section may file an 6 application in accordance with rules adopted by the department 7 to have the person’s record of issuance of a driver’s license 8 retained in the department’s record records system during the 9 period for which the driver’s license remains valid. If a 10 person has had the record of issuance of the person’s driver’s 11 license removed from the department’s records system , the 12 person shall have the person’s record of driver’s license 13 issuance reentered by the department upon request if the 14 request is accompanied by a letter from the applicable person’s 15 commanding officer verifying the military service. 16 Sec. 26. Section 331.553, subsection 8, Code 2026, is 17 amended to read as follows: 18 8. Pursuant to an agreement under chapter 28E , collect 19 delinquent parking fines on behalf of a city in conjunction 20 with renewal of motor vehicle registrations pursuant to section 21 321.40 . If the agreement provides for a fee to be paid to or 22 retained by the county treasurer from the collection of parking 23 fines, such fees shall be credited to the county general fund. 24 Fines collected pursuant to this subsection shall be remitted 25 biannually to the city. Notwithstanding section 28E.10 , a 26 county treasurer may shall utilize the state department of 27 transportation’s vehicle registration and titling records 28 system described in section 321.31 to facilitate the purposes 29 of this subsection . 30 Sec. 27. TRANSITION. County treasurers shall continue 31 to perform all duties related to the county records system 32 described in section 321.31, subsection 2, Code 2026, and shall 33 retain and maintain the records contained in the county records 34 system prior to the applicability of this division of this Act. 35 -18- LSB 5412HV (2) 91 th/ns 18/ 27