House File 357 - Introduced HOUSE FILE 357 BY B. MEYER A BILL FOR An Act relating to the acquisition of certain vehicles by a 1 vehicle recycler, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2271YH (4) 91 th/ns
H.F. 357 Section 1. Section 321.52, subsection 2, paragraph b, Code 1 2025, is amended to read as follows: 2 b. The owner of a motor vehicle subject to registration 3 that who does not have a certificate of title or a junking 4 certificate may dispose of the vehicle to a vehicle recycler 5 licensed under chapter 321H for scrap or junk if the vehicle 6 is twelve model years old or older and is acquired by the 7 vehicle recycler for reasonable consideration equaling less 8 than one thousand dollars. A licensed vehicle recycler shall 9 not acquire such a vehicle unless the recycler verifies there 10 is not a lienholder who has a security interest in the vehicle. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanations substance by the members of the general assembly. 14 Under current law, the purchaser or transferee of a motor 15 vehicle sold for scrap or junk is required to surrender 16 the certificate of title, properly endorsed and signed by 17 the previous owner, to a county treasurer, and apply for a 18 junking certificate from the county treasurer, within 30 days 19 after assignment of the certificate of title. However, a 20 vehicle owner may dispose of the vehicle to a vehicle recycler 21 licensed under Code chapter 321H (vehicle recyclers) for 22 scrap or junk without presenting a certificate of title or a 23 junking certificate if the vehicle is 12 model years old or 24 older and is acquired by the vehicle recycler for reasonable 25 consideration equaling less than $1,000. 26 This bill prohibits a licensed vehicle recycler from 27 acquiring such a vehicle unless the recycler verifies that 28 there is not a lienholder who has a security interest in the 29 vehicle. 30 By operation of law, a violation of the bill is a simple 31 misdemeanor punishable by a scheduled fine of $135. 32 -1- LSB 2271YH (4) 91 th/ns 1/ 1