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PAG LIN 1 1 Section 1. Section 321.52, subsection 4, paragraph a, Code 1 2 1995, is amended to read as follows: 1 3 4. a. Avehicle rebuilder or a person engaged in the1 4business of buying, selling, or exchanging vehicles of a type1 5required to be registered in this state, upon acquisition of a1 6 person who acquires a wrecked or salvage vehicle, shall 1 7 surrender the certificate of title or manufacturer's or 1 8 importer's statement of origin properly assigned, together 1 9 with an application for a salvage certificate of title to the 1 10 county treasurer of the county of residence of the purchaser 1 11 or transferee within fifteen days after the date of assignment 1 12 of the certificate of title for the wrecked or salvage motor 1 13 vehicle. This subsection applies only to vehicles with a fair 1 14 market value of five hundred dollars or more, based on the 1 15 value before the vehicle became wrecked or salvage. Upon 1 16 payment of a fee of two dollars, the county treasurer shall 1 17 issue a salvage certificate of title which shall bear the word 1 18 "SALVAGE" stamped or printed on the face of the title in a 1 19 manner prescribed by the department. A salvage certificate of 1 20 title may be assigned to an educational institution, a new 1 21 motor vehicle dealer licensed under chapter 322, a person 1 22 engaged in the business of purchasing bodies, parts of bodies, 1 23 frames or component parts of vehicles for sale as scrap metal, 1 24 a salvage pool, or an authorized vehicle recycler licensed 1 25 under chapter 321H. An authorized vehicle recycler or a 1 26 salvage pool licensed under chapter 321H or a new motor 1 27 vehicle dealer licensed under chapter 322 may assign a salvage 1 28 certificate of title to any person. A vehicle on which 1 29 ownership has transferred to an insurer of the vehicle, as a 1 30 result of a settlement with the owner of the vehicle arising 1 31 out of damage to, or unrecovered theft of the vehicle, shall 1 32 be deemed to be a wrecked or salvage vehicle and the insurer 1 33 shall comply with this subsection to obtain a salvage 1 34 certificate of title within fifteen days after the date of 1 35 assignment of the certificate of title of the vehicle. 2 1 Sec. 2. Section 321.52, subsection 4, Code 1995, is 2 2 amended by adding the following new paragraph: 2 3 NEW PARAGRAPH. e. Notwithstanding other provisions of 2 4 this section to the contrary, if the costs to repair a wrecked 2 5 or salvage vehicle exceed one hundred percent of the retail 2 6 value of the vehicle before the vehicle was wrecked or 2 7 salvage, as determined by the national automobile dealers 2 8 association's official used car guide for Iowa, the owner of 2 9 the motor vehicle shall surrender the certificate of title to 2 10 the county treasurer. The county treasurer shall issue to 2 11 such person without fee a junking certificate. A regular 2 12 certificate of title shall not again be issued for the vehicle 2 13 subsequent to the issuance of the junking certificate. 2 14 Sec. 3. Section 321.69, subsection 5, 7, and 9, Code 1995, 2 15 are amended to read as follows: 2 16 5. Authorized vehicle recyclers and salvage pools licensed 2 17 under chapter 321H and motor vehicle dealers licensed under 2 18 chapter 322 shall maintain copies of all damage disclosure 2 19 statements where the recycler, salvage pool, or dealer is 2 20 either the transferor or the transferee for five years 2 21 following the date of the statement. The copies shall be made 2 22 available to the department or the attorney general upon 2 23 request. 2 24 7. A person, authorized vehicle recycler or salvage pool 2 25 licensed under chapter 321H, or motor vehicle dealer licensed 2 26 under chapter 322 shall not be liable to a subsequent owner of 2 27 a vehicle because a prior owner gave a false or inaccurate 2 28 damage disclosure statement or failed to disclose that the 2 29 vehicle had previously been damaged and repaired or had been 2 30 titled on a salvage or rebuilt certificate of title unless the 2 31 person, recycler, salvage pool, or dealer knew or reasonably 2 32 should have known that the prior owner gave a false or 2 33 inaccurate damage disclosure statement or failed to disclose 2 34 that the vehicle had been damaged and repaired or had been 2 35 titled on a salvage or rebuilt certificate of title. 3 1 9. A person who knowingly makes a false damage disclosure 3 2 statement commits a fraudulent practice. Failure of a person, 3 3 authorized vehicle recycler or salvage pool licensed under 3 4 chapter 321H, or motor vehicle dealer licensed under chapter 3 5 322, to comply with any duty imposed by this section 3 6 constitutes a violation of section 714.16, subsection 2, 3 7 paragraph "a". 3 8 Sec. 4. Section 321H.2, subsection 3, Code 1995, is 3 9 amended to read as follows: 3 10 3. "Extension" means a place of businessof an authorized3 11vehicle recyclerother than the principal place of business 3 12 within the county of the principal place of business. 3 13 Sec. 5. Section 321H.2, Code 1995, is amended by adding 3 14 the following new subsection: 3 15 NEW SUBSECTION. 4A. "Salvage pool" means the business of 3 16 selling at auction wrecked or salvage vehicles, as defined in 3 17 section 321.52. 3 18 Sec. 6. Section 321H.3, unnumbered paragraph 1, Code 1995, 3 19 is amended to read as follows: 3 20 Except for educational institutions, people licensed as new 3 21 vehicle dealers under chapter 322, people engaged in a hobby 3 22 not for profit, people engaged in the business of purchasing 3 23 bodies, parts of bodies, frames or component parts of vehicles 3 24 only for sale as scrap metal or a person licensed under the 3 25 provisions of this chapteras an authorized vehicle recycler, 3 26 a person in this state shall not engage in the business of: 3 27 Sec. 7. Section 321H.4, subsection 1, Code 1995, is 3 28 amended by striking the subsection and inserting in lieu 3 29 thereof the following: 3 30 1. Upon initial application or renewal and payment of a 3 31 fee, a person may apply for a license to engage in business as 3 32 either an authorized vehicle recycler or a salvage pool. A 3 33 person who applies for an authorized vehicle recycler license 3 34 may apply to engage in business as a vehicle rebuilder, a used 3 35 vehicle parts dealer, or a vehicle salvager. 4 1 Sec. 8. Section 321H.4, subsection 2, unnumbered paragraph 4 2 1, Code 1995, is amended to read as follows: 4 3 Application for a licenseas an authorized vehicle recycler4 4 under this chapter shall be made to the department on forms 4 5 provided by the department. The application shall be 4 6 accompanied by a fee of seventy dollars for a two-year 4 7 license, one hundred forty dollars for a four-year license, or 4 8 two hundred ten dollars for a six-year license. The license 4 9 shall be approved or disapproved within thirty days after 4 10 application for the license. A license is valid for two 4 11 years, four years, or six years and expires on the last day of 4 12 the last month of the two-year, four-year, or six-year period, 4 13 as applicable. A separate license shall be obtained for each 4 14 county in which an applicant conducts operations. 4 15 Sec. 9. Section 422.42, Code 1995, is amended by adding 4 16 the following new subsection: 4 17 NEW SUBSECTION. 19. Sales of wrecked or salvage vehicles, 4 18 or bodies, parts of bodies, frames or component parts of 4 19 wrecked or salvage vehicles by an authorized vehicle recycler 4 20 or a salvage pool licensed under chapter 321H shall be 4 21 considered a retail sale for purposes of this chapter. A sale 4 22 under this subsection shall not be considered a retail sale if 4 23 the purchaser is an authorized vehicle recycler or a salvage 4 24 pool licensed under chapter 321H. 4 25 EXPLANATION 4 26 Section 321.52, subsection 4, paragraph "a", is amended to 4 27 require that anyone who acquires a wrecked or salvage vehicle 4 28 must obtain a salvage title for the vehicle within 15 days of 4 29 transfer of the certificate of title. This requirement 4 30 applies only to vehicles with a fair market value of $500 or 4 31 more, based on the value of the vehicle before it became 4 32 wrecked or salvage. 4 33 Section 321.52, subsection 4, is amended by adding new 4 34 paragraph "e" which prohibits the issuance of a regular 4 35 certificate of title for a wrecked or salvage vehicle if the 5 1 costs to repair the wrecked or salvage vehicle exceed 100 5 2 percent of the retail value of the vehicle before it was 5 3 wrecked or salvage, as determined by the national automobile 5 4 dealers association's official used car guide for Iowa. The 5 5 county treasurer is required to issue a junking certificate 5 6 for the vehicle. 5 7 Chapter 321H is amended to require that persons operating 5 8 salvage pools must obtain a license. The bill defines salvage 5 9 pool to mean the business of selling at auction wrecked or 5 10 salvage vehicles. The bill provides that a person may operate 5 11 as a salvage pool or as an authorized vehicle recycler, but 5 12 not as both. A person who violates a provision of chapter 5 13 321H is guilty of a simple misdemeanor which is punishable by 5 14 up to 30 days imprisonment or a fine of at least $50 but not 5 15 to exceed $100. The bill makes several changes to other 5 16 sections of the Code which are related to adding a salvage 5 17 pool licensing requirement. 5 18 Section 422.42 is amended to require that sales made by an 5 19 authorized vehicle recycler or salvage pool licensed under 5 20 chapter 321H are considered to be retail sales, requiring the 5 21 collection of sales tax by the authorized vehicle recycler or 5 22 salvage pool. The bill provides that if the purchaser is also 5 23 an authorized vehicle recycler or a salvage pool, the sale is 5 24 not considered to be a retail sale. 5 25 LSB 1635SC 76 5 26 js/cf/24
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