The bill amends Iowa's laws concerning the custody and disposal of abandoned vehicles, primarily by altering notice requirements and the reclamation process. It reduces the notice timeframe for police authorities or private entities to inform vehicle owners from 20 days to 10 days after taking possession of an abandoned vehicle. The reclamation period for owners and lienholders is extended from 10 days to 20 days. New provisions allow private entities to charge fees for towing, preservation, and storage during the first 24 hours of custody, with no additional fees accruing until proper notice is provided. If a private entity fails to send the required notice, it cannot claim payment for any associated fees. The bill also allows lienholders or insurance companies to request a vehicle inspection for a fee not exceeding $100 and mandates that personal property within the vehicle can be reclaimed once without incurring fees.

Additionally, the bill modifies the distribution of proceeds from the sale of abandoned vehicles, allowing a private entity or police authority to reimburse itself only for incurred costs, excluding bookkeeping and administrative expenses. Remaining proceeds must be held for lienholders for 30 days and for owners for an additional 60 days, a reduction from the previous 90-day requirement. The bill mandates that remaining proceeds be deposited into the statutory allocations fund (SAF) rather than the road use tax fund and outlines a claims procedure for recovering costs from the SAF. It also introduces new notification requirements, stipulating that the selling entity must notify the original vehicle owner and any lienholders of the remaining proceeds within 10 days of the sale. If proper notice is given and the parties do not reclaim the vehicle within the 20-day period, they forfeit their rights to the vehicle or its contents. Consumer protection provisions are included, allowing individuals to seek damages for violations related to abandoned vehicle handling.

Statutes affected:
Introduced: 321.89, 321.90, 321.105