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HF777 • 2026

A bill for an act relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, making penalties applicable, and including effective date provisions. (Formerly HSB 179 .) Effective date: 01/01/2027.

A bill for an act relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, making penalties applicable, and including effective date provisions. (Formerly HSB 179 .) Effective date: 01/01/2027.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
COMMITTEE ON TRANSPORTATION
Last action
2026-05-15
Official status
Signed by Governor . H.J. 05/15 .
Effective date
Not listed

Plain English Breakdown

The official source material did not provide specific details about limitations and liabilities for the department or county treasurer, so this claim was removed.

Motor Vehicle Salvage Certificate Rules for Insurers

This law allows insurers to apply for a salvage certificate of title without surrendering original documents, under certain conditions and with penalties.

What This Bill Does

  • Allows an insurer to get a salvage certificate of title for a damaged vehicle if ownership was transferred or will transfer to the insurer due to damage settlement.
  • Requires insurers to prove they tried at least twice to contact the previous owner or lienholders by certified mail but failed to obtain necessary documents.
  • Permits affidavits under penalty of perjury instead of notarized signatures for certain supporting documents when applying for a salvage certificate.
  • Specifies that the county treasurer must issue a free and clear salvage title if the application meets all requirements.

Who It Names or Affects

  • Insurers settling claims involving damaged vehicles
  • Previous owners of vehicles involved in insurance settlements
  • Lienholders with interests in salvaged vehicles

Terms To Know

Salvage Certificate of Title
A document issued by the state to identify a vehicle that has been declared a total loss and is being sold for parts or scrap.
Manufacturer's Statement of Origin
An official document from the manufacturer stating details about a new vehicle, including its identification number and specifications.

Limits and Unknowns

  • The law only applies to insurers who have settled with previous owners under specific conditions.
  • It does not specify what happens if an insurer fails to comply with the requirements for obtaining a salvage certificate of title.

Bill History

  1. 2026-05-15 Iowa Legislature

    Signed by Governor . H.J. 05/15 .

  2. 2026-05-06 Iowa Legislature

    Reported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 05/06 .

  3. 2026-05-02 Iowa Legislature

    Explanation of vote. H.J. 1158 .

  4. 2026-04-16 Iowa Legislature

    Message from House. S.J. 813 .

  5. 2026-04-15 Iowa Legislature

    Immediate message. H.J. 917 .

  6. 2026-04-15 Iowa Legislature

    Passed House , yeas 95, nays 0. H.J. 905 .

  7. 2026-04-15 Iowa Legislature

    House concurred in Senate amendment H-8336 . H.J. 905 .

  8. 2026-04-08 Iowa Legislature

    Senate amendment H-8336 filed. H.J. 868 .

  9. 2026-04-08 Iowa Legislature

    Message from Senate. H.J. 840 .

  10. 2026-04-08 Iowa Legislature

    Immediate message. S.J. 760 .

  11. 2026-04-08 Iowa Legislature

    Passed Senate , yeas 45, nays 0. S.J. 760 .

  12. 2026-04-08 Iowa Legislature

    Amendment S-5110 adopted, as amended. S.J. 759 .

  13. 2026-04-08 Iowa Legislature

    Amendment S-5157 adopted. S.J. 759 .

  14. 2026-04-06 Iowa Legislature

    Amendment S-5157 to S-5110 filed. S.J. 730 .

  15. 2026-03-26 Iowa Legislature

    Placed on calendar under unfinished business. S.J. 659 .

  16. 2026-03-19 Iowa Legislature

    Placed on calendar.

  17. 2026-03-19 Iowa Legislature

    Amendment S-5110 filed. S.J. 608 .

  18. 2026-03-19 Iowa Legislature

    Committee report, recommending amendment and passage. S.J. 608 .

  19. 2026-01-28 Iowa Legislature

    Subcommittee recommends passage.

  20. 2026-01-27 Iowa Legislature

    Subcommittee Meeting: [].

  21. 2026-01-27 Iowa Legislature

    Subcommittee reassigned: Rozenboom, Bennett, and Zumbach. S.J. 149 .

  22. 2026-01-27 Iowa Legislature

    * * * * * END OF 2025 ACTIONS * * * * *

  23. 2025-03-24 Iowa Legislature

    Subcommittee: Klimesh, Koelker, and Townsend. S.J. 621 .

  24. 2025-03-24 Iowa Legislature

    Explanation of vote. H.J. 789 .

  25. 2025-03-19 Iowa Legislature

    Explanation of vote. H.J. 751 .

  26. 2025-03-18 Iowa Legislature

    Read first time, referred to Transportation. S.J. 554 .

  27. 2025-03-18 Iowa Legislature

    Message from House. S.J. 554 .

  28. 2025-03-17 Iowa Legislature

    Immediate message. H.J. 675 .

  29. 2025-03-17 Iowa Legislature

    Passed House , yeas 96, nays 0. H.J. 669 .

  30. 2025-03-05 Iowa Legislature

    Introduced, placed on calendar. H.J. 517 .

Official Summary Text

A bill for an act relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, making penalties applicable, and including effective date provisions. (Formerly HSB 179 .) Effective date: 01/01/2027.

Current Bill Text

Read the full stored bill text
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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 15, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretaiy,
I hereby transmit:
House File 777, an Act relating to applications for a motor vehicle salvage certificate of
title by an insurer without surrendering the certificate of title or manufacturer’s or
importer’s statement of origin, making penalties applicable, and including effective date
provisions.
The above House File is hereby approved on this date.
Sinceijly,
Kim Reynolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
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House File 777
AN ACT
RELATING TO APPLICATIONS FOR A MOTOR VEHICLE SALVAGE
CERTIFICATE OF TITLE BY AN INSURER WITHOUT SURRENDERING
THE CERTIFICATE OF TITLE OR MANUFACTURER'S OR IMPORTER'S
STATEMENT OF ORIGIN, MAKING PENALTIES APPLICABLE, AND
INCLUDING EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 321.52, subsection 4, paragraph a, Code
2026, is amended to read as follows:
a. ( 1 ) Notwithstanding any other provision of law to the
contrary, an insurer may apply for and be issued a salvage
certificate of title for a motor vehicle without surrendering
the certificate of title or manufacturer's or importer's
statement of origin properly assigned if ownership of the
vehicle was transferred, or will transfer, to the insurer
pursuant to a settlement with the previous owner of the vehicle
arising from circumstances involving damage to the vehicle, and
at least thirty days have expired since the effective date of
such settlement.
( 2) To obtain a salvage certificate of title pursuant to
this paragraph "a", the insurer s- hall must submit an application
for a salvage certificate of title to any county treasurer.
(a) The application shall must be accompanied by an
affidavit from the insurer in which the insurer certifies it
has made at least two written attempts to obtain a properly
assigned certificate of title or manufacturer's or importer's
House File 777, p. 2
Statement of origin for the vehicle by contacting the previous
owner of the vehicle and all lienholders of record by certified
mail or a similar service that provides proof of service using
a return receipt, and has been unable to obtain the title
or statement of origin. The failure of a previous owner or
lienholder to provide a properly assigned certificate of title
or manufacturer's or importer's statement of origin shall be
deemed to be a waiver by the previous owner or lienholder of
all rights, title, claim, and interest in the vehicle.
(b) Notwithstanding chapter 9B, section 633B.105, or
any other provision to the contrary, a supporting document
submitted with the application, including but not limited to a
power of attorney described in section 321.49, a replacement
certificate of title application for the vehicle owner
described in section 321.42, or an odometer statement required
under section 321.71 if permitted under 49 C.F.R. pt. 580, may
be signed and affirmed under penalty of perjury in lieu of a
notarized signature and, in accordance with chapter 554D, the
signature may be electronic. The affirmation under penalty of
perjury is limited to the signature identifying the signer as
the owner or the signer's representation of the authority of
the named agent to sign on the owner's behalf.
(c) The application shall must also be accompanied by the
application fee required under paragraph "b", and proof of
payment of the total amount of the settlement by the insurer
to the previous owner of the vehicle. Upon receiving an
application that complies with this paragraph "a", the county
treasurer shall issue a salvage certificate of title to the
insurer which s hall b e is free and clear of all liens and
claims of ownership and shall must bear the word "SALVAGE"
stamped or printed on the face of the title in a manner
prescribed by the department.
(d) The department and a county treasurer may rely on
representations made in a supporting document submitted under
subparagraph division (b). The department or county treasurer
is not liable to any person for such reliance if the department
or county treasurer, as applicable, took reasonable steps to
verify the validity of the supporting document prior to issuing
the salvage certificate of title and had no knowledge that a
House File 777, p. 3
representation in the document was incorrect at the time the
title was issued.
Sec. 2. EFFECTIVE DATE. This Act takes effect January 1,
2027.
PAT GRASSLEY
Speaker of the House
AMY
President of the Senate
I hereby certify that this bill originated in
is known as House File 777, Ninety-first General
the House and
Assembly .
Approved
MEGHAN NELSON
Chief Clerk of the House
kim’S^ynolds XV Governor