Text: SSB03154                          Text: SSB03156
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Senate Study Bill 3155

Bill Text

PAG LIN
  1  1    Section 1.  Section 321.24, Code Supplement 1999, is
  1  2 amended by adding the following new unnumbered paragraph after
  1  3 unnumbered paragraph 5:
  1  4    NEW UNNUMBERED PARAGRAPH.  If the prior certificate of
  1  5 title is from another state and indicates that the vehicle was
  1  6 returned to the manufacturer pursuant to a law of another
  1  7 state similar to chapter 322G, the new registration receipt
  1  8 and certificate of title, and all subsequent registration
  1  9 receipts and certificates of title issued for the vehicle,
  1 10 shall contain a designation indicating the vehicle was
  1 11 returned to the manufacturer.  The department shall determine
  1 12 the manner in which other states' designations are to be
  1 13 indicated on Iowa registration receipts and certificates of
  1 14 title.  The department may determine that a "REBUILT" or
  1 15 "SALVAGE" designation supersedes the designation required by
  1 16 this paragraph and include the "REBUILT" or "SALVAGE"
  1 17 designation on the registration receipt and certificate of
  1 18 title in lieu of the designation required by this paragraph.
  1 19    Sec. 2.  Section 321.46, subsections 1 and 2, Code
  1 20 Supplement 1999, are amended to read as follows:
  1 21    1.  The transferee shall within fifteen calendar days after
  1 22 purchase or transfer apply for and obtain from the county
  1 23 treasurer of the person's residence, or if a nonresident, the
  1 24 county treasurer of the county where the primary users of the
  1 25 vehicle are located or the county where all other vehicles
  1 26 owned by the nonresident are registered, a new registration
  1 27 and a new certificate of title for the vehicle except as
  1 28 provided in section 321.25, or 321.48, or 322G.12.  The
  1 29 transferee shall present with the application the certificate
  1 30 of title endorsed and assigned by the previous owner and shall
  1 31 indicate the name of the county in which the vehicle was last
  1 32 registered and the registration expiration date.  The Unless
  1 33 the transferee is a manufacturer obtaining a new certificate
  1 34 of title pursuant to section 322G.12, the transferee shall be
  1 35 required to list a driver's license number.
  2  1    2.  Upon filing the application for a new registration and
  2  2 a new title, the applicant shall pay a title fee of ten
  2  3 dollars and a registration fee prorated for the remaining
  2  4 unexpired months of the registration year.  However, no a
  2  5 title fee shall not be charged to a mobile home dealer
  2  6 applying for a certificate of title for a used mobile home or
  2  7 manufactured housing, titled in Iowa, as required under
  2  8 section 321.45, subsection 4, and a title or registration fee
  2  9 shall not be charged to a manufacturer applying for a
  2 10 certificate of title pursuant to section 322G.12.  The county
  2 11 treasurer, if satisfied of the genuineness and regularity of
  2 12 the application, and in the case of a mobile home or
  2 13 manufactured housing, that taxes are not owing under chapter
  2 14 435, and that applicant has complied with all the requirements
  2 15 of this chapter, shall issue a new certificate of title and,
  2 16 except for a mobile home, or manufactured housing, or a
  2 17 vehicle returned to and accepted by a manufacturer as
  2 18 described in section 322G.12, a registration card to the
  2 19 purchaser or transferee, shall cancel the prior registration
  2 20 for the vehicle, and shall forward the necessary copies to the
  2 21 department on the date of issuance, as prescribed in section
  2 22 321.24.  Mobile homes or manufactured housing titled under
  2 23 chapter 448 that have been subject under section 446.18 to a
  2 24 public bidder sale in a county, shall be titled in the
  2 25 county's name, with no fee, and the county treasurer shall
  2 26 issue the title.
  2 27    Sec. 3.  Section 322G.2, subsection 8, Code 1999, is
  2 28 amended to read as follows:
  2 29    8.  "Lemon law rights period" means the term of the
  2 30 manufacturer's written warranty, the period ending two years
  2 31 after the date of the original delivery of a motor vehicle to
  2 32 a consumer, or the first twenty-four thousand miles of
  2 33 operation attributable to a consumer, whichever expires first
  2 34 last.
  2 35    Sec. 4.  Section 322G.4, subsection 3, unnumbered paragraph
  3  1 2, Code 1999, is amended to read as follows:
  3  2    The terms of this subsection shall be extended for a period
  3  3 of up to two years after the date of the original delivery of
  3  4 a motor vehicle to a consumer, or the first twenty-four
  3  5 thousand miles of operation attributable to a consumer,
  3  6 whichever occurs first last, if a nonconformity has been
  3  7 reported but has not been cured by the manufacturer, or its
  3  8 authorized service agent, before the expiration of the lemon
  3  9 law rights period.
  3 10    Sec. 5.  Section 322G.11, Code 1999, is amended to read as
  3 11 follows:
  3 12    322G.11  DEALER LIABILITY.
  3 13    This chapter, except for the requirements of section
  3 14 322G.3, subsections 4 and 5, and section 322G.12, does not
  3 15 impose any liability on a franchised motor vehicle dealer or
  3 16 create a cause of action by a consumer against a dealer.  A
  3 17 dealer shall not be made a party defendant in any action
  3 18 involving or relating to this chapter, except as provided in
  3 19 this section.  The manufacturer shall not charge back or
  3 20 require reimbursement by the dealer for any costs, including
  3 21 but not limited to any refunds or vehicle replacements,
  3 22 incurred by the manufacturer pursuant to this chapter, in the
  3 23 absence of a finding by a court that the related repairs had
  3 24 been carried out by the dealer in a manner substantially
  3 25 inconsistent with the manufacturer's published instructions.
  3 26 A manufacturer who is found by a court to have improperly
  3 27 charged back a dealer because of a violation of this section
  3 28 is liable to the injured dealer for full reimbursement plus
  3 29 reasonable costs and any attorney's attorney fees.
  3 30    Sec. 6.  Section 322G.12, Code 1999, is amended to read as
  3 31 follows:
  3 32    322G.12  RESALE OF RETURNED VEHICLES.
  3 33    Subsequent to December 31, 1991, a A manufacturer who
  3 34 accepts the return of a motor vehicle pursuant to a
  3 35 settlement, determination, or decision under this chapter
  4  1 shall notify the state department of transportation, and
  4  2 report the vehicle identification number of that motor vehicle
  4  3 within ten days after the acceptance, and obtain a new
  4  4 certificate of title for the vehicle in the manufacturer's
  4  5 name pursuant to section 321.46.  In obtaining a new
  4  6 certificate of title, the manufacturer shall title the vehicle
  4  7 in the county of the transferor's residence and shall be
  4  8 exempt from the registration and title fee requirements of
  4  9 section 321.46.  For purposes of chapter 423, a manufacturer's
  4 10 acceptance of the return of a motor vehicle, as described in
  4 11 this section, shall not be considered "use", as defined in
  4 12 section 423.1.  The state department of transportation new
  4 13 certificate of title, and all subsequent registration receipts
  4 14 and certificates of title issued for the motor vehicle, shall
  4 15 note the fact contain a designation indicating that the motor
  4 16 vehicle was returned to the manufacturer pursuant to this
  4 17 chapter on the title for the motor vehicle or a similar law of
  4 18 another state.  The state department of transportation shall
  4 19 determine the manner in which the designation is to be
  4 20 indicated on registration receipts and certificates of title
  4 21 and may determine that a "REBUILT" or "SALVAGE" designation
  4 22 supersedes the designation required by this paragraph and
  4 23 include the "REBUILT" or "SALVAGE" designation on the
  4 24 registration receipt and certificate of title in lieu of the
  4 25 designation required by this paragraph.
  4 26    PARAGRAPH DIVIDED.  A person shall not knowingly lease; or,
  4 27 sell, either at wholesale or retail;, or transfer a title to a
  4 28 motor vehicle returned by reason of a settlement,
  4 29 determination, or decision pursuant to this chapter or a
  4 30 similar statute of any other law of another state unless the
  4 31 nature of the nonconformity is clearly and conspicuously
  4 32 disclosed to the prospective transferee, lessee, or buyer.
  4 33 The attorney general shall prescribe by rule the form,
  4 34 content, and procedure pertaining to such a disclosure
  4 35 statement, recognizing the need of manufacturers to implement
  5  1 a uniform disclosure form.  The manufacturer shall make a
  5  2 reasonable effort to ensure that such disclosure is made to
  5  3 the first subsequent retail buyer or lessee.  For purposes of
  5  4 this subsection section, "settlement" includes an agreement
  5  5 entered into between the manufacturer and the consumer that
  5  6 occurs after the dispute has been submitted to a state-
  5  7 operated dispute resolution program or to a manufacturer-
  5  8 established program certified in this or any other state, but
  5  9 does not include agreements reached in informal proceedings
  5 10 prior to the first written or oral presentation to the state-
  5 11 operated or state-certified dispute resolution program by
  5 12 either party manufacturer's receipt of the consumer's written
  5 13 notification pursuant to section 322G.4.  "Settlement" also
  5 14 includes an agreement entered into between a manufacturer and
  5 15 a consumer that occurs after the dispute has been submitted to
  5 16 a dispute resolution program that is not state-operated or
  5 17 state-certified.  
  5 18                           EXPLANATION
  5 19    This bill makes various Code changes in and relating to the
  5 20 motor vehicle lemon law in Code chapter 322G.  The bill amends
  5 21 the definition of "lemon law rights period" in Code chapter
  5 22 322G to extend the period within which a consumer may exercise
  5 23 certain rights in relation to the consumer's purchase of a
  5 24 motor vehicle from a manufacturer or the manufacturer's agent,
  5 25 including the right to obtain a refund or replacement vehicle
  5 26 from the manufacturer, to the later of the expiration of two
  5 27 years, 24,000 miles, or the period of the manufacturer's
  5 28 express warranty rather than the earlier of those time
  5 29 periods.  A corresponding change is made in Code section
  5 30 322G.4.
  5 31    The bill also amends Code section 322G.11 to impose
  5 32 liability on franchised motor vehicle dealers who fail to
  5 33 provide to consumers copies of certain repair and diagnosis
  5 34 statements and technical service bulletins issued by
  5 35 manufacturers to such dealers regarding the year, make, and
  6  1 model of such consumers' vehicles, as required of the dealers
  6  2 by Code section 322G.3.
  6  3    The bill amends Code section 322G.12, relating to the
  6  4 resale of vehicles returned to a manufacturer pursuant to a
  6  5 settlement, determination, or decision under the motor vehicle
  6  6 lemon law, to require a manufacturer who accepts such a return
  6  7 to obtain a new certificate of title for the vehicle in the
  6  8 manufacturer's name.  The motor vehicle shall be titled in the
  6  9 county of the transferor's residence and the manufacturer
  6 10 shall be exempt from the registration and title fee
  6 11 requirements.  The bill provides that a manufacturer's
  6 12 acceptance of such a return shall not be considered a "use"
  6 13 subject to the use tax on motor vehicles pursuant to Code
  6 14 chapter 423.  The bill also modifies the definition of a
  6 15 "settlement", for purposes of Code section 322G.12, to include
  6 16 an agreement entered into between the manufacturer and the
  6 17 consumer that occurs after the manufacturer's receipt of the
  6 18 consumer's written notification of the nonconformity of a
  6 19 motor vehicle manufactured by the manufacturer and purchased
  6 20 by the consumer.  Currently, a "settlement" includes such an
  6 21 agreement entered into after the dispute was submitted to a
  6 22 state-operated dispute resolution program, state-certified
  6 23 manufacturer-established program, or other dispute resolution
  6 24 program, but does not include agreements reached in informal
  6 25 proceedings prior to the first presentation to a state-
  6 26 operated or state-certified program.
  6 27    The bill also amends Code sections 321.24 and 322G.12 to
  6 28 require the state department of transportation or the county
  6 29 treasurer to include a designation indicating a motor vehicle
  6 30 was returned to the manufacturer on the registration receipt
  6 31 and certificate of title for a returned vehicle and every
  6 32 subsequently issued registration receipt or certificate of
  6 33 title, whether the prior certificate of title was issued in
  6 34 Iowa or another state.  The state department of transportation
  6 35 is to determine the manner in which Iowa's and other states'
  7  1 designations are to be indicated on Iowa registration receipts
  7  2 and certificates of title and may determine that a "REBUILT"
  7  3 or "SALVAGE" designation supersedes the returned designation
  7  4 and include the "REBUILT" or "SALVAGE" designation on the
  7  5 registration receipt and certificate of title in lieu of the
  7  6 returned designation.
  7  7    Manufacturers who do not comply with the provisions of Code
  7  8 chapter 322G may be subject to an administrative fine of up to
  7  9 $1,000 levied by the attorney general pursuant to Code section
  7 10 322G.9.  
  7 11 LSB 5287DP 78
  7 12 nh/cf/24
     

Text: SSB03154                          Text: SSB03156
Text: SSB03100 - SSB03199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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