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House Study Bill 85 - IntroducedA Bill ForAn Act 1relating to wrecked or salvage vehicles with cosmetic
2damage.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.52, subsection 4, paragraphs c and e,
2Code 2023, are amended to read as follows:
3c. When a wrecked or salvage vehicle has been repaired,
4the owner may apply for a regular certificate of title by
5paying the appropriate fees and surrendering the salvage
6certificate of title and a properly executed salvage theft
7examination certificate. However, any cosmetic damage on
8the wrecked or salvage vehicle need not be repaired for the
9owner to apply for and be issued a regular certificate of
10title under this paragraph. A motor vehicle with a gross
11vehicle weight rating of thirty thousand pounds or more, or a
12motor vehicle that is considered a wrecked or salvage vehicle
13solely due to cosmetic damage, is not subject to the salvage
14theft examination otherwise required under paragraph “d”,
15and the owner of such vehicle is not required to submit a
16salvage theft examination certificate. The county treasurer
17shall issue a regular certificate of title which shall bear a
18designation printed on the face of the title and printed on the
19registration receipt indicating that the vehicle was previously
20titled on a salvage certificate of title in a form approved by
21the department. This designation shall be included on every
22Iowa certificate of title and registration receipt issued
23thereafter for the vehicle. However, if ownership of a stolen
24vehicle has been transferred to an insurer organized under the
25laws of this state or admitted to do business in this state,
26or if the transfer was the result of a settlement with the
27owner of the vehicle arising from damage to or the unrecovered
28theft of the vehicle, and if the insurer certifies to the
29county treasurer on a form approved by the department that the
30insurance company has received one or more written estimates
31which state that the retail cost of repairs including labor,
32parts, and other materials of all damage to the vehicle is less
33than three thousand dollars, the county treasurer shall issue
34to the insurance company the regular certificate of title and
35registration receipt without this designation.
-1- 1e. For purposes of this subsection, “wrecked or salvage
2vehicle”:
3(1) “Cosmetic damage” means dents, paint chips or scratches,
4hail or wind damage, or other minor damage that does not alter
5the mechanical operation of the motor vehicle. “Cosmetic
6damage” does not include any damage caused in a vehicle crash
7or collision, or a broken or missing window, headlamp, tail
8lamp, directional signal device, electronic sensor, or other
9component part necessary for the safe operation of the vehicle.
10(2) “Wrecked or salvage vehicle”means a damaged motor
11vehicle subject to registration for which the cost of repair
12exceeds seventy percent of the fair market value of the
13vehicle, as determined in accordance with rules adopted by the
14department, before the vehicle became damaged.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Under current law, a “wrecked or salvage vehicle” is a
19damaged motor vehicle subject to registration for which the
20cost of repair exceeds 70 percent of the fair market value of
21the vehicle. When a vehicle rebuilder or a person engaged
22in the business of buying, selling, or exchanging vehicles
23acquires a wrecked or salvage vehicle with a fair market
24value of $500 or more, the person is required to apply for a
25salvage certificate of title. This includes an educational
26institution; a licensed new motor vehicle dealer; a person
27engaged in the business of purchasing bodies, parts of bodies,
28frames, or component parts of vehicles for sale as scrap metal;
29a salvage pool; a licensed authorized vehicle recycler; or an
30insurer. When a wrecked or salvage vehicle has been repaired,
31the owner may apply for a regular certificate of title by
32paying the appropriate fees and surrendering the salvage
33certificate of title and a properly executed salvage theft
34examination certificate.
35This bill authorizes an owner of a wrecked or salvage vehicle
-2-1to apply for and be issued a regular certificate of title
2without repairing cosmetic damage. The bill exempts a motor
3vehicle that is considered wrecked or salvage solely due to
4cosmetic damage from the salvage theft examination otherwise
5required, and the owner of such vehicle is not required to
6submit a salvage theft examination certificate when applying
7for a regular certificate of title. The bill defines “cosmetic
8damage” as the term is used in the bill.
-3-th/ns
2damage.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.52, subsection 4, paragraphs c and e,
2Code 2023, are amended to read as follows:
3c. When a wrecked or salvage vehicle has been repaired,
4the owner may apply for a regular certificate of title by
5paying the appropriate fees and surrendering the salvage
6certificate of title and a properly executed salvage theft
7examination certificate. However, any cosmetic damage on
8the wrecked or salvage vehicle need not be repaired for the
9owner to apply for and be issued a regular certificate of
10title under this paragraph. A motor vehicle with a gross
11vehicle weight rating of thirty thousand pounds or more, or a
12motor vehicle that is considered a wrecked or salvage vehicle
13solely due to cosmetic damage, is not subject to the salvage
14theft examination otherwise required under paragraph “d”,
15and the owner of such vehicle is not required to submit a
16salvage theft examination certificate. The county treasurer
17shall issue a regular certificate of title which shall bear a
18designation printed on the face of the title and printed on the
19registration receipt indicating that the vehicle was previously
20titled on a salvage certificate of title in a form approved by
21the department. This designation shall be included on every
22Iowa certificate of title and registration receipt issued
23thereafter for the vehicle. However, if ownership of a stolen
24vehicle has been transferred to an insurer organized under the
25laws of this state or admitted to do business in this state,
26or if the transfer was the result of a settlement with the
27owner of the vehicle arising from damage to or the unrecovered
28theft of the vehicle, and if the insurer certifies to the
29county treasurer on a form approved by the department that the
30insurance company has received one or more written estimates
31which state that the retail cost of repairs including labor,
32parts, and other materials of all damage to the vehicle is less
33than three thousand dollars, the county treasurer shall issue
34to the insurance company the regular certificate of title and
35registration receipt without this designation.
-1- 1e. For purposes of this subsection, “wrecked or salvage
2vehicle”:
3(1) “Cosmetic damage” means dents, paint chips or scratches,
4hail or wind damage, or other minor damage that does not alter
5the mechanical operation of the motor vehicle. “Cosmetic
6damage” does not include any damage caused in a vehicle crash
7or collision, or a broken or missing window, headlamp, tail
8lamp, directional signal device, electronic sensor, or other
9component part necessary for the safe operation of the vehicle.
10(2) “Wrecked or salvage vehicle”means a damaged motor
11vehicle subject to registration for which the cost of repair
12exceeds seventy percent of the fair market value of the
13vehicle, as determined in accordance with rules adopted by the
14department, before the vehicle became damaged.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Under current law, a “wrecked or salvage vehicle” is a
19damaged motor vehicle subject to registration for which the
20cost of repair exceeds 70 percent of the fair market value of
21the vehicle. When a vehicle rebuilder or a person engaged
22in the business of buying, selling, or exchanging vehicles
23acquires a wrecked or salvage vehicle with a fair market
24value of $500 or more, the person is required to apply for a
25salvage certificate of title. This includes an educational
26institution; a licensed new motor vehicle dealer; a person
27engaged in the business of purchasing bodies, parts of bodies,
28frames, or component parts of vehicles for sale as scrap metal;
29a salvage pool; a licensed authorized vehicle recycler; or an
30insurer. When a wrecked or salvage vehicle has been repaired,
31the owner may apply for a regular certificate of title by
32paying the appropriate fees and surrendering the salvage
33certificate of title and a properly executed salvage theft
34examination certificate.
35This bill authorizes an owner of a wrecked or salvage vehicle
-2-1to apply for and be issued a regular certificate of title
2without repairing cosmetic damage. The bill exempts a motor
3vehicle that is considered wrecked or salvage solely due to
4cosmetic damage from the salvage theft examination otherwise
5required, and the owner of such vehicle is not required to
6submit a salvage theft examination certificate when applying
7for a regular certificate of title. The bill defines “cosmetic
8damage” as the term is used in the bill.
-3-th/ns