HF 2617 (LSB 6034HV (1) 91)

HOUSE FILE 2617

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO HSB 667)

A BILL FOR

An Act relating to abandoned vehicles.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.88, Code 2026, is amended to read as follows:
   321.88  Failure of owner to claim.
   If the owner does not appear within forty days, the motor vehicle shall be deemed abandoned and the officer having possession of the motor vehicle shall proceed as provided in section 321.89, subsections 3 and 5.
    Sec. 2.  Section 321.89, Code 2026, is amended by striking the section and inserting in lieu thereof the following:
   321.89  Abandoned vehicles.
   1.  Authority to tow and impound.  An abandoned vehicle may be towed and impounded as follows:
   a.  If an abandoned vehicle is located on public property:
   (1)  Except as provided in subparagraph (2), a police authority shall tow and impound the vehicle.
   (2)  Alternatively, a police authority may hire a garagekeeper to tow and impound the vehicle, and the police authority shall provide the garagekeeper with the name and address of the registered owner and, if applicable, any lienholder and known claimants of the vehicle or personal property inside the vehicle.
   b.  If an abandoned vehicle is located on private property:
   (1)  A police authority may tow and impound the vehicle.
   (2)  A person who owns the private property or is otherwise in control of the private property may hire a garagekeeper to tow and impound the abandoned vehicle without a police authority’s initiative.
   2.  Required notice.
   a.  Within twenty days after towing an abandoned vehicle, the person who impounded the vehicle shall send notice by certified mail to the registered owner and, if applicable, any lienholder and known claimants of the vehicle or personal property inside the vehicle.
   b.  Notice must include all of the following:
   (1)  A description of the year, make, model, and vehicle identification number of the vehicle.
   (2)  The location of the vehicle.
   (3)  A statement that the person has ten days to reclaim the vehicle or personal property from inside the vehicle, and that the ten-day reclamation period began on the date the notice was mailed.
   (4)  A statement that the vehicle and personal property inside the vehicle cannot be reclaimed until the person pays all towing and impound fees and the costs of giving notice.
   (5)  A statement that failure to reclaim the vehicle or personal property within ten days of the notice being mailed constitutes a waiver of any interest in the vehicle or personal property.
   (6)  A statement that failure to reclaim the vehicle or personal property is deemed consent for the person who impounded the vehicle to sell or dispose of the vehicle and personal property inside the vehicle, as applicable.
   (7)  If the abandoned vehicle was taken into custody by a garagekeeper without a police authority’s initiative, a statement that the garagekeeper may claim a lien as described in section 321.90, subsection 1.
   (8)  If the abandoned vehicle was taken into custody by a police authority or by a garagekeeper hired by a police authority, a statement that a person who disputes the assessment of fees or the planned disposition of the vehicle or personal property may request an evidentiary hearing before the police authority to contest those matters.
   c.  Notice shall be deemed given when mailed.
   d.  Notwithstanding paragraph “a”, if it is impossible to determine with reasonable certainty the identity and address of the last registered owner or any lienholder, notice by one publication in one newspaper of general circulation in the area where the vehicle was abandoned is sufficient in lieu of sending notice by certified mail. The published notice shall be published within the same time requirements and provide the same information required under paragraph “b”. Notice published in a newspaper may contain multiple listings of abandoned vehicles.
   3.  Reclamation.  A person may reclaim an abandoned vehicle or personal property from inside the vehicle upon payment of all towing, notice, and impoundment fees. Prior to driving an abandoned vehicle away from the premises, the driver shall present to the police authority or garagekeeper, as applicable, a valid driver’s license and proof of financial liability coverage as provided in section 321.20B.
   4.  Limited liability.  An owner, lienholder, or other claimant of an abandoned vehicle shall not have a cause of action against a garagekeeper for action taken pursuant to this section if the garagekeeper provided notice in accordance with subsection 2.
   5.  Failure to reclaim.  If a person who received notice did not ask for a hearing or reclaim an abandoned vehicle or personal property within the ten-day reclaiming period, the person forfeits ownership of the vehicle and a court shall not recognize the person’s title, right, claim, or interest in the abandoned vehicle, or personal property inside the vehicle.
   6.  Vehicles sold for highway use.
   a.  If an abandoned vehicle has not been reclaimed, the person who impounded the vehicle shall make a determination as to whether the vehicle will be sold for use upon the highways. If the vehicle is sold for use upon the highways, the vehicle shall be sold at a public auction.
   b.  The purchaser of an abandoned vehicle sold at a public auction takes title free and clear of all liens and claims of ownership and is entitled to register the vehicle and receive a certificate of title. The person who impounded the vehicle shall provide a sales receipt to the purchaser.
   7.  Vehicles sold for junk or scrap.  
   a.  If an abandoned vehicle has not been reclaimed and is not sold at public auction for use upon the highways, it shall be sold for junk, or demolished and sold as scrap. 
   b.  The purchaser of an abandoned vehicle sold for junk or scrap takes title free and clear of all liens and claims of ownership. The person who impounded the vehicle shall provide a sales receipt to the purchaser.
   c.  If the vehicle is sold to a demolisher for junk, the demolisher shall make application for a junking certificate to the county treasurer within thirty days of purchase and shall surrender the sales receipt in lieu of the certificate of title.
   8.  Sale proceeds.
   a.  If a police authority did not hire a garagekeeper, the police authority shall reimburse itself from the proceeds of the sale of an abandoned vehicle. Except for costs of bookkeeping and other administrative costs, the police authority may retain proceeds from the sale for expenses incurred, including but not limited to expenses for any of the following:
   (1)  The public auction.
   (2)  Towing the vehicle.
   (3)  Impounding the vehicle.
   (4)  Giving notice pursuant to subsection 2.
   (5)  Inspecting the vehicle.
   b.  Any remainder from the proceeds of a sale shall be held for the owner of the vehicle or lienholder for ninety days. After ninety days, unclaimed proceeds shall be deposited in the road use tax fund.
   c.  If the proceeds from a sale of an abandoned vehicle are insufficient to cover the incurred expenses, the police authority shall be paid from the road use tax fund. The last owner of the vehicle is liable for reimbursing the road use tax fund, including jointly and severally if there was more than one owner.
   d.  The department shall adopt rules pursuant to chapter 17A providing a claims process for a police authority to obtain moneys from the road use tax fund to cover expenses incurred, including expenses owed to a garagekeeper hired by a police authority to tow and impound an abandoned vehicle. If a garagekeeper was hired by a police authority, the police authority shall file a claim with the department for reimbursement of towing fees which shall be paid from the road use tax fund.
   9.  Definitions.  As used in this section, and sections 321.90 and 321.91:
   a.  “Abandoned vehicle” means any of the following:
   (1)  A vehicle that has been left unattended on public property for more than twenty-four hours and lacks current registration plates or two or more wheels or other parts which render the vehicle totally inoperable.
   (2)  A vehicle that has remained illegally on public property for more than twenty-four hours.
   (3)  A vehicle that has been illegally parked on private property or has been placed on private property without the consent of the owner or person in control of the property for more than twenty-four hours.
   (4)  A vehicle that has been legally impounded by order of a police authority and has not been reclaimed for a period of ten days. However, a police authority may declare the vehicle abandoned within the ten-day period by commencing the notification process in subsection 2.
   (5)  A vehicle parked on a highway determined by a police authority to create a hazard to other vehicle traffic.
   (6)  A vehicle that has been impounded pursuant to section 321J.4B by order of a court and the vehicle owner has not paid the impoundment fees after notification by the person or agency responsible for impounding the vehicle.
   b.  “Demolisher” means a person licensed under chapter 321H whose business it is to convert a vehicle to junk, processed scrap, or scrap metal, or otherwise to wreck or dismantle vehicles.
   c.  “Garagekeeper” means any operator of a parking place or establishment, motor vehicle storage facility, or establishment for the servicing, repair, or maintenance of motor vehicles.
   d.  “Police authority” means the state patrol, any law enforcement agency of a county or city, or any special security officer employed by the state board of regents under section 262.13.
    Sec. 3.  Section 321.90, subsection 1, Code 2026, is amended to read as follows:
   1.  Garagekeepers and abandoned motor vehicles.  Any motor vehicle left in a garage operated for commercial purposes after the period for which the vehicle was to remain on the premises shall, after notice by certified mail to the last known registered owner of the vehicle addressed to the owner’s last known address of record to reclaim the vehicle within ten days of the date of the notice, be deemed an abandoned motor vehicle unless reclaimed by the owner within such ten-day period or the owner notifies the garagekeeper in writing within such period of time that such vehicle is not an abandoned motor vehicle and shall be reported by the garagekeeper to the police authority. If the identity or address of the last registered owner of the motor vehicle cannot be determined, the vehicle shall be deemed an abandoned motor vehicle on the eleventh day after the period for which the vehicle was to remain on the premises unless reclaimed by the owner within the ten-day period or the owner notifies the garagekeeper in writing within such period of time that such vehicle is not an abandoned motor vehicle and shall be reported by the garagekeeper to the police authority. All abandoned motor vehicles left in garages may be taken into custody by a police authority upon the request of the garagekeeper and sold in accordance with the procedures set forth in section 321.89, subsection 5, unless the motor vehicle is reclaimed. The proceeds of the sale shall be first applied to the garagekeeper’s charges for towing and storage, and any surplus proceeds shall be distributed in accordance with section 321.89, subsection 5. Nothing in this section shall be construed to impair any lien of a garagekeeper under the laws of this state, or the right of a garagekeeper to foreclose the garagekeeper’s lien, provided that a garagekeeper shall be deemed to have abandoned the garagekeeper’s artisan lien when such vehicle is taken into custody by the police authority. For the purposes of this section “garagekeeper” means any operator of a parking place or establishment, motor vehicle storage facility, or establishment for the servicing, repair, or maintenance of motor vehicles.
    Sec. 4.  Section 321.90, subsection 2, paragraphs c, d, e, and g, Code 2026, are amended to read as follows:
   c.  If the police authority finds that the application is executed in proper form, and shows that the motor vehicle has been abandoned upon the property of the applicant, or if it shows that the motor vehicle is not abandoned but that the applicant appears to be the rightful owner, the police authority shall follow appropriate notification procedures as set forth in section 321.89, subsection 3, except that in the case of an order for disposal obtained pursuant to section 555B.8, subsection 3, no notification is required.
   d.  If the abandoned motor vehicle is not reclaimed in accordance with section 321.89, subsection 3, or no lienholder objects to the disposal in the case of an owner-applicant, the police authority shall give the applicant a certificate of authority allowing the applicant to obtain a junking certificate for the motor vehicle. The applicant shall make application for a junking certificate to the county treasurer within thirty days of receipt of the certificate of authority and surrender the certificate of authority in lieu of the certificate of title. The demolisher shall accept the junking certificate in lieu of the certificate of title to the motor vehicle.
   e.  Notwithstanding any other provisions of this section and sections 321.89 and 321.91, any person, firm, corporation, or unit of government upon whose property or in whose possession is found any abandoned motor vehicle, or any person being the owner of a motor vehicle whose title certificate is faulty, lost, or destroyed, may dispose of such motor vehicle to a demolisher for junk without a title and without the notification procedures of section 321.89, subsection 3, if the motor vehicle lacks an engine or two or more wheels or other structural part which renders the vehicle totally inoperable. The police authority shall give the applicant a certificate of authority. The owner shall apply to the county treasurer for a junking certificate within thirty days of receipt of the certificate of authority and shall surrender the certificate of authority in lieu of the certificate of title.
   g.  Any proceeds from the sale of an abandoned motor vehicle to a demolisher under this section, by one other than the owner of the vehicle, except the sale of a vehicle pursuant to an order for disposal obtained pursuant to section 555B.8, subsection 3, shall first be applied to that person’s expenses in effecting the sale, including storage, towing, and disposal charges, and any surplus shall be distributed in accordance with section 321.89, subsection 5. The proceeds from the sale of a vehicle disposed of pursuant to section 555B.8, subsection 3, shall be distributed in accordance with section 555B.9.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill rewrites and reorganizes current Code section 321.89, regulating the towing, impounding, reclaiming, and selling of abandoned vehicles, and providing required notice. The bill does not amend substantive provisions under current law, but makes changes to enhance readability.
   The bill amends Code sections 321.88 and 321.90 to update references to Code section 321.89 by striking subsection references that are amended by the bill. The bill also defines “garagekeeper” in Code section 321.89 using the definition in current Code section 321.90 and strikes the definition from Code section 321.90.