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PAG LIN 1 1 Section 1. Section 321.24, unnumbered paragraphs 4 and 10, 1 2 Code 1995, are amended to read as follows: 1 3 If the prior certificate of title is from another state and 1 4 indicates that the vehicle was rebuilt the new certificate of 1 5 titleand the registration receiptshall contain the 1 6 designation of "REBUILT" stamped or printed on its face 1 7 together with the name of the state issuing the prior title. 1 8 The designation of "REBUILT" and the name of the other state 1 9 shall be retained on all subsequent Iowa certificates of title 1 10and registration receiptsfor the vehicle. If the prior 1 11 certificate of title is from another state and indicates that 1 12 the vehicle was rebuilt the registration receipt shall contain 1 13 the designation of "REBUILT" stamped and printed on its face. 1 14 The stamped designation of "REBUILT" shall be located on the 1 15 center of the right side of the registration receipt in black 1 16 letters no bigger than sixteen point type. The designation 1 17 shall be retained on the face of all subsequent registration 1 18 receipts for the vehicle. 1 19 If the county treasurer or department is not satisfied as 1 20 to the ownership of the vehicle or that there are no 1 21 undisclosed security interests in it, or a junking certificate 1 22 has been issued for the vehicle but a certificate of title 1 23 will not be reissued under section 321.52, subsection 3, and 1 24 the vehicle qualifies as an antique vehicle under section 1 25 321.115, subsection 1, the county treasurer or department may 1 26 register the vehicle but shall as a condition of issuing a 1 27 certificate of title and registration receipt, require the 1 28 applicant to file with the department a bond in the form 1 29 prescribed by the department and executed by the applicant, 1 30 and either accompanied by the deposit of cash with the 1 31 department or also executed by a person authorized to conduct 1 32 a surety business in this state. The bond shall be in an 1 33 amount equal to one and one-half times the current value of 1 34 the vehicle as determined by the department and conditioned to 1 35 indemnify any prior owner and secured party and any subsequent 2 1 purchaser of the vehicle or person acquiring any security 2 2 interest in it, and their respective successors in interest, 2 3 against any expense, loss or damage, including reasonable 2 4 attorney's fees, by reason of the issuance of the certificate 2 5 of title of the vehicle or on account of any defect in or 2 6 undisclosed security interest upon the right, title and 2 7 interest of the applicant in and to the vehicle. Any such 2 8 interested person has a right of action to recover on the bond 2 9 for any breach of its conditions, but the aggregate liability 2 10 of the surety to all persons shall not exceed the amount of 2 11 the bond. The bond, and any deposit accompanying it, shall be 2 12 returned at the end of three years or prior thereto if the 2 13 vehicle is no longer registered in this state and the 2 14 currently valid certificate of title is surrendered to the 2 15 department, unless the department has been notified of the 2 16 pendency of an action to recover on the bond. 2 17 Sec. 2. Section 321.52, subsection 3, unnumbered paragraph 2 18 2, Code 1995, is amended to read as follows: 2 19 However, upon application the department upon a showing of 2 20 good cause may issue a certificate of title after the 2 21 fourteen-day period for a junked vehicle for which a junking 2 22 certificate has been issued. For purposes of this subsection, 2 23 "good cause" means that the junking certificate was obtained 2 24 by mistake or inadvertence. If a person's application to the 2 25 department is denied, the person may make application for a 2 26 certificate of title under the bonding procedure as provided 2 27 in section 321.24, if the vehicle qualifies as an antique 2 28 vehicle under section 321.115, subsection 1, or the person may 2 29 seek judicial review as provided under sections 17A.19 and 2 30 17A.20. 2 31 Sec. 3. Section 321.52, subsection 4, paragraphs a and b, 2 32 Code 1995, are amended to read as follows: 2 33 a. A vehicle rebuilder or a person engaged in the business 2 34 of buying, selling, or exchanging vehicles of a type required 2 35 to be registered in this state, upon acquisition of a wrecked 3 1 or salvage vehicle, shall surrender the certificate of title 3 2 or manufacturer's or importer's statement of origin properly 3 3 assigned, together with an application for a salvage 3 4 certificate of title to the county treasurer of the county of 3 5 residence of the purchaser or transferee within fifteen days 3 6 after the date of assignment of the certificate of title for 3 7 the wrecked or salvage motor vehicle. This subsection applies 3 8 only to vehicles with a fair market value of five hundred 3 9 dollars or more, based on the value before the vehicle became 3 10 wrecked or salvage. Upon payment of a fee of two dollars, the 3 11 county treasurer shall issue a salvage certificate of title 3 12 which shall bear the word "SALVAGE" stamped or printed on the 3 13 face of the title in a manner prescribed by the department. A 3 14 salvage certificate of title may be assigned to an educational 3 15 institution, a new motor vehicle dealer licensed under chapter 3 16 322, a person engaged in the business of purchasing bodies, 3 17 parts of bodies, frames or component parts of vehicles for 3 18 sale as scrap metal, a salvage pool, or an authorized vehicle 3 19 recycler licensed under chapter 321H. An authorized vehicle 3 20 recycler licensed under chapter 321H or a new motor vehicle 3 21 dealer licensed under chapter 322 may assign a salvage 3 22 certificate of title to any person. A vehicle on which 3 23 ownership has transferred to an insurer of the vehicle, as a 3 24 result of a settlement with the owner of the vehicle arising 3 25 out of damage to, or unrecovered theft of the vehicle, shall 3 26 be deemed to be a wrecked or salvage vehicle and the insurer 3 27 shall comply with this subsection to obtain a salvage 3 28 certificate of title within fifteen days after the date of 3 29 assignment of the certificate of title of the vehicle. 3 30 b. When a wrecked or salvage vehicle has been repaired, 3 31 the owner may apply for a regular certificate of title by 3 32 paying the appropriate fees and surrendering the salvage 3 33 certificate of title and a properly executed salvage theft 3 34 examination certificate. The county treasurer shall issue a 3 35 regular certificate of title which shall bear a designation 4 1 stamped or printed on the face of the title and stamped and 4 2 printed on the registration receipt indicating that the 4 3 vehicle was previously titled on a salvage certificate of 4 4 title in a form approved by the department. This designation 4 5 shall be included on every Iowa certificate of title and 4 6 registration receipt issued thereafter for the vehicle. The 4 7 stamped designation shall be in black and shall be in letters 4 8 no bigger than sixteen point type and located on the center of 4 9 the right side of the registration receipt. However, if 4 10 ownership of a stolen vehicle has been transferred to an 4 11 insurer organized under the laws of this state or admitted to 4 12 do business in this state, or if the transfer was the result 4 13 of a settlement with the owner of the vehicle arising from 4 14 damage to or the unrecovered theft of the vehicle, and if the 4 15 insurer certifies to the county treasurer on a form approved 4 16 by the department that the insurance company has received one 4 17 or more written estimates which states that the retail cost of 4 18 repairs including labor, parts, and other materials of all 4 19 damage to the vehicle is less than three thousand dollars, the 4 20 county treasurer shall issue to the insurance company the 4 21 regular certificate of title and registration receipt without 4 22 this designation. 4 23 Sec. 4. Section 321.69, subsections 2, 7, and 8, Code 4 24 1995, are amended to read as follows: 4 25 2. The damage disclosure statement required by this 4 26 section shall, at a minimum, state the total retail dollar 4 27 amount of all damage to the vehicle during the period of the 4 28 transferor's ownership of the vehicle and whether the 4 29 transferor knows if the vehicle was titled as a salvage or 4 30 flood vehicle in this or any other state prior to the 4 31 transferor's ownership of the vehicle. For the purposes of 4 32 this section, "damage" refers to damage to the vehicle caused 4 33 by fire, vandalism, collision, weather, falling objects, 4 34 submersion in water, or flood, where the cost of repair is 4 35 three thousand dollars or more per incident, but does not 5 1 include normal wear and tear, glass damage, mechanical repairs 5 2 or electrical repairs that have not been caused by fire, 5 3 vandalism, collision, weather, falling objects, submersion in 5 4 water, or flood. "Damage" does not include the cost of 5 5 repairing, replacing, or reinstalling an inflatable restraint 5 6 system. A determination of the amount of damage to a vehicle 5 7 shall be based on estimates of the retail cost of repairing 5 8 the vehicle, including labor, parts, and other materials, if 5 9 the vehicle has not been repaired or on the actual retail cost 5 10 of repair, including labor, parts, and other materials, if the 5 11 vehicle has been repaired. Only individual incidents in which 5 12 the retail cost of repairs is three thousand dollars or more 5 13 are required to be disclosed by this section. If the vehicle 5 14 has incurred damage of three thousand dollars or more per 5 15 incident in more than one incident, the damage amounts must be 5 16 combined and disclosed as the total of all separate incidents. 5 17 7. A person, authorized vehicle recycler licensed under 5 18 chapter 321H, or motor vehicle dealer licensed under chapter 5 19 322 shall not be liable to a subsequent owner of a vehicle 5 20 because a prior owner or lessee gave a false or inaccurate 5 21 damage disclosure statement or failed to disclose that the 5 22 vehicle had previously been damaged and repaired or had been 5 23 titled on a salvage or rebuilt certificate of title unless the 5 24 person, recycler, or dealer knew or reasonably should have 5 25 known that the prior owner or lessee gave a false or 5 26 inaccurate damage disclosure statement or failed to disclose 5 27 that the vehicle had been damaged and repaired or had been 5 28 titled on a salvage or rebuilt certificate of title. 5 29 8. This section does not apply to motor trucks and truck 5 30 tractors with a gross vehicle weight rating of sixteen 5 31 thousand pounds or more, vehicles more than nine model years 5 32 old,vehicles with titles stating the vehicle is salvage or5 33rebuilt,motorcycles, motorized bicycles, and special mobile 5 34 equipment. The section does apply to motor homes. 5 35 Sec. 5. Section 321.69, Code 1995, is amended by adding 6 1 the following new subsection: 6 2 NEW SUBSECTION. 3A. A lessee who has executed a lease as 6 3 defined in section 321F.1 shall provide a damage disclosure 6 4 statement to the lessor at the termination of the lease. The 6 5 damage disclosure statement shall be made on a separate 6 6 disclosure document and shall state the total dollar amount of 6 7 all damage to the vehicle which occurred during the term of 6 8 the lease. The lessee's damage disclosure statement shall not 6 9 be submitted with the application for title, but the lessor 6 10 shall retain the lessee's damage disclosure statement for five 6 11 years following the date of the statement. 6 12 Sec. 6. Section 322G.2, subsection 13, Code 1995, is 6 13 amended to read as follows: 6 14 13. "Motor vehicle" means a self-propelled vehicle 6 15 purchased or leased in this state, except as provided in 6 16 section 322G.15, and primarily designed for the transportation 6 17 of persons or property over public streets and highways, but 6 18 does not include mopeds, motorcycles, motor homes, or vehicles 6 19 over ten thousand pounds gross vehicle weight rating. 6 20 Sec. 7. Section 322G.11, Code 1995, is amended to read as 6 21 follows: 6 22 322G.11 DEALER LIABILITY. 6 23 This chapter, except for the requirements of section 6 24 322G.12, does not impose any liability on a franchised motor 6 25 vehicle dealer or create a cause of action by a consumer 6 26 against a dealer. A dealer shall not be made a party 6 27 defendant in any action involving or relating to this chapter, 6 28 except as provided in this section. The manufacturer shall 6 29 not charge back or require reimbursement by the dealer for any 6 30 costs, including but not limited to any refunds or vehicle 6 31 replacements, incurred by the manufacturer pursuant to this 6 32 chapter, in the absence of a finding by a court that the 6 33 related repairs had been carried out by the dealer in a manner 6 34 substantially inconsistent with the manufacturer's published 6 35 instructions. A manufacturer who is found by a court to have 7 1 improperly charged back a dealer because of a violation of 7 2 this section is liable to the injured dealer for full 7 3 reimbursement plus reasonable costs and any attorney's fees. 7 4 Sec. 8. Section 322G.12, Code 1995, is amended to read as 7 5 follows: 7 6 322G.12 RESALE OF RETURNED VEHICLES. 7 7 Subsequent to December 31, 1991, a manufacturer who accepts 7 8 the return of a motor vehicle pursuant to a settlement, 7 9 determination, or decision under this chapter shall notify the 7 10 state department of transportation and report the vehicle 7 11 identification number of that motor vehicle within ten days 7 12 after the acceptance. The state department of transportation 7 13 shall note the fact that the motor vehicle was returned 7 14 pursuant to this chapter on the title for the motor vehicle. 7 15 A person shall not knowingly lease; or sell, either at 7 16 wholesale or retail; or transfer a title to a motor vehicle 7 17 returned by reason of a settlement, determination, or decision 7 18 pursuant to this chapter or a similar statute of any other 7 19 state unless the nature of the nonconformity is clearly and 7 20 conspicuously disclosed to the prospective transferee, lessee, 7 21 or buyer. The attorney general shall prescribe by rule the 7 22 form, content, and procedure pertaining to such a disclosure 7 23 statement, recognizing the need of manufacturers to implement 7 24 a uniform disclosure form. The manufacturer shall make a 7 25 reasonable effort to ensure that such disclosure is made to 7 26 the first subsequent retail buyer or lessee. For purposes of 7 27 this subsection, "settlement" includes an agreement entered 7 28 into between the manufacturer and the consumer that occurs 7 29 after the dispute has been submitted to a state-operated 7 30 dispute resolution program or to a manufacturer-established 7 31 program certified in this or any other state, but does not 7 32 include agreements reached in informal proceedings prior to 7 33 the first written or oral presentation to thecertifiedstate- 7 34 operated or state-certified dispute resolution program by 7 35 either party. "Settlement" also includes an agreement entered 8 1 into between a manufacturer and a consumer that occurs after 8 2 the dispute has been submitted to a dispute resolution program 8 3 that is not state-operated or state-certified. 8 4 Sec. 9. Section 322G.15, Code 1995, is amended to read as 8 5 follows: 8 6 322G.15 EFFECTIVE DATES. 8 7 This chapter applies to motor vehicles originally purchased 8 8 or leased in this state by consumers on or after July 1, 1991. 8 9 Except for section 322G.3, subsections 1 and 2, and section 8 10 322G.6, subsection 1, this chapter applies to motor vehicles 8 11 originally purchased or leased in other states, if the 8 12 consumer is a resident of this state at the time the 8 13 consumer's rights are asserted under this chapter. Section 8 14 322G.14, which concerns rulemaking, shall take effect May 9, 8 15 1991. 8 16 Sec. 10. EFFECTIVE DATE. The amendments to section 8 17 321.69, subsections 2 and 8, in section 4 of this Act take 8 18 effect on the date the state department of transportation 8 19 prescribes the appropriate forms or January 1, 1996, whichever 8 20 date is earlier. The remainder of this Act takes effect on 8 21 July 1, 1995. 8 22 SF 214 8 23 js/cc/26
Text: SF00213 Text: SF00215 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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