Iowa House Bill HSB295

Iowa 2025-2026 Regular Session

• Introduced: 3/4/25
• Refer: 3/4/25

Caption

A bill for an act relating to the release of liens on snowmobiles, all-terrain vehicles, and water vessels.(See HF 894.)

Impact

The bill's passage would modernize and enhance the process of noting lien releases on various vehicle titles, aligning it more closely with existing procedures for motor vehicles. With the elimination of complex mailing procedures and a requirement for documented notification of lien discharges, it would potentially reduce bureaucratic delays and facilitate smoother transactions for owners of snowmobiles, all-terrain vehicles, and vessels. County recorders would be mandated to update a statewide computer system, which may contribute to consistency and accuracy in public records regarding vehicle ownership and lien status.

Summary

House Study Bill 295 proposes amendments pertinent to the release of liens on snowmobiles, all-terrain vehicles, and water vessels. Under current statutes, when a lien is discharged, specific procedures must be followed for formally annotating this cessation of security interest on the certificate of title. This bill seeks to streamline the process by allowing proof of lien release to be presented to any county's recorder, thus aiming for simplicity and accessibility across jurisdictions within the state.

Contention

While the bill seems straightforward, there could be concerns regarding the implementation of the statewide computer system and how counties will integrate this new responsibility into their existing workflows. Questions may arise regarding the adequacy of training and resources available for county recorders, as well as ensuring that all lienholders understand the new processes involved in lien releases. Additionally, stakeholders may debate the efficiency of local versus centralized recording practices, particularly for vehicles that frequently cross county lines.