Bill Text: IA HSB85 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to wrecked or salvage vehicles with cosmetic damage.
Spectrum: Committee Bill
Status: (Introduced) 2023-01-31 - Subcommittee recommends amendment and passage. Vote Total: 2-0. [HSB85 Detail]
Download: Iowa-2023-HSB85-Introduced.html
House
Study
Bill
85
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
BEST)
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
1537YC
(2)
90
th/ns
H.F.
_____
Section
1.
Section
321.52,
subsection
4,
paragraphs
c
and
e,
1
Code
2023,
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-
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1537YC
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3
H.F.
_____
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-
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1537YC
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3
H.F.
_____
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
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90
th/ns
3/
3
