Text: HF00640 Text: HF00642 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 new1 9certificate of title and registration receipt shall state on1 10the face of the title the total cumulative dollar amount of1 11damage reported by owners prior to the owner listed on the1 12front of the title.1 13 2. The damage disclosure statement required by this 1 14 section shall, at a minimum, statethe total retail dollar1 15amount of all damage to the vehicle during the period of the1 16transferor's ownership of the vehicle andwhether 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 to1 23damage to the vehicle caused by fire, vandalism, collision,1 24weather, falling objects, submersion in water, or flood, where1 25the cost of repair is three thousand dollars or more per1 26incident, but does not include normal wear and tear, glass1 27damage, mechanical repairs or electrical repairs that have not1 28been caused by fire, vandalism, collision, weather, falling1 29objects, 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" does1 35not include the cost of repairing, replacing, or reinstalling2 1an 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.Only2 7individual incidents in which the retail cost of repairs is2 8three thousand dollars or more are required to be disclosed by2 9this section. If the vehicle has incurred damage of three2 10thousand dollars or more per incident in more than one2 11incident, the damage amounts must be combined and disclosed as2 12the 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 hadincurred2 24prior damage of three thousand dollars or more per incident2 25 ever sustained significant damage, and the year, make, and 2 26 vehicle identification number of the motor vehicle.The2 27transferee shall not be required to indicate whether the2 28vehicle had incurred prior damage of three thousand dollars or2 29more per incident under this subsection if the transferor's2 30certificate of title is from another state and if it indicates2 31that the vehicle is salvaged and not rebuilt or is another2 32state's salvage certificate of title.2 33 4.A lessee who has executed a lease as defined in section2 34321F.1 shall provide a damage disclosure statement to the2 35lessor at the termination of the lease. The damage disclosure3 1statement shall be made on a separate disclosure document and3 2shall state the total dollar amount of all damage to the3 3vehicle which occurred during the term of the lease. The3 4lessee's damage disclosure statement shall not be submitted3 5with the application for title, but the lessor shall retain3 6the lessee's damage disclosure statement for five years3 7following 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 thanninefive 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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