SF 292 (LSB 2271SS (1) 91)

SENATE FILE 292

BY  SHIPLEY

A BILL FOR

An Act relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.52, subsection 2, paragraph b, Code 2025, is amended to read as follows:
   b.  The owner of a motor vehicle subject to registration that who does not have a certificate of title or a junking certificate may dispose of the vehicle to a vehicle recycler licensed under chapter 321H for scrap or junk if the vehicle is twelve model years old or older and is acquired by the vehicle recycler for reasonable consideration equaling less than one thousand dollars.  A licensed vehicle recycler shall not acquire such a vehicle unless the recycler verifies there is not a lienholder who has a security interest in the vehicle.
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, the purchaser or transferee of a motor vehicle sold for scrap or junk is required to surrender the certificate of title, properly endorsed and signed by the previous owner, to a county treasurer, and apply for a junking certificate from the county treasurer, within 30 days after assignment of the certificate of title. However, a vehicle owner may dispose of the vehicle to a vehicle recycler licensed under Code chapter 321H (vehicle recyclers) for scrap or junk without presenting a certificate of title or a junking certificate if the vehicle is 12 model years old or older and is acquired by the vehicle recycler for reasonable consideration equaling less than $1,000.
   This bill prohibits a licensed vehicle recycler from acquiring such a vehicle unless the recycler verifies that there is not a lienholder who has a security interest in the vehicle.
   By operation of law, a violation of the bill is a simple misdemeanor punishable by a scheduled fine of $135.