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Senate File 2253

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Bill Text

PAG LIN
  1  1                                             SENATE FILE 2253
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO DISCLOSURE REQUIREMENTS FOR THE TRANSFER OF 
  1  5    OWNERSHIP OF A MOTOR VEHICLE AND PROVIDING PENALTIES.
  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 1, 2, 3, 4, 7, 8,
  1 10 and 9, Code Supplement 2003, are amended to read as follows:
  1 11    1.  A certificate of title shall not be issued for a motor
  1 12 vehicle unless a damage disclosure statement has been made by
  1 13 the transferor of the vehicle and is furnished with the
  1 14 application for certificate of title.  A damage disclosure
  1 15 statement must shall be provided by the transferor to the
  1 16 transferee in a transfer of ownership of a motor vehicle.  The
  1 17 new certificate of title and registration receipt shall state
  1 18 on the face of the title the total cumulative dollar amount of
  1 19 damage reported by owners prior to the owner listed on the
  1 20 front of the title whether a prior owner had disclosed that
  1 21 the vehicle was damaged to the extent that it was a wrecked or
  1 22 salvage vehicle as defined in section 321.52, subsection 4,
  1 23 paragraph "d".
  1 24    2.  The damage disclosure statement required by this
  1 25 section shall, at a minimum, state the total retail dollar
  1 26 amount of all damage to the vehicle during the period of the
  1 27 transferor's ownership of the vehicle and whether the
  1 28 transferor knows if the vehicle was titled as a salvage,
  1 29 rebuilt, or flood vehicle in this or any other state prior to
  1 30 the transferor's ownership of the vehicle and, if not, whether
  1 31 the transferor knows if the vehicle was damaged to the extent
  1 32 that it was a wrecked or salvage vehicle as defined in section
  1 33 321.52, subsection 4, paragraph "d", during or prior to the
  1 34 transferor's ownership of the vehicle.  For the purposes of
  1 35 this section, "damage" refers to damage to the vehicle caused
  2  1 by fire, vandalism, collision, weather, falling objects,
  2  2 submersion in water, or flood, where the cost of repair is six
  2  3 thousand dollars or more per incident, but does not include
  2  4 normal wear and tear, glass damage, mechanical repairs or
  2  5 electrical repairs that have not been caused by fire,
  2  6 vandalism, collision, weather, falling objects, submersion in
  2  7 water, or flood.  "Damage" does not include the cost of
  2  8 repairing, replacing, or reinstalling tires, lights,
  2  9 batteries, windshields, windows, a sound system, or an
  2 10 inflatable restraint system.  A determination of the amount of
  2 11 damage to a vehicle shall be based on estimates of the retail
  2 12 cost of repairing the vehicle, including labor, parts, and
  2 13 other materials, if the vehicle has not been repaired or on
  2 14 the actual retail cost of repair, including labor, parts, and
  2 15 other materials, if the vehicle has been repaired.  Only
  2 16 individual incidents in which the retail cost of repairs is
  2 17 six thousand dollars or more are required to be disclosed by
  2 18 this section.  If the vehicle has incurred damage of six
  2 19 thousand dollars or more per incident in more than one
  2 20 incident, the damage amounts must be combined and disclosed as
  2 21 the total of all separate incidents.
  2 22    3.  The damage disclosure statement shall be provided by
  2 23 the transferor to the transferee at or before the time of
  2 24 sale.  However, if the transferor has a salvage certificate of
  2 25 title for the vehicle, the transferor is not required to
  2 26 disclose under this section the total retail cost of repairs
  2 27 to the vehicle during the period of the transferor's ownership
  2 28 of the vehicle.  If the transferor is not a resident of this
  2 29 state or if the transferee acquired the vehicle by operation
  2 30 of law as provided in section 321.47, the transferee shall not
  2 31 be required to submit a damage disclosure statement from the
  2 32 transferor with the transferee's application for title unless
  2 33 the state of the transferor's residence requires a damage
  2 34 disclosure statement.  However, the transferee shall submit a
  2 35 damage disclosure statement with the transferee's application
  3  1 for title indicating whether a salvage, or rebuilt, or flood
  3  2 title had ever existed for the vehicle and, if not, whether
  3  3 the vehicle had incurred prior damage of six thousand dollars
  3  4 or more per incident, was damaged to the extent that it was a
  3  5 wrecked or salvage vehicle as defined in section 321.52,
  3  6 subsection 4, paragraph "d", during or prior to the
  3  7 transferor's ownership of the vehicle and the year, make, and
  3  8 vehicle identification number of the motor vehicle.  The
  3  9 transferee shall not be required to indicate whether the
  3 10 vehicle had incurred prior damage of six thousand dollars or
  3 11 more per incident was damaged to the extent that it was a
  3 12 wrecked or salvage vehicle as defined in section 321.52,
  3 13 subsection 4, paragraph "d", under this subsection if the
  3 14 transferor's certificate of title is from another state and if
  3 15 it indicates that the vehicle is salvaged and not rebuilt or
  3 16 is another state's salvage certificate of title.
  3 17    4.  A lessee who has executed a lease as defined in section
  3 18 321F.1 shall provide a damage disclosure statement to the
  3 19 lessor at the termination of the lease.  The damage disclosure
  3 20 statement shall be made on a separate disclosure document and
  3 21 shall state the total dollar amount of all damage to the
  3 22 vehicle which occurred during the term of the lease whether
  3 23 the vehicle was damaged during the term of the lease to the
  3 24 extent that it was a wrecked or salvage vehicle as defined in
  3 25 section 321.52, subsection 4, paragraph "d".  The lessee's
  3 26 damage disclosure statement shall not be submitted with the
  3 27 application for title, but the lessor shall retain the
  3 28 lessee's damage disclosure statement for five years following
  3 29 the date of the statement.
  3 30    7.  The damage disclosure statements shall be made on the
  3 31 back of the certificate of title if the title is available to
  3 32 the transferor at the time of sale.  If the title is not
  3 33 available at the time of sale or if the face of the
  3 34 transferor's Iowa title contains no indication that the
  3 35 vehicle was previously salvaged or titled as salvaged or a
  4  1 salvage, rebuilt, or flood vehicle and the transferor knows or
  4  2 reasonably should know that the vehicle was previously
  4  3 salvaged or titled as salvaged or a salvage, rebuilt, or flood
  4  4 vehicle in another state, the transferor shall make the
  4  5 disclosure on a separate disclosure document.  The damage
  4  6 disclosure statement forms shall be as approved by the
  4  7 department.  The treasurer shall not accept a damage
  4  8 disclosure statement and issue a title unless the back of the
  4  9 title or separate disclosure document has been fully completed
  4 10 and signed and dated by the transferee and the transferor, if
  4 11 applicable.  If a separate damage disclosure document from a
  4 12 prior owner is required to be furnished with the application
  4 13 for title, the transferor must shall provide a copy of the
  4 14 separate damage disclosure document to the transferee at or
  4 15 before the time of sale.
  4 16    In addition to the information required in subsection 2, a
  4 17 separate disclosure document shall state whether the vehicle's
  4 18 certificate of title indicates the existence of damage prior
  4 19 to the period of the transferor's ownership of the vehicle,
  4 20 and the amount of that damage if the transferor knows or
  4 21 reasonably should know of the prior damage, and whether the
  4 22 vehicle was titled as a salvage, rebuilt, or flood vehicle
  4 23 during the period of the transferor's ownership of the
  4 24 vehicle.
  4 25    8.  A person, authorized vehicle recycler licensed under
  4 26 chapter 321H, or motor vehicle dealer licensed under chapter
  4 27 322 shall not be liable to a subsequent owner, driver, or
  4 28 passenger of a vehicle because a prior owner or lessee gave a
  4 29 false or inaccurate damage disclosure statement or failed to
  4 30 disclose that the vehicle had previously been damaged and
  4 31 repaired or had been titled on a salvage, or rebuilt, or flood
  4 32 certificate of title unless the person, recycler, or dealer
  4 33 knew or reasonably should have known that the prior owner or
  4 34 lessee gave a false or inaccurate damage disclosure statement
  4 35 or failed to disclose that the vehicle had been damaged and
  5  1 repaired or had been titled on a salvage, or rebuilt, or flood
  5  2 certificate of title.
  5  3    9.  Except for subsection 10 subsections 10 and 11, this
  5  4 section does not apply to motor trucks and truck tractors with
  5  5 a gross vehicle weight rating of sixteen thousand pounds or
  5  6 more, vehicles more than nine seven model years old,
  5  7 motorcycles, motorized bicycles, and special mobile equipment.
  5  8 This section does apply to motor homes.  The requirement in
  5  9 subsection 1 that the new certificate of title and
  5 10 registration receipt shall state on the face of the title the
  5 11 total cumulative dollar amount of damage whether a prior owner
  5 12 had disclosed that the vehicle was damaged to the extent that
  5 13 it was a wrecked or salvage vehicle as defined in section
  5 14 321.52, subsection 4, paragraph "d", does not apply to a
  5 15 vehicle with a certificate of title bearing a designation that
  5 16 the vehicle was previously titled on a salvage certificate of
  5 17 title pursuant to section 321.52, subsection 4, paragraph "b",
  5 18 or to a vehicle with a certificate of title bearing a
  5 19 "REBUILT" or "SALVAGE" designation pursuant to section 321.24,
  5 20 subsection 4 or 5.  Except for subsection 10 subsections 10
  5 21 and 11, this section does not apply to new motor vehicles with
  5 22 a true mileage, as defined in section 321.71, of one thousand
  5 23 miles or less, unless such vehicle has incurred damage as
  5 24 defined in subsection 2.  
  5 25 
  5 26 
  5 27                                                             
  5 28                               JEFFREY M. LAMBERTI
  5 29                               President of the Senate
  5 30 
  5 31 
  5 32                                                             
  5 33                               CHRISTOPHER C. RANTS
  5 34                               Speaker of the House
  5 35 
  6  1    I hereby certify that this bill originated in the Senate and
  6  2 is known as Senate File 2253, Eightieth General Assembly.
  6  3 
  6  4 
  6  5                                                             
  6  6                               MICHAEL E. MARSHALL
  6  7                               Secretary of the Senate
  6  8 Approved                , 2004
  6  9 
  6 10 
  6 11                                
  6 12 THOMAS J. VILSACK
  6 13 Governor
     
Text: SF02252                           Text: SF02254
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