S.F. _____ Section 1. Section 321.89, subsection 2, Code 2026, is 1 amended to read as follows: 2 2. Authority to take possession of abandoned vehicles. A 3 police authority, upon the authority’s own initiative or 4 upon the request of any other authority having the duties of 5 control of highways or traffic, shall take into custody an 6 abandoned vehicle on public property and may take into custody 7 an abandoned vehicle on private property. The police authority 8 may employ its own personnel, equipment, and facilities or 9 hire a private entity, equipment, and facilities for the 10 purpose of removing, preserving, storing, or disposing of 11 abandoned vehicles. A property owner or other person in 12 control of private property may employ a private entity who is 13 a garagekeeper, as defined in section 321.90 , to dispose of an 14 abandoned vehicle, and the private entity may take into custody 15 the abandoned vehicle without a police authority’s initiative. 16 If a police authority employs a private entity to dispose of 17 abandoned vehicles, the police authority shall provide the 18 private entity with the names and addresses of the registered 19 owners, all lienholders of record, and any other known claimant 20 to the vehicle or the personal property found in the vehicle. 21 The owners, lienholders, or other claimants of the abandoned 22 vehicle shall not have a cause of action against a private 23 entity for action taken under this section if the private 24 entity provides notice as required by subsection 3 , paragraphs 25 “a” through “f” . 26 Sec. 2. Section 321.89, subsection 3, paragraph a, Code 27 2026, is amended to read as follows: 28 a. A police authority or private entity that takes into 29 custody an abandoned vehicle shall send notice by certified 30 mail that the vehicle has been taken into custody no more than 31 twenty ten days after taking custody of the vehicle. Notice 32 shall be sent to the last known address of record of the last 33 known registered owner of the vehicle, all lienholders of 34 record, and any other known claimant to the vehicle. 35 -1- LSB 5115XC (3) 91 th/ns 1/ 11

S.F. _____ Sec. 3. Section 321.89, subsection 3, paragraph b, 1 subparagraph (3), Code 2026, is amended to read as follows: 2 (3) Information for the persons receiving the notice of 3 their right to reclaim the vehicle and personal property 4 contained therein within ten twenty days after the effective 5 date of the notice. Persons may reclaim the vehicle or 6 personal property upon payment of all towing, preservation, and 7 storage charges resulting from placing the vehicle in custody 8 and upon payment of the costs of notice required pursuant to 9 this subsection . 10 Sec. 4. Section 321.89, subsection 3, paragraphs e and f, 11 Code 2026, are amended by striking the paragraphs. 12 Sec. 5. Section 321.89, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 3A. Abandoned vehicles in custody. 15 a. A private entity that takes an abandoned vehicle into 16 custody may charge towing, preservation, storage, or other 17 fees during the first twenty-four hours after taking custody 18 of the vehicle. After twenty-four hours, additional towing, 19 preservation, and storage fees shall not accrue until the 20 vehicle owner, lienholders, and any known claimants are 21 notified in accordance with subsection 3. Failure to send 22 notice as required by subsection 3 invalidates any claim by a 23 private entity for payment of all such fees. 24 b. A lienholder or insurance company who receives notice 25 under subsection 3 may request information regarding the 26 condition of the vehicle. The private entity having custody of 27 the vehicle may charge a fee not to exceed one hundred dollars 28 to the lienholder or insurance company for inspection of the 29 vehicle. If such a request is made and when the fee is paid, 30 the private entity with custody of the vehicle may satisfy 31 the request by allowing a representative of the lienholder or 32 insurance company onto the premises to inspect the vehicle, or 33 by providing the lienholder or insurance company with photos of 34 the vehicle sufficient to reasonably ascertain the condition of 35 -2- LSB 5115XC (3) 91 th/ns 2/ 11

S.F. _____ the vehicle. If requested, the private entity shall provide 1 photos or access to the vehicle prior to the expiration of the 2 twenty-day reclamation period. 3 c. A person may reclaim personal property from within 4 the vehicle, so long as the property is not attached to the 5 vehicle, only once while the vehicle is in custody of a private 6 entity. A person may provide the private entity a list of the 7 personal property to be reclaimed that is inside the vehicle, 8 or the private entity may allow the vehicle owner to reclaim 9 personal property from inside the vehicle during the normal 10 business hours of the private entity. Reclaiming personal 11 property from inside the vehicle does not constitute reclaiming 12 the vehicle. 13 d. If notice is provided as required in subsection 3, 14 and the persons receiving notice do not ask for a hearing 15 before the police authority or reclaim the vehicle or personal 16 property within the twenty-day reclaiming period, the owner, 17 lienholders, or claimants shall not have a right to, title in, 18 claim for, or interest in the vehicle or personal property in 19 the vehicle. 20 e. If notice is not provided as required in subsection 3, 21 and a police authority or private entity takes custody of the 22 vehicle and sells the vehicle at auction, the police authority 23 or private entity, as applicable, shall pay the lienholder 24 from the auction proceeds the remaining amount owed on the 25 vehicle loan, up to the total amount of the proceeds. The 26 police authority or private entity shall then pay the remaining 27 proceeds to the vehicle owner. 28 Sec. 6. Section 321.89, subsection 4, Code 2026, is amended 29 to read as follows: 30 4. Reclamation of abandoned vehicles. A private entity 31 with custody of an abandoned vehicle shall provide an itemized 32 account of all fees assessed when the vehicle is reclaimed. 33 Prior to driving an abandoned vehicle away from the premises, 34 a person who received , or who is reclaiming the vehicle on 35 -3- LSB 5115XC (3) 91 th/ns 3/ 11

S.F. _____ behalf of a person who received , notice under subsection 3 1 shall present to the police authority or private entity, as 2 applicable, the person’s valid driver’s license and proof of 3 financial liability coverage as provided in section 321.20B . 4 Sec. 7. Section 321.89, subsection 5, paragraphs b and c, 5 Code 2026, are amended to read as follows: 6 b. (1) From the proceeds of the sale of an abandoned 7 vehicle after proper notice was provided, the police authority, 8 if the police authority did not hire a private entity, shall 9 reimburse itself for the expenses of the auction, the costs of 10 towing, preserving, and storing which resulted from placing the 11 abandoned vehicle in custody, all notice and publication costs 12 incurred pursuant to subsection 3 , the cost of inspection, and 13 any other costs incurred except costs of bookkeeping and other 14 administrative costs. 15 (2) Any remainder from the proceeds of a sale shall be 16 held first for any lienholder of record, if applicable, for 17 thirty days after notice is provided under paragraph “d” , and 18 second for the any owner of the vehicle or entitled lienholder 19 for ninety for an additional sixty days , and shall then be 20 deposited in the road use tax fund . The 21 (3) Any remaining proceeds shall be submitted to the 22 department and deposited in the statutory allocations fund 23 created in section 321.145. Whenever the proceeds from the 24 sale of an abandoned vehicle are insufficient to meet the costs 25 to police authorities of auction, towing, preserving, storage, 26 and all notice and publication costs, and all other costs which 27 result from placing abandoned vehicles in custody, whenever the 28 proceeds from a sale of the abandoned vehicles are insufficient 29 to meet these expenses and costs, shall be paid authorized for 30 reimbursement under subparagraph (1) for a police authority, 31 the department shall pay the remaining reimbursement amount 32 to the police authority from the road use tax statutory 33 allocations fund and are the obligation of the last owner or 34 owners, . The person or persons who owned the vehicle when it 35 -4- LSB 5115XC (3) 91 th/ns 4/ 11

S.F. _____ was taken into custody are jointly and severally liable for 1 reimbursing the department, to the credit of the statutory 2 allocations fund, the costs paid to a police authority under 3 this subparagraph . 4 c. The director of transportation department shall establish 5 by rule adopt rules pursuant to chapter 17A providing a claims 6 procedure to be followed by police authorities in obtaining 7 expenses and costs from the statutory allocations fund , and 8 procedures for reimbursement of expenses and costs from the 9 statutory allocations fund to a private entity hired by a 10 police authority to take custody of an abandoned vehicle. 11 If a private entity has been hired by a police authority, 12 the police authority shall file a claim with the department 13 for reimbursement of towing fees the private entity’s costs 14 authorized for reimbursement under paragraph “0c” , which shall 15 be paid from the road use tax statutory allocations fund. 16 Sec. 8. Section 321.89, subsection 5, Code 2026, is amended 17 by adding the following new paragraphs: 18 NEW PARAGRAPH . 0c. (1) From the proceeds of the sale 19 of an abandoned vehicle after proper notice was provided, a 20 private entity may reimburse itself only for the expenses of 21 the auction, the costs of towing, preserving, and storing which 22 resulted from placing the abandoned vehicle in custody, all 23 notice and publication costs incurred pursuant to subsection 3, 24 the cost of inspection, and any other costs incurred, except 25 costs of bookkeeping and other administrative costs. 26 (2) Any remainder from the proceeds of a sale shall be held 27 first for any lienholder of record, if applicable, for thirty 28 days after notice is provided under paragraph “d” , and second 29 for any owner of record for an additional sixty days. 30 (3) Any remaining proceeds shall be submitted to the 31 department and deposited in the statutory allocations fund 32 created under section 321.145. Whenever the proceeds from 33 the sale of an abandoned vehicle are insufficient to meet 34 the expenses and costs authorized for reimbursement under 35 -5- LSB 5115XC (3) 91 th/ns 5/ 11

S.F. _____ subparagraph (1) for a private entity hired by a police 1 authority, the department shall pay the remaining reimbursement 2 amount to the private entity from the statutory allocations 3 fund. The person or persons who owned the vehicle when it 4 was taken into custody are jointly and severally liable for 5 reimbursing the department, to the credit of the statutory 6 allocations fund, the costs paid to a private entity under this 7 subparagraph. 8 NEW PARAGRAPH . d. After the sale of an abandoned vehicle, 9 the private entity or police authority who sold the vehicle at 10 auction shall, within ten days after the sale, send notice by 11 certified mail to the person who owned the vehicle when it was 12 taken into custody and to any lienholders of record detailing 13 the amount of proceeds remaining and the timeline for claiming 14 the proceeds. Notice shall be deemed given when mailed. 15 Sec. 9. Section 321.89, Code 2026, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 6. Display of charges. A private entity 18 that takes custody of an abandoned vehicle shall display at the 19 entity’s place of business in a manner that is readily visible 20 to visitors and on the entity’s internet site, if applicable, 21 the maximum towing, preservation, and storage fees the entity 22 will charge. 23 NEW SUBSECTION . 7. Violations committed by private 24 entities. A violation of this section committed by a private 25 entity is a prohibited practice or act under section 714H.3. 26 Sec. 10. Section 321.90, subsection 2, paragraph f, Code 27 2026, is amended to read as follows: 28 f. The owner of an abandoned motor vehicle and all 29 lienholders shall no longer have any right, title, claim, or 30 interest in or to the motor vehicle; and no court in any case 31 in law or equity shall recognize any right, title, claim, or 32 interest of any owner or lienholders after the disposal of the 33 motor vehicle to a demolisher ; so long as notice in accordance 34 with section 321.89, subsection 3, was provided . 35 -6- LSB 5115XC (3) 91 th/ns 6/ 11

S.F. _____ Sec. 11. Section 321.145, subsection 2, unnumbered 1 paragraph 1, Code 2026, is amended to read as follows: 2 Revenues derived from trailer registration fees collected 3 pursuant to sections 321.105 and 321.105A , fees charged for 4 driver’s licenses and nonoperator’s identification cards, fees 5 charged for commercial driver’s license driving skills tests 6 pursuant to section 321.187A , fees charged for the issuance 7 of a certificate of title, the certificate of title surcharge 8 collected pursuant to section 321.52A , proceeds from the sale 9 of an abandoned vehicle pursuant to section 321.89, subsection 10 5, paragraphs “b” and “0c” , and revenues credited pursuant 11 to section 423.43, subsection 2 , and section 423C.5 shall be 12 deposited in a fund to be known as the statutory allocations 13 fund under the control of the department and credited as 14 follows: 15 Sec. 12. Section 321.145, subsection 2, paragraph a, Code 16 2026, is amended by adding the following new subparagraph: 17 NEW SUBPARAGRAPH . (5) An amount not to exceed the amount 18 for reimbursement for expenses and costs in a claim filed by a 19 police authority in accordance with section 321.89, subsection 20 5, paragraph “c” . 21 Sec. 13. Section 714H.3, subsection 2, Code 2026, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH . 0c. Section 321.89, if the person is a 24 private entity. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 Code sections 321.89 and 321.90 regulate the taking into 29 custody and disposal of abandoned vehicles, as defined in Code 30 section 321.89. 31 Current law requires an entity that takes custody of an 32 abandoned vehicle to send notice by certified mail to all known 33 claimants of the vehicle no more than 20 days after taking 34 custody of the vehicle. This bill requires such notice to be 35 -7- LSB 5115XC (3) 91 th/ns 7/ 11

S.F. _____ sent no more than 10 days after taking custody of the vehicle. 1 Under current law and the bill, notice is deemed given when 2 mailed. 3 Current law requires a person to ask for a hearing regarding 4 an abandoned vehicle, or reclaim an abandoned vehicle and 5 personal property left inside such vehicle, within 10 days 6 after notice is mailed. The bill extends the reclamation 7 period to 20 days. If notice is not provided and a private 8 entity or police authority takes custody of the vehicle and 9 sells the vehicle at auction, the bill requires payment to the 10 lienholder from the auction proceeds as much as those proceeds 11 can cover of the remainder owed on the vehicle loan before 12 paying the vehicle owner. 13 The bill authorizes a private entity that takes a vehicle 14 into custody to charge towing, preservation, storage, or 15 other fees during the first 24 hours after taking custody of 16 a vehicle. After 24 hours, towing, preservation, and storage 17 fees do not accrue until the vehicle owner, lienholders, and 18 any known claimants are notified. A claim by a private entity 19 for payment of all such fees is invalid when a private entity 20 fails to send notice. 21 Under the bill, a lienholder or insurance company who 22 receives notice may request information regarding the condition 23 of the vehicle. The private entity having custody of the 24 vehicle may charge an inspection fee not to exceed $100. An 25 inspection may be in person or the private entity is authorized 26 to provide photos of the vehicle sufficient to reasonably 27 ascertain the condition of the vehicle. A private entity must 28 comply with an inspection request prior to the expiration of 29 the 20-day reclamation period. 30 The bill authorizes a person to reclaim personal property 31 from within the vehicle without paying reclamation fees, so 32 long as the property is not attached to the vehicle, only once 33 while the vehicle is in custody of a private entity. 34 The bill requires a private entity with custody of an 35 -8- LSB 5115XC (3) 91 th/ns 8/ 11

S.F. _____ abandoned vehicle to provide an itemized account of all fees 1 assessed when the vehicle is reclaimed. 2 Under current law, if an abandoned vehicle is not reclaimed, 3 it can be sold at public auction or for junk or scrap if it 4 is determined to not be appropriate for highway use. The 5 bill directs how proceeds of a sold abandoned vehicle are 6 distributed. If proper notice was provided, a private entity 7 or police authority may reimburse itself only for costs 8 incurred, except costs of bookkeeping and other administrative 9 costs. Any remainder from the proceeds of a sale must be held 10 first for any lienholder of record, if applicable, for 30 days 11 after notice of the sale is provided, and second for any owner 12 of record for an additional 60 days. Current law only requires 13 a police authority to hold proceeds from a sale for both the 14 lienholder and owner for 90 days. The bill requires any 15 remaining proceeds to be deposited in the statutory allocations 16 fund (SAF) rather than the road use tax fund. A private entity 17 that was hired by a police authority must be paid from the 18 SAF the amount incurred by the entity that was not otherwise 19 recouped by the entity from the sale. The person or persons 20 who owned the vehicle when it was taken into custody are 21 jointly and severally liable for reimbursing the SAF for those 22 costs. Pursuant to current law, revenues remaining in the SAF 23 at the end of a fiscal year are credited to the road use tax 24 fund. 25 After the sale of an abandoned vehicle, the bill requires 26 a private entity or police authority who sold the vehicle at 27 auction, within 10 days after the sale, to send notice by 28 certified mail to the person who owned the vehicle when it was 29 taken into custody and to any lienholders of record detailing 30 the amount of proceeds remaining and the timeline for claiming 31 the proceeds. 32 The department of transportation (DOT) is required to adopt 33 administrative rules providing a claims procedure for police 34 authorities to obtain expenses and costs from the SAF, for 35 -9- LSB 5115XC (3) 91 th/ns 9/ 11

S.F. _____ private entities to remit excess proceeds to the SAF, and for 1 payment from the SAF for expenses and costs incurred by a 2 police authority or private entity hired by a police authority. 3 If a private entity was hired by a police authority, the police 4 authority must file a claim with the DOT for reimbursement of 5 the private entity’s costs. 6 A violation of Code section 321.89, as amended by the bill, 7 committed by a private entity is a prohibited practice or 8 act under Code section 714H.3. Pursuant to current law, a 9 consumer who suffers an ascertainable loss of money or property 10 as the result of a prohibited practice or act in violation 11 of Code chapter 714H may bring an action at law to recover 12 actual damages. The court may order such equitable relief, 13 including reasonable attorney fees, as it deems necessary to 14 protect the public from further violations, including temporary 15 and permanent injunctive relief. If the finder of fact finds 16 by a preponderance of clear, convincing, and satisfactory 17 evidence that a prohibited practice or act constitutes willful 18 and wanton disregard for the rights or safety of another, in 19 addition to an award of actual damages, statutory damages up 20 to three times the amount of actual damages may be awarded 21 to a prevailing consumer. A consumer must bring a consumer 22 fraud action within two years of the occurrence of the event 23 giving rise to the cause of action or within two years of the 24 discovery of the violation, whichever is later. 25 Because the bill places additional requirements on police 26 authorities and private entities beyond the notice requirements 27 under current law, the bill strikes certain provisions limiting 28 claims or rights when proper notice is provided or after the 29 reclamation period. The bill instead provides that if proper 30 notice is provided and the persons receiving notice do not 31 ask for a hearing before the police authority or reclaim the 32 vehicle or personal property within the 20-day reclaiming 33 period, the owner, lienholders, or claimants shall not have a 34 right to, title in, claim for, or interest in the vehicle or 35 -10- LSB 5115XC (3) 91 th/ns 10/ 11