House File 2617 - Reprinted HOUSE FILE 2617 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 667) (As Amended and Passed by the House March 4, 2026 ) A BILL FOR An Act relating to abandoned vehicles. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 HF 2617 (2) 91 th/ns/md
H.F. 2617 Section 1. Section 321.88, Code 2026, is amended to read as 1 follows: 2 321.88 Failure of owner to claim. 3 If the owner does not appear within forty days, the motor 4 vehicle shall be deemed abandoned and the officer having 5 possession of the motor vehicle shall proceed as provided in 6 section 321.89 , subsections 3 and 5 . 7 Sec. 2. Section 321.89, Code 2026, is amended by striking 8 the section and inserting in lieu thereof the following: 9 321.89 Abandoned vehicles. 10 1. Authority to tow and impound. An abandoned vehicle may 11 be towed and impounded as follows: 12 a. If an abandoned vehicle is located on public property: 13 (1) Except as provided in subparagraph (2), a police 14 authority shall tow and impound the vehicle. 15 (2) Alternatively, a police authority may hire a 16 garagekeeper to tow and impound the vehicle, and the police 17 authority shall provide the garagekeeper with the name and 18 address of the registered owner and, if applicable, any 19 lienholder and known claimants of the vehicle. 20 b. If an abandoned vehicle is located on private property: 21 (1) A police authority may tow and impound the vehicle. 22 (2) A person who owns the private property or is otherwise 23 in control of the private property may hire a garagekeeper 24 to tow and impound the abandoned vehicle without a police 25 authority’s initiative. In addition to the required notices 26 under subsection 2, a garagekeeper that tows an abandoned 27 vehicle pursuant to this subparagraph shall notify the police 28 authority with jurisdiction over the location where the 29 vehicle was towed within two hours after towing the vehicle. 30 The garagekeeper shall describe the vehicle and provide the 31 location where the tow occurred and where the vehicle can be 32 reclaimed. 33 2. Required notice. 34 a. Within ten days after towing an abandoned vehicle, 35 -1- HF 2617 (2) 91 th/ns/md 1/ 10
H.F. 2617 the person who impounded the vehicle shall give notice to 1 the registered owner of the vehicle and, if applicable, any 2 lienholder and known claimants of the vehicle. 3 b. Notice must include all of the following: 4 (1) A description of the year, make, model, and vehicle 5 identification number of the vehicle. 6 (2) The location of the vehicle. 7 (3) A statement that the person has twenty days to reclaim 8 the vehicle or personal property from inside the vehicle, and 9 that the twenty-day reclamation period began on the date the 10 notice was given. 11 (4) A statement that the vehicle cannot be reclaimed until 12 the person pays all towing and impound fees and the costs of 13 giving notice. 14 (5) A statement that the registered owner may retrieve 15 personal property from inside the vehicle without reclaiming 16 the vehicle or paying a fee, and that the registered owner will 17 have only one opportunity to retrieve the personal property. 18 (6) A statement that failure to reclaim the vehicle or 19 personal property within twenty days after notice was given 20 constitutes a waiver of any interest in the vehicle or personal 21 property. 22 (7) A statement that failure to reclaim the vehicle 23 or personal property is deemed consent for the person who 24 impounded the vehicle to sell or dispose of the vehicle and 25 personal property inside the vehicle, as applicable. 26 (8) If the abandoned vehicle was taken into custody by 27 a garagekeeper without a police authority’s initiative, a 28 statement that the garagekeeper may claim a lien as described 29 in section 321.90, subsection 1. 30 (9) If the abandoned vehicle was taken into custody by 31 a police authority or by a garagekeeper hired by a police 32 authority, a statement that a person who disputes the 33 assessment of fees or the planned disposition of the vehicle or 34 personal property may request an evidentiary hearing before the 35 -2- HF 2617 (2) 91 th/ns/md 2/ 10
H.F. 2617 police authority to contest those matters. 1 c. Notice shall be given in at least two ways, including by 2 sending notice by regular mail and by giving notice in any of 3 the following ways: 4 (1) By sending via certified mail or parcel delivery service 5 with a tracking number. Notice under this subparagraph shall 6 be deemed given when mailed. 7 (2) By personal delivery by a peace officer to the proper 8 person who must sign an affidavit of service. Notice under 9 this subparagraph shall be deemed given when delivered. 10 d. Notwithstanding paragraph “a” , if it is impossible to 11 determine with reasonable certainty the identity and address 12 of the last registered owner or any lienholder, notice by one 13 publication in one newspaper of general circulation in the area 14 where the vehicle was abandoned is sufficient. The published 15 notice shall be published within the same time requirements 16 and provide the same information required under paragraph “b” . 17 Notice published in a newspaper may contain multiple listings 18 of abandoned vehicles. 19 e. A garagekeeper that impounds an abandoned vehicle shall 20 display at the garagekeeper’s place of business in a manner 21 that is readily visible to visitors and on the garagekeeper’s 22 internet site, if applicable, the garagekeeper’s hours of 23 operation, telephone number, and corporate or business name, 24 if applicable. 25 f. A garagekeeper that tows an abandoned vehicle shall 26 display on both sides of the towing vehicle, in a manner that 27 is readily visible, the garagekeeper’s corporate or business 28 name, if applicable, address, and telephone number. 29 3. Reclamation. 30 a. The registered owner of an abandoned vehicle may reclaim 31 the vehicle upon payment of all towing, notice, and impoundment 32 fees. For purposes of calculating impoundment fees, a 33 garagekeeper shall not charge a fee based on calendar days. 34 b. A garagekeeper shall provide an itemized invoice that 35 -3- HF 2617 (2) 91 th/ns/md 3/ 10
H.F. 2617 includes the vehicle identification number and describes all 1 fees assessed when a vehicle is reclaimed. A garagekeeper 2 shall accept payment by credit card, subject to a card-use 3 surcharge, if applicable, in addition to other forms of 4 payment. A garagekeeper that has custody of an abandoned 5 vehicle shall not charge a storage fee for a day that the 6 garagekeeper is not open. 7 4. Personal property retrieval. The registered owner of 8 an abandoned vehicle may retrieve personal property only once 9 while a garagekeeper has custody of the owner’s vehicle and 10 only during the normal business hours of the garagekeeper. 11 The registered owner must provide the garagekeeper a written 12 list of the personal property that is inside the vehicle and 13 the garagekeeper shall gather the listed personal property 14 from inside the vehicle and hand the personal property to the 15 registered owner. Alternatively, a garagekeeper may, at its 16 discretion, allow the registered owner to directly retrieve 17 personal property from the vehicle. Retrieving personal 18 property does not constitute reclaiming the vehicle. 19 5. Inspection. A lienholder who receives notice under 20 subsection 2 may inspect the condition of an impounded vehicle. 21 A garagekeeper may charge a lienholder a fee not to exceed one 22 hundred dollars to inspect the vehicle. If such a request is 23 made and when the fee is paid, the garagekeeper shall allow 24 a representative of the lienholder onto the garagekeeper’s 25 premises to inspect the vehicle, subject to safety and security 26 procedures established by the garagekeeper for the area where 27 vehicles are stored. 28 6. Recordkeeping. A garagekeeper shall keep a record of 29 the relevant details of each abandoned vehicle the garagekeeper 30 towed or impounded for at least three years after the vehicle 31 was reclaimed or sold. 32 7. Limited liability. An owner, lienholder, or other 33 claimant of an abandoned vehicle shall not have a cause of 34 action against a garagekeeper for action taken pursuant to this 35 -4- HF 2617 (2) 91 th/ns/md 4/ 10
H.F. 2617 section if the garagekeeper provided notice in accordance with 1 subsection 2, paragraphs “a” through “c” . 2 8. Failure to act. If a person who received notice did not 3 ask for a hearing, reclaim an abandoned vehicle, or retrieve 4 personal property within the twenty-day reclaiming period, the 5 person forfeits ownership of the vehicle and a court shall not 6 recognize the person’s title, right, claim, or interest in the 7 abandoned vehicle, or personal property inside the vehicle. 8 9. Vehicles sold for highway use. 9 a. If an abandoned vehicle has not been reclaimed, the 10 person who impounded the vehicle shall make a determination as 11 to whether the vehicle will be sold for use upon the highways. 12 If the vehicle is sold for use upon the highways, the vehicle 13 shall be sold at a public auction. 14 b. The purchaser of an abandoned vehicle sold at a public 15 auction takes title free and clear of all liens and claims of 16 ownership and is entitled to register the vehicle and receive 17 a certificate of title. The person who impounded the vehicle 18 shall provide a sales receipt to the purchaser. 19 10. Vehicles sold for junk or scrap. 20 a. If an abandoned vehicle has not been reclaimed and is not 21 sold at public auction for use upon the highways, it shall be 22 sold for junk, or demolished and sold as scrap. 23 b. The purchaser of an abandoned vehicle sold for junk or 24 scrap takes title free and clear of all liens and claims of 25 ownership. The person who impounded the vehicle shall provide 26 a sales receipt to the purchaser. 27 c. If the vehicle is sold to a demolisher for junk, the 28 demolisher shall make application for a junking certificate 29 to the county treasurer within thirty days of purchase and 30 shall surrender the sales receipt in lieu of the certificate of 31 title. 32 11. Sale proceeds. 33 a. If a police authority did not hire a garagekeeper, the 34 police authority shall reimburse itself from the proceeds 35 -5- HF 2617 (2) 91 th/ns/md 5/ 10
H.F. 2617 of the sale of an abandoned vehicle. Except for costs of 1 bookkeeping and other administrative costs, the police 2 authority may retain proceeds from the sale for expenses 3 incurred, including but not limited to expenses for any of the 4 following: 5 (1) The public auction. 6 (2) Towing the vehicle. 7 (3) Impounding the vehicle. 8 (4) Giving notice pursuant to subsection 2. 9 (5) Inspecting the vehicle. 10 b. Any remainder from the proceeds of a sale shall be 11 deposited in the road use tax fund. 12 c. If the proceeds from a sale of an abandoned vehicle 13 are insufficient to cover the incurred expenses, the police 14 authority shall be paid from the road use tax fund. The last 15 owner of the vehicle is liable for reimbursing the road use tax 16 fund, including jointly and severally if there was more than 17 one owner. 18 d. If a garagekeeper sells an abandoned vehicle at a public 19 auction, the garagekeeper may retain all proceeds from the 20 sale. 21 e. The department shall adopt rules pursuant to chapter 22 17A providing a claims process for a police authority to 23 obtain moneys from the road use tax fund to cover expenses 24 incurred, including expenses owed to a garagekeeper hired by 25 a police authority to tow and impound an abandoned vehicle. 26 If a garagekeeper was hired by a police authority, the 27 police authority shall file a claim with the department for 28 reimbursement of towing fees which shall be paid from the road 29 use tax fund. 30 12. Definitions. As used in this section, and sections 31 321.90 and 321.91: 32 a. “Abandoned vehicle” means any of the following: 33 (1) A vehicle that has been left unattended on public 34 property for more than twenty-four hours and lacks current 35 -6- HF 2617 (2) 91 th/ns/md 6/ 10
H.F. 2617 registration plates or two or more wheels or other parts which 1 render the vehicle totally inoperable. 2 (2) A vehicle that has remained illegally on public property 3 for more than twenty-four hours. 4 (3) A vehicle that has been illegally parked on private 5 property or has been placed on private property without the 6 consent of the owner or person in control of the property for 7 more than twenty-four hours. 8 (4) A vehicle that has been legally impounded by order of 9 a police authority and has not been reclaimed for a period 10 of ten days. However, a police authority may declare the 11 vehicle abandoned within the ten-day period by commencing the 12 notification process in subsection 2. 13 (5) A vehicle parked on a highway determined by a police 14 authority to create a hazard to other vehicle traffic. 15 (6) A vehicle that has been impounded pursuant to section 16 321J.4B by order of a court and the vehicle owner has not paid 17 the impoundment fees after notification by the person or agency 18 responsible for impounding the vehicle. 19 b. “Demolisher” means a person licensed under chapter 321H 20 whose business it is to convert a vehicle to junk, processed 21 scrap, or scrap metal, or otherwise to wreck or dismantle 22 vehicles. 23 c. “Garagekeeper” means any operator of a parking place or 24 establishment, motor vehicle storage facility, or establishment 25 for the servicing, repair, or maintenance of motor vehicles. 26 d. “Personal property” means property that is located inside 27 an abandoned vehicle and not attached to the vehicle. 28 e. “Police authority” means the state patrol, any law 29 enforcement agency of a county or city, or any special security 30 officer employed by the state board of regents under section 31 262.13. 32 Sec. 3. Section 321.90, subsection 1, Code 2026, is amended 33 to read as follows: 34 1. Garagekeepers and abandoned motor vehicles. Any motor 35 -7- HF 2617 (2) 91 th/ns/md 7/ 10
H.F. 2617 vehicle left in a garage operated for commercial purposes 1 after the period for which the vehicle was to remain on the 2 premises shall, after notice by certified mail to the last 3 known registered owner of the vehicle addressed to the owner’s 4 last known address of record to reclaim the vehicle within 5 ten days of the date of the notice, be deemed an abandoned 6 motor vehicle unless reclaimed by the owner within such ten-day 7 period or the owner notifies the garagekeeper in writing within 8 such period of time that such vehicle is not an abandoned motor 9 vehicle and shall be reported by the garagekeeper to the police 10 authority. If the identity or address of the last registered 11 owner of the motor vehicle cannot be determined, the vehicle 12 shall be deemed an abandoned motor vehicle on the eleventh 13 day after the period for which the vehicle was to remain on 14 the premises unless reclaimed by the owner within the ten-day 15 period or the owner notifies the garagekeeper in writing within 16 such period of time that such vehicle is not an abandoned motor 17 vehicle and shall be reported by the garagekeeper to the police 18 authority. All abandoned motor vehicles left in garages may 19 be taken into custody by a police authority upon the request 20 of the garagekeeper and sold in accordance with the procedures 21 set forth in section 321.89, subsection 5, unless the motor 22 vehicle is reclaimed. The proceeds of the sale shall be first 23 applied to the garagekeeper’s charges for towing and storage, 24 and any surplus proceeds shall be distributed in accordance 25 with section 321.89 , subsection 5 . Nothing in this section 26 shall be construed to impair any lien of a garagekeeper under 27 the laws of this state, or the right of a garagekeeper to 28 foreclose the garagekeeper’s lien, provided that a garagekeeper 29 shall be deemed to have abandoned the garagekeeper’s artisan 30 lien when such vehicle is taken into custody by the police 31 authority. For the purposes of this section “garagekeeper” 32 means any operator of a parking place or establishment, motor 33 vehicle storage facility, or establishment for the servicing, 34 repair, or maintenance of motor vehicles. 35 -8- HF 2617 (2) 91 th/ns/md 8/ 10
H.F. 2617 Sec. 4. Section 321.90, subsection 2, paragraphs c, d, e, 1 and g, Code 2026, are amended to read as follows: 2 c. If the police authority finds that the application is 3 executed in proper form, and shows that the motor vehicle 4 has been abandoned upon the property of the applicant, or if 5 it shows that the motor vehicle is not abandoned but that 6 the applicant appears to be the rightful owner, the police 7 authority shall follow appropriate notification procedures 8 as set forth in section 321.89, subsection 3, except that in 9 the case of an order for disposal obtained pursuant to section 10 555B.8, subsection 3 , no notification is required. 11 d. If the abandoned motor vehicle is not reclaimed in 12 accordance with section 321.89, subsection 3, or no lienholder 13 objects to the disposal in the case of an owner-applicant, 14 the police authority shall give the applicant a certificate 15 of authority allowing the applicant to obtain a junking 16 certificate for the motor vehicle. The applicant shall make 17 application for a junking certificate to the county treasurer 18 within thirty days of receipt of the certificate of authority 19 and surrender the certificate of authority in lieu of the 20 certificate of title. The demolisher shall accept the junking 21 certificate in lieu of the certificate of title to the motor 22 vehicle. 23 e. Notwithstanding any other provisions of this section and 24 sections 321.89 and 321.91 , any person, firm, corporation, or 25 unit of government upon whose property or in whose possession 26 is found any abandoned motor vehicle, or any person being 27 the owner of a motor vehicle whose title certificate is 28 faulty, lost, or destroyed, may dispose of such motor vehicle 29 to a demolisher for junk without a title and without the 30 notification procedures of section 321.89, subsection 3, if the 31 motor vehicle lacks an engine or two or more wheels or other 32 structural part which renders the vehicle totally inoperable. 33 The police authority shall give the applicant a certificate 34 of authority. The owner shall apply to the county treasurer 35 -9- HF 2617 (2) 91 th/ns/md 9/ 10
H.F. 2617 for a junking certificate within thirty days of receipt of the 1 certificate of authority and shall surrender the certificate of 2 authority in lieu of the certificate of title. 3 g. Any proceeds from the sale of an abandoned motor vehicle 4 to a demolisher under this section , by one other than the 5 owner of the vehicle, except the sale of a vehicle pursuant 6 to an order for disposal obtained pursuant to section 555B.8, 7 subsection 3 , shall first be applied to that person’s expenses 8 in effecting the sale, including storage, towing, and disposal 9 charges, and any surplus shall be distributed in accordance 10 with section 321.89 , subsection 5 . The proceeds from the sale 11 of a vehicle disposed of pursuant to section 555B.8, subsection 12 3 , shall be distributed in accordance with section 555B.9 . 13 -10- HF 2617 (2) 91 th/ns/md 10/ 10