House Study Bill 47 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF TRANSPORTATION BILL) A BILL FOR An Act relating to wrecked or salvage motor vehicles, and 1 making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1279XD (4) 88 ns/rh

S.F. _____ H.F. _____ Section 1. Section 321.52, subsection 4, paragraphs b and e, 1 Code 2019, are amended to read as follows: 2 b. A vehicle rebuilder or a person engaged in the business 3 of buying, selling, or exchanging vehicles of a type required 4 to be registered in this state, upon acquisition of a wrecked 5 or salvage vehicle, shall surrender the certificate of 6 title or manufacturer’s or importer’s statement of origin 7 properly assigned, together with an application for a salvage 8 certificate of title, to the county treasurer of the county of 9 residence of the purchaser or transferee within thirty days 10 after the date of assignment of the certificate of title for 11 the wrecked or salvage motor vehicle. This subsection applies 12 only to vehicles with a fair market value of five hundred 13 dollars or more, based on the value before the vehicle became 14 wrecked or salvage. Upon payment of a fee of ten dollars, the 15 county treasurer shall issue a salvage certificate of title 16 which shall bear the word “SALVAGE” stamped or printed on the 17 face of the title in a manner prescribed by the department. A 18 salvage certificate of title may be assigned to an educational 19 institution, a new motor vehicle dealer licensed under chapter 20 322 , a person engaged in the business of purchasing bodies, 21 parts of bodies, frames or component parts of vehicles for 22 sale as scrap metal, a salvage pool, or an authorized vehicle 23 recycler licensed under chapter 321H . An authorized vehicle 24 recycler licensed under chapter 321H or a new motor vehicle 25 dealer licensed under chapter 322 may assign or reassign an 26 Iowa salvage certificate of title or a salvage certificate of 27 title from another state to any person, and the provisions of 28 section 321.24, subsection 5 , requiring issuance of an Iowa 29 salvage certificate of title shall not apply. A vehicle on 30 which ownership has transferred to an insurer of the vehicle as 31 a result of a settlement with the owner of the vehicle arising 32 out of damage to, or unrecovered theft of, the vehicle shall 33 be deemed to be a wrecked or salvage vehicle and the An insurer 34 doing business in this state shall comply with this subsection 35 -1- LSB 1279XD (4) 88 ns/rh 1/ 3

S.F. _____ H.F. _____ to obtain a salvage certificate of title within thirty days 1 after the date of assignment to the insurer of the certificate 2 of title of the a wrecked or salvage vehicle. The owner of a 3 wrecked or salvage vehicle shall comply with this subsection to 4 obtain a salvage certificate of title regardless of whether the 5 owner provides evidence of a foreign, regular certificate of 6 title for the vehicle. 7 e. For purposes of this subsection , “wrecked or salvage 8 vehicle” means a any of the following: 9 (1) A damaged motor vehicle subject to registration for 10 which the cost of repair exceeds fifty percent of the fair 11 market value of the vehicle, as determined in accordance with 12 rules adopted by the department, before it the vehicle became 13 damaged. 14 (2) A motor vehicle on which ownership has transferred to an 15 insurer of the vehicle, in this state or any state, as a result 16 of a settlement with the previous owner of the vehicle arising 17 out of damage to, or unrecovered theft of, the vehicle. 18 Sec. 2. Section 321H.2, subsection 12, Code 2019, is amended 19 to read as follows: 20 12. “Wrecked or salvage vehicle” means a damaged vehicle 21 for which the cost of repair exceeds fifty percent of the fair 22 market value of the vehicle before it became damaged the same 23 as defined in section 321.52 . 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to wrecked or salvage motor vehicles. 28 Under current law, Code section 321.52 (out-of-state sales 29 —— junked, dismantled, wrecked, or salvage vehicles) provides 30 that a motor vehicle on which ownership has transferred to an 31 insurer of the vehicle as a result of a settlement with the 32 owner of the vehicle arising out of damage to, or unrecovered 33 theft of, the vehicle is deemed to be a wrecked or salvage 34 vehicle. The bill transfers this provision to the definition 35 -2- LSB 1279XD (4) 88 ns/rh 2/ 3

S.F. _____ H.F. _____ of “wrecked or salvage vehicle” in Code section 321.52 and 1 specifies that the definition applies regardless of the 2 state in which the transfer took place. The bill aligns the 3 definition of “wrecked or salvage vehicle” in Code chapter 4 321H (vehicle recyclers) to the definition under the bill. By 5 operation of law, the provisions of Code section 321.69 (damage 6 disclosure statement) apply to vehicles defined as wrecked or 7 salvage vehicles under Code section 321.52. 8 Under current law, an insurer is required to comply with 9 Code section 321.52(4) to obtain a salvage certificate of 10 title within 30 days after the date of assignment of the 11 certificate of title of the vehicle. The bill specifies that 12 this provision applies to insurers doing business in this 13 state. The bill also requires the owner of a wrecked or 14 salvage vehicle to comply with Code section 321.52(4) to obtain 15 a salvage certificate of title regardless of whether the owner 16 provides evidence of a foreign, regular certificate of title 17 for the vehicle. 18 A violation of Code section 321.52 is punishable by a 19 scheduled fine of $100. 20 -3- LSB 1279XD (4) 88 ns/rh 3/ 3