H.F. 2578 Section 1. Section 321.50, subsection 1, Code 2026, is 1 amended to read as follows: 2 1. A security interest in a vehicle subject to registration 3 under the laws of this state, except trailers whose empty 4 weight is two thousand pounds or less, and except new or used 5 vehicles held by a dealer or manufacturer as inventory for 6 sale, is perfected by the delivery to any county treasurer 7 of an application for certificate of title which lists the 8 security interest, or an application for notation of security 9 interest signed by the owner or by one owner of a vehicle owned 10 jointly by more than one person, or signed through electronic 11 means as determined by the department, or a certificate of 12 title from another jurisdiction which shows the security 13 interest, and payment of a fee of twenty dollars for each 14 security interest shown. The security interest in a mobile 15 home or manufactured home is perfected by the delivery to 16 the county treasurer of the county where the certificate of 17 title was issued or, in the case of a new certificate, to 18 the county treasurer where the certificate will be issued, 19 of an application for certificate of title which lists the 20 security interest, or an application for notation of security 21 interest signed by the owner or by one owner when owned jointly 22 by more than one person, or signed through electronic means 23 as determined by the department, or a certificate of title 24 from another jurisdiction which shows the security interest, 25 and payment of a fee of twenty dollars for each security 26 interest shown. The department shall require the federal 27 employer identification number of a secured party who is a 28 firm, association, or corporation or, if a natural person, 29 the social security number. Upon delivery of the application 30 and payment of the fee, the county treasurer shall note the 31 date of delivery on the application. If the delivery is by 32 electronic means and the time is electronically recorded on the 33 application along with the date, the time shall be included 34 with the date on all subsequent documents and records where the 35 -1- LSB 5261YH (3) 91 th/ns 1/ 3

H.F. 2578 date of perfection is required under this chapter . The date 1 of delivery shall be the date of perfection of the security 2 interest in the vehicle, regardless of the date the security 3 interest is noted on the certificate of title. Up to three 4 security interests may be perfected against a vehicle and shown 5 on an Iowa certificate of title. If the owner or secured party 6 is in possession of the certificate of title, it must also be 7 delivered at this time. If a vehicle is subject to a security 8 interest when brought into this state, the validity of the 9 security interest and the date of perfection is determined by 10 section 554.9303 . Delivery as provided in this subsection 11 constitutes perfection of a security interest on a certificate 12 of title for purposes of this chapter and chapter 554 . 13 Sec. 2. Section 321.123, subsection 1, paragraph a, 14 unnumbered paragraph 1, Code 2026, is amended to read as 15 follows: 16 All trailers except farm trailers, mobile homes , and 17 manufactured homes, unless otherwise provided in this section , 18 are subject to an annual registration fee as follows: 19 Sec. 3. Section 321.123, subsection 1, paragraph b, Code 20 2026, is amended by striking the paragraph. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 Under current law, farm trailers are not subject to an annual 25 registration fee. In addition, trailers for which the empty 26 weight is 2,000 pounds or less are exempt from the certificate 27 of title and lien provisions of Code chapter 321 (motor 28 vehicles and law of the road). 29 This bill strikes the certificate of title and lien 30 provisions exemption for trailers weighing 2,000 pounds or 31 less. The fee for issuance of a certificate of title is $30 and 32 a county treasurer is required to add a $5 surcharge. The fee 33 and surcharge must be deposited in the statutory allocations 34 fund under Code section 321.145. The bill also strikes the 35 -2- LSB 5261YH (3) 91 th/ns 2/ 3

H.F. 2578 farm trailer annual registration fee exemption. The annual 1 registration fee is $20 for a trailer weighing 2,000 pounds or 2 less and $30 for a trailer weighing more than 2,000 pounds. 3 The bill does not amend the exemption under current law 4 to exclude the gross weight of a trailer in calculating the 5 registered combined gross weight of a motor truck used in 6 certain farming operations (Code section 321.123(3)(a)). 7 -3- LSB 5261YH (3) 91 th/ns 3/ 3