Text: HF00501 Text: HF00503 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 502 1 2 1 3 AN ACT 1 4 RELATING TO DAMAGE DISCLOSURE STATEMENTS REQUIRED FOR TRANSFER 1 5 OF OWNERSHIP OF MOTOR VEHICLES AND PROVIDING A PENALTY. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 321.69, subsections 2 and 3, Code 2003, 1 10 are amended to read as follows: 1 11 2. The damage disclosure statement required by this 1 12 section shall, at a minimum, state the total retail dollar 1 13 amount of all damage to the vehicle during the period of the 1 14 transferor's ownership of the vehicle and whether the 1 15 transferor knows if the vehicle was titled as a salvage or 1 16 flood vehicle in this or any other state prior to the 1 17 transferor's ownership of the vehicle. For the purposes of 1 18 this section, "damage" refers to damage to the vehicle caused 1 19 by fire, vandalism, collision, weather, falling objects, 1 20 submersion in water, or flood, where the cost of repair is 1 21fivesix thousand dollars or more per incident, but does not 1 22 include normal wear and tear, glass damage, mechanical repairs 1 23 or electrical repairs that have not been caused by fire, 1 24 vandalism, collision, weather, falling objects, submersion in 1 25 water, or flood. "Damage" does not include the cost of 1 26 repairing, replacing, or reinstalling tires, lights, 1 27 batteries, windshields, windows, a sound system, or an 1 28 inflatable restraint system. A determination of the amount of 1 29 damage to a vehicle shall be based on estimates of the retail 1 30 cost of repairing the vehicle, including labor, parts, and 1 31 other materials, if the vehicle has not been repaired or on 1 32 the actual retail cost of repair, including labor, parts, and 1 33 other materials, if the vehicle has been repaired. Only 1 34 individual incidents in which the retail cost of repairs is 1 35fivesix thousand dollars or more are required to be disclosed 2 1 by this section. If the vehicle has incurred damage offive2 2 six thousand dollars or more per incident in more than one 2 3 incident, the damage amounts must be combined and disclosed as 2 4 the total of all separate incidents. 2 5 3. The damage disclosure statement shall be provided by 2 6 the transferor to the transferee at or before the time of 2 7 sale. However, if the transferor has a salvage certificate of 2 8 title for the vehicle, the transferor is not required to 2 9 disclose under this section the total retail cost of repairs 2 10 to the vehicle during the period of the transferor's ownership 2 11 of the vehicle. If the transferor is not a resident of this 2 12 state or if the transferee acquired the vehicle by operation 2 13 of law as provided in section 321.47, the transferee shall not 2 14 be required to submit a damage disclosure statement from the 2 15 transferor with the transferee's application for title unless 2 16 the state of the transferor's residence requires a damage 2 17 disclosure statement. However, the transferee shall submit a 2 18 damage disclosure statement with the transferee's application 2 19 for title indicating whether a salvage or rebuilt title had 2 20 ever existed for the vehicle, whether the vehicle had incurred 2 21 prior damage offivesix thousand dollars or more per 2 22 incident, and the year, make, and vehicle identification 2 23 number of the motor vehicle. The transferee shall not be 2 24 required to indicate whether the vehicle had incurred prior 2 25 damage offivesix thousand dollars or more per incident under 2 26 this subsection if the transferor's certificate of title is 2 27 from another state and if it indicates that the vehicle is 2 28 salvaged and not rebuilt or is another state's salvage 2 29 certificate of title. 2 30 Sec. 2. Section 321.69, subsection 7, unnumbered paragraph 2 31 1, Code 2003, is amended to read as follows: 2 32 The damage disclosure statements shall be made on the back 2 33 of the certificate of title if the title is available to the 2 34 transferor at the time of sale. If the title is not available 2 35 at the time of sale or if the face of the transferor's Iowa 3 1 title contains no indication that the vehicle was previously 3 2 salvaged or titled as salvaged or rebuilt and the transferor 3 3 knows or reasonably should know that the vehicle was 3 4 previously salvaged or titled as salvaged or rebuilt in 3 5 another state, the transferor shall make the disclosure on a 3 6 separate disclosure document. The damage disclosure statement 3 7 forms shall be as approved by the department. The treasurer 3 8 shall not accept a damage disclosure statement and issue a 3 9 title unless the back of the title or separate disclosure 3 10 document has been fully completed and signed and dated by the 3 11 transferee and the transferor, if applicable. If a separate 3 12 damage disclosure document from a prior owner is required to 3 13 be furnished with the application for title, the transferor 3 14 must provide a copy of the separate damage disclosure document 3 15 to the transferee at or before the time of sale. 3 16 Sec. 3. Section 321.69, subsections 8 and 9, Code 2003, 3 17 are amended to read as follows: 3 18 8. A person, authorized vehicle recycler licensed under 3 19 chapter 321H, or motor vehicle dealer licensed under chapter 3 20 322 shall not be liable to a subsequent owner, driver, or 3 21 passenger of a vehicle because a prior owner or lessee gave a 3 22 false or inaccurate damage disclosure statement or failed to 3 23 disclose that the vehicle had previously been damaged and 3 24 repaired or had been titled on a salvage or rebuilt 3 25 certificate of title unless the person, recycler, or dealer 3 26 knew or reasonably should have known that the prior owner or 3 27 lessee gave a false or inaccurate damage disclosure statement 3 28 or failed to disclose that the vehicle had been damaged and 3 29 repaired or had been titled on a salvage or rebuilt 3 30 certificate of title. 3 31 9. This section does not apply tonew motor vehicles with3 32a true mileage, as defined in section 321.71, of one thousand3 33miles or less,motor trucks and truck tractors with a gross 3 34 vehicle weight rating of sixteen thousand pounds or more, 3 35 vehicles more than nine model years old, motorcycles, 4 1 motorized bicycles, and special mobile equipment.TheThis 4 2 section does apply to motor homes. The requirement in 4 3 subsection 1 that the new certificate of title and 4 4 registration receipt shall state on the face of the title the 4 5 total cumulative dollar amount of damage does not apply to a 4 6 vehicle with a certificate of title bearing a designation that 4 7 the vehicle was previously titled on a salvage certificate of 4 8 title pursuant to section 321.52, subsection 4, paragraph "b", 4 9 or to a vehicle with a certificate of title bearing a 4 10 "REBUILT" or "SALVAGE" designation pursuant to section 321.24, 4 11 subsection 4 or 5. This section does not apply to new motor 4 12 vehicles with a true mileage, as defined in section 321.71, of 4 13 one thousand miles or less, unless such vehicle has incurred 4 14 damage as defined in subsection 2. 4 15 Sec. 4. Section 321.69, Code 2003, is amended by adding 4 16 the following new subsection: 4 17 NEW SUBSECTION. 9A. A person shall not sell, lease, or 4 18 trade a motor vehicle if the person knows or reasonably should 4 19 know that the motor vehicle contains a nonoperative airbag 4 20 that is part of an inflatable restraint system, or that the 4 21 motor vehicle has had an airbag removed and not replaced, 4 22 unless the person clearly discloses, in writing, to the person 4 23 to whom the person is selling, leasing, or trading the 4 24 vehicle, prior to the sale, lease, or trade, that the airbag 4 25 is missing or nonoperative. In addition, a lessee who has 4 26 executed a lease as defined in section 321F.1 shall provide 4 27 the disclosure statement required in this subsection to the 4 28 lessor upon termination of the lease. 4 29 The written disclosure required by this subsection shall be 4 30 deemed to be a damage disclosure statement for the purposes of 4 31 subsections 6, 8, and 10. 4 32 Sec. 5. Section 321.69, subsection 10, Code 2003, is 4 33 amended to read as follows: 4 34 10. A person who knowingly makes a false damage disclosure 4 35 statement or fails to make a damage disclosure statement 5 1 required by this section commits a fraudulent practice. 5 2 Failure of a person, authorized vehicle recycler licensed 5 3 under chapter 321H, or motor vehicle dealer licensed under 5 4 chapter 322,to comply with any duty imposed by this section 5 5 constitutes a violation of section 714.16, subsection 2, 5 6 paragraph "a". 5 7 5 8 5 9 5 10 CHRISTOPHER C. RANTS 5 11 Speaker of the House 5 12 5 13 5 14 5 15 MARY E. KRAMER 5 16 President of the Senate 5 17 5 18 I hereby certify that this bill originated in the House and 5 19 is known as House File 502, Eightieth General Assembly. 5 20 5 21 5 22 5 23 MARGARET THOMSON 5 24 Chief Clerk of the House 5 25 Approved , 2003 5 26 5 27 5 28 5 29 THOMAS J. VILSACK 5 30 Governor
Text: HF00501 Text: HF00503 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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