Providing an alternative to filing a bond as a condition of registering and titling certain motor vehicles

Under current law, if a county treasurer or the department of transportation (DOT) is not satisfied as to the ownership of a vehicle or that there are no undisclosed security interests in it, or if a junking certificate has been issued for the vehicle but a certificate of title will not be reissued and the vehicle is years old or older, the county treasurer or DOT may register the vehicle. However, as a condition of registration, and before issuing a certificate of title and registration receipt, the county treasurer or DOT must require the applicant to file a bond with the DOT. The bond must be accompanied by the deposit of cash with the DOT or also executed by a person authorized to conduct a surety business in Iowa. This bill requires a person applying for registration and certificate of title for such a vehicle to first receive approval by the DOT and, depending on the DOT’s determination on the value and age of the vehicle, the applicant may not be required to file a bond. If the DOT determines the value of the vehicle is $1,000 or less and the vehicle is model years old or older, the DOT must notify the applicant, and the DOT or county treasurer may issue a certificate of title and registration receipt. The applicant is required to apply for a certificate of title and registration within days of the DOT’s notification of determination. However, if the DOT determines the value of the vehicle is more than $1,000 or the vehicle is less than model years old, the applicant is required to file bond with the DOT in accordance with current law.