Text: HF02443 Text: HF02445 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 321.69, subsections 1, 2, 3, 4, 7, 8, 1 2 and 9, Code Supplement 2003, 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 statementmustshall be provided by the transferor to the 1 8 transferee in a transfer of ownership of a motor vehicle. The 1 9 new certificate of title and registration receipt shall state 1 10 on the faceof the title the total cumulative dollar amount of1 11damage reported by owners prior to the owner listed on the1 12front of the titlewhether a prior owner had disclosed that 1 13 the vehicle was damaged to the extent that it was a wrecked or 1 14 salvage vehicle as defined in section 321.52, subsection 4, 1 15 paragraph "d". 1 16 2. The damage disclosure statement required by this 1 17 section shall, at a minimum, statethe total retail dollar1 18amount of all damage to the vehicle during the period of the1 19transferor's ownership of the vehicle andwhether the 1 20 transferor knows if the vehicle was titled as a salvage, 1 21 rebuilt, or flood vehicle in this or any other state prior to 1 22 the transferor's ownership of the vehicle and, if not, whether 1 23 the transferor knows if the vehicle was damaged to the extent 1 24 that it was a wrecked or salvage vehicle as defined in section 1 25 321.52, subsection 4, paragraph "d", during or prior to the 1 26 transferor's ownership of the vehicle.For the purposes of1 27this section, "damage" refers to damage to the vehicle caused1 28by fire, vandalism, collision, weather, falling objects,1 29submersion in water, or flood, where the cost of repair is six1 30thousand dollars or more per incident, but does not include1 31normal wear and tear, glass damage, mechanical repairs or1 32electrical repairs that have not been caused by fire,1 33vandalism, collision, weather, falling objects, submersion in1 34water, or flood. "Damage" does not include the cost of1 35repairing, replacing, or reinstalling tires, lights,2 1batteries, windshields, windows, a sound system, or an2 2inflatable restraint system. A determination of the amount of2 3damage to a vehicle shall be based on estimates of the retail2 4cost of repairing the vehicle, including labor, parts, and2 5other materials, if the vehicle has not been repaired or on2 6the actual retail cost of repair, including labor, parts, and2 7other materials, if the vehicle has been repaired. Only2 8individual incidents in which the retail cost of repairs is2 9six thousand dollars or more are required to be disclosed by2 10this section. If the vehicle has incurred damage of six2 11thousand dollars or more per incident in more than one2 12incident, the damage amounts must be combined and disclosed as2 13the total of all separate incidents.2 14 3. The damage disclosure statement shall be provided by 2 15 the transferor to the transferee at or before the time of 2 16 sale.However, if the transferor has a salvage certificate of2 17title for the vehicle, the transferor is not required to2 18disclose under this section the total retail cost of repairs2 19to the vehicle during the period of the transferor's ownership2 20of the vehicle.If the transferor is not a resident of this 2 21 state or if the transferee acquired the vehicle by operation 2 22 of law as provided in section 321.47, the transferee shall not 2 23 be required to submit a damage disclosure statement from the 2 24 transferor with the transferee's application for title unless 2 25 the state of the transferor's residence requires a damage 2 26 disclosure statement. However, the transferee shall submit a 2 27 damage disclosure statement with the transferee's application 2 28 for title indicating whether a salvage,orrebuilt, or flood 2 29 title had ever existed for the vehicle and, if not, whether 2 30 the vehicle had incurred prior damage of six thousand dollars2 31or more per incident,was damaged to the extent that it was a 2 32 wrecked or salvage vehicle as defined in section 321.52, 2 33 subsection 4, paragraph "d", during or prior to the 2 34 transferor's ownership of the vehicle and the year, make, and 2 35 vehicle identification number of the motor vehicle. The 3 1 transferee shall not be required to indicate whether the 3 2 vehiclehad incurred prior damage of six thousand dollars or3 3more per incidentwas damaged to the extent that it was a 3 4 wrecked or salvage vehicle as defined in section 321.52, 3 5 subsection 4, paragraph "d", under this subsection if the 3 6 transferor's certificate of title is from another state and if 3 7 it indicates that the vehicle is salvaged and not rebuilt or 3 8 is another state's salvage certificate of title. 3 9 4. A lessee who has executed a lease as defined in section 3 10 321F.1 shall provide a damage disclosure statement to the 3 11 lessor at the termination of the lease. The damage disclosure 3 12 statement shall be made on a separate disclosure document and 3 13 shall statethe total dollar amount of all damage to the3 14vehicle which occurred during the term of the leasewhether 3 15 the vehicle was damaged during the term of the lease to the 3 16 extent that it was a wrecked or salvage vehicle as defined in 3 17 section 321.52, subsection 4, paragraph "d". The lessee's 3 18 damage disclosure statement shall not be submitted with the 3 19 application for title, but the lessor shall retain the 3 20 lessee's damage disclosure statement for five years following 3 21 the date of the statement. 3 22 7. The damage disclosure statements shall be made on the 3 23 back of the certificate of title if the title is available to 3 24 the transferor at the time of sale. If the title is not 3 25 available at the time of sale or if the face of the 3 26 transferor's Iowa title contains no indication that the 3 27 vehicle was previously salvaged or titled assalvaged ora 3 28 salvage, rebuilt, or flood vehicle and the transferor knows or 3 29 reasonably should know that the vehicle was previously 3 30 salvaged or titled assalvaged ora salvage, rebuilt, or flood 3 31 vehicle in another state, the transferor shall make the 3 32 disclosure on a separate disclosure document. The damage 3 33 disclosure statement forms shall be as approved by the 3 34 department. The treasurer shall not accept a damage 3 35 disclosure statement and issue a title unless the back of the 4 1 title or separate disclosure document has been fully completed 4 2 and signed and dated by the transferee and the transferor, if 4 3 applicable. If a separate damage disclosure document from a 4 4 prior owner is required to be furnished with the application 4 5 for title, the transferormustshall provide a copy of the 4 6 separate damage disclosure document to the transferee at or 4 7 before the time of sale. 4 8 In addition to the information required in subsection 2, a 4 9 separate disclosure document shall state whether the vehicle's 4 10 certificate of title indicates the existence of damage prior 4 11 to the period of the transferor's ownership of the vehicle,4 12and the amount of that damage if the transferor knows or4 13reasonably should know of the prior damage,and whether the 4 14 vehicle was titled as a salvage, rebuilt, or flood vehicle 4 15 during the period of the transferor's ownership of the 4 16 vehicle. 4 17 8. A person, authorized vehicle recycler licensed under 4 18 chapter 321H, or motor vehicle dealer licensed under chapter 4 19 322 shall not be liable to a subsequent owner, driver, or 4 20 passenger of a vehicle because a prior owner or lessee gave a 4 21 false or inaccurate damage disclosure statement or failed to 4 22 disclose that the vehicle had previously been damaged and 4 23 repaired or had been titled on a salvage,orrebuilt, or flood 4 24 certificate of title unless the person, recycler, or dealer 4 25 knew or reasonably should have known that the prior owner or 4 26 lessee gave a false or inaccurate damage disclosure statement 4 27 or failed to disclose that the vehicle had been damaged and 4 28 repaired or had been titled on a salvage,orrebuilt, or flood 4 29 certificate of title. 4 30 9. Except forsubsection 10subsections 10 and 11, this 4 31 section does not apply to motor trucks and truck tractors with 4 32 a gross vehicle weight rating of sixteen thousand pounds or 4 33 more, vehicles more thanninefive model years old, 4 34 motorcycles, motorized bicycles, and special mobile equipment. 4 35 This section does apply to motor homes. The requirement in 5 1 subsection 1 that the new certificate of title and 5 2 registration receipt shall state on the face of the titlethe5 3total cumulative dollar amount of damagewhether a prior owner 5 4 had disclosed that the vehicle was damaged to the extent that 5 5 it was a wrecked or salvage vehicle as defined in section 5 6 321.52, subsection 4, paragraph "d", does not apply to a 5 7 vehicle with a certificate of title bearing a designation that 5 8 the vehicle was previously titled on a salvage certificate of 5 9 title pursuant to section 321.52, subsection 4, paragraph "b", 5 10 or to a vehicle with a certificate of title bearing a 5 11 "REBUILT" or "SALVAGE" designation pursuant to section 321.24, 5 12 subsection 4 or 5. Except forsubsection 10subsections 10 5 13 and 11, this section does not apply to new motor vehicles with 5 14 a true mileage, as defined in section 321.71, of one thousand 5 15 miles or less, unless such vehicle has incurred damage as 5 16 defined in subsection 2. 5 17 EXPLANATION 5 18 This bill amends Code section 321.69 relating to disclosure 5 19 requirements for the transfer of ownership of a motor vehicle. 5 20 Current law requires that a transferor must disclose damage 5 21 resulting from a single accident for which the cost of repairs 5 22 is $6,000 or more, whether the damage was reported by prior 5 23 owners or sustained during the transferor's period of 5 24 ownership. The bill changes the amount of damage that must be 5 25 disclosed to match the standard for establishing a vehicle as 5 26 a wrecked or salvage vehicle, which is damage for which the 5 27 retail cost of repair exceeds 50 percent of the fair market 5 28 value of the vehicle before it became damaged. The current 5 29 requirement that a damage disclosure statement provide whether 5 30 the transferor knows if the vehicle was ever titled as a 5 31 salvage or flood vehicle is amended to include rebuilt titles. 5 32 A similar provision relating to vehicles transferred by 5 33 nonresidents is amended to require disclosure of a previous 5 34 flood title, in addition to salvage and rebuilt titles. The 5 35 bill also amends the requirement that a lessee make a damage 6 1 disclosure upon termination of a lease by changing the damage 6 2 standard for reporting to the wrecked or salvage vehicle 6 3 standard. 6 4 The bill retains the requirements that disclosures be made 6 5 prior to the time of sale of a vehicle and that they be in the 6 6 form of a statement on the face of the certificate of title or 6 7 on a separate disclosure document. The bill retains the 6 8 provision that licensed vehicle recyclers and motor vehicle 6 9 dealers are not liable to subsequent owners, drivers, or 6 10 passengers because of false or inaccurate damage disclosure 6 11 statements of prior owners or lessees, but the provision is 6 12 amended to include vehicles previously titled as flood 6 13 vehicles. 6 14 Disclosure requirements relating to nonoperative or missing 6 15 airbags apply for all motor vehicles except motor homes. The 6 16 bill makes a corrective amendment to provide that penalties 6 17 for airbag disclosure violations apply for all of these 6 18 vehicles as well. Under current law, vehicles more than nine 6 19 model years old are exempt from damage disclosure requirements 6 20 other than airbag disclosure requirements. The bill amends 6 21 the exemption by making it applicable to vehicles more than 6 22 five model years old. 6 23 Existing law provides that a person who knowingly makes a 6 24 false damage disclosure statement commits a fraudulent 6 25 practice. Otherwise, failure to comply with a duty imposed 6 26 under Code section 321.69 constitutes consumer fraud. 6 27 LSB 6098HV 80 6 28 dea/gg/14
Text: HF02443 Text: HF02445 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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