SF 468 (LSB 2006SV (2) 91)

SENATE FILE 468

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 1038)

A BILL FOR

An Act relating to abandoned vehicles, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  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 ten 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.  However, if notice is not provided to a lienholder as required in this subsection, and a private entity takes custody of the vehicle and sells the vehicle at auction, the private entity shall pay the lienholder from the auction proceeds as much as those proceeds can cover of the remainder owed on the vehicle loan. The private entity shall pay the lienholder before the private entity uses the auction proceeds for any other purpose.
   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 notice is provided to the owners, lienholders, and known claimants as required in this subsection.
    Sec. 2.  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 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 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 that is not attached to a vehicle from the vehicle during the normal business hours of the entity, by providing the entity a list of the personal items inside the vehicle and paying a fee of one hundred dollars, or the entity may allow the vehicle owner five minutes on site to reclaim personal property from inside the vehicle after paying a one hundred dollar fee. The entity having custody of the vehicle shall choose the option and inform the owner of the vehicle accordingly. Reclaiming any personal property from inside the vehicle does not constitute reclaiming the vehicle. 
    Sec. 3.  Section 321.89, subsection 3, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0c.  A lienholder or insurance company who receives notice under this subsection may request information regarding the condition of the vehicle upon payment of a fee of one hundred dollars. If such a request is made, the entity with custody of the vehicle may satisfy the request by allowing a representative of the lienholder or insurance company onto the premises to inspect the vehicle, or by providing the lienholder or insurance company with photos of the vehicle sufficient to reasonably ascertain the condition of the vehicle. If requested, the entity with custody of the vehicle shall provide photos or access to the vehicle prior to the expiration of the twenty-day reclamation period.
    Sec. 4.  Section 321.89, subsection 4, Code 2025, is amended to read as follows:
   4.  Reclamation of abandoned vehicles.  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.
    Sec. 5.  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 notice 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.
   Current law requires an entity that takes custody of an abandoned vehicle to send notice of that fact to all known claimants of the vehicle no more than 20 days after taking custody of the vehicle. This bill requires such notice to be sent no more than 10 days after the entity takes custody of an abandoned vehicle.
   Current law requires a person to ask for a hearing regarding an abandoned vehicle or reclaim an abandoned vehicle and personal property left inside such vehicle within 10 days. The bill extends the reclamation period to 20 days. If notice is not provided and a private entity takes custody of the vehicle and sells the vehicle at auction, the bill requires the private entity to pay the lienholder from the auction proceeds as much as those proceeds can cover of the remainder owed on the vehicle loan before the private entity uses the auction proceeds for any other purpose.
   The bill authorizes persons to reclaim any personal property that is not attached to a vehicle from the vehicle during the normal business hours of the entity with custody of the vehicle, by providing the entity a list of the personal items inside the vehicle and paying a fee of $100. Alternatively, the entity may allow the vehicle owner five minutes on site to reclaim personal property from inside the vehicle after the owner pays a $100 fee. The entity having custody of the vehicle is required to choose the option and inform the owner of the vehicle accordingly.
   Under the bill, a lienholder or insurance company who receives notice may request information regarding the condition of the vehicle upon payment of a fee of $100. Following such request, the entity with custody of the vehicle must allow a representative of the lienholder or insurance company onto the premises to inspect the vehicle, or provide the lienholder or insurance company with photos of the vehicle sufficient to reasonably ascertain the condition of the vehicle. If requested, the entity with custody of the vehicle must provide photos or access to the vehicle prior to the expiration of the 20-day reclamation period.
   The bill requires an entity with custody of an abandoned vehicle to provide an itemized account of all fees assessed when the vehicle is reclaimed.
   The bill provides that if notice is not provided, as required in the bill, any known claimant does not forfeit the right to reclaim the vehicle, and does not lose any right, title, claim, or interest in the vehicle.
   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.