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Senate Study Bill 1139 - IntroducedA Bill ForAn Act 1relating to record retention and reporting by licensed
2vehicle recyclers, demolishers, salvage and junk yards,
3and the department of transportation’s authorized data
4consolidator, establishing fees, and providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.1, Code 2017, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 5A. “Authorized data consolidator” means
4the third party approved by the United States department of
5justice to act as a third party data consolidator for the
6national motor vehicle title information system that has
7contracted with the department to act as the department’s
8authorized data consolidator for the administration of section
9321.52B.
10 NEW SUBSECTION. 44A. “National motor vehicle title
11information system” means as defined in section 321H.2.
12 Sec. 2. Section 321.45, subsection 2, paragraph a,
13subparagraph (5), Code 2017, is amended to read as follows:
14(5) The vehicle is disposed of pursuant to section 321.52,
15subsection 2, paragraph “b”, subparagraph (2).
16 Sec. 3. Section 321.52, subsection 2, paragraph a, Code
172017, is amended to read as follows:
18a. The Except as provided in paragraph “b”, the purchaser
19or transferee of a motor vehicle subject to registration
20for which a certificate of title is issued which is sold
21for scrap or junk shall surrender the certificate of title,
22properly endorsed and signed by the previous owner, to the
23county treasurer of the county of residence of the transferee,
24and shall apply for a junking certificate from the county
25treasurer, within thirty days after assignment of the
26certificate of title, except when the vehicle is disposed of
27pursuant to paragraph “b”. The county treasurer shall issue
28to such person without fee a junking certificate. A junking
29certificate shall authorize the holder to possess, transport,
30or transfer by endorsement the ownership of the junked vehicle.
31A certificate of title shall not again be issued for the
32vehicle subsequent to the issuance of a junking certificate
33except as provided in subsection 3. The county treasurer shall
34cancel the record of the vehicle. The junking certificate
35shall be printed on the registration receipt form and shall be
-1-1imprinted with the words “junking certificate”, as prescribed
2by the department. A space for transfer by endorsement
3shall be on the junking certificate. A separate form for the
4notation of the transfer of component parts shall be attached
5to the junking certificate when the certificate is issued.
6 Sec. 4. Section 321.52, subsection 2, paragraph b, Code
72017, is amended by striking the paragraph and inserting in
8lieu thereof the following:
9b. (1) If a motor vehicle with a salvage certificate of
10title, rebuilt certificate of title, or junking certificate is
11sold for scrap or junk to a vehicle recycler licensed under
12chapter 321H, the vehicle recycler shall obtain the vehicle’s
13certificate of title or junking certificate, properly endorsed
14and signed by the previous owner, and the seller’s unique
15number issued to the seller through the national motor vehicle
16title information system, or if the seller has not been issued
17such a number, a copy of the seller’s driver’s license or
18nonoperator’s identification card, and within two business days
19shall report the purchase of the vehicle to the authorized data
20consolidator.
21(2) If a motor vehicle without a certificate of title or
22junking certificate is sold for scrap or junk to a vehicle
23recycler licensed under chapter 321H, and the vehicle is
24twelve model years old or older and is acquired by the vehicle
25recycler for reasonable consideration equaling less than
26one thousand dollars, the vehicle recycler and the seller
27shall complete a derelict affidavit form created by the
28department. The vehicle recycler shall retain the form along
29with the seller’s unique number issued to the seller through
30the national motor vehicle title information system, or if
31the seller has not been issued such a number, a copy of the
32seller’s driver’s license or nonoperator’s identification card,
33and within two business days shall report the purchase of the
34vehicle to the authorized data consolidator.
35(3) When the department receives information through the
-2-1authorized data consolidator that a motor vehicle has been
2purchased by a vehicle recycler in a manner described in this
3paragraph “b”, the department shall designate the electronic
4record of the vehicle’s certificate of title as “JUNKED” and
5shall cancel the record of the vehicle. A certificate of title
6shall not again be issued for the vehicle subsequent to the
7department designating the vehicle as “JUNKED” and cancelling
8the record of the vehicle.
9 Sec. 5. Section 321.52, subsection 4, paragraph a, Code
102017, is amended to read as follows:
11a. A vehicle rebuilder or a person engaged in the business
12of buying, selling, or exchanging vehicles of a type required
13to be registered in this state, upon acquisition of a wrecked
14or salvage vehicle, shall surrender the certificate of
15title or manufacturer’s or importer’s statement of origin
16properly assigned, together with an application for a salvage
17certificate of title, to the county treasurer of the county of
18residence of the purchaser or transferee within thirty days
19after the date of assignment of the certificate of title for
20the wrecked or salvage motor vehicle. If the vehicle rebuilder
21or person acquiring the vehicle is subject to the requirements
22of 28 C.F.R. §25.56, the vehicle rebuilder or person shall
23obtain the seller’s unique number issued to the seller through
24the national motor vehicle title information system, or if
25the seller has not been issued such a number, a copy of the
26seller’s driver’s license or nonoperator’s identification card,
27and within two business days shall report the purchase of the
28vehicle to the authorized data consolidator. This subsection
29applies only to vehicles with a fair market value of five
30hundred dollars or more, based on the value before the vehicle
31became wrecked or salvage. Upon payment of a fee of ten
32dollars, the county treasurer shall issue a salvage certificate
33of title which shall bear the word “SALVAGE” stamped or
34printed on the face of the title in a manner prescribed by the
35department. A salvage certificate of title may be assigned
-3-1to an educational institution, a new motor vehicle dealer
2licensed under chapter 322, a person engaged in the business
3of purchasing bodies, parts of bodies, frames or component
4parts of vehicles for sale as scrap metal, a salvage pool, or
5an authorized vehicle recycler licensed under chapter 321H. An
6authorized vehicle recycler licensed under chapter 321H or a
7new motor vehicle dealer licensed under chapter 322 may assign
8or reassign an Iowa salvage certificate of title or a salvage
9certificate of title from another state to any person, and the
10provisions of section 321.24, subsection 5, requiring issuance
11of an Iowa salvage certificate of title shall not apply. A
12vehicle on which ownership has transferred to an insurer of
13the vehicle as a result of a settlement with the owner of the
14vehicle arising out of damage to, or unrecovered theft of, the
15vehicle shall be deemed to be a wrecked or salvage vehicle
16and the insurer shall comply with this subsection to obtain a
17salvage certificate of title within thirty days after the date
18of assignment of the certificate of title of the vehicle.
19 Sec. 6. NEW SECTION. 321.52B Authorized data consolidator
20— record retention — national motor vehicle title information
21system.
221. The department shall contract with a third party to
23act as the department’s authorized data consolidator for the
24administration of this section. The department shall follow
25the competitive bidding procedures as provided in chapter
268A, subchapter III. The third party shall be approved by
27the United States department of justice to act as a third
28party data consolidator for the national motor vehicle
29title information system. The third party may charge a fee
30for any service provided pursuant to this section to any
31nongovernmental entity or person not seeking such services on
32behalf of a governmental entity.
332. A person subject to the requirements of 28 C.F.R. §25.56
34that sells a motor vehicle with a salvage certificate of title
35or junking certificate shall retain for three years after
-4-1the sale of the vehicle an electronic record of all of the
2following:
3a. The vehicle’s make, model, model year, vehicle
4identification number, and, if available, current odometer
5reading.
6b. The name and address of the purchaser.
7c. The purchaser’s unique number issued to the purchaser
8through the national motor vehicle title information system,
9or if the purchaser has not been issued such a number, the
10purchaser’s driver’s license or nonoperator’s identification
11card number.
123. A person required to retain information under subsection
132 shall report the information retained to the authorized data
14consolidator within seven business days after the date on which
15the sale of the vehicle occurred.
164. Within two business days after the date on which the
17authorized data consolidator receives information pursuant to
18subsection 3 or section 321.52 or 321H.4A, the authorized data
19consolidator shall report the information to the department
20and to the national motor vehicle title information system.
21The authorized data consolidator shall also verify whether the
22vehicle purchased or sold is designated as an active stolen
23vehicle in the federal bureau of investigation’s national crime
24information center database. If the vehicle is so designated,
25the authorized data consolidator shall notify the department
26and the person or entity who submitted the information relating
27to the purchase or sale of the vehicle.
285. a. Except as provided in this section, the authorized
29data consolidator shall not release or make available any
30personal information received under this section, including but
31not limited to a person’s name, address, and driver’s license
32or nonoperator’s identification card number.
33b. The authorized data consolidator shall make any
34information received under this section available to the
35department or any law enforcement agency without cost and upon
-5-1request, provided the person requesting the information on
2behalf of the department or a law enforcement agency is acting
3within the scope of the person’s duties.
4c. The authorized data consolidator shall make available
5the make, model, model year, vehicle identification number,
6and, if available, current odometer reading of any vehicle to
7a person or entity approved by the department to receive such
8information from the authorized data consolidator.
96. The authorized data consolidator shall retain for five
10years all of the following information about the sale or
11purchase of a motor vehicle:
12a. A copy of the vehicle’s certificate of title, junking
13certificate, or derelict affidavit form, as applicable.
14b. The vehicle’s make, model, model year, vehicle
15identification number, and, if available, current odometer
16reading.
17c. The name and address of the purchaser and the seller.
18d. The purchaser’s and seller’s unique numbers issued to
19the purchaser and seller through the national motor vehicle
20title information system, or if the purchaser or seller has not
21been issued such a number, the purchaser’s or seller’s driver’s
22license or nonoperator’s identification card number.
237. The department shall impose a civil penalty in the amount
24of one thousand dollars per transaction on a person or on the
25authorized data consolidator for a violation of this section.
26 Sec. 7. Section 321.67, Code 2017, is amended to read as
27follows:
28321.67 Certificate of title must be executed.
291. No person, except as provided in sections 321.23
30and 321.45, and section 321.52, subsection 2, paragraph
31“b”, subparagraph (2), shall sell or otherwise dispose of a
32registered vehicle or a vehicle subject to registration without
33delivering to the purchaser or transferee thereof a certificate
34of title with such assignment thereon as may be necessary to
35show title in the purchaser.
-6- 12. No person shall purchase or otherwise acquire or bring
2into this state a registered vehicle or a vehicle subject to
3registration without obtaining a certificate of title thereto
4except for temporary use or as provided in sections 321.23
5and 321.45, and section 321.52, subsection 2, paragraph “b”,
6subparagraph (2).
7 Sec. 8. Section 321.89, subsection 4, paragraph a, Code
82017, is amended to read as follows:
9a. If an abandoned vehicle has not been reclaimed as
10provided for in subsection 3, the police authority or private
11entity shall make a determination as to whether or not the
12vehicle shall be sold for use upon the highways. If the
13vehicle is not sold for use upon the highways, it shall be
14sold for junk, or demolished and sold as scrap. The police
15authority or private entity shall sell the vehicle at public
16auction. Notwithstanding any other provision of this section,
17a police authority or private entity may dispose of the
18vehicle to a demolisher for junk without public auction after
19complying with the notification procedures in subsection 3.
20The purchaser of the vehicle takes title free and clear of all
21liens and claims of ownership, shall receive a sales receipt
22from the police authority or private entity, and is entitled
23to register the vehicle and receive a certificate of title if
24sold for use upon the highways. If the vehicle is sold or
25disposed of to a demolisher for junk, the demolisher shall make
26application for a junking certificate to the county treasurer
27within thirty days of purchase or follow the procedures set
28forth in section 321.52, subsection 2, paragraph “b”, and shall
29surrender the sales receipt in lieu of the certificate of
30title.
31 Sec. 9. Section 321.90, subsection 3, Code 2017, is amended
32to read as follows:
333. Duties of demolishers.
34a. Any demolisher who purchases or otherwise acquires an
35abandoned motor vehicle for junk under the provisions of this
-7-1section shall junk, scrap, wreck, dismantle, or demolish such
2motor vehicle. A demolisher shall not junk, scrap, wreck,
3dismantle, or demolish a vehicle until the demolisher has
4obtained the junking certificate issued for the vehicle or has
5followed the procedures set forth in section 321.52, subsection
62, paragraph “b”.
7b. A demolisher shall keep an accurate and complete record
8of all motor vehicles purchased or received by the demolisher
9in the course of the demolisher’s business. These records
10shall contain the name and address of the person from whom
11each motor vehicle was purchased or received and the date when
12the purchases or receipts occurred. The records shall be open
13for inspection by any police authority at any time during
14normal business hours. Any record required by this section
15 shall be kept by the demolisher for at least one year after
16the transaction to which it applies comply with the record
17retention and reporting requirements applicable to licensed
18vehicle recyclers set forth in sections 321.52, 321.52B, and
19321H.4A.
20 Sec. 10. Section 321.104, subsection 4, Code 2017, is
21amended to read as follows:
224. To sell, offer for sale, or transfer a motor vehicle,
23trailer, or semitrailer, except as provided in section 321.47
24or 321.48, or section 321.52, subsection 2, paragraph “b”,
25subparagraph (2), without obtaining a certificate of title in
26the name of the seller or transferor or without delivering
27to the purchaser or transferee a certificate of title or a
28manufacturer’s or importer’s certificate duly assigned to the
29purchaser or transferee as provided in this chapter.
30 Sec. 11. Section 321H.4, subsection 2, paragraph a, Code
312017, is amended to read as follows:
32a. Application for a license as an authorized vehicle
33recycler shall be made to the department on forms provided
34by the department. The application shall be accompanied
35by a fee of seventy two hundred dollars for a two-year
-8-1period or part thereof and proof of registration with the
2national motor vehicle title information system. The license
3shall be approved or disapproved within thirty days after
4application for the license. A license expires on December 31
5of even-numbered years. A licensee shall have the month of
6expiration and the month after the month of expiration to renew
7the license. A person who fails to renew a license by the end
8of this time period and desires to hold a license shall file a
9new license application and pay the required fee. A separate
10license shall be obtained for each county in which an applicant
11conducts operations.
12 Sec. 12. Section 321H.4A, subsection 2, Code 2017, is
13amended to read as follows:
142. a. Except as provided in paragraph “b”, for For any
15vehicle subject to registration under chapter 321 purchased
16by a vehicle recycler licensed under this chapter and subject
17to the requirements of 28 C.F.R.§25.56, the vehicle recycler
18shall comply with the reporting requirements of 28 C.F.R.
19§25.56 by reporting the required information to the authorized
20data consolidator, as defined in section 321.1, within two
21business days of purchasing the vehicle. Records of the
22vehicle recycler’s compliance shall be kept by the vehicle
23recycler for at least three years after the purchase of the
24vehicle, and shall be open for inspection by any peace officer
25during normal business hours. The department shall adopt rules
26to implement this section, including but not limited to rules
27requiring the submission and retention of records not required
28by 28 C.F.R.§25.56.
29b. Paragraph “a” does not apply to a vehicle that has
30been crushed or flattened by mechanical means in such a way
31that it no longer resembles the vehicle described by the
32certificate of title if the vehicle recycler who purchased the
33vehicle verifies that the seller of the vehicle has met the
34requirements of paragraph “a”. The department shall adopt rules
35relating to the form of the verification, and the manner in
-9-1which the verification shall be retained.
2 Sec. 13. Section 321H.4A, Code 2017, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 3. Upon receipt of a notification pursuant
5to section 321.52B, subsection 4, that a motor vehicle
6purchased by the vehicle recycler is designated as an active
7stolen vehicle in the federal bureau of investigation’s
8national crime information center database, the vehicle
9recycler shall notify the vehicle recycler’s local law
10enforcement agency and secure the vehicle until the vehicle is
11removed by a law enforcement agency, returned to the rightful
12owner, or the designation in the national crime information
13center database has been removed.
14 Sec. 14. Section 321H.7, Code 2017, is amended to read as
15follows:
16321H.7 Fees.
17All fees of whatever character accruing from the
18administration of this chapter shall be accounted for and
19paid by the department into the state treasury monthly and
20shall be credited to the road use tax fund, except that one
21hundred thirty dollars of each license fee collected pursuant
22to section 321H.4 shall be retained by the department and
23allocated for the administration of section 321.52B.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill requires the department of transportation (DOT)
28to contract with a third party to act as the DOT’s authorized
29data consolidator using the current procedures for competitive
30bidding. The third party must be approved by the United States
31department of justice to act as a third party data consolidator
32for the national motor vehicle title information system
33(NMVTIS). The bill permits the third party to charge a fee
34for any service provided under the bill to any nongovernmental
35entity or person not seeking such services on behalf of a
-10-1governmental entity.
2The bill requires a person subject to federal NMVTIS
3reporting requirements who sells a motor vehicle with a salvage
4certificate of title or junking certificate to retain certain
5information regarding the sale for three years after the sale
6of the vehicle and to report the information to the authorized
7data consolidator within seven business days after the date on
8which the sale of the vehicle occurred.
9Upon receiving the information, the bill requires the
10authorized data consolidator to report the information received
11to the DOT and to NMVTIS within two business days after
12the date on which the authorized data consolidator receives
13the information. The bill requires the authorized data
14consolidator to also verify whether the vehicle purchased or
15sold is designated as an active stolen vehicle in the federal
16bureau of investigation’s national crime information center
17database. If the vehicle is so designated, the authorized
18data consolidator must notify the DOT and the person or entity
19who submitted the information relating to the purchase or
20sale of the vehicle. The bill requires the authorized data
21consolidator to retain the information received for five years.
22The bill prohibits the authorized data consolidator from
23releasing or making available any personal information received
24under the bill. However, the authorized data consolidator must
25make any information received available to the DOT or any law
26enforcement agency without cost and upon request. The bill
27permits the authorized data consolidator to make available the
28make, model, model year, vehicle identification number, and, if
29available, current odometer reading of any vehicle to a person
30or entity approved by the DOT.
31The bill provides that the DOT shall impose a civil penalty
32in the amount of $1,000 per transaction on a person or on
33the authorized data consolidator for a violation of these
34provisions of the bill.
35Under current law, the purchaser or transferee of a vehicle
-11-1sold for scrap or junk is required to obtain the vehicle’s
2certificate of title and apply for and be issued a junking
3certificate. However, the owner of a vehicle that does not
4have a certificate of title or a junking certificate may
5dispose of the vehicle to a licensed vehicle recycler for scrap
6or junk if the vehicle is 12 model years old or older and is
7acquired by the vehicle recycler for reasonable consideration
8equaling less than $1,000.
9The bill provides an additional exception to that provision
10and alters the existing exception. If a vehicle with a
11salvage certificate of title, rebuilt certificate of title, or
12junking certificate is sold for scrap or junk to a licensed
13vehicle recycler, the vehicle recycler is required to obtain
14the vehicle’s certificate of title or junking certificate,
15properly endorsed and signed by the previous owner, and the
16seller’s unique number issued to the seller through NMVTIS,
17or if the seller has not been issued such a number, a copy of
18the seller’s driver’s license or nonoperator’s identification
19card, and report within two business days the purchase of the
20vehicle to the authorized data consolidator. If a vehicle
21without a certificate of title or junking certificate is sold
22for scrap or junk to a licensed vehicle recycler, and the
23vehicle is 12 model years old or older and is acquired by the
24vehicle recycler for reasonable consideration equaling less
25than $1,000, the vehicle recycler and the seller must complete
26a derelict affidavit form. The vehicle recycler is required to
27retain the form along with the seller’s unique number issued
28to the seller through NMVTIS, or if the seller has not been
29issued such a number, a copy of the seller’s driver’s license
30or nonoperator’s identification card, and report within two
31business days the purchase of the vehicle to the authorized
32data consolidator. The bill applies these provisions to
33vehicle demolishers that purchase abandoned vehicles. Under
34current law, such demolishers are licensed vehicle recyclers.
35When the DOT receives information through the authorized
-12-1data consolidator that a vehicle has been purchased by a
2vehicle recycler in this manner, the DOT must designate the
3electronic record of the vehicle’s certificate of title as
4“JUNKED” and cancel the record of the vehicle. A certificate
5of title shall not again be issued for the vehicle afer the DOT
6designates the vehicle as “JUNKED” and cancels the record of
7the vehicle.
8The bill further requires a vehicle rebuilder or person
9acquiring a vehicle who is subject to federal NMVTIS reporting
10requirements to obtain the seller’s unique number issued to the
11seller through NMVTIS, or if the seller has not been issued
12such a number, a copy of the seller’s driver’s license or
13nonoperator’s identification card, and to report within two
14business days the purchase of the vehicle to the authorized
15data consolidator.
16The bill increases the biannual fee for a vehicle recycler
17license from $70 to $200, and provides that $130 of each
18license fee shall be used by the DOT to administer the
19provisions of the bill relating to the authorized data
20consolidator. The bill requires licensed vehicle recyclers
21to make required NMVTIS reports to the authorized data
22consolidator, and eliminates the existing exception for
23seller-reported purchases. A vehicle recycler who is notified
24that a vehicle purchased by the vehicle recycler is designated
25as an active stolen vehicle must notify the vehicle recycler’s
26local law enforcement agency and secure the vehicle until the
27vehicle is removed by a law enforcement agency, returned to
28the rightful owner, or the designation has been removed. By
29operation of law, a violation of these provisions is a simple
30misdemeanor punishable by a fine of not less than $250 nor more
31than $1,500 or by imprisonment not to exceed 30 days.
-13-ns/nh
2vehicle recyclers, demolishers, salvage and junk yards,
3and the department of transportation’s authorized data
4consolidator, establishing fees, and providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.1, Code 2017, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 5A. “Authorized data consolidator” means
4the third party approved by the United States department of
5justice to act as a third party data consolidator for the
6national motor vehicle title information system that has
7contracted with the department to act as the department’s
8authorized data consolidator for the administration of section
9321.52B.
10 NEW SUBSECTION. 44A. “National motor vehicle title
11information system” means as defined in section 321H.2.
12 Sec. 2. Section 321.45, subsection 2, paragraph a,
13subparagraph (5), Code 2017, is amended to read as follows:
14(5) The vehicle is disposed of pursuant to section 321.52,
15subsection 2, paragraph “b”, subparagraph (2).
16 Sec. 3. Section 321.52, subsection 2, paragraph a, Code
172017, is amended to read as follows:
18a. The Except as provided in paragraph “b”, the purchaser
19or transferee of a motor vehicle subject to registration
20for which a certificate of title is issued which is sold
21for scrap or junk shall surrender the certificate of title,
22properly endorsed and signed by the previous owner, to the
23county treasurer of the county of residence of the transferee,
24and shall apply for a junking certificate from the county
25treasurer, within thirty days after assignment of the
26certificate of title, except when the vehicle is disposed of
27pursuant to paragraph “b”. The county treasurer shall issue
28to such person without fee a junking certificate. A junking
29certificate shall authorize the holder to possess, transport,
30or transfer by endorsement the ownership of the junked vehicle.
31A certificate of title shall not again be issued for the
32vehicle subsequent to the issuance of a junking certificate
33except as provided in subsection 3. The county treasurer shall
34cancel the record of the vehicle. The junking certificate
35shall be printed on the registration receipt form and shall be
-1-1imprinted with the words “junking certificate”, as prescribed
2by the department. A space for transfer by endorsement
3shall be on the junking certificate. A separate form for the
4notation of the transfer of component parts shall be attached
5to the junking certificate when the certificate is issued.
6 Sec. 4. Section 321.52, subsection 2, paragraph b, Code
72017, is amended by striking the paragraph and inserting in
8lieu thereof the following:
9b. (1) If a motor vehicle with a salvage certificate of
10title, rebuilt certificate of title, or junking certificate is
11sold for scrap or junk to a vehicle recycler licensed under
12chapter 321H, the vehicle recycler shall obtain the vehicle’s
13certificate of title or junking certificate, properly endorsed
14and signed by the previous owner, and the seller’s unique
15number issued to the seller through the national motor vehicle
16title information system, or if the seller has not been issued
17such a number, a copy of the seller’s driver’s license or
18nonoperator’s identification card, and within two business days
19shall report the purchase of the vehicle to the authorized data
20consolidator.
21(2) If a motor vehicle without a certificate of title or
22junking certificate is sold for scrap or junk to a vehicle
23recycler licensed under chapter 321H, and the vehicle is
24twelve model years old or older and is acquired by the vehicle
25recycler for reasonable consideration equaling less than
26one thousand dollars, the vehicle recycler and the seller
27shall complete a derelict affidavit form created by the
28department. The vehicle recycler shall retain the form along
29with the seller’s unique number issued to the seller through
30the national motor vehicle title information system, or if
31the seller has not been issued such a number, a copy of the
32seller’s driver’s license or nonoperator’s identification card,
33and within two business days shall report the purchase of the
34vehicle to the authorized data consolidator.
35(3) When the department receives information through the
-2-1authorized data consolidator that a motor vehicle has been
2purchased by a vehicle recycler in a manner described in this
3paragraph “b”, the department shall designate the electronic
4record of the vehicle’s certificate of title as “JUNKED” and
5shall cancel the record of the vehicle. A certificate of title
6shall not again be issued for the vehicle subsequent to the
7department designating the vehicle as “JUNKED” and cancelling
8the record of the vehicle.
9 Sec. 5. Section 321.52, subsection 4, paragraph a, Code
102017, is amended to read as follows:
11a. A vehicle rebuilder or a person engaged in the business
12of buying, selling, or exchanging vehicles of a type required
13to be registered in this state, upon acquisition of a wrecked
14or salvage vehicle, shall surrender the certificate of
15title or manufacturer’s or importer’s statement of origin
16properly assigned, together with an application for a salvage
17certificate of title, to the county treasurer of the county of
18residence of the purchaser or transferee within thirty days
19after the date of assignment of the certificate of title for
20the wrecked or salvage motor vehicle. If the vehicle rebuilder
21or person acquiring the vehicle is subject to the requirements
22of 28 C.F.R. §25.56, the vehicle rebuilder or person shall
23obtain the seller’s unique number issued to the seller through
24the national motor vehicle title information system, or if
25the seller has not been issued such a number, a copy of the
26seller’s driver’s license or nonoperator’s identification card,
27and within two business days shall report the purchase of the
28vehicle to the authorized data consolidator. This subsection
29applies only to vehicles with a fair market value of five
30hundred dollars or more, based on the value before the vehicle
31became wrecked or salvage. Upon payment of a fee of ten
32dollars, the county treasurer shall issue a salvage certificate
33of title which shall bear the word “SALVAGE” stamped or
34printed on the face of the title in a manner prescribed by the
35department. A salvage certificate of title may be assigned
-3-1to an educational institution, a new motor vehicle dealer
2licensed under chapter 322, a person engaged in the business
3of purchasing bodies, parts of bodies, frames or component
4parts of vehicles for sale as scrap metal, a salvage pool, or
5an authorized vehicle recycler licensed under chapter 321H. An
6authorized vehicle recycler licensed under chapter 321H or a
7new motor vehicle dealer licensed under chapter 322 may assign
8or reassign an Iowa salvage certificate of title or a salvage
9certificate of title from another state to any person, and the
10provisions of section 321.24, subsection 5, requiring issuance
11of an Iowa salvage certificate of title shall not apply. A
12vehicle on which ownership has transferred to an insurer of
13the vehicle as a result of a settlement with the owner of the
14vehicle arising out of damage to, or unrecovered theft of, the
15vehicle shall be deemed to be a wrecked or salvage vehicle
16and the insurer shall comply with this subsection to obtain a
17salvage certificate of title within thirty days after the date
18of assignment of the certificate of title of the vehicle.
19 Sec. 6. NEW SECTION. 321.52B Authorized data consolidator
20— record retention — national motor vehicle title information
21system.
221. The department shall contract with a third party to
23act as the department’s authorized data consolidator for the
24administration of this section. The department shall follow
25the competitive bidding procedures as provided in chapter
268A, subchapter III. The third party shall be approved by
27the United States department of justice to act as a third
28party data consolidator for the national motor vehicle
29title information system. The third party may charge a fee
30for any service provided pursuant to this section to any
31nongovernmental entity or person not seeking such services on
32behalf of a governmental entity.
332. A person subject to the requirements of 28 C.F.R. §25.56
34that sells a motor vehicle with a salvage certificate of title
35or junking certificate shall retain for three years after
-4-1the sale of the vehicle an electronic record of all of the
2following:
3a. The vehicle’s make, model, model year, vehicle
4identification number, and, if available, current odometer
5reading.
6b. The name and address of the purchaser.
7c. The purchaser’s unique number issued to the purchaser
8through the national motor vehicle title information system,
9or if the purchaser has not been issued such a number, the
10purchaser’s driver’s license or nonoperator’s identification
11card number.
123. A person required to retain information under subsection
132 shall report the information retained to the authorized data
14consolidator within seven business days after the date on which
15the sale of the vehicle occurred.
164. Within two business days after the date on which the
17authorized data consolidator receives information pursuant to
18subsection 3 or section 321.52 or 321H.4A, the authorized data
19consolidator shall report the information to the department
20and to the national motor vehicle title information system.
21The authorized data consolidator shall also verify whether the
22vehicle purchased or sold is designated as an active stolen
23vehicle in the federal bureau of investigation’s national crime
24information center database. If the vehicle is so designated,
25the authorized data consolidator shall notify the department
26and the person or entity who submitted the information relating
27to the purchase or sale of the vehicle.
285. a. Except as provided in this section, the authorized
29data consolidator shall not release or make available any
30personal information received under this section, including but
31not limited to a person’s name, address, and driver’s license
32or nonoperator’s identification card number.
33b. The authorized data consolidator shall make any
34information received under this section available to the
35department or any law enforcement agency without cost and upon
-5-1request, provided the person requesting the information on
2behalf of the department or a law enforcement agency is acting
3within the scope of the person’s duties.
4c. The authorized data consolidator shall make available
5the make, model, model year, vehicle identification number,
6and, if available, current odometer reading of any vehicle to
7a person or entity approved by the department to receive such
8information from the authorized data consolidator.
96. The authorized data consolidator shall retain for five
10years all of the following information about the sale or
11purchase of a motor vehicle:
12a. A copy of the vehicle’s certificate of title, junking
13certificate, or derelict affidavit form, as applicable.
14b. The vehicle’s make, model, model year, vehicle
15identification number, and, if available, current odometer
16reading.
17c. The name and address of the purchaser and the seller.
18d. The purchaser’s and seller’s unique numbers issued to
19the purchaser and seller through the national motor vehicle
20title information system, or if the purchaser or seller has not
21been issued such a number, the purchaser’s or seller’s driver’s
22license or nonoperator’s identification card number.
237. The department shall impose a civil penalty in the amount
24of one thousand dollars per transaction on a person or on the
25authorized data consolidator for a violation of this section.
26 Sec. 7. Section 321.67, Code 2017, is amended to read as
27follows:
28321.67 Certificate of title must be executed.
291. No person, except as provided in sections 321.23
30and 321.45, and section 321.52, subsection 2, paragraph
31“b”, subparagraph (2), shall sell or otherwise dispose of a
32registered vehicle or a vehicle subject to registration without
33delivering to the purchaser or transferee thereof a certificate
34of title with such assignment thereon as may be necessary to
35show title in the purchaser.
-6- 12. No person shall purchase or otherwise acquire or bring
2into this state a registered vehicle or a vehicle subject to
3registration without obtaining a certificate of title thereto
4except for temporary use or as provided in sections 321.23
5and 321.45, and section 321.52, subsection 2, paragraph “b”,
6subparagraph (2).
7 Sec. 8. Section 321.89, subsection 4, paragraph a, Code
82017, is amended to read as follows:
9a. If an abandoned vehicle has not been reclaimed as
10provided for in subsection 3, the police authority or private
11entity shall make a determination as to whether or not the
12vehicle shall be sold for use upon the highways. If the
13vehicle is not sold for use upon the highways, it shall be
14sold for junk, or demolished and sold as scrap. The police
15authority or private entity shall sell the vehicle at public
16auction. Notwithstanding any other provision of this section,
17a police authority or private entity may dispose of the
18vehicle to a demolisher for junk without public auction after
19complying with the notification procedures in subsection 3.
20The purchaser of the vehicle takes title free and clear of all
21liens and claims of ownership, shall receive a sales receipt
22from the police authority or private entity, and is entitled
23to register the vehicle and receive a certificate of title if
24sold for use upon the highways. If the vehicle is sold or
25disposed of to a demolisher for junk, the demolisher shall make
26application for a junking certificate to the county treasurer
27within thirty days of purchase or follow the procedures set
28forth in section 321.52, subsection 2, paragraph “b”, and shall
29surrender the sales receipt in lieu of the certificate of
30title.
31 Sec. 9. Section 321.90, subsection 3, Code 2017, is amended
32to read as follows:
333. Duties of demolishers.
34a. Any demolisher who purchases or otherwise acquires an
35abandoned motor vehicle for junk under the provisions of this
-7-1section shall junk, scrap, wreck, dismantle, or demolish such
2motor vehicle. A demolisher shall not junk, scrap, wreck,
3dismantle, or demolish a vehicle until the demolisher has
4obtained the junking certificate issued for the vehicle or has
5followed the procedures set forth in section 321.52, subsection
62, paragraph “b”.
7b. A demolisher shall keep an accurate and complete record
8of all motor vehicles purchased or received by the demolisher
9in the course of the demolisher’s business. These records
10shall contain the name and address of the person from whom
11each motor vehicle was purchased or received and the date when
12the purchases or receipts occurred. The records shall be open
13for inspection by any police authority at any time during
14normal business hours. Any record required by this section
15 shall be kept by the demolisher for at least one year after
16the transaction to which it applies comply with the record
17retention and reporting requirements applicable to licensed
18vehicle recyclers set forth in sections 321.52, 321.52B, and
19321H.4A.
20 Sec. 10. Section 321.104, subsection 4, Code 2017, is
21amended to read as follows:
224. To sell, offer for sale, or transfer a motor vehicle,
23trailer, or semitrailer, except as provided in section 321.47
24or 321.48, or section 321.52, subsection 2, paragraph “b”,
25subparagraph (2), without obtaining a certificate of title in
26the name of the seller or transferor or without delivering
27to the purchaser or transferee a certificate of title or a
28manufacturer’s or importer’s certificate duly assigned to the
29purchaser or transferee as provided in this chapter.
30 Sec. 11. Section 321H.4, subsection 2, paragraph a, Code
312017, is amended to read as follows:
32a. Application for a license as an authorized vehicle
33recycler shall be made to the department on forms provided
34by the department. The application shall be accompanied
35by a fee of seventy two hundred dollars for a two-year
-8-1period or part thereof and proof of registration with the
2national motor vehicle title information system. The license
3shall be approved or disapproved within thirty days after
4application for the license. A license expires on December 31
5of even-numbered years. A licensee shall have the month of
6expiration and the month after the month of expiration to renew
7the license. A person who fails to renew a license by the end
8of this time period and desires to hold a license shall file a
9new license application and pay the required fee. A separate
10license shall be obtained for each county in which an applicant
11conducts operations.
12 Sec. 12. Section 321H.4A, subsection 2, Code 2017, is
13amended to read as follows:
142. a. Except as provided in paragraph “b”, for For any
15vehicle subject to registration under chapter 321 purchased
16by a vehicle recycler licensed under this chapter and subject
17to the requirements of 28 C.F.R.§25.56, the vehicle recycler
18shall comply with the reporting requirements of 28 C.F.R.
19§25.56 by reporting the required information to the authorized
20data consolidator, as defined in section 321.1, within two
21business days of purchasing the vehicle. Records of the
22vehicle recycler’s compliance shall be kept by the vehicle
23recycler for at least three years after the purchase of the
24vehicle, and shall be open for inspection by any peace officer
25during normal business hours. The department shall adopt rules
26to implement this section, including but not limited to rules
27requiring the submission and retention of records not required
28by 28 C.F.R.§25.56.
29b. Paragraph “a” does not apply to a vehicle that has
30been crushed or flattened by mechanical means in such a way
31that it no longer resembles the vehicle described by the
32certificate of title if the vehicle recycler who purchased the
33vehicle verifies that the seller of the vehicle has met the
34requirements of paragraph “a”. The department shall adopt rules
35relating to the form of the verification, and the manner in
-9-1which the verification shall be retained.
2 Sec. 13. Section 321H.4A, Code 2017, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 3. Upon receipt of a notification pursuant
5to section 321.52B, subsection 4, that a motor vehicle
6purchased by the vehicle recycler is designated as an active
7stolen vehicle in the federal bureau of investigation’s
8national crime information center database, the vehicle
9recycler shall notify the vehicle recycler’s local law
10enforcement agency and secure the vehicle until the vehicle is
11removed by a law enforcement agency, returned to the rightful
12owner, or the designation in the national crime information
13center database has been removed.
14 Sec. 14. Section 321H.7, Code 2017, is amended to read as
15follows:
16321H.7 Fees.
17All fees of whatever character accruing from the
18administration of this chapter shall be accounted for and
19paid by the department into the state treasury monthly and
20shall be credited to the road use tax fund, except that one
21hundred thirty dollars of each license fee collected pursuant
22to section 321H.4 shall be retained by the department and
23allocated for the administration of section 321.52B.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill requires the department of transportation (DOT)
28to contract with a third party to act as the DOT’s authorized
29data consolidator using the current procedures for competitive
30bidding. The third party must be approved by the United States
31department of justice to act as a third party data consolidator
32for the national motor vehicle title information system
33(NMVTIS). The bill permits the third party to charge a fee
34for any service provided under the bill to any nongovernmental
35entity or person not seeking such services on behalf of a
-10-1governmental entity.
2The bill requires a person subject to federal NMVTIS
3reporting requirements who sells a motor vehicle with a salvage
4certificate of title or junking certificate to retain certain
5information regarding the sale for three years after the sale
6of the vehicle and to report the information to the authorized
7data consolidator within seven business days after the date on
8which the sale of the vehicle occurred.
9Upon receiving the information, the bill requires the
10authorized data consolidator to report the information received
11to the DOT and to NMVTIS within two business days after
12the date on which the authorized data consolidator receives
13the information. The bill requires the authorized data
14consolidator to also verify whether the vehicle purchased or
15sold is designated as an active stolen vehicle in the federal
16bureau of investigation’s national crime information center
17database. If the vehicle is so designated, the authorized
18data consolidator must notify the DOT and the person or entity
19who submitted the information relating to the purchase or
20sale of the vehicle. The bill requires the authorized data
21consolidator to retain the information received for five years.
22The bill prohibits the authorized data consolidator from
23releasing or making available any personal information received
24under the bill. However, the authorized data consolidator must
25make any information received available to the DOT or any law
26enforcement agency without cost and upon request. The bill
27permits the authorized data consolidator to make available the
28make, model, model year, vehicle identification number, and, if
29available, current odometer reading of any vehicle to a person
30or entity approved by the DOT.
31The bill provides that the DOT shall impose a civil penalty
32in the amount of $1,000 per transaction on a person or on
33the authorized data consolidator for a violation of these
34provisions of the bill.
35Under current law, the purchaser or transferee of a vehicle
-11-1sold for scrap or junk is required to obtain the vehicle’s
2certificate of title and apply for and be issued a junking
3certificate. However, the owner of a vehicle that does not
4have a certificate of title or a junking certificate may
5dispose of the vehicle to a licensed vehicle recycler for scrap
6or junk if the vehicle is 12 model years old or older and is
7acquired by the vehicle recycler for reasonable consideration
8equaling less than $1,000.
9The bill provides an additional exception to that provision
10and alters the existing exception. If a vehicle with a
11salvage certificate of title, rebuilt certificate of title, or
12junking certificate is sold for scrap or junk to a licensed
13vehicle recycler, the vehicle recycler is required to obtain
14the vehicle’s certificate of title or junking certificate,
15properly endorsed and signed by the previous owner, and the
16seller’s unique number issued to the seller through NMVTIS,
17or if the seller has not been issued such a number, a copy of
18the seller’s driver’s license or nonoperator’s identification
19card, and report within two business days the purchase of the
20vehicle to the authorized data consolidator. If a vehicle
21without a certificate of title or junking certificate is sold
22for scrap or junk to a licensed vehicle recycler, and the
23vehicle is 12 model years old or older and is acquired by the
24vehicle recycler for reasonable consideration equaling less
25than $1,000, the vehicle recycler and the seller must complete
26a derelict affidavit form. The vehicle recycler is required to
27retain the form along with the seller’s unique number issued
28to the seller through NMVTIS, or if the seller has not been
29issued such a number, a copy of the seller’s driver’s license
30or nonoperator’s identification card, and report within two
31business days the purchase of the vehicle to the authorized
32data consolidator. The bill applies these provisions to
33vehicle demolishers that purchase abandoned vehicles. Under
34current law, such demolishers are licensed vehicle recyclers.
35When the DOT receives information through the authorized
-12-1data consolidator that a vehicle has been purchased by a
2vehicle recycler in this manner, the DOT must designate the
3electronic record of the vehicle’s certificate of title as
4“JUNKED” and cancel the record of the vehicle. A certificate
5of title shall not again be issued for the vehicle afer the DOT
6designates the vehicle as “JUNKED” and cancels the record of
7the vehicle.
8The bill further requires a vehicle rebuilder or person
9acquiring a vehicle who is subject to federal NMVTIS reporting
10requirements to obtain the seller’s unique number issued to the
11seller through NMVTIS, or if the seller has not been issued
12such a number, a copy of the seller’s driver’s license or
13nonoperator’s identification card, and to report within two
14business days the purchase of the vehicle to the authorized
15data consolidator.
16The bill increases the biannual fee for a vehicle recycler
17license from $70 to $200, and provides that $130 of each
18license fee shall be used by the DOT to administer the
19provisions of the bill relating to the authorized data
20consolidator. The bill requires licensed vehicle recyclers
21to make required NMVTIS reports to the authorized data
22consolidator, and eliminates the existing exception for
23seller-reported purchases. A vehicle recycler who is notified
24that a vehicle purchased by the vehicle recycler is designated
25as an active stolen vehicle must notify the vehicle recycler’s
26local law enforcement agency and secure the vehicle until the
27vehicle is removed by a law enforcement agency, returned to
28the rightful owner, or the designation has been removed. By
29operation of law, a violation of these provisions is a simple
30misdemeanor punishable by a fine of not less than $250 nor more
31than $1,500 or by imprisonment not to exceed 30 days.
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