Senate File 2139 - Introduced SENATE FILE 2139 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SSB 3001) A BILL FOR An Act relating to wrecked or salvage vehicles with cosmetic 1 damage. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5080SV (1) 89 th/ns
S.F. 2139 Section 1. Section 321.52, subsection 4, paragraphs c and e, 1 Code 2022, are amended to read as follows: 2 c. When a wrecked or salvage vehicle has been repaired, 3 the owner may apply for a regular certificate of title by 4 paying the appropriate fees and surrendering the salvage 5 certificate of title and a properly executed salvage theft 6 examination certificate. However, any cosmetic damage on 7 the wrecked or salvage vehicle need not be repaired for the 8 owner to apply for and be issued a regular certificate of 9 title under this paragraph. A motor vehicle with a gross 10 vehicle weight rating of thirty thousand pounds or more , or a 11 motor vehicle that is considered a wrecked or salvage vehicle 12 solely due to cosmetic damage, is not subject to the salvage 13 theft examination otherwise required under paragraph “d” , 14 and the owner of such vehicle is not required to submit a 15 salvage theft examination certificate. The county treasurer 16 shall issue a regular certificate of title which shall bear a 17 designation printed on the face of the title and printed on the 18 registration receipt indicating that the vehicle was previously 19 titled on a salvage certificate of title in a form approved by 20 the department. This designation shall be included on every 21 Iowa certificate of title and registration receipt issued 22 thereafter for the vehicle. However, if ownership of a stolen 23 vehicle has been transferred to an insurer organized under the 24 laws of this state or admitted to do business in this state, 25 or if the transfer was the result of a settlement with the 26 owner of the vehicle arising from damage to or the unrecovered 27 theft of the vehicle, and if the insurer certifies to the 28 county treasurer on a form approved by the department that the 29 insurance company has received one or more written estimates 30 which state that the retail cost of repairs including labor, 31 parts, and other materials of all damage to the vehicle is less 32 than three thousand dollars, the county treasurer shall issue 33 to the insurance company the regular certificate of title and 34 registration receipt without this designation. 35 -1- LSB 5080SV (1) 89 th/ns 1/ 3
S.F. 2139 e. For purposes of this subsection , “wrecked or salvage 1 vehicle” : 2 (1) “Cosmetic damage” means dents, paint chips or scratches, 3 hail or wind damage, or other minor damage that does not alter 4 the mechanical operation of the motor vehicle. “Cosmetic 5 damage” does not include any damage caused in a vehicle crash 6 or collision, or a broken or missing window, headlamp, tail 7 lamp, directional signal device, electronic sensor, or other 8 component part necessary for the safe operation of the vehicle. 9 (2) “Wrecked or salvage vehicle” means a damaged motor 10 vehicle subject to registration for which the cost of repair 11 exceeds seventy percent of the fair market value of the 12 vehicle, as determined in accordance with rules adopted by the 13 department, before the vehicle became damaged. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Under current law, a “wrecked or salvage vehicle” is a 18 damaged motor vehicle subject to registration for which the 19 cost of repair exceeds 70 percent of the fair market value of 20 the vehicle. When a vehicle rebuilder or a person engaged 21 in the business of buying, selling, or exchanging vehicles 22 acquires a wrecked or salvage vehicle with a fair market 23 value of $500 or more, the person is required to apply for a 24 salvage certificate of title. This includes an educational 25 institution; a licensed new motor vehicle dealer; a person 26 engaged in the business of purchasing bodies, parts of bodies, 27 frames, or component parts of vehicles for sale as scrap metal; 28 a salvage pool; a licensed authorized vehicle recycler; or an 29 insurer. When a wrecked or salvage vehicle has been repaired, 30 the owner may apply for a regular certificate of title by 31 paying the appropriate fees and surrendering the salvage 32 certificate of title and a properly executed salvage theft 33 examination certificate. 34 This bill authorizes an owner of a wrecked or salvage vehicle 35 -2- LSB 5080SV (1) 89 th/ns 2/ 3
S.F. 2139 to apply for and be issued a regular certificate of title 1 without repairing cosmetic damage. The bill exempts a motor 2 vehicle that is considered wrecked or salvage solely due to 3 cosmetic damage from the salvage theft examination otherwise 4 required, and the owner of such vehicle is not required to 5 submit a salvage theft examination certificate when applying 6 for a regular certificate of title. The bill defines “cosmetic 7 damage” as the term is used in the bill. 8 -3- LSB 5080SV (1) 89 th/ns 3/ 3