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Bill > SF492
IA SF492
IA SF492A bill for an act relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable.(Formerly SF 292.)
summary
Introduced
03/04/2025
03/04/2025
In Committee
03/24/2025
03/24/2025
Crossed Over
03/24/2025
03/24/2025
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 uses the recycler’s access to the state records system to verify that there is not a lienholder who has a security interest in the vehicle. A licensed vehicle recycler is not required to verify the nonexistence of a lienholder in transactions with a scrap metal dealer. 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 the existing law regarding vehicle recyclers acquiring older vehicles for scrap or junk. Currently, vehicle owners can sell vehicles that are 12 model years old or older to licensed vehicle recyclers without presenting a title, as long as the vehicle is acquired for less than $1,000. The new bill adds an important requirement that vehicle recyclers must first use the state records system to verify that no lienholder has a security interest in the vehicle before completing the purchase. This verification step is waived only in transactions with scrap metal dealers. The purpose of this requirement is to protect the rights of potential vehicle lienholders and prevent unauthorized disposal of vehicles that may still have outstanding financial claims. Violations of this new provision will be considered a simple misdemeanor, which carries a standard fine of $135. By mandating this verification process, the bill aims to add an extra layer of due diligence to vehicle recycling transactions involving older vehicles.
Committee Categories
Transportation and Infrastructure
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Transportation (Senate)
Last Action
Placed on calendar. H.J. 239. (on 02/09/2026)
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=SF492 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF492.html |
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