Bill Text: IA SF2024 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to persons who are subject to motor vehicle dealer licensing requirements.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-23 - Subcommittee, Bowman, Behn, and Brase. S.J. 117. [SF2024 Detail]
Download: Iowa-2013-SF2024-Introduced.html
Senate
File
2024
-
Introduced
SENATE
FILE
2024
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
persons
who
are
subject
to
motor
vehicle
1
dealer
licensing
requirements.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
321.1,
subsection
17,
Code
2014,
is
1
amended
to
read
as
follows:
2
17.
“Dealer”
means
every
person
engaged
in
the
business
3
of
buying,
selling,
or
exchanging
vehicles
of
a
type
required
4
to
be
registered
hereunder
under
this
chapter
and
who
has
5
an
established
place
of
business
for
such
purpose
in
this
6
state.
“Dealer”
includes
those
persons
required
to
be
licensed
7
as
dealers
under
chapters
322
and
322C
.
“Dealer”
does
not
8
include
a
person
who
acts
as
a
broker
or
consignee
of
motor
9
vehicles
for
sale
at
retail
or
a
person
who
conducts
an
auction
10
for
the
sale
of
motor
vehicles
at
retail
if
the
person
is
11
not
otherwise
engaged
in
the
business
of
buying,
selling,
or
12
exchanging
vehicles
of
a
type
required
to
be
registered
under
13
this
chapter.
14
Sec.
2.
Section
321.24,
subsection
7,
Code
2014,
is
amended
15
to
read
as
follows:
16
7.
The
certificate
shall
contain
the
name
of
the
county
17
treasurer
or
of
the
department
and,
if
the
certificate
of
18
title
is
printed,
the
signature
of
the
county
treasurer,
the
19
deputy
county
treasurer,
or
the
department
director
or
deputy
20
designee.
The
certificate
of
title
shall
contain
upon
the
21
reverse
side
a
form
for
assignment
of
title
or
interest
and
22
warranty
by
the
owner,
for
reassignments
by
a
dealer
licensed
23
in
this
state
or
in
another
state
if
the
state
in
which
the
24
dealer
is
licensed
permits
Iowa
licensed
dealers
to
similarly
25
reassign
certificates
of
title.
However,
titles
for
mobile
26
homes
or
manufactured
homes
shall
not
be
reassigned
by
licensed
27
dealers.
Notwithstanding
section
321.1,
subsection
17
,
as
28
used
in
this
paragraph
subsection,
“dealer”
means
every
person
29
engaged
in
the
business
of
buying,
selling,
or
exchanging
30
vehicles
of
a
type
required
to
be
registered
under
this
31
chapter
,
other
than
a
person
who
acts
as
a
broker
or
consignee
32
of
motor
vehicles
for
sale
at
retail
or
a
person
who
conducts
33
an
auction
for
the
sale
of
motor
vehicles
at
retail
if
the
34
person
is
not
otherwise
engaged
in
the
business
of
buying,
35
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selling,
or
exchanging
vehicles
of
a
type
required
to
be
1
registered
under
this
chapter
.
2
Sec.
3.
Section
321.45,
subsection
3,
Code
2014,
is
amended
3
to
read
as
follows:
4
3.
Upon
the
transfer
of
any
registered
vehicle,
the
owner,
5
except
as
otherwise
provided
in
this
chapter
,
shall
endorse
an
6
assignment
and
warranty
of
title
upon
the
certificate
of
title
7
for
such
vehicle
with
a
statement
of
all
liens
and
encumbrances
8
thereon,
and
the
owner
shall
deliver
the
certificate
of
title
9
to
the
purchaser
or
transferee
at
the
time
of
delivering
the
10
vehicle
except
as
otherwise
provided
in
this
chapter
.
The
11
owner
shall
indicate
to
the
transferee
the
name
of
the
county
12
in
which
the
vehicle
was
last
registered
and
the
registration
13
expiration
date.
If
a
motor
vehicle
is
sold
at
retail
through
14
a
person,
other
than
a
licensed
dealer,
who
is
a
broker,
15
consignee,
or
person
conducting
an
auction,
the
owner
of
16
the
motor
vehicle
or
the
owner’s
designee
shall
deliver
the
17
certificate
of
title,
duly
assigned
by
the
owner,
to
the
18
purchaser
or
transferee
at
conclusion
of
the
sale.
19
Sec.
4.
Section
322.2,
subsection
7,
Code
2014,
is
amended
20
to
read
as
follows:
21
7.
a.
“Engaged
in
the
business”
means
doing
any
of
the
22
following
acts
for
the
purpose
of
the
sale
of
motor
vehicles
at
23
retail:
acquiring,
selling,
exchanging,
holding,
offering,
or
24
displaying,
brokering,
accepting
on
consignment,
conducting
a
25
retail
auction,
or
acting
as
an
agent
for
the
purpose
of
doing
26
any
of
those
acts.
A
Except
as
provided
in
paragraph
“b”
,
a
27
person
selling
at
retail
more
than
six
twelve
motor
vehicles
28
during
a
twelve-month
period
may
be
presumed
to
be
engaged
in
29
the
business.
30
b.
“Engaged
in
the
business”
does
not
include
acting
as
31
a
broker
in
the
sale
of
motor
vehicles
at
retail,
offering
32
motor
vehicles
for
sale
at
retail
on
a
consignment
basis,
or
33
conducting
an
auction
for
the
sale
of
motor
vehicles
at
retail.
34
EXPLANATION
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
Under
current
law,
a
motor
vehicle
dealer
who
accepts
a
3
vehicle
for
resale
is
not
required
to
obtain
a
new
certificate
4
of
title
for
the
vehicle,
but
the
dealer
is
required
to
execute
5
and
acknowledge
an
assignment
and
warranty
of
title
upon
the
6
certificate
of
title
and
deliver
it
to
the
subsequent
purchaser
7
of
the
vehicle.
This
process,
known
as
“reassignment”,
is
8
required
in
all
retail
sales
transactions
involving
a
motor
9
vehicle
dealer.
Any
person
who
sells
more
than
six
motor
10
vehicles
during
a
12-month
period
is
considered
to
be
engaged
11
in
the
business
of
selling
motor
vehicles
at
retail
and
12
is
subject
to
dealer
licensing
requirements
and
provisions
13
relating
to
the
transfer
of
ownership
of
motor
vehicles
sold
14
at
retail.
15
This
bill
amends
the
definition
of
“engaged
in
the
business”
16
in
Code
chapter
322
to
allow
a
person
to
sell
up
to
12
motor
17
vehicles
in
a
12-month
period
without
a
dealer’s
license.
18
The
definition
is
further
amended
to
exclude
brokering,
19
accepting
on
consignment,
or
conducting
an
auction
for
the
sale
20
of
motor
vehicles
at
retail,
thereby
exempting
persons
who
21
engage
exclusively
in
those
activities
from
dealer
licensing
22
requirements.
In
addition,
the
bill
amends
definitions
of
23
“dealer”
in
Code
chapter
321
to
exclude
brokers
and
consignees
24
of
motor
vehicles
for
sale
at
retail
and
persons
who
conduct
25
retail
motor
vehicle
auctions
if
such
persons
are
not
otherwise
26
engaged
in
the
business
of
buying,
selling,
or
exchanging
27
vehicles
of
a
type
required
to
be
registered.
Under
the
bill,
28
such
agents
would
not
be
required
to
accept
assignment
of
a
29
certificate
of
title
for
a
vehicle
to
be
offered
for
sale
at
30
retail.
The
bill
specifies
that
the
owner
or
the
owner’s
31
designee
shall
deliver
the
certificate
of
title,
duly
assigned,
32
to
the
purchaser
or
transferee
at
conclusion
of
such
a
sale.
33
Because
of
the
changes
to
the
definitions
of
“dealer”
and
34
“engaged
in
the
business”,
certain
other
provisions
that
apply
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to
licensed
motor
vehicle
dealers
under
Code
chapter
321
would
1
not
apply
to
brokers,
consignees,
persons
who
conduct
retail
2
auctions,
and
persons
who
sell
up
to
12
motor
vehicles
in
a
3
12-month
period,
including
but
not
limited
to
requirements
for
4
damage
disclosure
statement
recordkeeping,
odometer
statements,
5
and
“in-transit”
permits.
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