HF 2483 (LSB 5731YH (4) 91)

HOUSE FILE 2483

BY  MATSON and JUDGE

A BILL FOR

An Act relating to towing or impounding vehicles, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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