House File 2252 - Introduced HOUSE FILE 2252 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 525) A BILL FOR An Act relating to artisan’s liens and Iowa’s consumer frauds 1 Act and making remedies applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5384HV (2) 83 rh/nh

H.F. 2252 Section 1. NEW SECTION . 577.3 Possession to be surrendered 1 upon notice from attorney general. 2 1. A supplier, as defined in section 537B.2, upon receipt of 3 a written notice from the attorney general that the attorney 4 general has reason to believe that the supplier has engaged 5 in a deceptive act or practice pursuant to section 537B.6, 6 subsections 2 through 12, in connection with a transaction in 7 which the supplier is asserting a lien to personal property 8 pursuant to this chapter, shall surrender possession of the 9 property to the owner of the property. The supplier shall 10 make the property available to the owner within one business 11 day of receiving notice from the attorney general during the 12 supplier’s usual business hours. 13 2. The attorney general shall serve the written notice 14 pursuant to subsection 1 by certified mail and such notice 15 shall be presumed to have been received by the supplier upon 16 the earlier of the date of actual receipt, the date upon which 17 the supplier refused initial delivery, or the date the supplier 18 was notified was the last day to retrieve the delivery from the 19 postal service. 20 3. The attorney general’s belief that the supplier has 21 engaged in a deceptive act or practice pursuant to section 22 537B.6, subsections 2 through 12, the supplier’s surrendering 23 possession of the motor vehicle to the owner pursuant to this 24 section, and the attorney general’s service of notice on the 25 supplier pursuant to this section shall not be admissible 26 in any litigation between the supplier and the owner of the 27 property subject to the lien unless the supplier fails to 28 comply with the requirements of this section. 29 4. An otherwise valid lien under this chapter is not lost 30 as a result of the supplier surrendering possession of the 31 property pursuant to this section and an otherwise valid lien 32 may be foreclosed pursuant to section 554.7308 within one year 33 of the supplier surrendering possession under this section. 34 5. In addition to any other applicable remedy, the attorney 35 -1- LSB 5384HV (2) 83 rh/nh 1/ 3

H.F. 2252 general may seek relief against a supplier for a violation 1 of this section to the same extent the attorney general may 2 seek relief under section 714.16, subsection 6, for failure or 3 refusal to obey a subpoena issued by the attorney general. 4 EXPLANATION 5 This bill provides that a supplier under Code section 6 537B.2 (a person offering to contract for repairs or service 7 upon a motor vehicle), upon receipt of a written notice from 8 the attorney general that the attorney general has reason 9 to believe that the supplier has engaged in a deceptive act 10 or practice under the motor vehicle service trade practices 11 Act in connection with a transaction in which the supplier 12 is asserting an artisan’s lien to personal property, is 13 required to surrender possession of the property to the owner 14 of the property within one business day of receiving notice 15 during the supplier’s usual business hours. In addition, an 16 otherwise valid artisan’s lien is not extinguished as a result 17 of the supplier surrendering possession of the property and 18 an otherwise valid artisan’s lien may be foreclosed pursuant 19 to Code section 554.7308 within one year of the supplier 20 surrendering possession under the bill. 21 The bill provides that the attorney general’s belief that 22 the supplier has engaged in a deceptive act or practice under 23 the motor vehicle service trade practices Act, the supplier’s 24 surrendering possession of the motor vehicle to the owner 25 pursuant to the bill, and the attorney general’s service of 26 notice on the supplier under the bill, is not admissible in any 27 litigation between the supplier and the owner of the property 28 subject to the lien unless the supplier fails to comply with 29 the requirements of the bill. 30 The bill provides that, in addition to any other applicable 31 remedy, the attorney general may seek relief against a supplier 32 for a violation of the bill to the same extent the attorney 33 general may seek injunctive or other relief under Iowa’s 34 consumer frauds Act for failure or refusal to obey a subpoena 35 -2- LSB 5384HV (2) 83 rh/nh 2/ 3

H.F. 2252 issued by the attorney general. 1 -3- LSB 5384HV (2) 83 rh/nh 3/ 3