Bills › 91st General Assembly
Relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable
Sponsored by the Senate Transportation Committee, Sen. Tom Shipley (R)
Topics:Transportation
Where it is now
- Done: IntroducedFebruary 12, 2025
- Done: SubcommitteeFebruary 18, 2025
- Done: Senate committeeMarch 4, 2025
- Done: Passes the SenateMarch 24, 202549–0
- Done: House committeeFebruary 4, 2026
- Done: Passes the HouseMarch 31, 202692–0
- Done: To the GovernorMay 2, 2026
- Done: Signed into lawMay 2, 2026
Signed into law What’s a funnel?
What’s in it
AI summary Licensed vehicle recyclers can currently buy old cars for scrap without needing a title if the car is at least 12 years old and costs less than $1,000. This law would require these recyclers to check state records first to make sure no one else has a legal claim or a lien on the vehicle. If a recycler fails to do this check, they could face a fine.1
Read the official explanation
Under current law, the purchaser or transferee of a motor vehicle sold for scrap or junk is required to surrender the certificate of title, properly endorsed and signed by the previous owner, to a county treasurer, and apply for a junking certificate from the county treasurer, within 30 days after assignment of the certificate of title. However, a vehicle owner may dispose of the vehicle to a vehicle recycler licensed under Code chapter 321H (vehicle recyclers) for scrap or junk without presenting a certificate of title or a junking certificate if the vehicle is 12 model years old or older and is acquired by the vehicle recycler for reasonable consideration equaling less than $1,000. This bill prohibits a licensed vehicle recycler from acquiring such a vehicle unless the recycler uses the recycler’s access to the state records system to verify that there is not a lienholder who has a security interest in the vehicle. A licensed vehicle recycler is not required to verify the nonexistence of a lienholder in transactions with a scrap metal dealer. By operation of law, a violation of the bill is a simple misdemeanor punishable by a scheduled fine of $135.
Why it matters. Licensed vehicle recyclers would be prohibited from acquiring certain older vehicles for scrap or junk without first using state records to verify that no lienholder has a security interest in the vehicle. This requirement does not apply to recyclers when they are conducting transactions with scrap metal dealers. Violating this rule is a simple misdemeanor punishable by a $135 fine.2
House subcommittee
Named January 20, 2026. On February 3, 2026 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part