Bill Summary – FastDemocracy

House File 55 - Introduced
                                  HOUSE FILE 55
                                  BY BLOOMINGDALE
                            A BILL FOR
An Act regarding the registration and titling of motor
  vehicles, including by providing for initial registration
  and titling by any county treasurer and by modifying related
  fees and the amount of fees retained by county treasurers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 321.20, subsection 1, unnumbered
 paragraph 1, Code 2023, is amended to read as follows:
    Except as provided in this chapter, an owner of a vehicle,
 or a lessor of a vehicle pursuant to chapter 321F which has a
 gross vehicle weight of less than ten thousand pounds, which
 is subject to registration, shall make application to the any
 county treasurer of the county of the owner’s residence, or
 if a nonresident, to the county treasurer of the county where
 the primary users of the vehicle are located, or if a lessor
 of the vehicle pursuant to chapter 321F which vehicle has a
 gross vehicle weight of less than ten thousand pounds, to the
 county treasurer of the county of the lessee’s residence,
 or if a firm, association, or corporation with vehicles in
 multiple counties, the owner may make application to the county
 treasurer of the county where the primary user of the vehicle
 is located, for the initial registration and issuance of a
 certificate of title for the vehicle upon the appropriate form
 furnished by the department. However, upon the transfer of
 ownership, the owner of a vehicle subject to the apportioned
 registration provisions of chapter 326 shall make application
 for issuance of a certificate of title to either the department
 or the appropriate any county treasurer. The owner of a
 vehicle purchased pursuant to section 578A.7 shall present
 documentation that such sale was completed in compliance
 with that section. The application shall be accompanied by
 a fee of twenty thirty dollars, and shall bear the owner’s
 signature. A nonresident owner of two or more vehicles subject
 to registration may make application for initial registration
 and issuance of a certificate of title for all vehicles subject
 to registration to the any county treasurer of the county where
 the primary user of any of the vehicles is located. The owner
 of a mobile home or manufactured home shall make application
 for a certificate of title under this section from the county
 treasurer of the county where the mobile home or manufactured
 home is located. The application shall contain:
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    Sec. 2. Section 321.20, subsections 2, 3, and 4, Code 2023,
 are amended to read as follows:
    2. Notwithstanding contrary provisions of this chapter
 or chapter 326 regarding titling and registration by means
 other than electronic means, the department shall, by July 1,
 2019, develop and implement a program to allow for electronic
 applications, titling, registering initial registrations, and
 funds transfers for vehicles subject to registration in order
 to improve the efficiency and timeliness of the processes and
 to reduce costs for all parties involved. The program shall
 also provide for the electronic submission of any statement
 required by this section, except where prohibited by federal
 law.
    3. The department shall adopt rules on pursuant to chapter
 17A to administer this section, including rules relating to the
 method for providing signatures for applications and statements
 required by this section that are made by electronic means.
    4. Notwithstanding this section or any other provision of
 law to the contrary, if the program required by subsection
 2 is not implemented by July 1, 2019, an owner of a vehicle
 subject to registration may apply to the county treasurer of a
 county contiguous to the county designated for the owner under
 subsection 1 for registration and issuance of a certificate of
 title.
    Sec. 3. Section 321.20A, subsection 1, Code 2023, is amended
 to read as follows:
    1. Notwithstanding other provisions of this chapter,
 the owner of a commercial vehicle subject to the apportioned
 registration provisions of chapter 326 may make application
 to the department or the appropriate any county treasurer
 for a certificate of title. The owner of a commercial
 vehicle purchased pursuant to section 578A.7 shall present
 documentation that such sale was completed in compliance with
 that section. The application for certificate of title shall
 be made within thirty days of purchase or transfer and shall be
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 accompanied by a twenty dollar thirty-dollar title fee and the
 appropriate fee for new registration. The department or the
 county treasurer shall deliver the certificate of title to the
 owner if there is no security interest. If there is a security
 interest, the title, when issued, shall be delivered to the
 first secured party. Delivery may be made using electronic
 means.
    Sec. 4. Section 321.23, subsections 3 and 4, Code 2023, are
 amended to read as follows:
    3. In the event an applicant for initial registration of
 a foreign vehicle for which a certificate of title has been
 issued is able to furnish evidence of being the registered
 owner of the vehicle to the any county treasurer of the owner’s
 residence, although unable to surrender such certificate
 of title, the county treasurer may issue a registration
 receipt and plates upon receipt of the required annual
 registration fee and the fee for new registration but shall
 not issue a certificate of title thereto. Upon surrender of
 the certificate of title from the foreign state, the county
 treasurer shall issue a certificate of title to the owner,
 or person entitled thereto, of such vehicle as provided in
 this chapter. The owner of a vehicle registered under this
 subsection shall not be required to obtain a certificate of
 title in this state and may transfer ownership of the vehicle
 to a motor vehicle dealer licensed under chapter 322 or an
 insurance carrier authorized to do business in this state
 if, at the time of the transfer, the certificate of title is
 held by a secured party and the dealer or insurance carrier,
 as applicable, has forwarded to the secured party the sum
 necessary to discharge the security interest pursuant to
 section 321.48, subsection 1.
    4. A vehicle which does not meet the equipment requirements
 of this chapter due to the particular use for which it is
 designed or intended, may be registered by the department
 upon payment of appropriate fees and after inspection and
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 certification by the department that the vehicle is not
 in an unsafe condition. A person is not required to have
 a certificate of title to register a vehicle under this
 subsection. If the owner elects to have a certificate of title
 issued for the vehicle, a fee of twenty thirty dollars shall be
 paid by the person making the application upon issuance of a
 certificate of title. If the department’s inspection reveals
 that the vehicle may be safely operated only under certain
 conditions or on certain types of roadways, the department may
 restrict the registration to limit operation of the vehicle to
 the appropriate conditions or roadways. This subsection does
 not apply to snowmobiles as defined in section 321G.1. Section
 321.382 does not apply to a vehicle registered under this
 subsection which is operated exclusively by a person with a
 disability who has obtained a persons with disabilities parking
 permit as provided in section 321L.2, if the persons with
 disabilities parking permit is carried in or on the vehicle and
 shown to a peace officer on request.
    Sec. 5. Section 321.25, subsection 1, Code 2023, is amended
 to read as follows:
    1. A vehicle may be operated upon the highways of this
 state without registration plates for a period of forty-five
 days after the date of delivery of the vehicle to the purchaser
 from a dealer if a card bearing the words “registration applied
 for” is attached on the rear of the vehicle. The card shall
 have plainly stamped or stenciled the registration number of
 the dealer from whom the vehicle was purchased and the date
 of delivery of the vehicle. In addition, a dealer licensed
 to sell new motor vehicles may attach the card to a new motor
 vehicle delivered by the dealer to the purchaser even if the
 vehicle was purchased from an out-of-state dealer and the card
 shall bear the registration number of the dealer that delivered
 the vehicle. A dealer shall not issue a card to a person known
 to the dealer to be in possession of registration plates which
 may be attached to the vehicle. A dealer shall not issue a card
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 unless an application for initial registration and certificate
 of title has been made by the purchaser and a receipt issued to
 the purchaser of the vehicle showing the fee paid by the person
 making the application. Dealers’ records shall indicate the
 agency to which the fee is sent and the date the fee is sent.
 The dealer shall forward the application by the purchaser to
 the county treasurer or state office within thirty calendar
 days from the date of delivery of the vehicle. However, if the
 vehicle is subject to a security interest and has been offered
 for sale pursuant to section 321.48, subsection 1, the dealer
 shall forward the application by the purchaser to the county
 treasurer or state office within thirty calendar days from the
 date of the delivery of the vehicle to the purchaser.
    Sec. 6. Section 321.26, subsection 2, Code 2023, is amended
 to read as follows:
    2. The county treasurer may adjust the registration renewal
 or expiration date of vehicles registered in the county for
 which the county treasurer is responsible for renewal under
 section 321.40 when deemed necessary to equalize the number
 of vehicles registered in each twelve-month period or for the
 administrative efficiency of the county treasurer’s office.
 The adjustment shall be accomplished by delivery of a written
 notice to the vehicle owner of the adjustment and allowance of
 a credit for the remaining months of the unused portion of the
 annual registration fee, rounded to the nearest whole dollar,
 which amount shall be deducted from the annual registration
 fee due at the time of registration. Upon receipt of the
 notification the owner shall, within thirty days, surrender
 the registration card and registration plates to a any county
 treasurer, except that the registration plates shall not be
 surrendered if validation stickers or other emblems are used
 to designate the month and year of expiration of registration.
 Upon payment of the annual registration fee, less the credit
 allowed for the remaining months of the unused portion of the
 annual registration fee, the county treasurer of the county
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 where the vehicle is registered that adjusted the registration
 renewal or expiration date of the vehicle shall issue a new
 registration card and registration plates, validation stickers,
 or emblems which indicate the month and year of expiration of
 registration.
    Sec. 7. Section 321.29, Code 2023, is amended to read as
 follows:
    321.29 Renewal not permitted.
    Any vehicle once registered in the state and by removal no
 longer subject to registration in this state, shall upon being
 returned to this state and subject to registration be again
 initially registered in accordance with section 321.20.
    Sec. 8. Section 321.34, subsection 1, Code 2023, is amended
 to read as follows:
    1. Plates issued. The county treasurer upon receiving
 application, accompanied by proper fee, for registration of a
 vehicle shall issue to the owner one registration plate for
 a motorcycle, motorized bicycle, autocycle, truck tractor,
 trailer, or semitrailer and two registration plates for every
 other motor vehicle. The registration plates, including
 special registration plates, shall be assigned to the owner of
 a vehicle. When the owner of a registered vehicle transfers or
 assigns ownership of the vehicle to another person, the owner
 shall remove the registration plates from the vehicle. The
 owner shall forward the plates to a any county treasurer or the
 owner may have the plates assigned to another vehicle within
 thirty days after transfer, upon payment of the fees required
 by law. The owner shall immediately affix registration plates
 retained by the owner to another vehicle owned or acquired by
 the owner, providing the owner complies with section 321.46.
 The department shall adopt rules providing for the assignment
 of registration plates to the transferee of a vehicle for which
 a credit is allowed under section 321.46, subsection 6.
    Sec. 9. Section 321.40, subsection 1, Code 2023, is amended
 to read as follows:
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    1. Application for renewal for a vehicle registered under
 this chapter shall be made on or after the first day of the
 month prior to the month of expiration of registration and up
 to and including the last day of the month following the month
 of expiration of registration. The application for renewal
 shall be submitted to the county treasurer of the county of
 the owner’s residence; or if a nonresident, to the county
 treasurer of the county where the primary users of the vehicle
 are located; or if a lessor of the vehicle pursuant to chapter
 321F which has a gross vehicle weight of less than ten thousand
 pounds, to the county treasurer of the county of the lessee’s
 residence; or if a firm, association, or corporation with
 vehicles in multiple counties, to the county treasurer of the
 county where the primary user of the vehicle is located. The
 registration shall be renewed upon payment of the appropriate
 annual registration fee. Application for renewal for a vehicle
 registered under chapter 326 shall be made on or after the
 first day of the month prior to the month of expiration of
 registration and up to and including the last day of the month
 of expiration of registration.
    Sec. 10. Section 321.42, subsection 2, paragraphs a, c, and
 d, Code 2023, are amended to read as follows:
    a. If a certificate of title is lost or destroyed, the
 owner or lienholder shall apply for a replacement copy of the
 original certificate of title. The owner or lienholder of a
 motor vehicle may also apply for a replacement copy of the
 original certificate of title upon surrender of the original
 certificate of title with the application. The application
 shall be made to the department or any county treasurer who
 issued the original certificate of title. The application
 shall be signed by the owner or lienholder and accompanied by a
 fee of twenty thirty dollars.
    c. If a security interest noted on the face of an original
 certificate of title was released by the lienholder on a
 separate form pursuant to section 321.50, subsection 5, and
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 the signature of the lienholder, or the person executing the
 release on behalf of the lienholder, is notarized, but the
 lienholder has not delivered the original certificate to the
 appropriate party as provided in section 321.50, subsection 5,
 the owner may apply for and receive a replacement certificate
 of title without the released security interest noted thereon.
 The lienholder shall return the original certificate of title
 to the department or to the any county treasurer of the county
 where the title was issued.
    d. A new purchaser or transferee is entitled to receive
 an original title upon presenting the assigned replacement
 copy to the any county treasurer of the county where the new
 purchaser or transferee resides. At the time of purchase, a
 purchaser may require the seller to indemnify the purchaser and
 all future purchasers of the vehicle against any loss which
 may be s