Bill Text: IA HF2408 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to motor vehicles, including the surrender or transfer of registration plates and cards to a county treasurer, documentary fees charged by motor vehicle dealers, and motor vehicle franchise obligations. (Formerly HSB 526.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2020-03-10 - Subcommittee recommends amendment and passage. [HF2408 Detail]

Download: Iowa-2019-HF2408-Introduced.html
House File 2408 - Introduced HOUSE FILE 2408 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 526) A BILL FOR An Act relating to motor vehicles, including the surrender 1 or transfer of registration plates and cards to a county 2 treasurer, documentary fees charged by motor vehicle 3 dealers, and motor vehicle franchise obligations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5564HV (3) 88 mo/ns
H.F. 2408 Section 1. Section 321.26, subsection 2, Code 2020, is 1 amended to read as follows: 2 2. The county treasurer may adjust the renewal or 3 expiration date of vehicles registered in the county when 4 deemed necessary to equalize the number of vehicles registered 5 in each twelve-month period or for the administrative 6 efficiency of the county treasurer’s office. The adjustment 7 shall be accomplished by delivery of a written notice to the 8 vehicle owner of the adjustment and allowance of a credit 9 for the remaining months of the unused portion of the annual 10 registration fee, rounded to the nearest whole dollar, which 11 amount shall be deducted from the annual registration fee due 12 at the time of registration. Upon receipt of the notification 13 the owner shall, within thirty days, surrender the registration 14 card and registration plates to the a county treasurer of 15 the county where the vehicle is registered , except that the 16 registration plates shall not be surrendered if validation 17 stickers or other emblems are used to designate the month and 18 year of expiration of registration. Upon payment of the annual 19 registration fee, less the credit allowed for the remaining 20 months of the unused portion of the annual registration 21 fee, the county treasurer of the county where the vehicle is 22 registered shall issue a new registration card and registration 23 plates, validation stickers, or emblems which indicate the 24 month and year of expiration of registration. 25 Sec. 2. Section 321.34, subsection 1, Code 2020, is amended 26 to read as follows: 27 1. Plates issued. The county treasurer upon receiving 28 application, accompanied by proper fee, for registration of a 29 vehicle shall issue to the owner one registration plate for 30 a motorcycle, motorized bicycle, autocycle, truck tractor, 31 trailer, or semitrailer and two registration plates for every 32 other motor vehicle. The registration plates, including 33 special registration plates, shall be assigned to the owner of 34 a vehicle. When the owner of a registered vehicle transfers or 35 -1- LSB 5564HV (3) 88 mo/ns 1/ 4
H.F. 2408 assigns ownership of the vehicle to another person, the owner 1 shall remove the registration plates from the vehicle. The 2 owner shall forward the plates to the a county treasurer where 3 the vehicle is registered or the owner may have the plates 4 assigned to another vehicle within thirty days after transfer, 5 upon payment of the fees required by law. The owner shall 6 immediately affix registration plates retained by the owner to 7 another vehicle owned or acquired by the owner, providing the 8 owner complies with section 321.46 . The department shall adopt 9 rules providing for the assignment of registration plates to 10 the transferee of a vehicle for which a credit is allowed under 11 section 321.46, subsection 6 . 12 Sec. 3. Section 321.47, subsection 3, Code 2020, is amended 13 to read as follows: 14 3. Whenever ownership of a vehicle is transferred under the 15 provisions of this section , the registration plates shall be 16 removed and forwarded to the a county treasurer , of the county 17 where the vehicle is registered or to the department if the 18 vehicle is owned by a nonresident. Upon transfer the vehicle 19 shall not be operated upon the highways of this state until the 20 person entitled to possession of the vehicle applies for and 21 obtains registration for the vehicle. 22 Sec. 4. Section 322.19A, subsection 2, Code 2020, is amended 23 to read as follows: 24 2. A Subject to subsections 3 and 3A, a motor vehicle dealer 25 may charge a documentary fee not to exceed one hundred eighty 26 dollars for each motor vehicle sold in a transaction. 27 Sec. 5. Section 322.19A, Code 2020, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 3A. On and after January 1, 2021, the 30 maximum permitted documentary fee shall be subject to an annual 31 rate adjustment equal to the most recent percentage change 32 in the consumer price index for all items, published by the 33 United States department of labor, bureau of labor statistics, 34 as of September 1 of the calendar year immediately preceding 35 -2- LSB 5564HV (3) 88 mo/ns 2/ 4
H.F. 2408 the calendar year in which the annual rate adjustment is set to 1 take effect, rounded to the nearest whole cent. The department 2 shall calculate and publish on the department’s internet site 3 the annual maximum documentary fee for the following calendar 4 year on or before December 15 of each year. 5 Sec. 6. Section 322A.5, subsection 2, Code 2020, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . c. The franchiser shall provide to the 8 franchisee a list of time allowances for the performance of 9 warranty services. Time allowances for the performance of 10 warranty services, including diagnostic services, shall be 11 reasonable and adequate for the services to be performed. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill allows a person who receives a written notice of 16 an adjustment of the renewal or expiration of the person’s 17 motor vehicle registration to surrender their registration card 18 and registration plates to a county treasurer of any county 19 in the state rather than the county treasurer of the county 20 where the vehicle is registered. The bill further allows the 21 registration plates of a motor vehicle on which ownership is 22 transferred or assigned to another person pursuant to Code 23 section 321.34(1) or transferred by operation of law pursuant 24 to Code section 321.47(1) to be removed and forwarded to 25 any county treasurer in the state rather than to the county 26 treasurer of the county where the vehicle is registered. The 27 bill does not modify Code section 321.134, which allows an 28 owner of a motor vehicle who surrenders the registration plates 29 of a vehicle prior to the plates becoming delinquent to the 30 county treasurer of the county where the vehicle is registered 31 to register the vehicle any time thereafter without penalty. 32 Under current law, a motor vehicle dealer may charge a 33 documentary fee to a customer for the preparation of documents 34 related to an application for motor vehicle registration and 35 -3- LSB 5564HV (3) 88 mo/ns 3/ 4
H.F. 2408 an application for issuance of a certificate of title, and 1 the performance of other related services for the customer, 2 which must not exceed $180 for each motor vehicle sold in a 3 transaction. The bill provides that on and after January 1, 4 2021, the maximum permitted documentary fee is subject to an 5 annual rate adjustment equal to the most recent percentage 6 change in the consumer price index published by the United 7 States department of labor, bureau of labor statistics, as of 8 September 1 of the calendar year immediately preceding the 9 calendar year in which that annual rate adjustment is set to 10 take effect, rounded to the nearest whole cent. The department 11 must calculate and publish on the department’s internet site 12 the annual maximum documentary fee for the following calendar 13 year on or before December 15 of each year. 14 Under the bill, a motor vehicle franchiser must provide a 15 franchisee a list of time allowances for the performance of 16 warranty services, which must be reasonable and adequate for 17 the services to be performed. 18 -4- LSB 5564HV (3) 88 mo/ns 4/ 4
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