Bill
Bill > SF292
IA SF292
A bill for an act relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable.(See SF 492.)
summary
Introduced
02/12/2025
02/12/2025
In Committee
02/12/2025
02/12/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
Under current law, the purchaser or transferee of a motor vehicle sold for scrap or junk is required to surrender the certificate of title, properly endorsed and signed by the previous owner, to a county treasurer, and apply for a junking certificate from the county treasurer, within 30 days after assignment of the certificate of title. However, a vehicle owner may dispose of the vehicle to a vehicle recycler licensed under Code chapter 321H (vehicle recyclers) for scrap or junk without presenting a certificate of title or a junking certificate if the vehicle is 12 model years old or older and is acquired by the vehicle recycler for reasonable consideration equaling less than $1,000. This bill prohibits a licensed vehicle recycler from acquiring such a vehicle unless the recycler verifies that there is not a lienholder who has a security interest in the vehicle. By operation of law, a violation of the bill is a simple misdemeanor punishable by a scheduled fine of $135.
AI Summary
This bill modifies existing law regarding the disposal of older vehicles to vehicle recyclers by adding a new requirement that licensed vehicle recyclers must verify there are no outstanding liens before acquiring a vehicle for scrap or junk. Specifically, the bill allows vehicle owners to sell vehicles that are 12 model years old or older to licensed vehicle recyclers for less than $1,000 without needing to provide a certificate of title or junking certificate, but now mandates that the recycler must first confirm no lienholder has a security interest in the vehicle. If a vehicle recycler fails to verify the lien status before acquiring the vehicle, they would be in violation of the law, which is classified as a simple misdemeanor punishable by a $135 fine. This provision aims to prevent the unauthorized disposal of vehicles that may still have financial obligations attached to them and protect the interests of potential lienholders.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Committee report approving bill, renumbered as SF 492. S.J. 411. (on 03/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF292 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF292.html |
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