Senate Study Bill 3023 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF TRANSPORTATION BILL) A BILL FOR An Act relating to matters under the purview of the department 1 of transportation, and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5412XD (5) 91 th/ns

S.F. _____ H.F. _____ DIVISION I 1 CHAUFFEUR’S INSTRUCTION PERMITS 2 Section 1. Section 321.1, subsection 20A, Code 2026, is 3 amended to read as follows: 4 20A. “Driver’s license” means any license or permit issued 5 to a person to operate a motor vehicle on the highways of 6 this state, including but not limited to a restricted work, 7 special minor’s restricted, temporary restricted, or temporary 8 license and an instruction, chauffeur’s instruction, commercial 9 learner’s, or temporary permit. For purposes of license 10 suspension, revocation, bar, disqualification, cancellation, or 11 denial under this chapter and chapters 321A , 321C , and 321J , 12 “driver’s license” includes any privilege to operate a motor 13 vehicle. 14 Sec. 2. Section 321.180, subsection 3, Code 2026, is amended 15 by striking the subsection. 16 Sec. 3. Section 321.180, subsection 4, Code 2026, is amended 17 to read as follows: 18 4. The instruction permit , chauffeur’s instruction permit, 19 and commercial learner’s permit are subject to suspension or 20 revocation for the same reasons and in the same manner as 21 suspension or revocation of a driver’s license. 22 Sec. 4. Section 321.191, subsection 1, Code 2026, is amended 23 to read as follows: 24 1. Instruction permits. The fee for an instruction 25 permit, other than a special instruction permit , chauffeur’s 26 instruction permit, or commercial learner’s permit, is six 27 dollars. The fee for a special instruction permit is ten 28 dollars. The fee for a chauffeur’s instruction permit or 29 commercial learner’s permit is twelve dollars. 30 Sec. 5. Section 321.196, subsection 1, Code 2026, is amended 31 to read as follows: 32 1. Except as otherwise provided, if the licensee is between 33 the ages of seventeen years eleven months and seventy-eight 34 years on the date of issuance of the license, a driver’s 35 -1- LSB 5412XD (5) 91 th/ns 1/ 25

S.F. _____ H.F. _____ license, other than an instruction permit , chauffeur’s 1 instruction permit, or commercial learner’s permit issued 2 under section 321.180 , expires eight years from the licensee’s 3 birthday anniversary occurring in the year of issuance, but 4 not to exceed the licensee’s eightieth birthday. If the 5 licensee is under the age of seventeen years eleven months 6 or age seventy-eight or over, the license is effective for a 7 period of two years from the licensee’s birthday anniversary 8 occurring in the year of issuance. A licensee whose license is 9 restricted due to vision or other physical deficiencies may be 10 required to renew the license every two years. If a licensee 11 is a foreign national who is temporarily present in this state, 12 the license shall be issued only for the length of time the 13 foreign national is authorized to be present as verified by the 14 department, not to exceed two years. 15 Sec. 6. Section 321J.1, subsection 7, Code 2026, is amended 16 to read as follows: 17 7. “Driver’s license” means any license or permit issued 18 to a person to operate a motor vehicle on the highways of this 19 state, including but not limited to a driver’s, commercial 20 driver’s, temporary restricted, or temporary license and an 21 instruction, chauffeur’s instruction, commercial learner’s, or 22 temporary permit. 23 Sec. 7. Section 321M.1, subsection 5, Code 2026, is amended 24 to read as follows: 25 5. “Driver’s license” means any license or permit issued 26 to a person to operate a motor vehicle on the highways of this 27 state, including but not limited to a driver’s, commercial 28 driver’s, temporary restricted, or temporary license and an 29 instruction, chauffeur’s instruction, commercial learner’s, or 30 temporary permit. 31 Sec. 8. CHAUFFEUR’S INSTRUCTION PERMIT VALIDITY. A 32 chauffeur’s instruction permit issued before the effective 33 date of this division of this Act shall remain valid until the 34 expiration date listed on the permit. Until the expiration 35 -2- LSB 5412XD (5) 91 th/ns 2/ 25

S.F. _____ H.F. _____ of the permit, the permittee may continue to operate a motor 1 vehicle in accordance with section 321.180, subsection 3, Code 2 2026. 3 DIVISION II 4 ELECTRONIC ACCIDENT REPORTS 5 Sec. 9. Section 321.266, subsections 2 and 3, Code 2026, are 6 amended to read as follows: 7 2. The driver of a vehicle involved in an accident resulting 8 in injury to or death of any person, or total property damage 9 to an apparent extent of one thousand five hundred dollars or 10 more , shall , submit a written report of the accident to the 11 department within seventy-two hours after the accident , forward 12 a written report of the accident to the department . However, 13 such report is not required when the accident is investigated 14 by a law enforcement agency. 15 3. Every law enforcement officer who, in the regular course 16 of duty, investigates a motor vehicle accident of which report 17 must be made as required in subsections 1 and 2 , either at 18 the time of and at the scene of the accident or thereafter by 19 interviewing participants or witnesses , shall , submit a written 20 report of the accident to the department within twenty-four 21 hours after completing such investigation , forward a written 22 report of such accident to the department . 23 Sec. 10. Section 321.271, subsections 1 and 2, Code 2026, 24 are amended to read as follows: 25 1. All accident reports filed by a driver of a vehicle 26 involved in an accident as required under section 321.266 shall 27 be in writing. The report must be in an electronic format and 28 submitted in a manner approved by the department. The report 29 shall be without prejudice to the individual so reporting and 30 shall be for the confidential use of the department, except 31 that upon the request of any person involved in the accident, 32 the person’s insurance company or its agent, or the attorney 33 for such person, the department shall disclose the identity 34 and address of other persons involved in the accident and may 35 -3- LSB 5412XD (5) 91 th/ns 3/ 25

S.F. _____ H.F. _____ disclose the name of the insurance companies with whom the 1 other persons have liability insurance. The department, upon 2 written request of the person making the report, shall provide 3 the person with a copy of that person’s report. The written 4 report filed with the department shall not be admissible in or 5 used in evidence in any civil or criminal case arising out of 6 the facts on which the report is based. 7 2. All written reports filed by a law enforcement officer 8 as required under section 321.266 , or by an officer’s or 9 emergency responder’s employer under section 321.267A, shall 10 be in writing. The report must be in an electronic format and 11 submitted in a manner approved by the department. A report 12 filed pursuant to section 321.266 shall be made available to 13 any party to an accident, the party’s insurance company or 14 its agent, the party’s attorney, the federal motor carrier 15 safety administration, or the attorney general, on written 16 request to the department and the payment of a fee of four 17 dollars for each copy. If a copy of an investigating officer’s 18 report of a motor vehicle accident filed with the department 19 is retained by the law enforcement agency of the officer 20 who filed the report, a copy shall be made available to any 21 party to the accident, the party’s insurance company or its 22 agent, the party’s attorney, the federal motor carrier safety 23 administration, other law enforcement agencies, or the attorney 24 general, on written request and the payment of a fee. However, 25 the attorney general and the federal motor carrier safety 26 administration shall not be required by the department or the 27 law enforcement agency to pay a fee for a copy of a report filed 28 by a law enforcement or investigating officer. 29 DIVISION III 30 ELECTRONIC APPLICATIONS FOR DRIVER’S LICENSES AND NONOPERATOR’S 31 IDENTIFICATION CARDS 32 Sec. 11. Section 321.189, subsection 3, Code 2026, is 33 amended by striking the subsection. 34 Sec. 12. Section 321.190, Code 2026, is amended by adding 35 -4- LSB 5412XD (5) 91 th/ns 4/ 25

S.F. _____ H.F. _____ the following new subsections: 1 NEW SUBSECTION . 3. Renewal. A person may renew a 2 nonoperator’s identification card and, if eligible pursuant to 3 rules adopted by the department, may do so electronically. The 4 department shall renew a nonoperator’s identification card upon 5 payment of the required fee. 6 NEW SUBSECTION . 4. Rules. The department shall adopt rules 7 pursuant to chapter 17A to administer this section. 8 Sec. 13. Section 321.195, Code 2026, is amended to read as 9 follows: 10 321.195 Replacement of driver’s licenses and nonoperator’s 11 identification cards. 12 1. A Prior to the expiration of a driver’s license or 13 nonoperator’s identification card, a person may apply for a 14 replacement, and may do so electronically if eligible pursuant 15 to rules adopted by the department. The fee of ten dollars 16 shall be charged for the replacement of a driver’s license or 17 nonoperator’s identification card is ten dollars . 18 2. If a person’s driver’s license or nonoperator’s 19 identification card contains inaccurate information, the 20 person shall return the driver’s license or nonoperator’s 21 identification card to the department and the department 22 shall issue a replacement license or identification card, as 23 applicable. 24 3. If a driver’s license or nonoperator’s identification 25 card issued under this chapter is lost or destroyed, the person 26 to whom the license or card was issued must furnish proof 27 satisfactory to the department that the driver’s license or 28 nonoperator’s identification card has been lost or destroyed in 29 order to obtain a replacement. 30 4. The department shall adopt rules pursuant to chapter 17A 31 to administer this section. 32 Sec. 14. APPLICABILITY. This division of this Act applies 33 on and after March 1, 2027, or the date the department of 34 transportation submits to the Iowa administrative code editor 35 -5- LSB 5412XD (5) 91 th/ns 5/ 25

S.F. _____ H.F. _____ for publication in the Iowa administrative bulletin a statement 1 by the director of transportation that the applicable phase 2 of the department of transportation’s new records system is 3 implemented, whichever is earlier. The department shall also 4 forward a copy of the statement to the Iowa Code editor. 5 DIVISION IV 6 RECORDS SYSTEM 7 Sec. 15. Section 321.1, Code 2026, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 059A. “Records system” means the records 10 system described in section 321.31. 11 Sec. 16. Section 321.24, subsections 2 and 9, Code 2026, are 12 amended to read as follows: 13 2. The county treasurer shall maintain in the county record 14 records system information contained on the registration 15 receipt. The information shall be accessible by registration 16 number and shall be open for public inspection during 17 reasonable business hours. Copies Information the department 18 requires shall be sent to the department in the manner and at 19 the time the department directs. 20 9. The county treasurer or the department , as applicable, 21 shall maintain in the county or department records system the 22 information contained on the certificate of title and the name 23 and address of the previous owner. The information must be 24 accessible by title certificate number for a period of three 25 years from the date of notification of cancellation of title 26 or date that a new title has been issued as provided in this 27 chapter . Copies Information the department requires shall 28 be sent to the department in the manner and at the time the 29 department directs. The department shall designate a uniform 30 system of title numbers to indicate the county of issuance. 31 Sec. 17. Section 321.31, Code 2026, is amended to read as 32 follows: 33 321.31 Records system. 34 A state and county records system shall be maintained in the 35 -6- LSB 5412XD (5) 91 th/ns 6/ 25

S.F. _____ H.F. _____ following manner: 1 1. State records system. 2 a. The department shall install and maintain a records 3 system which for use by the department and county treasurers. 4 The records system must contain records of vehicle 5 registrations and certificates of title, and information 6 from those documents, including the registration certificate 7 number, the dates of perfection and cancellation of security 8 interests, as applicable, information from the registration 9 receipt, any supporting documents, the name and address of 10 the vehicle owner, current and previous registration number, 11 vehicle identification number, make, model, style, date of 12 purchase, registration certificate number, maximum gross 13 weight, weight, list price or value of the vehicle as fixed by 14 the department, fees paid, date of payment, and the name and 15 address of the previous owner. The records system must contain 16 records relating to the department’s duties under section 17 307.27. The records system must may also contain a record of 18 the certificate of title including such other information as 19 the department deems necessary. The information to be kept in 20 the records system shall be entered within forty-eight hours 21 after receipt insofar as is practical practicable . The records 22 system shall constitute constitutes the permanent record of 23 ownership of each vehicle titled under the laws of this state. 24 b. 2. The department may make photostatic, microfilm, or 25 other photographic copies , including electronic copies, of 26 certificates of title, registration receipts, or other records, 27 reports , or documents which are required to be retained by 28 the department. When copies have been made, the department 29 may destroy the original records in such manner as prescribed 30 by the director. The photostatic, microfilm, or other 31 photographic copies, when no longer of use, may be destroyed in 32 the manner prescribed by the director, subject to the approval 33 of the state records commission. Photostatic, microfilm, or 34 other photographic copies Copies of records shall be admissible 35 -7- LSB 5412XD (5) 91 th/ns 7/ 25

S.F. _____ H.F. _____ in evidence when duly certified and authenticated by the 1 officer having custody and control of the copies of records. 2 Records of vehicle certificates of title may be destroyed seven 3 years after the date of issue or five years after the date of 4 issuance if the vehicle’s registration has been delinquent for 5 five or more consecutive years . 6 c. 3. The director shall maintain a in the records 7 system a record of delinquent accounts owed to the state 8 using information provided through the computerized data bank 9 established in section 421.17 . The department and county 10 treasurers shall use the information maintained in the records 11 system to determine if applicants for renewal of registration 12 have delinquent accounts, charges, fees, loans, taxes, or 13 other indebtedness owed to or being collected by the state as 14 provided pursuant to section 421.65 . The director and the 15 director of revenue shall establish procedures for updating 16 the delinquent accounts records to add and remove accounts, as 17 applicable. 18 2. County records system. 19 a. Each county treasurer’s office shall maintain a county 20 records system for vehicle registration and certificate 21 of title documents. The records system must consist of 22 information from the certificate of title, including the 23 date of perfection and cancellation of security interests, 24 information from the registration receipt, and the name and 25 address of the previous owner. The information shall be 26 maintained in a manner approved by the department. 27 b. Records of vehicle certificates of title for vehicles 28 that are delinquent for five or more consecutive years may be 29 destroyed by the county treasurer. Automated files, optical 30 disks, microfiche records, and photostatic, microfilm or other 31 photographic copies of records shall be admissible in evidence 32 when duly certified and authenticated by the officer having 33 custody and control of the records. 34 Sec. 18. Section 321.40, subsections 4, 6, 7, and 8, Code 35 -8- LSB 5412XD (5) 91 th/ns 8/ 25

S.F. _____ H.F. _____ 2026, are amended to read as follows: 1 4. The county treasurer shall refuse to renew the 2 registration of a vehicle registered to a person when notified 3 by the department through the distributed teleprocessing 4 network records system that the person has not paid restitution 5 as defined under section 910.1, subsection 10 , to a clerk 6 of the court located within the state. Each clerk of court 7 shall, on a daily basis, notify the department through the Iowa 8 court information system of the full name and social security 9 number of all persons who owe delinquent restitution and whose 10 restitution obligation has been satisfied or canceled. This 11 subsection does not apply to the transfer of a registration or 12 the issuance of a new registration. 13 6. a. The department or the county treasurer shall refuse 14 to renew the registration of a vehicle registered to the 15 applicant if the department or the county treasurer knows that 16 the applicant has a delinquent account, charge, fee, loan, 17 taxes, or other indebtedness owed to or being collected by the 18 state, from information provided pursuant to sections 421.17 19 and 421.65 . An applicant may contest this action by initiating 20 a contested case proceeding with the agency that referred the 21 debt for collection pursuant to section 421.65 . The department 22 of revenue and the department of transportation shall notify 23 the county treasurers through the distributed teleprocessing 24 network records system of persons who owe such a delinquent 25 account, charge, fee, loan, taxes, or other indebtedness. 26 b. A county treasurer, in cooperation with the department 27 of revenue, may collect from a person applying for renewal of 28 a vehicle registration delinquent taxes, including penalties 29 and interest owed to the state, and nontax liabilities being 30 collected by the central collection unit of the department 31 of revenue pursuant to section 421.17, subsection 27 . The 32 applicant may remit full payment of the balance owed including 33 applicable penalties and interest, along with a processing 34 fee of five dollars, to the county treasurer at the time of 35 -9- LSB 5412XD (5) 91 th/ns 9/ 25

S.F. _____ H.F. _____ registration renewal. Upon full payment of the required 1 balance owed including applicable penalties and interest, the 2 processing fee, and the vehicle registration fee, the county 3 treasurer shall issue the registration to the person. A county 4 treasurer collecting on behalf of the department of revenue 5 shall update the vehicle registration records through the 6 distributed teleprocessing network records system on a daily 7 basis for all persons who have paid taxes or other balances 8 owed pursuant to this subsection . A county treasurer shall 9 forward all funds collected for the department of revenue to 10 the department of revenue. 11 7. a. The department or the county treasurer shall 12 refuse to renew the registration of a vehicle registered 13 to an applicant if the department or the county treasurer 14 knows that the applicant has not paid a civil penalty imposed 15 on the applicant pursuant to section 321N.3, subsection 16 3 . An applicant may contest this action by initiating a 17 contested case proceeding with the department. The department 18 shall notify the county treasurers through the distributed 19 teleprocessing network records system of persons who have not 20 paid such civil penalties. 21 b. The county treasurer of the county of an applicant’s 22 residence and in which the applicant’s vehicle is registered, 23 in cooperation with the department, may collect a civil 24 penalty imposed on the applicant pursuant to section 321N.3, 25 subsection 3 , when the applicant applies for renewal of a 26 vehicle registration. The applicant may remit full payment of 27 the civil penalty, along with a processing fee of five dollars, 28 to the county treasurer at the time of registration renewal. 29 Upon full payment of the civil penalty, the processing fee, 30 and the vehicle registration fee, the county treasurer shall 31 issue the registration to the applicant. A county treasurer 32 collecting a civil penalty on behalf of the department pursuant 33 to this subsection shall update the vehicle registration 34 records through the distributed teleprocessing network records 35 -10- LSB 5412XD (5) 91 th/ns 10/ 25

S.F. _____ H.F. _____ system on a daily basis for all applicants who have paid civil 1 penalties pursuant to this subsection . A county treasurer 2 shall forward all funds collected on behalf of the department 3 to the department. 4 8. The county treasurer shall refuse to renew the 5 registration of a vehicle registered to an applicant if the 6 county treasurer knows that the applicant has one or more 7 uncontested, delinquent parking tickets issued pursuant 8 to section 321.236, subsection 1 , paragraph “b” , owing to 9 the county, or owing to a city with which the county has 10 an agreement authorized under section 331.553 . However, a 11 county treasurer may renew the registration if the treasurer 12 determines that an error was made by the county or city in 13 identifying the vehicle involved in the parking violation or 14 if the citation has been dismissed as against the owner of the 15 vehicle pursuant to section 321.484 . This subsection does 16 not apply to the transfer of a registration or the issuance 17 of a new registration. Notwithstanding section 28E.10 , a 18 county treasurer may shall utilize the department’s vehicle 19 registration and titling records system to facilitate the 20 purposes of this subsection . 21 Sec. 19. Section 321.46, subsections 2 and 5, Code 2026, are 22 amended to read as follows: 23 2. Upon filing the application for a new initial 24 registration and a new title, the applicant shall pay a title 25 fee of thirty dollars, an annual registration fee prorated 26 for the remaining unexpired months of the registration year, 27 and a fee for new registration if applicable. A manufacturer 28 applying for a certificate of title pursuant to section 29 322G.12 shall pay a title fee of twenty dollars. However, a 30 title fee shall not be charged to a manufactured or mobile 31 home retailer applying for a certificate of title for a used 32 mobile home or manufactured home, titled in Iowa, as required 33 under section 321.45, subsection 4 . The county treasurer, if 34 satisfied of the genuineness and regularity of the application, 35 -11- LSB 5412XD (5) 91 th/ns 11/ 25

S.F. _____ H.F. _____ and in the case of a mobile home or manufactured home, that 1 taxes are not owing under chapter 435 , and that applicant has 2 complied with all the requirements of this chapter , shall issue 3 a new certificate of title and, except for a mobile home, 4 manufactured home, or a vehicle returned to and accepted by a 5 manufacturer as described in section 322G.12 , a registration 6 card to the purchaser or transferee, shall cancel the prior 7 registration for the vehicle, and shall forward the necessary 8 copies to the department use the records system to update the 9 necessary information on the date of issuance , as prescribed 10 in section 321.24 . Mobile homes or manufactured homes titled 11 under chapter 448 that have been subject under section 446.18 12 to a public bidder sale in a county shall be titled in the 13 county’s name, with no fee, and the county treasurer shall 14 issue the title. 15 5. The seller or transferor may file an affidavit on forms 16 prescribed and provided by the department with any county 17 treasurer certifying the sale or transfer of ownership of the 18 vehicle and the assignment and delivery of the certificate of 19 title for the vehicle. Upon receipt of the affidavit, the 20 county treasurer shall file the affidavit with the copy of the 21 registration receipt for the vehicle on file in the treasurer’s 22 office and on that day the treasurer shall note receipt of 23 the affidavit in the vehicle registration and titling records 24 system. Upon filing the affidavit, it shall be presumed 25 that the seller or transferor has assigned and delivered the 26 certificate of title for the vehicle. For a leased vehicle, 27 the lessor licensed pursuant to chapter 321F or the lessee may 28 file an affidavit as provided in this subsection certifying 29 that the lease has expired or been terminated and the date that 30 the leased vehicle was surrendered to the lessor. 31 Sec. 20. Section 321.47, subsection 2, paragraph a, Code 32 2026, is amended to read as follows: 33 a. The persons entitled under the laws of descent and 34 distribution to the possession and ownership of a vehicle 35 -12- LSB 5412XD (5) 91 th/ns 12/ 25

S.F. _____ H.F. _____ owned in whole or in part by a decedent who died intestate, 1 upon filing an affidavit stating the name and date of death 2 of the decedent, the right to possession and ownership of 3 the persons filing the affidavit, and that there has been no 4 administration of the decedent’s estate, which instrument must 5 also contain an agreement by the affiant to indemnify creditors 6 of the decedent who would be entitled to levy execution upon 7 the motor vehicle to the extent of the value of the motor 8 vehicle, shall, upon complying with the other title transfer 9 requirements of this chapter , be issued a registration card 10 for the decedent’s interest in the vehicle and a certificate 11 of title to the vehicle. If a decedent died testate, and 12 either the will is not probated or is admitted to probate 13 without administration, the persons entitled to the possession 14 and ownership of a vehicle owned in whole or in part by the 15 decedent may file an affidavit and, upon complying with the 16 other title transfer requirements of this chapter , shall be 17 issued a registration card for the decedent’s interest in 18 the vehicle and a certificate of title to the vehicle. The 19 affidavit must contain the same information and indemnity 20 agreement as is required in cases of intestacy under this 21 subsection . For a death occurring before January 1, 2025, a 22 requirement of chapter 450 shall not be considered satisfied by 23 the filing of the affidavit provided for in this subsection . 24 If, from upon review of the records in the office of the county 25 treasurer system , there appear to be any liens on the vehicle, 26 the certificate of title must contain a statement of the liens 27 unless the application is accompanied by proper evidence of 28 the satisfaction or extinction of such liens. Evidence of 29 extinction includes but is not limited to an affidavit of the 30 applicant stating that a security interest was foreclosed as 31 provided in chapter 554, article 9, part 6 . The department 32 shall waive the certificate of title fee and surcharge required 33 under sections 321.20 , 321.20A , 321.23 , 321.46 , 321.52 , and 34 321.52A if the person entitled to possession and ownership of 35 -13- LSB 5412XD (5) 91 th/ns 13/ 25

S.F. _____ H.F. _____ a vehicle, as provided in this subsection , is the surviving 1 spouse of a decedent. 2 Sec. 21. Section 321.50, subsections 3, 5, and 6, Code 2026, 3 are amended to read as follows: 4 3. Upon receipt of the application, the certificate of 5 title, if any, and the required fee, the county treasurer shall 6 note the security interest and the date of perfection of the 7 security interest on the certificate of title. The county 8 treasurer shall also note the security interest and the date 9 of perfection of the security interest in the county records 10 system. Upon receipt of a certificate of title issued by a 11 foreign jurisdiction, on which a security interest has been 12 noted, the county treasurer shall note the security interest 13 and the date the security interest was noted on the foreign 14 certificate of title, if available, or if not, the date of 15 issuance of the foreign certificate of title, on the face of 16 the new certificate of title. The county treasurer shall also 17 note the security interest and the date that was noted on the 18 certificate of title in the county records system. The county 19 treasurer shall then deliver the certificate of title to the 20 first secured party as shown thereon. 21 5. a. Except as provided in section 321.48, subsection 22 1 , paragraph “b” , when a security interest is discharged, the 23 holder shall note a cancellation of the security interest 24 on the face of the certificate of title over the holder’s 25 signature or may note the cancellation of the security interest 26 on a separate, notarized release form or letter. The holder 27 shall deliver the certificate of title and the form or letter, 28 if applicable, to any county treasurer. In the case of a 29 security interest that has been delivered by electronic means, 30 the holder shall notify the department or the county treasurer, 31 in a manner prescribed by the department, of the release of 32 the security interest. The county treasurer shall immediately 33 note the cancellation of the security interest on the face of 34 the certificate of title, if applicable, and in the county 35 -14- LSB 5412XD (5) 91 th/ns 14/ 25

S.F. _____ H.F. _____ records system. The county treasurer shall on the same day 1 deliver the certificate of title, if applicable, and the 2 separate, notarized release form or letter, if applicable, 3 to the then first secured party or, if there is no such 4 person, to the person as directed by the owner, in writing, 5 on a form prescribed by the department or, if there is no 6 person designated, then to the owner. The cancellation of 7 the security interest shall be noted on the certificate of 8 title by the county treasurer without charge. The holder of a 9 security interest discharged by payment who fails to release 10 the security interest within fifteen days after being requested 11 in writing to do so shall forfeit to the person making the 12 payment the sum of twenty-five dollars. 13 b. If a lien has been released by the lienholder but has 14 not been sent to the county of record for clearance of the 15 lien, any county may note the release on the face of the title 16 and shall notify the county of record that the lien has been 17 released as of the specified date and make entry upon the 18 computer records system. Notification to the county of record 19 shall be made by an automated statewide in the records system 20 or by sending a photocopy of the released title to the county 21 of record. 22 c. When a security interest is discharged, the lienholder 23 shall note the cancellation of the security interest on 24 the face of the title and, if applicable, may note the 25 cancellation of the security interest on a form prescribed 26 by the department and deliver a copy of the form in lieu of 27 the title to the department or to any county treasurer. The 28 form may be delivered by electronic means. The department or 29 county treasurer , as applicable, shall note the release of the 30 security interest upon in the statewide computer records system 31 and the county’s records . A copy of the form, if used, shall be 32 attached to the title by the lienholder, if the title is held 33 by the lienholder, and shall be evidence of the release of the 34 security interest. If the title is held by the lienholder, the 35 -15- LSB 5412XD (5) 91 th/ns 15/ 25

S.F. _____ H.F. _____ lienholder shall deliver the title to the first lienholder, 1 or if there is no such person, to the person as designated by 2 the owner, or if there is no such person designated, to the 3 owner. If a certificate of title has not been issued, upon 4 release of a security interest, the lienholder shall notify the 5 department or the county treasurer, in a manner prescribed by 6 the department, of the release of the security interest. 7 d. For purposes of this subsection , a security interest 8 noted on an Iowa certificate of title and appearing in the 9 statewide computer records system and the county’s records 10 shall be presumed to be discharged upon presentation of a 11 valid certificate of title subsequently issued by a foreign 12 jurisdiction on which the security interest is no longer noted. 13 6. Notwithstanding subsection 5 , when an application for 14 registration and issuance of a certificate of title is made 15 by the means described in section 321.20, subsection 2 , and 16 the application includes a certificate of title upon which a 17 security interest has been discharged by the secured party 18 and the cancellation of the security interest is noted by the 19 secured party on the certificate of title above the secured 20 party’s signature, the county treasurer shall not require any 21 other notation of the cancellation of the security interest on 22 the face of the certificate of title, and the county treasurer 23 shall update such release on the applicable program or computer 24 records system. A dealer licensed under chapter 322 or chapter 25 322C is authorized to sell such a vehicle pursuant to section 26 321.48, subsection 1 , paragraph “b” . 27 Sec. 22. Section 321.153, subsection 2, Code 2026, is 28 amended to read as follows: 29 2. The distributed teleprocessing network records system 30 shall be used in the collection, receipting, accounting, and 31 reporting of any fee collected through the registration renewal 32 or title process, with sufficient time and financial resources 33 provided for implementation. 34 Sec. 23. Section 321.198, subsection 3, Code 2026, is 35 -16- LSB 5412XD (5) 91 th/ns 16/ 25

S.F. _____ H.F. _____ amended to read as follows: 1 3. A person whose period of validity of the person’s 2 driver’s license is extended under this section may file an 3 application in accordance with rules adopted by the department 4 to have the person’s record of issuance of a driver’s license 5 retained in the department’s record records system during the 6 period for which the driver’s license remains valid. If a 7 person has had the record of issuance of the person’s driver’s 8 license removed from the department’s records system , the 9 person shall have the person’s record of driver’s license 10 issuance reentered by the department upon request if the 11 request is accompanied by a letter from the applicable person’s 12 commanding officer verifying the military service. 13 Sec. 24. Section 331.553, subsection 8, Code 2026, is 14 amended to read as follows: 15 8. Pursuant to an agreement under chapter 28E , collect 16 delinquent parking fines on behalf of a city in conjunction 17 with renewal of motor vehicle registrations pursuant to section 18 321.40 . If the agreement provides for a fee to be paid to or 19 retained by the county treasurer from the collection of parking 20 fines, such fees shall be credited to the county general fund. 21 Fines collected pursuant to this subsection shall be remitted 22 biannually to the city. Notwithstanding section 28E.10 , a 23 county treasurer may shall utilize the state department of 24 transportation’s vehicle registration and titling records 25 system described in section 321.31 to facilitate the purposes 26 of this subsection . 27 Sec. 25. TRANSITION. County treasurers shall continue 28 to perform all duties related to the county records system 29 described in section 321.31, subsection 2, Code 2026, and shall 30 retain and maintain the records contained in the county records 31 system prior to the applicability of this division of this Act. 32 Sec. 26. APPLICABILITY. This division of this Act applies 33 on and after December 1, 2028, or the date the department of 34 transportation submits to the Iowa administrative code editor 35 -17- LSB 5412XD (5) 91 th/ns 17/ 25

S.F. _____ H.F. _____ for publication in the Iowa administrative bulletin a statement 1 by the director of transportation that the applicable phase 2 of the department of transportation’s new records system is 3 implemented, whichever is earlier. The department shall also 4 forward a copy of the statement to the Iowa Code editor. 5 DIVISION V 6 ELECTRONIC COMMUNICATIONS 7 Sec. 27. Section 321.11, subsections 2 and 4, Code 2026, are 8 amended to read as follows: 9 2. Notwithstanding subsection 1 , personal information 10 shall not be disclosed to a requester, except as provided in 11 18 U.S.C. §2721, unless the person whose personal information 12 is requested has provided express written consent allowing 13 disclosure of the person’s personal information. As used in 14 this section , “personal information” means information that 15 identifies a person, including a person’s photograph, social 16 security number, driver’s license number, name, address, 17 telephone number, electronic mail address, and medical or 18 disability information, but does not include information on 19 vehicular accidents, driving violations, and driver’s status 20 or a person’s zip code. 21 4. The department shall not release personal information 22 that is in the form of a person’s photograph or digital image 23 or a digital reproduction of a person’s photograph , or the 24 person’s telephone number or electronic mail address, to a 25 person other than an officer or employee of a law enforcement 26 agency, an employee of a federal or state agency or political 27 subdivision in the performance of the employee’s official 28 duties, a contract employee of the department of inspections, 29 appeals, and licensing in the conduct of an investigation, or a 30 licensed private investigation agency or a licensed security 31 service or a licensed employee of either, regardless of whether 32 a person has provided express written consent to disclosure of 33 the information. The department may collect reasonable fees 34 for copies of records or other services provided pursuant to 35 -18- LSB 5412XD (5) 91 th/ns 18/ 25