H.F. _____ Section 1. Section 321.88, Code 2026, is amended to read as 1 follows: 2 321.88 Failure of owner to claim. 3 If the owner does not appear within forty days, the motor 4 vehicle shall be deemed abandoned and the officer having 5 possession of the motor vehicle shall proceed as provided in 6 section 321.89 , subsections 3 and 5 . 7 Sec. 2. Section 321.89, Code 2026, is amended by striking 8 the section and inserting in lieu thereof the following: 9 321.89 Abandoned vehicles. 10 1. Authority to tow and impound. An abandoned vehicle may 11 be towed and impounded as follows: 12 a. If an abandoned vehicle is located on public property: 13 (1) Except as provided in subparagraph (2), a police 14 authority shall tow and impound the vehicle. 15 (2) Alternatively, a police authority may hire a 16 garagekeeper to tow and impound the vehicle, and the police 17 authority shall provide the garagekeeper with the name and 18 address of the registered owner and, if applicable, any 19 lienholder and known claimants of the vehicle or personal 20 property inside the vehicle. 21 b. If an abandoned vehicle is located on private property: 22 (1) A police authority may tow and impound the vehicle. 23 (2) A person who owns the private property or is otherwise 24 in control of the private property may hire a garagekeeper 25 to tow and impound the abandoned vehicle without a police 26 authority’s initiative. 27 2. Required notice. 28 a. Within twenty days after towing an abandoned vehicle, the 29 person who impounded the vehicle shall send notice by certified 30 mail to the registered owner and, if applicable, any lienholder 31 and known claimants of the vehicle or personal property inside 32 the vehicle. 33 b. Notice must include all of the following: 34 (1) A description of the year, make, model, and vehicle 35 -1- LSB 6034YC (3) 91 th/ns 1/ 9

H.F. _____ identification number of the vehicle. 1 (2) The location of the vehicle. 2 (3) A statement that the person has ten days to reclaim the 3 vehicle or personal property from inside the vehicle, and that 4 the ten-day reclamation period began on the date the notice was 5 mailed. 6 (4) A statement that the vehicle and personal property 7 inside the vehicle cannot be reclaimed until the person pays 8 all towing and impound fees and the costs of giving notice. 9 (5) A statement that failure to reclaim the vehicle or 10 personal property within ten days of the notice being mailed 11 constitutes a waiver of any interest in the vehicle or personal 12 property. 13 (6) A statement that failure to reclaim the vehicle 14 or personal property is deemed consent for the person who 15 impounded the vehicle to sell or dispose of the vehicle and 16 personal property inside the vehicle, as applicable. 17 (7) If the abandoned vehicle was taken into custody by 18 a garagekeeper without a police authority’s initiative, a 19 statement that the garagekeeper may claim a lien as described 20 in section 321.90, subsection 1. 21 (8) If the abandoned vehicle was taken into custody by 22 a police authority or by a garagekeeper hired by a police 23 authority, a statement that a person who disputes the 24 assessment of fees or the planned disposition of the vehicle or 25 personal property may request an evidentiary hearing before the 26 police authority to contest those matters. 27 c. Notice shall be deemed given when mailed. 28 d. Notwithstanding paragraph “a” , if it is impossible to 29 determine with reasonable certainty the identity and address 30 of the last registered owner or any lienholder, notice by one 31 publication in one newspaper of general circulation in the 32 area where the vehicle was abandoned is sufficient in lieu of 33 sending notice by certified mail. The published notice shall 34 be published within the same time requirements and provide 35 -2- LSB 6034YC (3) 91 th/ns 2/ 9

H.F. _____ the same information required under paragraph “b” . Notice 1 published in a newspaper may contain multiple listings of 2 abandoned vehicles. 3 3. Reclamation. A person may reclaim an abandoned vehicle 4 or personal property from inside the vehicle upon payment of 5 all towing, notice, and impoundment fees. Prior to driving 6 an abandoned vehicle away from the premises, the driver shall 7 present to the police authority or garagekeeper, as applicable, 8 a valid driver’s license and proof of financial liability 9 coverage as provided in section 321.20B. 10 4. Limited liability. An owner, lienholder, or other 11 claimant of an abandoned vehicle shall not have a cause of 12 action against a garagekeeper for action taken pursuant to this 13 section if the garagekeeper provided notice in accordance with 14 subsection 2. 15 5. Failure to reclaim. If a person who received notice 16 did not ask for a hearing or reclaim an abandoned vehicle or 17 personal property within the ten-day reclaiming period, the 18 person forfeits ownership of the vehicle and a court shall not 19 recognize the person’s title, right, claim, or interest in the 20 abandoned vehicle, or personal property inside the vehicle. 21 6. Vehicles sold for highway use. 22 a. If an abandoned vehicle has not been reclaimed, the 23 person who impounded the vehicle shall make a determination as 24 to whether the vehicle will be sold for use upon the highways. 25 If the vehicle is sold for use upon the highways, the vehicle 26 shall be sold at a public auction. 27 b. The purchaser of an abandoned vehicle sold at a public 28 auction takes title free and clear of all liens and claims of 29 ownership and is entitled to register the vehicle and receive 30 a certificate of title. The person who impounded the vehicle 31 shall provide a sales receipt to the purchaser. 32 7. Vehicles sold for junk or scrap. 33 a. If an abandoned vehicle has not been reclaimed and is not 34 sold at public auction for use upon the highways, it shall be 35 -3- LSB 6034YC (3) 91 th/ns 3/ 9

H.F. _____ sold for junk, or demolished and sold as scrap. 1 b. The purchaser of an abandoned vehicle sold for junk or 2 scrap takes title free and clear of all liens and claims of 3 ownership. The person who impounded the vehicle shall provide 4 a sales receipt to the purchaser. 5 c. If the vehicle is sold to a demolisher for junk, the 6 demolisher shall make application for a junking certificate 7 to the county treasurer within thirty days of purchase and 8 shall surrender the sales receipt in lieu of the certificate of 9 title. 10 8. Sale proceeds. 11 a. If a police authority did not hire a garagekeeper, the 12 police authority shall reimburse itself from the proceeds 13 of the sale of an abandoned vehicle. Except for costs of 14 bookkeeping and other administrative costs, the police 15 authority may retain proceeds from the sale for expenses 16 incurred, including but not limited to expenses for any of the 17 following: 18 (1) The public auction. 19 (2) Towing the vehicle. 20 (3) Impounding the vehicle. 21 (4) Giving notice pursuant to subsection 2. 22 (5) Inspecting the vehicle. 23 b. Any remainder from the proceeds of a sale shall be held 24 for the owner of the vehicle or lienholder for ninety days. 25 After ninety days, unclaimed proceeds shall be deposited in the 26 road use tax fund. 27 c. If the proceeds from a sale of an abandoned vehicle 28 are insufficient to cover the incurred expenses, the police 29 authority shall be paid from the road use tax fund. The last 30 owner of the vehicle is liable for reimbursing the road use tax 31 fund, including jointly and severally if there was more than 32 one owner. 33 d. The department shall adopt rules pursuant to chapter 34 17A providing a claims process for a police authority to 35 -4- LSB 6034YC (3) 91 th/ns 4/ 9

H.F. _____ obtain moneys from the road use tax fund to cover expenses 1 incurred, including expenses owed to a garagekeeper hired by 2 a police authority to tow and impound an abandoned vehicle. 3 If a garagekeeper was hired by a police authority, the 4 police authority shall file a claim with the department for 5 reimbursement of towing fees which shall be paid from the road 6 use tax fund. 7 9. Definitions. As used in this section, and sections 8 321.90 and 321.91: 9 a. “Abandoned vehicle” means any of the following: 10 (1) A vehicle that has been left unattended on public 11 property for more than twenty-four hours and lacks current 12 registration plates or two or more wheels or other parts which 13 render the vehicle totally inoperable. 14 (2) A vehicle that has remained illegally on public property 15 for more than twenty-four hours. 16 (3) A vehicle that has been illegally parked on private 17 property or has been placed on private property without the 18 consent of the owner or person in control of the property for 19 more than twenty-four hours. 20 (4) A vehicle that has been legally impounded by order of 21 a police authority and has not been reclaimed for a period 22 of ten days. However, a police authority may declare the 23 vehicle abandoned within the ten-day period by commencing the 24 notification process in subsection 2. 25 (5) A vehicle parked on a highway determined by a police 26 authority to create a hazard to other vehicle traffic. 27 (6) A vehicle that has been impounded pursuant to section 28 321J.4B by order of a court and the vehicle owner has not paid 29 the impoundment fees after notification by the person or agency 30 responsible for impounding the vehicle. 31 b. “Demolisher” means a person licensed under chapter 321H 32 whose business it is to convert a vehicle to junk, processed 33 scrap, or scrap metal, or otherwise to wreck or dismantle 34 vehicles. 35 -5- LSB 6034YC (3) 91 th/ns 5/ 9

H.F. _____ c. “Garagekeeper” means any operator of a parking place or 1 establishment, motor vehicle storage facility, or establishment 2 for the servicing, repair, or maintenance of motor vehicles. 3 d. “Police authority” means the state patrol, any law 4 enforcement agency of a county or city, or any special security 5 officer employed by the state board of regents under section 6 262.13. 7 Sec. 3. Section 321.90, subsection 1, Code 2026, is amended 8 to read as follows: 9 1. Garagekeepers and abandoned motor vehicles. Any motor 10 vehicle left in a garage operated for commercial purposes 11 after the period for which the vehicle was to remain on the 12 premises shall, after notice by certified mail to the last 13 known registered owner of the vehicle addressed to the owner’s 14 last known address of record to reclaim the vehicle within 15 ten days of the date of the notice, be deemed an abandoned 16 motor vehicle unless reclaimed by the owner within such ten-day 17 period or the owner notifies the garagekeeper in writing within 18 such period of time that such vehicle is not an abandoned motor 19 vehicle and shall be reported by the garagekeeper to the police 20 authority. If the identity or address of the last registered 21 owner of the motor vehicle cannot be determined, the vehicle 22 shall be deemed an abandoned motor vehicle on the eleventh 23 day after the period for which the vehicle was to remain on 24 the premises unless reclaimed by the owner within the ten-day 25 period or the owner notifies the garagekeeper in writing within 26 such period of time that such vehicle is not an abandoned motor 27 vehicle and shall be reported by the garagekeeper to the police 28 authority. All abandoned motor vehicles left in garages may 29 be taken into custody by a police authority upon the request 30 of the garagekeeper and sold in accordance with the procedures 31 set forth in section 321.89, subsection 5, unless the motor 32 vehicle is reclaimed. The proceeds of the sale shall be first 33 applied to the garagekeeper’s charges for towing and storage, 34 and any surplus proceeds shall be distributed in accordance 35 -6- LSB 6034YC (3) 91 th/ns 6/ 9

H.F. _____ with section 321.89 , subsection 5 . Nothing in this section 1 shall be construed to impair any lien of a garagekeeper under 2 the laws of this state, or the right of a garagekeeper to 3 foreclose the garagekeeper’s lien, provided that a garagekeeper 4 shall be deemed to have abandoned the garagekeeper’s artisan 5 lien when such vehicle is taken into custody by the police 6 authority. For the purposes of this section “garagekeeper” 7 means any operator of a parking place or establishment, motor 8 vehicle storage facility, or establishment for the servicing, 9 repair, or maintenance of motor vehicles. 10 Sec. 4. Section 321.90, subsection 2, paragraphs c, d, e, 11 and g, Code 2026, are amended to read as follows: 12 c. If the police authority finds that the application is 13 executed in proper form, and shows that the motor vehicle 14 has been abandoned upon the property of the applicant, or if 15 it shows that the motor vehicle is not abandoned but that 16 the applicant appears to be the rightful owner, the police 17 authority shall follow appropriate notification procedures 18 as set forth in section 321.89, subsection 3, except that in 19 the case of an order for disposal obtained pursuant to section 20 555B.8, subsection 3 , no notification is required. 21 d. If the abandoned motor vehicle is not reclaimed in 22 accordance with section 321.89, subsection 3, or no lienholder 23 objects to the disposal in the case of an owner-applicant, 24 the police authority shall give the applicant a certificate 25 of authority allowing the applicant to obtain a junking 26 certificate for the motor vehicle. The applicant shall make 27 application for a junking certificate to the county treasurer 28 within thirty days of receipt of the certificate of authority 29 and surrender the certificate of authority in lieu of the 30 certificate of title. The demolisher shall accept the junking 31 certificate in lieu of the certificate of title to the motor 32 vehicle. 33 e. Notwithstanding any other provisions of this section and 34 sections 321.89 and 321.91 , any person, firm, corporation, or 35 -7- LSB 6034YC (3) 91 th/ns 7/ 9

H.F. _____ unit of government upon whose property or in whose possession 1 is found any abandoned motor vehicle, or any person being 2 the owner of a motor vehicle whose title certificate is 3 faulty, lost, or destroyed, may dispose of such motor vehicle 4 to a demolisher for junk without a title and without the 5 notification procedures of section 321.89, subsection 3, if the 6 motor vehicle lacks an engine or two or more wheels or other 7 structural part which renders the vehicle totally inoperable. 8 The police authority shall give the applicant a certificate 9 of authority. The owner shall apply to the county treasurer 10 for a junking certificate within thirty days of receipt of the 11 certificate of authority and shall surrender the certificate of 12 authority in lieu of the certificate of title. 13 g. Any proceeds from the sale of an abandoned motor vehicle 14 to a demolisher under this section , by one other than the 15 owner of the vehicle, except the sale of a vehicle pursuant 16 to an order for disposal obtained pursuant to section 555B.8, 17 subsection 3 , shall first be applied to that person’s expenses 18 in effecting the sale, including storage, towing, and disposal 19 charges, and any surplus shall be distributed in accordance 20 with section 321.89 , subsection 5 . The proceeds from the sale 21 of a vehicle disposed of pursuant to section 555B.8, subsection 22 3 , shall be distributed in accordance with section 555B.9 . 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill rewrites and reorganizes current Code section 27 321.89, regulating the towing, impounding, reclaiming, and 28 selling of abandoned vehicles, and providing required notice. 29 The bill does not amend substantive provisions under current 30 law, but makes changes to enhance readability. 31 The bill amends Code sections 321.88 and 321.90 to update 32 references to Code section 321.89 by striking subsection 33 references that are amended by the bill. The bill also defines 34 “garagekeeper” in Code section 321.89 using the definition in 35 -8- LSB 6034YC (3) 91 th/ns 8/ 9