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 TLSB 5384DP (3) 83 rh/nh
S.F. _____ H.F. _____ 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 -1- LSB 5384DP (3) 83 rh/nh 1/ 2
S.F. _____ H.F. _____ 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 -2- LSB 5384DP (3) 83 rh/nh 2/ 2