What changed in HF 2617

2 passages reworded, 36 added and 58 removed; 3 of 99 unchanged.

Removed AddedIntroduced textText as passedAmendments

Compares wording only. The printed bills also mark changes to existing law with strikes and underlines, which aren’t shown here.

Section 1. Section 321.89, Code 2026, is amended by adding the following new subsection:

Section 1. Section 321.88, Code 2026, is amended to read as follows: 321.88 Failure of owner to claim. If the owner does not appear within forty days, the motor vehicle shall be deemed abandoned and the officer having possession of the motor vehicle shall proceed as provided in section 321.89, subsections 3 and 5.

NEW SUBSECTION. 2A. Cease and release. When a private entity ceases a tow after attaching towing equipment to an abandoned vehicle and releases the vehicle to the registered owner or operator prior to removing the vehicle from the location where the vehicle was abandoned, the private entity shall accept payment by credit card, in addition to other forms of payment, for any fee charged to release the vehicle.

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2. Section 321.89, Code 2026, is amended by striking the section and inserting in lieu thereof the following: 321.89 Abandoned vehicles.

1. Authority to tow and impound. An abandoned vehicle may be towed and impounded as follows:

a. If an abandoned vehicle is located on public property:

(1) Except as provided in subparagraph (2), a police authority shall tow and impound the vehicle.

(2) Alternatively, a police authority may hire a garagekeeper to tow and impound the vehicle, and the police authority shall provide the garagekeeper with the name and address of the registered owner and, if applicable, any lienholder and known claimants of the vehicle or personal property inside the vehicle.

b. If an abandoned vehicle is located on private property:

(1) A police authority may tow and impound the vehicle.

(2) A person who owns the private property or is otherwise in control of the private property may hire a garagekeeper to tow and impound the abandoned vehicle without a police authority’s initiative.

2. Required notice.

a. Within twenty days after towing an abandoned vehicle, the person who impounded the vehicle shall send notice by certified mail to the registered owner and, if applicable, any lienholder and known claimants of the vehicle or personal property inside the vehicle.

b. Notice must include all of the following:

(1) A description of the year, make, model, and vehicle identification number of the vehicle.

(2) The location of the vehicle.

(3) A statement that the person has ten days to reclaim the vehicle or personal property from inside the vehicle, and that the ten-day reclamation period began on the date the notice was mailed.

(4) A statement that the vehicle and personal property inside the vehicle cannot be reclaimed until the person pays all towing and impound fees and the costs of giving notice.

(5) A statement that failure to reclaim the vehicle or personal property within ten days of the notice being mailed constitutes a waiver of any interest in the vehicle or personal property.

(6) A statement that failure to reclaim the vehicle or personal property is deemed consent for the person who impounded the vehicle to sell or dispose of the vehicle and personal property inside the vehicle, as applicable.

(7) If the abandoned vehicle was taken into custody by a garagekeeper without a police authority’s initiative, a statement that the garagekeeper may claim a lien as described in section 321.90, subsection 1.

(8) If the abandoned vehicle was taken into custody by a police authority or by a garagekeeper hired by a police authority, a statement that a person who disputes the assessment of fees or the planned disposition of the vehicle or personal property may request an evidentiary hearing before the police authority to contest those matters.

c. Notice shall be deemed given when mailed.

d. Notwithstanding paragraph “a”, if it is impossible to determine with reasonable certainty the identity and address of the last registered owner or any lienholder, notice by one publication in one newspaper of general circulation in the area where the vehicle was abandoned is sufficient in lieu of sending notice by certified mail. The published notice shall be published within the same time requirements and provide the same information required under paragraph “b”. Notice published in a newspaper may contain multiple listings of abandoned vehicles.

3. Reclamation. A person may reclaim an abandoned vehicle or personal property from inside the vehicle upon payment of all towing, notice, and impoundment fees. Prior to driving an abandoned vehicle away from the premises, the driver shall present to the police authority or garagekeeper, as applicable, a valid driver’s license and proof of financial liability coverage as provided in section 321.20B.

4. Limited liability. An owner, lienholder, or other claimant of an abandoned vehicle shall not have a cause of action against a garagekeeper for action taken pursuant to this section if the garagekeeper provided notice in accordance with subsection 2.

5. Failure to reclaim. If a person who received notice did not ask for a hearing or reclaim an abandoned vehicle or personal property within the ten-day reclaiming period, the person forfeits ownership of the vehicle and a court shall not recognize the person’s title, right, claim, or interest in the abandoned vehicle, or personal property inside the vehicle.

6. Vehicles sold for highway use.

a. If an abandoned vehicle has not been reclaimed, the person who impounded the vehicle shall make a determination as to whether the vehicle will be sold for use upon the highways. If the vehicle is sold for use upon the highways, the vehicle shall be sold at a public auction.

b. The purchaser of an abandoned vehicle sold at a public auction takes title free and clear of all liens and claims of ownership and is entitled to register the vehicle and receive a certificate of title. The person who impounded the vehicle shall provide a sales receipt to the purchaser.

7. Vehicles sold for junk or scrap.

a. If an abandoned vehicle has not been reclaimed and is not sold at public auction for use upon the highways, it shall be sold for junk, or demolished and sold as scrap.

b. The purchaser of an abandoned vehicle sold for junk or scrap takes title free and clear of all liens and claims of ownership. The person who impounded the vehicle shall provide a sales receipt to the purchaser.

c. If the vehicle is sold to a demolisher for junk, the demolisher shall make application for a junking certificate to the county treasurer within thirty days of purchase and shall surrender the sales receipt in lieu of the certificate of title.

8. Sale proceeds.

a. If a police authority did not hire a garagekeeper, the police authority shall reimburse itself from the proceeds of the sale of an abandoned vehicle. Except for costs of bookkeeping and other administrative costs, the police authority may retain proceeds from the sale for expenses incurred, including but not limited to expenses for any of the following:

(1) The public auction.

(2) Towing the vehicle.

(3) Impounding the vehicle.

(4) Giving notice pursuant to subsection 2.

(5) Inspecting the vehicle.

b. Any remainder from the proceeds of a sale shall be held for the owner of the vehicle or lienholder for ninety days. After ninety days, unclaimed proceeds shall be deposited in the road use tax fund.

c. If the proceeds from a sale of an abandoned vehicle are insufficient to cover the incurred expenses, the police authority shall be paid from the road use tax fund. The last owner of the vehicle is liable for reimbursing the road use tax fund, including jointly and severally if there was more than one owner.

d. The department shall adopt rules pursuant to chapter 17A providing a claims process for a police authority to obtain moneys from the road use tax fund to cover expenses incurred, including expenses owed to a garagekeeper hired by a police authority to tow and impound an abandoned vehicle. If a garagekeeper was hired by a police authority, the police authority shall file a claim with the department for reimbursement of towing fees which shall be paid from the road use tax fund.

9. Definitions. As used in this section, and sections 321.90 and 321.91:

a. “Abandoned vehicle” means any of the following:

(1) A vehicle that has been left unattended on public property for more than twenty-four hours and lacks current registration plates or two or more wheels or other parts which render the vehicle totally inoperable.

(2) A vehicle that has remained illegally on public property for more than twenty-four hours.

(3) A vehicle that has been illegally parked on private property or has been placed on private property without the consent of the owner or person in control of the property for more than twenty-four hours.

(4) A vehicle that has been legally impounded by order of a police authority and has not been reclaimed for a period of ten days. However, a police authority may declare the vehicle abandoned within the ten-day period by commencing the notification process in subsection 2.

(5) A vehicle parked on a highway determined by a police authority to create a hazard to other vehicle traffic.

(6) A vehicle that has been impounded pursuant to section 321J.4B by order of a court and the vehicle owner has not paid the impoundment fees after notification by the person or agency responsible for impounding the vehicle.

2. Section 321.89, subsection 3, paragraphs a, e, and f, Code 2026, are amended to read as follows:

b. “Demolisher” means a person licensed under chapter 321H whose business it is to convert a vehicle to junk, processed scrap, or scrap metal, or otherwise to wreck or dismantle vehicles.

a. A police authority or private entity that takes into custody an abandoned vehicle shall send notice by certified mail that the vehicle has been taken into custody no more than twenty ten days after taking custody of the vehicle. Notice shall be sent to the last known address of record of the last known registered owner of the vehicle, all lienholders of record, and any other known claimant to the vehicle.

c. “Garagekeeper” means any operator of a parking place or establishment, motor vehicle storage facility, or establishment for the servicing, repair, or maintenance of motor vehicles.

e. If the persons receiving notice do not ask for a hearing or exercise their right to reclaim the vehicle or personal property within the ten-day twenty-day reclaiming period, the owner, lienholders, or claimants shall no longer have any right, title, claim, or interest in or to the vehicle or the personal property.

d. “Police authority” means the state patrol, any law enforcement agency of a county or city, or any special security officer employed by the state board of regents under section 262.13.

f. A court in any case in law or equity shall not recognize any right, title, claim, or interest of the owner, lienholders, or claimants after the expiration of the ten-day twenty-day reclaiming period.

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3. Section 321.90, 321.89, subsection 1, 3, paragraph b, subparagraph (3), Code 2026, is amended to read as follows:

1. Garagekeepers and abandoned motor vehicles. Any motor vehicle left in a garage operated for commercial purposes after the period for which the vehicle was to remain on the premises shall, after notice by certified mail to the last known registered owner of the vehicle addressed to the owner’s last known address of record to reclaim the vehicle within ten days of the date of the notice, be deemed an abandoned motor vehicle unless reclaimed by the owner within such ten-day period or the owner notifies the garagekeeper in writing within such period of time that such vehicle is not an abandoned motor vehicle and shall be reported by the garagekeeper to the police authority. If the identity or address of the last registered owner of the motor vehicle cannot be determined, the vehicle shall be deemed an abandoned motor vehicle on the eleventh day after the period for which the vehicle was to remain on the premises unless reclaimed by the owner within the ten-day period or the owner notifies the garagekeeper in writing within such period of time that such vehicle is not an abandoned motor vehicle and shall be reported by the garagekeeper to the police authority. All abandoned motor vehicles left in garages may be taken into custody by a police authority upon the request of the garagekeeper and sold in accordance with the procedures set forth in section 321.89, subsection 5, unless the motor vehicle is reclaimed. The proceeds of the sale shall be first applied to the garagekeeper’s charges for towing and storage, and any surplus proceeds shall be distributed in accordance with section 321.89, subsection 5. Nothing in this section shall be construed to impair any lien of a garagekeeper under the laws of this state, or the right of a garagekeeper to foreclose the garagekeeper’s lien, provided that a garagekeeper shall be deemed to have abandoned the garagekeeper’s artisan lien when such vehicle is taken into custody by the police authority. For the purposes of this section “garagekeeper” means any operator of a parking place or establishment, motor vehicle storage facility, or establishment for the servicing, repair, or maintenance of motor vehicles.

(3) Information for the persons receiving the notice of their right to reclaim the vehicle and personal property contained therein within ten twenty days after the effective date of the notice. Persons may reclaim the vehicle or personal property upon payment of all towing, preservation, and storage charges resulting from placing the vehicle in custody and upon payment of the costs of notice required pursuant to this subsection.

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4. Section 321.89, Code 2026, is amended by adding the following new subsections:

NEW SUBSECTION. 3A. Abandoned vehicles in custody.

a. A lienholder of record who received notice under subsection 3 may request information regarding the condition of the abandoned vehicle. A private entity with custody of an abandoned vehicle may charge the lienholder of record an inspection fee not to exceed one hundred dollars. If such request is made and when the fee is paid, the private entity with custody of the abandoned vehicle shall satisfy the request by either allowing a representative of the lienholder of record onto the premises to inspect the vehicle, subject to policies established by the private entity to promote safety and security of the premises, or by sending photos that sufficiently depict the condition of the vehicle to the lienholder of record so that the lienholder can reasonably ascertain the condition of the vehicle.

b.

(1) While a private entity has custody of an abandoned vehicle, a registered owner may reclaim personal property that is not attached to the vehicle on one occasion during the twenty-day vehicle reclamation period. The registered owner shall provide the private entity a written list identifying the personal property to be reclaimed from inside the vehicle, which shall be reclaimed during the normal business hours of the private entity. Reclaiming personal property from within the vehicle does not constitute reclaiming the vehicle. A private entity may determine the manner in which personal property is retrieved from a vehicle subject to safety and security procedures established by the private entity for the area where the vehicle is stored. Retrieval of personal property does not constitute a waiver of the private entity’s lien upon the vehicle or any remaining contents in the private entity’s custody, if applicable.

(2) For purposes of this paragraph, “personal property” is limited to items that are readily accessible from the vehicle and that do not require dismantling of any part of the vehicle, including all of the following:

(a) Prescription medication for the vehicle owner or for a legal dependent of the vehicle owner.

(b) Prosthetic devices, durable medical equipment, and mobility enhancing equipment as defined under 701 IAC 220.7.

(c) Child care items.

(d) Uniforms or clothing required for the vehicle owner’s employment.

(e) Personal identification.

(f) Credit cards or debit cards.

(g) A cellular telephone.

(h) A portable or mobile computer including but not limited to a tablet.

(i) Tools of trade which are essential equipment, instruments, or machinery required to perform a specific job, profession, or craft in which the vehicle owner is currently employed.

(j) A purse or wallet.

(k) Essential documents or records relating to legal, financial, tax, or employment matters.

(l) Prescription eyeglasses.

(m) Hearing aids.

(n) Dentures.

(o) Keys not associated with the vehicle in the custody of the private entity.

NEW SUBSECTION. 3B. Display of charges. A private entity that takes custody of an abandoned vehicle shall display at the entity’s place of business in a manner that is readily visible to visitors and on the entity’s internet site, if applicable, the daily storage and impound fees the entity will charge.

NEW SUBSECTION.

6. Preemption. This section shall be implemented uniformly throughout the state. This section preempts any county or municipal ordinance regarding the towing of an abandoned vehicle.

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4. 5. Section 321.90, 321.89, subsection 2, paragraphs c, d, e, and g, 4, Code 2026, are is amended to read as follows:

c. If the police authority finds that the application is executed in proper form, and shows that the motor vehicle has been abandoned upon the property of the applicant, or if it shows that the motor vehicle is not abandoned but that the applicant appears to be the rightful owner, the police authority shall follow appropriate notification procedures as set forth in section 321.89, subsection 3, except that in the case of an order for disposal obtained pursuant to section 555B.8, subsection 3, no notification is required.

4. Reclamation of abandoned vehicles. A private entity with custody of an abandoned vehicle shall provide an itemized account of all fees assessed to the registered owner when the registered owner reclaims the vehicle. Prior to driving an abandoned vehicle away from the premises, a person who received or who is reclaiming the vehicle on behalf of a person who received notice under subsection 3 the registered owner shall present to the police authority or private entity, as applicable, the person’s valid driver’s license and proof of financial liability coverage as provided in section 321.20B.

d. If the abandoned motor vehicle is not reclaimed in accordance with section 321.89, subsection 3, or no lienholder objects to the disposal in the case of an owner-applicant, the police authority shall give the applicant a certificate of authority allowing the applicant to obtain a junking certificate for the motor vehicle. The applicant shall make application for a junking certificate to the county treasurer within thirty days of receipt of the certificate of authority and surrender the certificate of authority in lieu of the certificate of title. The demolisher shall accept the junking certificate in lieu of the certificate of title to the motor vehicle.

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e. Notwithstanding any other provisions of this section and sections 321.89 and 321.91, any person, firm, corporation, or unit of government upon whose property or in whose possession is found any abandoned motor vehicle, or any person being the owner of a motor vehicle whose title certificate is faulty, lost, or destroyed, may dispose of such motor vehicle to a demolisher for junk without a title and without the notification procedures of section 321.89, subsection 3, if the motor vehicle lacks an engine or two or more wheels or other structural part which renders the vehicle totally inoperable. The police authority shall give the applicant a certificate of authority. The owner shall apply to the county treasurer for a junking certificate within thirty days of receipt of the certificate of authority and shall surrender the certificate of authority in lieu of the certificate of title.

6. Section 321.90, subsection 2, paragraph f, Code 2026, is amended to read as follows:

g. Any proceeds from the sale of an abandoned motor vehicle to a demolisher under this section, by one other than the owner of the vehicle, except the sale of a vehicle pursuant to an order for disposal obtained pursuant to section 555B.8, subsection 3, shall first be applied to that person’s expenses in effecting the sale, including storage, towing, and disposal charges, and any surplus shall be distributed in accordance with section 321.89, subsection 5. The proceeds from the sale of a vehicle disposed of pursuant to section 555B.8, subsection 3, shall be distributed in accordance with section 555B.9.

f. The If notice was provided in accordance with section 321.89, subsection 3, and an abandoned motor vehicle was not reclaimed, the owner of an abandoned motor vehicle and all lienholders shall no longer have any right, title, claim, or interest in or to the motor vehicle; and no court in any case in law or equity shall recognize any right, title, claim, or interest of any owner or lienholders after the disposal of the motor vehicle to a demolisher.