HF 2578 (LSB 5261YH (3) 91)

HOUSE FILE 2578

BY  LUNDGREN

A BILL FOR

An Act relating to registration and titling of certain trailers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.50, subsection 1, Code 2026, is amended to read as follows:
   1.  A security interest in a vehicle subject to registration under the laws of this state, except trailers whose empty weight is two thousand pounds or less, and except new or used vehicles held by a dealer or manufacturer as inventory for sale, is perfected by the delivery to any county treasurer of an application for certificate of title which lists the security interest, or an application for notation of security interest signed by the owner or by one owner of a vehicle owned jointly by more than one person, or signed through electronic means as determined by the department, or a certificate of title from another jurisdiction which shows the security interest, and payment of a fee of twenty dollars for each security interest shown. The security interest in a mobile home or manufactured home is perfected by the delivery to the county treasurer of the county where the certificate of title was issued or, in the case of a new certificate, to the county treasurer where the certificate will be issued, of an application for certificate of title which lists the security interest, or an application for notation of security interest signed by the owner or by one owner when owned jointly by more than one person, or signed through electronic means as determined by the department, or a certificate of title from another jurisdiction which shows the security interest, and payment of a fee of twenty dollars for each security interest shown. The department shall require the federal employer identification number of a secured party who is a firm, association, or corporation or, if a natural person, the social security number. Upon delivery of the application and payment of the fee, the county treasurer shall note the date of delivery on the application. If the delivery is by electronic means and the time is electronically recorded on the application along with the date, the time shall be included with the date on all subsequent documents and records where the date of perfection is required under this chapter. The date of delivery shall be the date of perfection of the security interest in the vehicle, regardless of the date the security interest is noted on the certificate of title. Up to three security interests may be perfected against a vehicle and shown on an Iowa certificate of title. If the owner or secured party is in possession of the certificate of title, it must also be delivered at this time. If a vehicle is subject to a security interest when brought into this state, the validity of the security interest and the date of perfection is determined by section 554.9303. Delivery as provided in this subsection constitutes perfection of a security interest on a certificate of title for purposes of this chapter and chapter 554.
    Sec. 2.  Section 321.123, subsection 1, paragraph a, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   All trailers except farm trailers, mobile homes, and manufactured homes, unless otherwise provided in this section, are subject to an annual registration fee as follows:
    Sec. 3.  Section 321.123, subsection 1, paragraph b, Code 2026, is amended by striking the paragraph.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, farm trailers are not subject to an annual registration fee. In addition, trailers for which the empty weight is 2,000 pounds or less are exempt from the certificate of title and lien provisions of Code chapter 321 (motor vehicles and law of the road).
   This bill strikes the certificate of title and lien provisions exemption for trailers weighing 2,000 pounds or less. The fee for issuance of a certificate of title is $30 and a county treasurer is required to add a $5 surcharge. The fee and surcharge must be deposited in the statutory allocations fund under Code section 321.145. The bill also strikes the farm trailer annual registration fee exemption. The annual registration fee is $20 for a trailer weighing 2,000 pounds or less and $30 for a trailer weighing more than 2,000 pounds.
   The bill does not amend the exemption under current law to exclude the gross weight of a trailer in calculating the registered combined gross weight of a motor truck used in certain farming operations (Code section 321.123(3)(a)).