Senate
Study
Bill
3038
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ATTORNEY
GENERAL
BILL)
A
BILL
FOR
An
Act
relating
to
artisan’s
liens
and
Iowa’s
consumer
frauds
1
Act
and
private
right
of
action
for
consumer
frauds
Act
and
2
making
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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_____
Section
1.
Section
537B.6,
Code
2009,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
17.
Attempt
to
enforce
a
lien
pursuant
to
3
section
577.1
in
connection
with
a
transaction
in
which
the
4
supplier
has
engaged
in
a
deceptive
act
or
practice
pursuant
to
5
subsections
2
through
12
of
this
section.
6
Sec.
2.
Section
577.2,
Code
2009,
is
amended
to
read
as
7
follows:
8
577.2
Enforcement
of
lien.
9
1.
Said
The
lien
provided
for
in
section
577.1
may
be
10
foreclosed
in
the
manner
provided
in
the
uniform
commercial
11
code,
section
554.7308.
12
2.
Any
attempt
by
a
supplier,
as
defined
in
section
537B.2,
13
to
enforce
a
lien
pursuant
to
this
chapter
in
connection
with
a
14
transaction
in
which
the
supplier
has
engaged
in
a
deceptive
15
act
or
practice
pursuant
to
section
537B.6,
subsections
2
16
through
12,
is
an
unfair
practice
pursuant
to
section
714.16,
17
subsection
2,
paragraph
“a”
,
and
section
714H.3,
subsection
1,
18
and
any
such
lien
is
void.
19
EXPLANATION
20
This
bill
relates
to
artisan’s
liens
and
Iowa’s
consumer
21
frauds
Act
and
private
right
of
action
for
consumer
frauds
Act
22
and
makes
penalties
applicable.
23
The
bill
provides
that
a
supplier,
defined
as
a
person
24
offering
to
contract
for
repairs
or
service
on
a
motor
vehicle
25
under
the
motor
vehicle
service
trade
practices
Act
(Code
26
chapter
537B),
who
attempts
to
enforce
an
artisan’s
lien
under
27
Code
section
577.1
in
connection
with
a
transaction
in
which
28
the
supplier
engaged
in
a
deceptive
practice
or
act
under
Code
29
chapter
537B
is
an
unfair
practice
under
both
the
Iowa
consumer
30
frauds
Act
(Code
section
714.16)
and
the
private
right
of
31
action
for
consumer
frauds
Act
(Code
chapter
714H).
32
Iowa’s
consumer
frauds
Act
prohibits
unfair
and
deceptive
33
trade
practices
in
the
sale,
lease,
or
advertisement
of
a
34
product
or
service
and
authorizes
the
attorney
general
to
file
35
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a
lawsuit
on
behalf
of
a
consumer
to
obtain
temporary
and
1
permanent
injunctive
relief,
consumer
reimbursement,
costs
and
2
attorney
fees,
and
civil
penalties
up
to
$40,000
per
violation.
3
Under
the
private
right
of
action
for
consumer
frauds
Act,
4
a
consumer
may
sue
to
recover
actual
damages
and
may
seek
5
punitive
damages
up
to
three
times
the
actual
damages
in
cases
6
of
willful
and
wanton
conduct
by
a
defendant.
In
addition,
if
7
the
consumer
prevails
in
a
private
right
of
action
lawsuit,
the
8
court
must
award
reasonable
attorney
fees.
9
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