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Text: HF00640                           Text: HF00642
Text: HF00600 - HF00699                 Text: HF Index
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House File 641

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 321.69, subsections 1 through 4 and 9,
  1  2 Code 1997, are amended to read as follows:
  1  3    1.  A certificate of title shall not be issued for a motor
  1  4 vehicle unless a damage disclosure statement has been made by
  1  5 the transferor of the vehicle and is furnished with the
  1  6 application for certificate of title.  A damage disclosure
  1  7 statement must be provided by the transferor to the transferee
  1  8 in a transfer of ownership of a motor vehicle.  The new
  1  9 certificate of title and registration receipt shall state on
  1 10 the face of the title the total cumulative dollar amount of
  1 11 damage reported by owners prior to the owner listed on the
  1 12 front of the title.
  1 13    2.  The damage disclosure statement required by this
  1 14 section shall, at a minimum, state the total retail dollar
  1 15 amount of all damage to the vehicle during the period of the
  1 16 transferor's ownership of the vehicle and whether the
  1 17 transferor knows if the vehicle was titled as a salvage or
  1 18 flood vehicle in this or any other state prior to the
  1 19 transferor's ownership of the vehicle and whether, during the
  1 20 period of the transferor's ownership or prior to the
  1 21 transferor's ownership, the vehicle sustained significant
  1 22 damage.  For the purposes of this section, "damage" refers to
  1 23 damage to the vehicle caused by fire, vandalism, collision,
  1 24 weather, falling objects, submersion in water, or flood, where
  1 25 the cost of repair is three thousand dollars or more per
  1 26 incident, but does not include normal wear and tear, glass
  1 27 damage, mechanical repairs or electrical repairs that have not
  1 28 been caused by fire, vandalism, collision, weather, falling
  1 29 objects, submersion in water, or flood "significant damage"
  1 30 means damage sustained in any one incident for which the cost
  1 31 of repair exceeds fifty percent of the fair market value of
  1 32 the vehicle before it became damaged, as determined in
  1 33 accordance with rules adopted by the department pursuant to
  1 34 section 321.52, subsection 4, paragraph "d".  "Damage" does
  1 35 not include the cost of repairing, replacing, or reinstalling
  2  1 an inflatable restraint system.  A determination of the amount
  2  2 of damage to a vehicle shall be based on estimates of the
  2  3 retail cost of repairing the vehicle, including labor, parts,
  2  4 and other materials, if the vehicle has not been repaired or
  2  5 on the actual retail cost of repair, including labor, parts,
  2  6 and other materials, if the vehicle has been repaired.  Only
  2  7 individual incidents in which the retail cost of repairs is
  2  8 three thousand dollars or more are required to be disclosed by
  2  9 this section.  If the vehicle has incurred damage of three
  2 10 thousand dollars or more per incident in more than one
  2 11 incident, the damage amounts must be combined and disclosed as
  2 12 the total of all separate incidents.
  2 13    3.  The damage disclosure statement shall be provided by
  2 14 the transferor to the transferee at or before the time of
  2 15 sale.  If the transferor is not a resident of this state the
  2 16 transferee shall not be required to submit a damage disclosure
  2 17 statement from the transferor with the transferee's
  2 18 application for title unless the state of the transferor's
  2 19 residence requires a damage disclosure statement.  However,
  2 20 the transferee shall submit a damage disclosure statement with
  2 21 the transferee's application for title indicating whether the
  2 22 transferee knows that a salvage or rebuilt title had ever
  2 23 existed for the vehicle, whether the vehicle had incurred
  2 24 prior damage of three thousand dollars or more per incident
  2 25 ever sustained significant damage, and the year, make, and
  2 26 vehicle identification number of the motor vehicle.  The
  2 27 transferee shall not be required to indicate whether the
  2 28 vehicle had incurred prior damage of three thousand dollars or
  2 29 more per incident under this subsection if the transferor's
  2 30 certificate of title is from another state and if it indicates
  2 31 that the vehicle is salvaged and not rebuilt or is another
  2 32 state's salvage certificate of title.
  2 33    4.  A lessee who has executed a lease as defined in section
  2 34 321F.1 shall provide a damage disclosure statement to the
  2 35 lessor at the termination of the lease.  The damage disclosure
  3  1 statement shall be made on a separate disclosure document and
  3  2 shall state the total dollar amount of all damage to the
  3  3 vehicle which occurred during the term of the lease.  The
  3  4 lessee's damage disclosure statement shall not be submitted
  3  5 with the application for title, but the lessor shall retain
  3  6 the lessee's damage disclosure statement for five years
  3  7 following the date of the statement.  If the transferor's
  3  8 damage disclosure statement indicates that during the period
  3  9 of the transferor's ownership or prior to the transferor's
  3 10 ownership the vehicle sustained significant damage, the new
  3 11 certificate of title and registration receipt shall contain
  3 12 the designation of "DAMAGED" and subsequent certificates of
  3 13 title and registration receipts shall contain the "DAMAGED"
  3 14 designation for the life of the vehicle, unless the
  3 15 certificate of title is transferred to a salvage certificate
  3 16 of title or unless the vehicle acquired a "REBUILT" or
  3 17 "SALVAGE" designation pursuant to section 321.24 or 321.52.
  3 18    9.  This section does not apply to motor trucks and truck
  3 19 tractors with a gross vehicle weight rating of sixteen
  3 20 thousand pounds or more, vehicles more than nine five model
  3 21 years old, motorcycles, motorized bicycles, and special mobile
  3 22 equipment.  The section does apply to motor homes.  
  3 23                           EXPLANATION
  3 24    This bill makes the following changes to Code section
  3 25 321.69, regarding motor vehicle damage disclosure statements:
  3 26    1.  The requirement that a new certificate of title and
  3 27 registration receipt state on the face of the title the total
  3 28 cumulative dollar amount of damage reported by owners prior to
  3 29 the owner listed on the title is removed from subsection 1.
  3 30    2.  The requirement that a damage disclosure statement
  3 31 contain the total retail dollar amount of all damage to the
  3 32 vehicle during the time the vehicle was owned by the person
  3 33 transferring the vehicle is removed from subsection 2.  A
  3 34 provision requiring the person transferring the vehicle to
  3 35 state whether the person knows whether the vehicle sustained
  4  1 significant damage during the time the vehicle was owned by
  4  2 the person is added.  "Significant damage" is defined as
  4  3 damage in any one incident for which the cost of repair is
  4  4 greater than 50 percent of the fair market value of the
  4  5 vehicle prior to the damage.  Fair market value is to be
  4  6 determined in accordance with rules developed by the state
  4  7 department of transportation regarding wrecked or salvage
  4  8 vehicles.
  4  9    3.  The $3,000 damage requirement for submitting damage
  4 10 disclosure statements is eliminated.
  4 11    4.  A damage disclosure statement which must be submitted
  4 12 by a person obtaining a vehicle from a transferor who is not a
  4 13 resident of this state is changed to provide that the person
  4 14 must state whether the person knows if the vehicle sustained
  4 15 significant damage rather than whether the vehicle sustained
  4 16 $3,000 or more of damage.
  4 17    5.  Subsection 4, regarding damage disclosure statements at
  4 18 the termination of leases, is stricken and replaced with a
  4 19 provision requiring the certificate of title of a vehicle
  4 20 which has sustained significant damage to contain the
  4 21 designation "DAMAGED" unless the vehicle is transferred to a
  4 22 salvage certificate of title or acquires a "REBUILT" or
  4 23 "SALVAGE" designation.
  4 24    6.  Subsection 9 is amended to provide that the section
  4 25 does not apply to vehicles more than five years old.
  4 26 Currently, the section does not apply to vehicles more than
  4 27 nine years old.  
  4 28 LSB 2704HV 77
  4 29 mk/cf/24
     
Text: HF00640                           Text: HF00642
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index
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