HF 2617 (LSB 6034HV (2) 91)

HOUSE FILE 2617

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO HSB 667)

(As Amended and Passed by the House 2026-03-04)

A BILL FOR

An Act relating to abandoned vehicles.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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