House File 345 - Introduced HOUSE FILE 345 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 12) A BILL FOR An Act relating to defective motorcycles and autocycles 1 purchased or leased by consumers, making penalties 2 applicable, and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1210HV (1) 88 ns/rh
H.F. 345 Section 1. Section 322G.2, subsection 13, Code 2019, is 1 amended to read as follows: 2 13. “Motor vehicle” means a self-propelled vehicle purchased 3 or leased in this state, except as provided in section 322G.15 , 4 and primarily designed for the transportation of persons or 5 property over public streets and highways, but does not include 6 mopeds, motorcycles, autocycles, motor homes, or vehicles over 7 fifteen thousand pounds gross vehicle weight rating. 8 Sec. 2. APPLICABILITY. This Act applies to motorcycles and 9 autocycles originally purchased or leased by consumers on or 10 after July 1, 2019. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 Code chapter 322G (defective motor vehicles —— lemon law) 15 sets forth a consumer’s right to obtain repairs to, replacement 16 of, or a refund on the purchase price of a defective motor 17 vehicle. The Code chapter also sets forth the duties of motor 18 vehicle manufacturers, informal dispute settlement procedures, 19 and certain other matters related to such rights. Under 20 current law, Code section 322G.2 defines “motor vehicle” to 21 exclude certain types of vehicles, including motorcycles and 22 autocycles. This bill strikes motorcycles and autocycles from 23 the exclusion, thereby making the provisions of Code chapter 24 322G applicable to motorcycles and autocycles. 25 Under current law, a violation by a manufacturer of Code 26 chapter 322G is an unfair or deceptive trade practice in 27 violation of Code section 714.16. Pursuant to Code section 28 714.16, the attorney general may investigate and commence 29 civil proceedings seeking restraining orders or injunctions 30 prohibiting persons from engaging in unlawful practices 31 or seeking termination of the business affairs of a person 32 engaging in unlawful practices. A civil penalty of up to 33 $40,000 per violation may also be imposed by a court against 34 a person found to have committed an unlawful practice. By 35 -1- LSB 1210HV (1) 88 ns/rh 1/ 2
H.F. 345 operation of law, motorcycle and autocycle manufacturers would 1 be subject to Code section 714.16 for violations of Code 2 chapter 322G under the bill. 3 The bill applies to motorcycles and autocycles originally 4 purchased or leased by consumers on or after July 1, 2019. 5 -2- LSB 1210HV (1) 88 ns/rh 2/ 2