House File 2483 - Introduced HOUSE FILE 2483 BY MATSON and JUDGE A BILL FOR An Act relating to towing or impounding vehicles, and making 1 penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5731YH (4) 91 th/ns
H.F. 2483 Section 1. NEW SECTION . 321.83 Towing vehicles. 1 1. A person shall not tow or impound a motor vehicle 2 without the owner’s consent, unless the person does all of the 3 following: 4 a. Posts signs in a manner to provide notice that an 5 unauthorized vehicle parked on private property, as described 6 on the sign, will be towed and the location where a towed 7 vehicle will be impounded. 8 b. Documents the towing, including by taking and keeping 9 photographs of the vehicle prior to initiating the tow, after 10 the vehicle is secured for towing, and after the vehicle is 11 parked following the tow. 12 c. Maintains accurate records of the vehicle towed, 13 including all of the following: 14 (1) The vehicle’s make, model, and registration plate 15 number. 16 (2) The date and time of the tow. 17 (3) The location from which the vehicle was towed. 18 2. a. A person who initiates a tow shall cease all towing 19 actions if the vehicle owner arrives at the location of the 20 owner’s vehicle before the tow is completed, and shall release 21 the vehicle to the owner. A person who initiates and then 22 ceases towing a vehicle shall not charge the vehicle owner a 23 fee in excess of twenty dollars. 24 b. Paragraph “a” does not apply to a person who initiates a 25 tow when a vehicle is parked in a manner that could interfere 26 with the safety of another person, including but not limited to 27 a vehicle parked in a space reserved for emergency parking at a 28 hospital or parked in front of a fire hydrant. 29 3. The owner of a motor vehicle that has been towed shall 30 not be prohibited from recording and documenting actions of the 31 person who towed the vehicle. 32 4. A person who has towed or impounded a motor vehicle 33 without the owner’s consent shall do all of the following: 34 a. Notify the vehicle owner, including a lienholder if 35 -1- LSB 5731YH (4) 91 th/ns 1/ 9
H.F. 2483 applicable, and the local law enforcement agency within 1 twenty-four hours. The notice must include the vehicle’s 2 description, the location where the vehicle is stored, contact 3 information for the person who towed the vehicle, and the 4 amount of fees that will be charged. 5 b. Display all towing rates at the person’s place of 6 business and on the person’s internet site, if applicable. 7 c. Provide instructions for a vehicle owner to file a 8 complaint regarding the towing or impounding of the owner’s 9 vehicle. The instructions must be displayed at the person’s 10 place of business and on the person’s internet site, if 11 applicable. 12 d. Provide an itemized account detailing all fees associated 13 with a tow. 14 e. Allow the owner of the vehicle to recover the vehicle at 15 a reasonable time and during at least a ten-hour period on a 16 day other than a Saturday or Sunday. 17 f. Allow the owner of the vehicle to retrieve personal 18 property from within the vehicle during the normal business 19 hours of the person who impounded the vehicle without paying 20 a fee. 21 g. Accept payment by credit card with a card-use fee, if 22 applicable, not exceeding three percent, in addition to other 23 forms of payment. 24 h. Reimburse the vehicle owner for any damage to the vehicle 25 caused by the person who towed the vehicle. 26 5. A person who tows a motor vehicle without the owner’s 27 consent shall not charge a storage fee during the first 28 twenty-four hours following the tow. 29 6. A fee charged by a person who towed or impounded a motor 30 vehicle shall not exceed the amount the person charges for a 31 consensual tow or the reasonable storage costs, as applicable. 32 7. A person who tows a motor vehicle shall reimburse the 33 vehicle owner for all costs associated with the tow if the 34 person does not comply with this section. 35 -2- LSB 5731YH (4) 91 th/ns 2/ 9
H.F. 2483 8. The owner of a vehicle that has been towed pursuant to 1 this section may request that the person who towed the vehicle 2 show the person’s valid towing permit, if any, and information 3 about the person’s towing company, if any. A person who towed 4 a vehicle shall comply with a request under this subsection. 5 9. This section does not apply to abandoned vehicles which 6 may be taken into custody as provided in section 321.89 or 7 disposed of as provided in section 321.90. 8 Sec. 2. Section 321.89, subsection 2, Code 2026, is amended 9 to read as follows: 10 2. Authority to take possession of abandoned vehicles. A 11 police authority, upon the authority’s own initiative or 12 upon the request of any other authority having the duties of 13 control of highways or traffic, shall take into custody an 14 abandoned vehicle on public property and may take into custody 15 an abandoned vehicle on private property. The police authority 16 may employ its own personnel, equipment, and facilities or 17 hire a private entity, equipment, and facilities for the 18 purpose of removing, preserving, storing, or disposing of 19 abandoned vehicles. A property owner or other person in 20 control of private property may employ a private entity who 21 is a garagekeeper, as defined in section 321.90 , to dispose 22 of an abandoned vehicle, and the private entity may take into 23 custody the abandoned vehicle without a police authority’s 24 initiative. If a police authority employs a private entity 25 to dispose of abandoned vehicles, the police authority shall 26 provide the private entity with the names and addresses of the 27 registered owners, all lienholders of record, and any other 28 known claimant to the vehicle or the personal property found in 29 the vehicle. The owners, lienholders, or other claimants of 30 the abandoned vehicle shall not have a cause of action against 31 a private entity for action taken under this section if the 32 private entity provides notice , allows inspection, and provides 33 information about the vehicle as required by subsection 3 , 34 paragraphs “a” through “f” . 35 -3- LSB 5731YH (4) 91 th/ns 3/ 9
H.F. 2483 Sec. 3. Section 321.89, subsection 3, paragraphs a, e, and 1 f, Code 2026, are amended to read as follows: 2 a. A police authority or private entity that takes into 3 custody an abandoned vehicle shall send notice by certified 4 mail that the vehicle has been taken into custody no more than 5 twenty ten days after taking custody of the vehicle. Notice 6 shall be sent to the last known address of record of the last 7 known registered owner of the vehicle, all lienholders of 8 record, and any other known claimant to the vehicle. 9 e. If the persons receiving notice do not ask for a hearing 10 or exercise their right to reclaim the vehicle or personal 11 property within the ten-day thirty-day reclaiming period, the 12 owner, lienholders, or claimants shall no longer have any 13 right, title, claim, or interest in or to the vehicle or the 14 personal property. If proper notice and an opportunity to 15 inspect the vehicle is not provided to the owners, lienholders, 16 and known claimants, there shall be no forfeiture of the 17 person’s right, title, claim, or interest in or to the vehicle 18 and personal property, as applicable. 19 f. A court in any case in law or equity shall not recognize 20 any right, title, claim, or interest of the owner, lienholders, 21 or claimants after the expiration of the ten-day thirty-day 22 reclaiming period if proper notice is provided to the owners, 23 lienholders, and known claimants as required in this subsection 24 and such persons were provided timely opportunity to inspect 25 the vehicle and retrieve personal property, as applicable . 26 Sec. 4. Section 321.89, subsection 3, paragraph b, 27 subparagraph (3), Code 2026, is amended to read as follows: 28 (3) Information for the persons receiving the notice of 29 their right to inspect and reclaim the vehicle and personal 30 property contained therein within ten thirty days after the 31 effective date of the notice. Persons may reclaim the vehicle 32 or personal property upon payment of all reasonable towing, 33 preservation, and storage charges resulting from placing the 34 vehicle in custody and upon payment of the costs of notice 35 -4- LSB 5731YH (4) 91 th/ns 4/ 9
H.F. 2483 required pursuant to this subsection . Persons may reclaim any 1 personal property from a vehicle during the normal business 2 hours of the entity with custody of the vehicle at no cost and 3 without reclaiming the vehicle. 4 Sec. 5. Section 321.89, subsection 3, paragraph b, Code 5 2026, is amended by adding the following new subparagraph: 6 NEW SUBPARAGRAPH . (6) An itemized account of all fees to be 7 assessed when the vehicle is reclaimed. 8 Sec. 6. Section 321.89, subsection 3, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . 0c. A person who receives notice under 11 this subsection may request to inspect the vehicle or personal 12 property contained therein, or receive specific information 13 as to the condition of the vehicle or personal property, and 14 if requested, the entity with custody of the vehicle shall 15 provide the requested information or an opportunity to inspect 16 the vehicle, as applicable, prior to the expiration of the 17 thirty-day reclamation period. 18 Sec. 7. Section 321.89, subsection 4, Code 2026, is amended 19 to read as follows: 20 4. Reclamation of abandoned vehicles and personal 21 property . An entity with custody of an abandoned vehicle shall 22 provide an itemized account of all fees assessed when the 23 vehicle is reclaimed. Prior to driving an abandoned vehicle 24 away from the premises, a person who received , or who is 25 reclaiming the vehicle on behalf of a person who received , 26 notice under subsection 3 shall present to the police authority 27 or private entity, as applicable, the person’s valid driver’s 28 license and proof of financial liability coverage as provided 29 in section 321.20B . During the normal business hours of the 30 entity with custody of the vehicle, a person may retrieve the 31 person’s personal property left in the vehicle at no cost and 32 without reclaiming the vehicle. 33 Sec. 8. Section 321.89, subsection 5, paragraph b, Code 34 2026, is amended to read as follows: 35 -5- LSB 5731YH (4) 91 th/ns 5/ 9
H.F. 2483 b. From the proceeds of the sale of an abandoned vehicle 1 the police authority, if the police authority did not hire a 2 private entity, shall reimburse itself for the expenses of the 3 auction, the costs of towing, preserving, and storing which 4 resulted from placing the abandoned vehicle in custody, all 5 notice and publication costs incurred pursuant to subsection 6 3 , the cost of inspection, and any other costs incurred except 7 costs of bookkeeping and other administrative costs. Any 8 remainder from the proceeds of a sale shall be held for the 9 owner of the vehicle or entitled lienholder for ninety days, 10 and shall then be deposited in the road use tax general fund of 11 the local authority with jurisdiction over the location where 12 the abandoned vehicle was towed . The local authority shall 13 not use moneys deposited pursuant to this paragraph except for 14 public purposes. The costs to police authorities of auction, 15 towing, preserving, storage, and all notice and publication 16 costs, and all other costs which result from placing abandoned 17 vehicles in custody, whenever the proceeds from a sale of the 18 abandoned vehicles are insufficient to meet these expenses and 19 costs, shall be paid from the road use tax fund and are the 20 obligation of the last owner or owners, jointly and severally. 21 Sec. 9. Section 321.90, subsection 2, paragraph f, Code 22 2026, is amended to read as follows: 23 f. The owner of an abandoned motor vehicle and all 24 lienholders shall no longer have any right, title, claim, or 25 interest in or to the motor vehicle; and no court in any case 26 in law or equity shall recognize any right, title, claim, or 27 interest of any owner or lienholders after the disposal of the 28 motor vehicle to a demolisher , so long as proper notice and an 29 opportunity to inspect the vehicle and personal property in 30 accordance with section 321.89, subsection 3, was provided . 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill regulates towing and impounding motor vehicles. 35 -6- LSB 5731YH (4) 91 th/ns 6/ 9
H.F. 2483 The bill requires a person who tows a vehicle without the 1 owner’s consent to post certain signs on private property 2 where the person is authorized to tow vehicles, document the 3 towing with photographs, and maintain records relating to each 4 tow. The bill requires a person to cease an incomplete tow if 5 the vehicle owner arrives, unless the vehicle is parked in a 6 manner that could interfere with the safety of another person, 7 and prohibits a person from charging a fee in excess of $20 8 for a ceased tow. The bill provides that an owner of a motor 9 vehicle that has been towed is not prohibited from recording 10 and documenting actions of the person who towed the vehicle. 11 After towing a vehicle without the owner’s consent, the person 12 who towed the vehicle must notify the owner and the local law 13 enforcement agency, display certain information, provide an 14 itemized account with fees not exceeding the amount the person 15 charges for a consensual tow or the reasonable storage costs, 16 allow the owner to recover personal property from within the 17 vehicle, accept payment by credit card, and reimburse the 18 vehicle owner for any damage to the vehicle caused during the 19 tow. 20 A person who tows a vehicle must reimburse the vehicle 21 owner for all costs associated with the tow if the person does 22 not comply with the bill. A person who tows a motor vehicle 23 without the owner’s consent shall not charge a storage fee 24 during the first 24 hours following the tow, and the owner of 25 a vehicle that has been towed may request that the person who 26 towed the vehicle show the person’s valid towing permit and 27 information about the person’s towing company. The bill’s 28 provisions relating to the towing of a vehicle without the 29 owner’s consent do not apply to abandoned vehicles. 30 Code sections 321.89 and 321.90 regulate the taking into 31 custody and the disposal of abandoned vehicles, as defined 32 in Code section 321.89. The bill amends certain provisions 33 regarding required notices and information relating to an 34 abandoned vehicle, the timeline to inspect or reclaim a 35 -7- LSB 5731YH (4) 91 th/ns 7/ 9
H.F. 2483 vehicle, the reclamation of personal property from within an 1 abandoned vehicle, and the disposal of an abandoned vehicle, 2 and requires an opportunity for a person to inspect an 3 abandoned vehicle. 4 The bill reduces the period of time within which an entity 5 that takes custody of an abandoned vehicle is required to send 6 notice that the vehicle has been taken into custody from no 7 more than 20 days to no more than 10 days after taking custody 8 of the vehicle. The bill increases the reclaiming period for 9 a person who receives notice from 10 days to 30 days after 10 notice is received. The bill requires an entity with control 11 of an abandoned vehicle to provide an itemized account of all 12 fees assessed when a vehicle is reclaimed, to allow access for 13 persons to inspect the vehicle and share information about the 14 vehicle, if requested, and to provide notice of such. 15 Under current law, persons who receive notice regarding an 16 abandoned vehicle lose their right to the vehicle and personal 17 property within the vehicle after the expiration of the 18 reclaiming period. The bill provides that if proper, timely 19 notice is not provided, any known claimant does not forfeit the 20 right to reclaim the vehicle or personal property. 21 Current law requires a person to pay all towing preservation 22 and storage charges resulting from placing an abandoned 23 vehicle in custody prior to reclaiming the vehicle or personal 24 property. The bill requires all such charges to be reasonable, 25 and authorizes a person to reclaim personal property from a 26 vehicle during the normal business hours of the entity with 27 custody of the vehicle at no cost and without reclaiming the 28 vehicle. 29 Under current law, if the police authority did not hire 30 a private entity, the police authority can reimburse itself 31 for the expenses relating to towing and placing an abandoned 32 vehicle in custody, except costs of bookkeeping and other 33 administrative costs. Any remainder from the proceeds of a 34 sale must be held for the owner of the vehicle or entitled 35 -8- LSB 5731YH (4) 91 th/ns 8/ 9
H.F. 2483 lienholder for 90 days, and then be deposited in the road 1 use tax fund. The bill instead requires any remainder to 2 be deposited in the general fund of the local authority with 3 jurisdiction over the location where the abandoned vehicle was 4 towed. The local authority is prohibited from using moneys 5 deposited in this way except for public purposes. 6 By operation of law, it is a simple misdemeanor for a person 7 to do an act forbidden or to fail to perform an act required 8 by Code chapter 321, including the provisions of the bill. A 9 simple misdemeanor is punishable by confinement for no more 10 than 30 days and a fine of at least $105 but not more than $855. 11 -9- LSB 5731YH (4) 91 th/ns 9/ 9