Iowa Senate Bill SF292

Iowa 2025-2026 Regular Session

• Introduced: 2/12/25
• Refer: 2/12/25

Caption

A bill for an act relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable.(See SF 492.)

Impact

The bill aims to facilitate the recycling process for older vehicles, offering a more straightforward avenue for owners to dispose of their vehicles without the cumbersome requirement of obtaining a title or junking certificate. This change is anticipated to ease the process for vehicle recyclers and promote environmental sustainability by ensuring more vehicles are properly recycled rather than abandoned. Furthermore, the bill establishes requirements for recyclers to verify that no lienholder has a security interest in the vehicle prior to acquisition, helping to protect the rights of potential creditors.

Summary

Senate File 292, introduced by Senator Shipley, addresses the acquisition process of certain vehicles by licensed vehicle recyclers in the state of Iowa. The bill amends existing provisions regarding how motor vehicles without a title or junking certificate can be disposed of, specifically targeting vehicles that are twelve model years old or older. The proposed legislation allows for these vehicles to be sold to recyclers for scrap or junk without the need for the aforementioned certificates, provided they are purchased for reasonable consideration not exceeding one thousand dollars.

Contention

Some potential points of contention surrounding SF292 may arise from the implications of allowing vehicle disposal without formal documentation in cases where ownership is disputed. Critics may argue that this could lead to issues of ownership verification, possibly paving the way for fraudulent activities. Proponents, however, may contend that the operational constraints imposed on recyclers, such as the verification of lienholder status, will adequately mitigate these risks while still making the recycling process more efficient.