Senate File 2084 - Introduced SENATE FILE 2084 BY DICKEY A BILL FOR An Act relating to repair or service estimates for certain 1 older motor vehicles, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5130XS (5) 89 th/ns

S.F. 2084 Section 1. NEW SECTION . 537B.5 Older vehicles —— estimate 1 not required. 2 Notwithstanding sections 537B.3, 537B.4, and 537B.6, a 3 consumer does not have the right to a written or oral estimate 4 from a supplier prior to the commencement of repairs or service 5 on a motor vehicle twenty-five years old or older. This 6 section does not prohibit a supplier from providing an estimate 7 to a consumer prior to commencing repairs or service on such a 8 vehicle. Any such estimate provided voluntarily shall be made 9 in good faith, and, if made in good faith, shall not bind the 10 supplier to complete the repairs or service at the estimated 11 rate. 12 Sec. 2. Section 537B.6, Code 2022, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 17. If an estimate is provided pursuant to 15 section 537B.5, fail to make the estimate in good faith. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 Under current law, a person offering to contract for repairs 20 or service on a motor vehicle (supplier) must inform a person 21 contracting for, or intending to contract for, repairs or 22 service on a motor vehicle used primarily for farm or personal 23 use (consumer) of the consumer’s right to receive a written 24 or oral estimate prior to the commencement of the repairs or 25 service. If the consumer authorizes repairs or service in 26 writing, the authorization form notifies the consumer of the 27 right. If the consumer orally authorizes repairs or service, 28 the supplier must orally inform the consumer of the right. If 29 the consumer requests an estimate, the supplier must provide 30 the estimate to the consumer prior to commencing the repairs or 31 service. For a written estimate, if the nature of repairs or 32 service is unknown at the time that the estimate is given, the 33 supplier may state an hourly labor charge for the work. 34 This bill eliminates a consumer’s right to have a written 35 -1- LSB 5130XS (5) 89 th/ns 1/ 2

S.F. 2084 or oral estimate provided by the supplier prior to the 1 commencement of repairs or service on a motor vehicle 25 years 2 old or older. However, a supplier is not prohibited from 3 providing an estimate prior to commencing repairs or service on 4 such a vehicle. Any such estimate provided voluntarily must 5 be made in good faith, and, if made in good faith, does not 6 bind the supplier to complete the repairs or service at the 7 estimated rate. 8 A supplier who fails to comply with the estimate and service 9 requirements under Code chapter 537B (motor vehicle service 10 trade practices) commits a deceptive act or practice. A 11 deceptive act or practice is subject to a civil action by the 12 attorney general and a civil penalty of up to $40,000 per 13 violation. The bill makes it a deceptive act or practice for 14 a supplier to fail to make an estimate under the bill in good 15 faith, if the supplier provides an estimate. 16 -2- LSB 5130XS (5) 89 th/ns 2/ 2