SF 436 (LSB 2244SV (3) 88)

SENATE FILE 436

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO SSB 1148)

A BILL FOR

An Act relating to wrecked or salvage motor vehicles.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.52, subsection 4, paragraph e, Code 2019, is amended to read as follows:
   e.  For purposes of this subsection, “wrecked or salvage vehicle” means a damaged motor vehicle subject to registration for which the cost of repair exceeds fifty seventy percent of the fair market value of the vehicle, as determined in accordance with rules adopted by the department, before it the vehicle became damaged.
    Sec. 2.  Section 321H.2, subsection 12, Code 2019, is amended to read as follows:
   12.  “Wrecked or salvage vehicle” means a damaged vehicle for which the cost of repair exceeds fifty seventy percent of the fair market value of the vehicle before it the vehicle became damaged.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, a wrecked or salvage vehicle is a damaged vehicle for which the cost of repair exceeds 50 percent of the fair market value of the vehicle before the vehicle became damaged. This bill increases the cost of repair threshold to 70 percent of the fair market value of the vehicle. 
   By operation of law, the bill affects the definition of “salvage pool” under Code chapter 321, the circumstances under which a salvage certificate of title is required under Code section 321.52, the circumstances under which a damage disclosure statement under Code section 321.69 is required to indicate damage to a vehicle on the vehicle’s certificate of title, and the prohibited actions relating to vehicle rebuilding and restoration under Code section 321H.3.