Senate File 492 amends Section 321.52 of the Iowa Code regarding the disposal of motor vehicles without a certificate of title or junking certificate. The bill specifies that the owner of such a vehicle, which is twelve model years old or older and valued at less than one thousand dollars, may dispose of it to a licensed vehicle recycler for scrap or junk. A key addition to the law is that licensed vehicle recyclers must use their access to the state records system to verify that there are no lienholders with a security interest in the vehicle before acquiring it.

However, the bill also states that recyclers are not required to verify the absence of a lienholder if they acquire the vehicle from a scrap metal dealer, as defined in section 714.27. This change aims to streamline the process for vehicle recyclers while ensuring that they still perform due diligence in most cases. Overall, the bill seeks to clarify the responsibilities of vehicle recyclers and facilitate the disposal of older vehicles.

Statutes affected:
Introduced: 321.52
Enrolled: 321.52