SF 230 (LSB 1246XS (4) 91)

SENATE FILE 230

BY  WAHLS

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.
   (4)  The contact information for the person who authorized the tow.
   2.  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 if the owner pays a fee. A person who initiates and then ceases towing a vehicle shall not charge a fee in excess of fifty percent of the amount that would be charged for a consensual tow.
   3.  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 an itemized account detailing all fees associated with a tow.
   d.  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.
   e.  Allow the owner of the vehicle to access personal property from within the vehicle without reclaiming the vehicle.
   f.  Accept payment by credit card, in addition to other forms of payment.
   g.  Reimburse the vehicle owner for any damage to the vehicle caused by the person who towed the vehicle.
   4.  A person shall not tow a motor vehicle unless the person is responding to a request to tow a vehicle.
   5.  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.
   6.  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. In addition to the reimbursement and any criminal penalty, if applicable, the person shall also pay the vehicle owner an amount not less than four times the sum of the towing and storage fees.
   7.  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 2025, 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 2025, 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 five 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 twenty-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 twenty-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 2025, 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 twenty 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 2025, 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 2025, 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 twenty-day reclamation period. If the entity with custody of the vehicle fails to timely provide the requested information or an opportunity to inspect the vehicle and personal property therein, the entity shall not sell or dispose of the vehicle or personal property until the requested information is provided or the inspection occurs, at which point the period to reclaim the vehicle is extended for five additional days after the information is provided or the inspection takes place. 
    Sec. 7.  Section 321.89, subsection 4, Code 2025, 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, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  If an abandoned vehicle is sold and the entity that took the vehicle into custody failed to provide the required notice and opportunity to inspect and reclaim the vehicle and personal property, as applicable, the entity who sold the vehicle shall pay a lienholder, if applicable, the amount remaining on the vehicle loan.
    Sec. 9.  Section 321.90, subsection 2, paragraph f, Code 2025, 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, and prohibits a person from charging a fee for more than one-half of the amount that would be charged for a consensual tow. A vehicle owner must pay the fee before the person towing the vehicle is required to release the vehicle to the owner. 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 towing and impound rates, 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.
   The bill prohibits a person from towing a vehicle without the owner’s consent unless the person is responding to a request for a 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. In addition to the reimbursement and any criminal penalty, the person must also pay the vehicle owner an amount not less than four times the sum of the towing and storage fees. 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 5 days after taking custody of the vehicle. The bill increases the reclaiming period for a person who receives notice from 10 days to 20 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. The reclaiming period is extended by 5 days if an entity fails to provide requested information or allow an inspection of the vehicle.
   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.
   The bill requires an entity that sells an abandoned vehicle to pay a lienholder, if applicable, the amount remaining on the vehicle loan if the vehicle is sold and the entity that took it into custody failed to provide required notices and an opportunity to inspect and reclaim the vehicle and personal property, as applicable.
   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.