Vehicle recyclers—licensing, regulation, 400.23, 431.1 to 431.3
ARC 6489C
TRANSPORTATION DEPARTMENT[761]
Adopted and Filed
Rule making related to licensing and regulation of vehicle recyclers
The Transportation Department hereby amends Chapter 400, "Vehicle Registration and Certificate of Title," and Chapter 431, "Vehicle Recyclers," Iowa Administrative Code.
Legal Authority for Rule Making
This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 321H.4A.
State or Federal Law Implemented
This rule making implements, in whole or in part, Iowa Code section 321H.4A.
Purpose and Summary
This rule making relates to the licensing and regulation of vehicle recyclers and implements existing legal authority under Iowa Code chapter 321H.
The amendments to Chapter 400 add Iowa Code section 321H.4A to an implementation sentence, make minor technical changes, and adopt new subrule 400.23(2) to implement existing statutory authority to establish the National Motor Vehicle Title Information System (NMVTIS) reporting criteria when a vehicle is being junked or dismantled by a licensed vehicle recycler. The new subrule establishes the responsibility for completing the required NMVTIS reporting and provides three options for compliance. One option is for the vehicle owner or vehicle owner's authorized representative to provide a copy of the vehicle owner's or authorized representative's government-issued photo identification during the initial transaction between the parties and for the licensed vehicle recycler to verify that the owner or authorized representative has completed the required NMVTIS reporting. The second option, if the vehicle owner is another licensed vehicle recycler or is a business regularly engaged in the junking or dismantling of vehicles, is for the licensed vehicle recycler to enter into a written agreement confirming that the owner has completed the required NMVTIS reporting. The third option is for the licensed vehicle recycler to obtain the vehicle owner's or authorized representative's name and the vehicle identification number of the vehicle so that the vehicle recycler can complete the NMVTIS reporting. The new subrule also provides that a licensed vehicle recycler is required to cooperate with law enforcement during normal business hours when there is a reasonable belief that fraud has occurred in connection with the junking or dismantling of a vehicle.
The amendments to Chapter 431 correct the contact information to refer to the Motor Vehicle Division, add Iowa Code section 321H.4A to relevant implementation sentences, and make minor technical changes. Other amendments to Chapter 431 align the subrules governing application requirements and other criteria for a vehicle recycler license with Iowa Code sections 321H.4 and 321H.4A, which require a licensed vehicle recycler to submit proof of registration with the NMVTIS and to comply with applicable NMVTIS reporting and record-keeping requirements when a vehicle is purchased by a licensed vehicle recycler.
Public Comment and Changes to Rule Making
Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 15, 2022, as ARC 6361C. No public comments were received. No changes from the Notice have been made.
Adoption of Rule Making
This rule making was adopted by the Department on August 9, 2022.
Fiscal Impact
This rule making has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rule making, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 761—Chapter 11.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
Effective Date
This rule making will become effective on October 12, 2022.
The following rule-making actions are adopted:
Item 1. Amend rule 761—400.23(321) as follows:
761—400.23(321) Junked vehicle.
400.23(1) Junking certificate. The owner of a vehicle that is to be junked or dismantled shall obtain a junking certificate in accordance with when required by Iowa Code subsection 321.52(3) section 321.52.
400.23(2) Required verification.
a. One of the following shall satisfy the required verification when a vehicle owner junks or dismantles a vehicle to a licensed vehicle recycler under Iowa Code section 321.52(2)"b" or 321H.4A(2)"b":
(1)The owner or authorized representative provides information to the licensed vehicle recycler who acquires the vehicle, including, at a minimum, government-issued photo identification and verification of prior reporting to the National Motor Vehicle Title Information System (NMVTIS). For a subsequent transaction with the licensed vehicle recycler, the vehicle owner or authorized representative is not required to provide government-issued photo identification if the licensed vehicle recycler has retained such information from a prior transaction. A licensed vehicle recycler is not required to report a vehicle verified under this subparagraph to the NMVTIS.
(2)The vehicle's owner is a licensed vehicle recycler or is the authorized representative of an established commercial or industrial business, operating from a fixed location, that is known to the licensed vehicle recycler to be regularly engaged in the junking or dismantling of vehicles or may reasonably be expected to produce vehicles for junking or dismantling and has entered into a written agreement with the licensed vehicle recycler confirming it has reported the vehicles to the NMVTIS. The written agreement shall, at a minimum, contain the owner's or authorized representative's name and address. A licensed vehicle recycler is not required to report a vehicle covered under an agreement under this subparagraph to the NMVTIS.
(3)The licensed vehicle recycler obtains the vehicle owner's or authorized representative's name and the vehicle identification number for the vehicle being junked or dismantled, and the vehicle recycler reports the vehicle to the NMVTIS.
b. A licensed vehicle recycler acquiring a vehicle as described under this subrule shall cooperate with a law enforcement agency during normal business hours when the agency has reason to believe that fraud has occurred in connection with the junking or dismantling of the vehicle. A law enforcement agency shall maintain the information as confidential and shall not disclose the information to a third party, except as may be necessary for the prosecution of a criminal violation.
400.23(2) 400.23(3) Retitling a junked vehicle. The department may authorize issuance of a new certificate of title to the vehicle owner named on the junking certificate only if the department determines that the junking certificate was issued in error.
a. to c. No change.
This rule is intended to implement Iowa Code subsection 321.52(3) sections 321.52 and 321H.4A.
Item 2. Amend rule 761—431.1(321H) as follows:
761—431.1(321H) General.
431.1(1) Information. Information and blank forms relating to this chapter may be obtained from and completed forms shall be submitted to the Office of Motor Vehicle Services Division, Iowa Department of Transportation, P.O. Box 9278, Des Moines, Iowa 50306-9278. Information and forms are also available on the department's Web site website at http://www.iowadot.gov/mvd www.iowadot.gov.
431.1(2) Definitions.
"Principal place of business" means a building actually occupied where the public and the department may contact the owner or operator during regular business hours.
"Regular business hours" means to be consistently open to the public on a weekly basis at hours reported to the office of motor vehicle services division. Regular business hours shall include a minimum of 32 posted hours between 7 a.m.and 9 p.m., Monday through Friday.
This rule is intended to implement Iowa Code sections 321H.2 and 321H.4.
Item 3. Adopt the following new paragraph 431.2(1)"d":
d. If subject to the requirements of 28 CFR Section 25.56, as adopted in Iowa Code section 321H.4A(2)"a," do all of the following:
(1)Obtain and maintain a registered account with the National Motor Vehicle Title Information System (NMVTIS).
(2)Report, or verify reporting of, inventory to the NMVTIS.
(3)If applicable, verify the seller of a vehicle purchased by the recycler has complied with 28 CFR Section 25.56 and document such verification on a form prescribed by the department if third-party electronic records are insufficient to verify compliance with 28 CFR Section 25.56 because the vehicle has been crushed or flattened by mechanical means, as stated in Iowa Code section 321H.4A.
(4)Retain records of compliance, including verification forms completed under subparagraph 431.2(1)"d"(3), at the vehicle recycler's principal place of business for at least three years after the purchase of the vehicle. Records may be stored either in hard copy or electronically. Records of compliance shall be open for inspection by any peace officer during normal business hours.
Item 4. Amend rule 761—431.2(321H), implementation sentence, as follows:
This rule is intended to implement Iowa Code section sections 321H.4and 321H.4A.
Item 5. Adopt the following new subrule 431.3(8):
431.3(8) The applicant shall include the unique NMVTIS identification number as proof of compliance with registration requirements.
Item 6. Amend rule 761—431.3(321H), implementation sentence, as follows:
This rule is intended to implement Iowa Code section sections 321H.4and 321H.4A.
[Filed 8/11/22, effective 10/12/22]
[Published 9/7/22]
Editor's Note: For replacement pages for IAC, see IAC Supplement 9/7/22.
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 9/7/2022.
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule -431.2(1) Rule 761-400.13 Rule 761-400.23 Rule 761-431.1 Rule 761-431.2 Rule 761-431.2(1)"d" Rule 761-431.3 Rule 761-431.3(8)The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 321.115(1) Iowa Code 321.52 Iowa Code 321.52(2) Iowa Code 321.52(3) Iowa Code 321.52(4) Iowa Code 321H.2 Iowa Code 321H.4 Iowa Code 321H.4A Iowa Code 321H.4A(2)The following keywords and tags were added to this document. You may click a keyword to view related notices.
Definitions General Information Junked vehicle Junking certificate Required verification Retitling a junked vehicle© 2024; State of Iowa | Privacy Policy