House File 2322 - Introduced HOUSE FILE 2322 BY MADISON A BILL FOR An Act relating to towing a motor vehicle without the owner’s 1 consent, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6149HH (3) 91 th/ns

H.F. 2322 Section 1. NEW SECTION . 321.83 Towing a motor vehicle 1 without the owner’s consent. 2 1. Within two hours after towing a motor vehicle without the 3 owner’s consent, the person who towed the vehicle shall notify 4 the law enforcement agency with jurisdiction over the location 5 from which the vehicle was towed. The notice must include the 6 location where the vehicle can be reclaimed. 7 2. Within forty-eight hours after towing a motor vehicle 8 without the owner’s consent, the person who towed the vehicle 9 shall notify the registered owner of the vehicle and any 10 lienholder of record. The notice must include the location 11 where the vehicle can be reclaimed. 12 3. A person shall not be prohibited from reclaiming personal 13 property from inside a towed vehicle. A person shall not 14 be required to pay a fee or reclaim the vehicle to reclaim 15 personal property from inside the towed vehicle. 16 4. At least forty-eight hours before selling or otherwise 17 disposing of a motor vehicle that was towed without the owner’s 18 consent, the person who towed the vehicle shall notify the 19 registered owner and any lienholder of record of the person’s 20 plan to sell or dispose of the vehicle. 21 5. A person who tows a motor vehicle without the owner’s 22 consent shall not sell or otherwise dispose of the vehicle 23 during the first forty-five days following the tow. This 24 subsection does not apply to a vehicle that is disposed of to a 25 demolisher for junk. Under that circumstance, the demolisher 26 shall make application for a junking certificate to the county 27 treasurer within thirty days of purchase and shall surrender 28 the sales receipt in lieu of the certificate of title. 29 6. A person who has custody of a motor vehicle that was 30 towed without the owner’s consent shall not charge storage fees 31 that exceed the value of the vehicle. 32 7. A person who has custody of a motor vehicle that was 33 towed without the owner’s consent shall provide an option for 34 qualifying persons who have limited resources available to 35 -1- LSB 6149HH (3) 91 th/ns 1/ 3

H.F. 2322 reclaim the vehicle to make monthly payments in accordance 1 with a plan agreed to by the owner and the person. The owner 2 shall not be prohibited from reclaiming the vehicle upon the 3 agreement. 4 8. Prior to the sale or disposition of a motor vehicle that 5 was towed without the owner’s consent, the owner may request 6 and the department shall afford the owner an opportunity for 7 a hearing regarding the compliance with this section of the 8 nonconsensual tow or fees charged by the person who towed or 9 stored the vehicle. 10 9. The proceeds of the sale of a motor vehicle that was 11 towed without the owner’s consent, except for the reasonable 12 costs of towing the vehicle, providing notice, and storing 13 the vehicle, shall be paid to the owner of the vehicle or 14 lienholder within ninety days of the sale. 15 10. This section does not apply to abandoned vehicles under 16 section 321.89. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 Under current law, the towing, storing, selling, and 21 disposing of abandoned vehicles are regulated under Code 22 section 321.89. This bill regulates the towing, storing, 23 selling, and disposing of a motor vehicle that was towed 24 without the owner’s consent and is not an abandoned vehicle. 25 The bill provides requirements related to notices, fees, the 26 reclamation of personal property, the sale or disposition of a 27 vehicle, payment plans, an opportunity for a hearing before the 28 department of transportation, and the disbursement of proceeds 29 of a sold vehicle. 30 The bill does not amend Code section 321.89. 31 By operation of law, a person who fails to act as required 32 by the bill or who does an act forbidden by the bill commits 33 a simple misdemeanor. A simple misdemeanor is punishable by 34 confinement for no more than 30 days and a fine of at least $105 35 -2- LSB 6149HH (3) 91 th/ns 2/ 3

H.F. 2322 but not more than $855. 1 -3- LSB 6149HH (3) 91 th/ns 3/ 3