Bill Text: IA HF592 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to licensed vehicle dealers, including vehicles for resale subject to a security interest and remote sales of motor vehicles. (Formerly HSB 168.) Effective date: 07/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2023-04-28 - Signed by Governor. H.J. 952. [HF592 Detail]
Download: Iowa-2023-HF592-Enrolled.html
House
File
592
-
Enrolled
House
File
592
AN
ACT
RELATING
TO
LICENSED
VEHICLE
DEALERS,
INCLUDING
VEHICLES
FOR
RESALE
SUBJECT
TO
A
SECURITY
INTEREST
AND
REMOTE
SALES
OF
MOTOR
VEHICLES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
321.50,
subsection
5,
paragraph
a,
Code
2023,
is
amended
to
read
as
follows:
a.
When
Except
as
provided
in
section
321.48,
subsection
1,
paragraph
“b”
,
when
a
security
interest
is
discharged,
the
holder
shall
note
a
cancellation
of
the
security
interest
on
the
face
of
the
certificate
of
title
over
the
holder’s
signature
or
may
note
the
cancellation
of
the
security
interest
on
a
separate,
notarized
release
form
or
letter.
The
holder
shall
deliver
the
certificate
of
title
and
the
form
or
letter,
if
applicable,
to
the
county
treasurer
where
the
title
was
issued.
In
the
case
of
a
security
interest
that
has
been
delivered
by
electronic
means,
the
holder
shall
notify
the
department
or
the
county
treasurer,
in
a
manner
prescribed
by
the
department,
of
the
release
of
the
security
interest.
House
File
592,
p.
2
The
county
treasurer
shall
immediately
note
the
cancellation
of
the
security
interest
on
the
face
of
the
certificate
of
title,
if
applicable,
and
in
the
county
records
system.
The
county
treasurer
shall
on
the
same
day
deliver
the
certificate
of
title,
if
applicable,
and
the
separate,
notarized
release
form
or
letter,
if
applicable,
to
the
then
first
secured
party
or,
if
there
is
no
such
person,
to
the
person
as
directed
by
the
owner,
in
writing,
on
a
form
prescribed
by
the
department
or,
if
there
is
no
person
designated,
then
to
the
owner.
The
cancellation
of
the
security
interest
shall
be
noted
on
the
certificate
of
title
by
the
county
treasurer
without
charge.
The
holder
of
a
security
interest
discharged
by
payment
who
fails
to
release
the
security
interest
within
fifteen
days
after
being
requested
in
writing
to
do
so
shall
forfeit
to
the
person
making
the
payment
the
sum
of
twenty-five
dollars.
Sec.
2.
Section
321.50,
Code
2023,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
5A.
Notwithstanding
subsection
5,
when
an
application
for
registration
and
issuance
of
a
certificate
of
title
is
made
by
the
means
described
in
section
321.20,
subsection
2,
and
the
application
includes
a
certificate
of
title
upon
which
a
security
interest
has
been
discharged
by
the
secured
party
and
the
cancellation
of
the
security
interest
is
noted
by
the
secured
party
on
the
certificate
of
title
above
the
secured
party’s
signature,
the
county
treasurer
shall
not
require
any
other
notation
of
the
cancellation
of
the
security
interest
on
the
face
of
the
certificate
of
title,
and,
if
applicable,
the
county
treasurer
shall
notify
the
county
treasurer
of
the
county
where
the
certificate
of
title
was
issued
that
the
security
interest
has
been
released
as
of
the
specified
date
and
shall
update
such
release
on
the
applicable
program
or
computer
system.
A
dealer
licensed
under
chapter
322
or
chapter
322C
is
authorized
to
sell
such
a
vehicle
pursuant
to
section
321.48,
subsection
1,
paragraph
“b”
.
Sec.
3.
Section
322.2,
Code
2023,
is
amended
by
adding
the
following
new
subsection:
House
File
592,
p.
3
NEW
SUBSECTION
.
20A.
“Remote
sale”
means
a
sale
of
a
motor
vehicle
conducted
via
mail,
either
electronically
or
by
courier,
including
any
offering,
bartering,
negotiating,
exchanging,
and
other
communication
regarding
the
sale
of
the
vehicle.
“Remote
sale”
includes
the
delivery
of
the
vehicle
to
the
residence
of
the
buyer
or
another
agreed-to
location,
if
requested
by
the
buyer.
Sec.
4.
Section
322.3,
subsection
11,
Code
2023,
is
amended
to
read
as
follows:
11.
A
person
who
is
engaged
in
the
business
of
selling
motor
vehicles
at
retail
shall
not
sell,
offer
for
sale,
display,
represent,
or
advertise
that
the
person
intends
to
sell
motor
vehicles
from
a
location
other
than
the
person’s
place
of
business,
except
as
provided
in
subsection
11A
or
section
322.5
.
Sec.
5.
Section
322.3,
Code
2023,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
11A.
A
retail
seller
licensed
under
this
chapter
may
engage
in
remote
sales
of
motor
vehicles
located
at
a
place
of
business
of
the
retail
seller,
as
listed
on
the
license,
under
all
of
the
following
conditions:
a.
The
dealer
shall
possess,
at
the
time
of
the
sale,
the
certificate
of
title
to
any
motor
vehicle
offered
for
remote
sale.
b.
The
dealer
may
transmit
a
proposed
purchase
agreement
from
the
dealer
to
the
prospective
buyer
if
such
agreement
is
the
result
of
negotiation
between
the
parties.
The
dealer
shall
not
negotiate
and
shall
not
deliver
a
proposed
purchase
agreement
to
a
buyer
in
person
at
a
location
other
than
the
dealer’s
place
of
business.
c.
The
dealer
shall
not
sign
a
proposed
purchase
agreement
until
the
dealer
receives
an
executed
purchase
agreement
from
the
buyer.
A
signed
purchase
agreement
must
be
delivered
to
the
dealer’s
place
of
business.
House
File
592,
p.
4
d.
The
dealer
shall
not
deliver
a
motor
vehicle
to
a
buyer
away
from
the
dealer’s
place
of
business
until
the
buyer’s
purchase
of
the
motor
vehicle
is
completed.
e.
Remote
sales
are
subject
to
chapter
554D.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
592,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor
