Relating to the acquisition of certain vehicles by a vehicle recycler, and making penalties applicable

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 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 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.