House Study Bill 79 - IntroducedA Bill ForAn Act 1relating to defective motorcycles and autocycles
2purchased or leased by consumers, making penalties
3applicable, and including applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 322G.2, subsection 13, Code 2021, is
2amended to read as follows:
   313.  “Motor vehicle” means a self-propelled vehicle purchased
4or leased in this state, except as provided in section 322G.15,
5and primarily designed for the transportation of persons or
6property over public streets and highways, but does not include
7mopeds, motorcycles, autocycles, motor homes, or vehicles over
8fifteen thousand pounds gross vehicle weight rating.
9   Sec. 2.  APPLICABILITY.  This Act applies to motorcycles and
10autocycles originally purchased or leased by consumers on or
11after July 1, 2021.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
   15Code chapter 322G (defective motor vehicles — lemon law)
16sets forth a consumer’s right to obtain repairs to, replacement
17of, or a refund on the purchase price of a defective motor
18vehicle. The Code chapter also sets forth the duties of motor
19vehicle manufacturers, informal dispute settlement procedures,
20and certain other matters related to such rights. Under
21current law, Code section 322G.2 defines “motor vehicle” to
22exclude certain types of vehicles, including motorcycles and
23autocycles. This bill strikes motorcycles and autocycles from
24the exclusion, thereby making the provisions of Code chapter
25322G applicable to motorcycles and autocycles.
   26Under current law, a violation by a manufacturer of Code
27chapter 322G is an unfair or deceptive trade practice in
28violation of Code section 714.16. Pursuant to Code section
29714.16, the attorney general may investigate and commence
30civil proceedings seeking restraining orders or injunctions
31prohibiting persons from engaging in unlawful practices
32or seeking termination of the business affairs of a person
33engaging in unlawful practices. A civil penalty of up to
34$40,000 per violation may also be imposed by a court against
35a person found to have committed an unlawful practice. By
-1-1operation of law, motorcycle and autocycle manufacturers would
2be subject to Code section 714.16 for violations of Code
3chapter 322G under the bill.
   4The bill applies to motorcycles and autocycles originally
5purchased or leased by consumers on or after July 1, 2021.
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th/ns