Bill Text: IA SF2228 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act relating to the activities of motor vehicle dealers and wholesalers, including the electronic submission of applications for motor vehicle registration and issuance of certificates of title, the use of licenses and advertisements, the furnishing of surety bonds, and the assessment of documentary fees, and making penalties applicable. (Formerly SSB 3078.) Effective 7-1-16.
Spectrum: Committee Bill
Status: (Passed) 2016-04-13 - Signed by Governor. S.J. 692. [SF2228 Detail]
Download: Iowa-2015-SF2228-Enrolled.html
Senate File 2228 - Enrolled
SENATE FILE
BY COMMITTEE ON
TRANSPORTATION
(SUCCESSOR TO SSB
3078)
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A BILL FOR
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Senate File 2228
AN ACT
RELATING TO THE ACTIVITIES OF MOTOR VEHICLE DEALERS AND
WHOLESALERS, INCLUDING THE ELECTRONIC SUBMISSION OF
APPLICATIONS FOR MOTOR VEHICLE REGISTRATION AND ISSUANCE
OF CERTIFICATES OF TITLE, THE USE OF LICENSES AND
ADVERTISEMENTS, THE FURNISHING OF SURETY BONDS, AND THE
ASSESSMENT OF DOCUMENTARY FEES, AND MAKING PENALTIES
APPLICABLE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 321.20, subsections 2 and 3, Code 2016,
are amended to read as follows:
2. Notwithstanding contrary provisions of this chapter or
chapter 326 regarding titling and registration by means other
than electronic means, the department may shall, by January 1,
2018, develop and implement a program to allow for
electronic applications, titling, registering, and electronic
funds transfer transfers for vehicles subject to registration
in order to improve the efficiency and timeliness of the
processes and to reduce costs for all parties involved. The
program shall also provide for the electronic submission of any
statement required by this section, except where prohibited by
federal law.
3. The department shall adopt rules on the method for
providing signatures for applications and statements required
by this section that are made by electronic means.
Sec. 2. Section 321.20, Code 2016, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. Notwithstanding this section or any
other provision of law to the contrary, if the program required
by subsection 2 is not implemented by January 1, 2018, an owner
of a vehicle subject to registration may apply to the county
treasurer of a county contiguous to the county designated for
the owner under subsection 1 for registration and issuance of
a certificate of title.
Sec. 3. Section 322.2, subsection 7, Code 2016, is amended
to read as follows:
7. "Engaged in the business" means doing any of the
following acts for the purpose of the sale of motor vehicles
at retail: acquiring, selling, exchanging, holding, offering,
displaying, brokering, accepting on consignment, conducting a
retail auction, advertising as being engaged in any of those
acts, or acting as an agent for the purpose of doing any of
those acts. A person selling at retail more than six motor
vehicles during a twelve=month period may be presumed to be
engaged in the business.
Sec. 4. Section 322.3, subsection 3, Code 2016, is amended
to read as follows:
3. Subsections 1, and 2, and 16 shall not be construed
to require the separate licensing of persons employed as
salespersons of motor vehicles by a retail motor vehicle
dealer. However, the department may promulgate reasonable
rules as necessary for the proper identification of persons
employed as salespersons.
Sec. 5. Section 322.3, subsection 12, Code 2016, is amended
to read as follows:
12. A person who has been convicted of a fraudulent
practice, has been convicted of three or more violations of
section 321.92, subsection 2, or section 321.99, has been
convicted of three or more violations of subsection 16 of
this section in the previous three=year period, or has been
convicted of any other indictable offense in connection with
selling or other activity relating to motor vehicles, in this
state or any other state, shall not for a period of five
years from the date of conviction be an owner, salesperson,
employee, officer of a corporation, or representative of a
licensed motor vehicle dealer or represent themselves as an
owner, salesperson, employee, officer of a corporation, or
representative of a licensed motor vehicle dealer.
Sec. 6. Section 322.3, Code 2016, is amended by adding the
following new subsection:
NEW SUBSECTION. 16. A motor vehicle dealer or wholesaler
licensed under this chapter shall not sell, loan, rent, lease,
or charge a fee for the use of the license to another person for
the purpose of allowing the person to engage in the business of
selling motor vehicles.
Sec. 7. Section 322.4, subsection 1, paragraph g, Code 2016,
is amended to read as follows:
g. Before the issuance of a motor vehicle dealer's license
to a dealer engaged in the sale of vehicles for which a
certificate of title is required under chapter 321, or the
issuance of a temporary permit under section 322.5, subsection
6, paragraph "b", the applicant shall furnish a surety bond
executed by the applicant as principal and executed by a
corporate surety company, licensed and qualified to do business
within this state, which bond shall run to the state of Iowa,
be in the amount of fifty seventy=five thousand dollars and
be conditioned upon the faithful compliance by the applicant
as a dealer with all of the statutes of this state regulating
or applicable to the business of a dealer in motor vehicles,
and indemnifying any person who buys a motor vehicle from the
dealer from any loss or damage occasioned by the failure of the
dealer to comply with any of the provisions of chapter 321 and
this chapter, including but not limited to the furnishing of
a proper and valid certificate of title to the motor vehicle
involved in a transaction. The bond shall also indemnify any
motor vehicle purchaser from any loss or damage caused by the
failure of the dealer to comply with the odometer requirements
in section 321.71, regardless of whether the motor vehicle was
purchased directly from the dealer. The bond shall be filed
with the department prior to the issuance of a license or
permit. The aggregate liability of the surety, however, shall
not exceed the amount of the bond.
Sec. 8. NEW SECTION. 322.19A Documentary fee.
1. For purposes of this section, "documentary fee" means a
fee that may be charged to a customer by a motor vehicle dealer
for the preparation of documents related to an application for
motor vehicle registration and an application for issuance of
a certificate of title, and the performance of other related
services for the customer. "Documentary fee" does not include
any costs or fees charged to a motor vehicle dealer or a
dealer's customer by a third party.
2. A motor vehicle dealer may charge a documentary fee not
to exceed one hundred eighty dollars for each motor vehicle
sold in a transaction.
3. After the department has implemented a statewide
program pursuant to section 321.20, subsection 2, the maximum
documentary fee permitted by subsection 2 shall be reduced by
twenty=five dollars.
4. A motor vehicle dealer who charges a documentary fee
to a customer shall include the fee in the price of the motor
vehicle. The dealer shall disclose the full amount of the fee
in any price of a motor vehicle advertised by the dealer and
when making or accepting an offer to sell a motor vehicle. The
dealer shall provide the following notice to the customer,
which notice shall be clearly and conspicuously disclosed in
any motor vehicle purchase agreement with the customer:
DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
A BUYER FOR THE PREPARATION OF DOCUMENTS AND THE PERFORMANCE OF
RELATED SERVICES. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR
A DOCUMENTARY FEE IS DETERMINED BY IOWA CODE SECTION 322.19A.
THIS NOTICE IS REQUIRED BY LAW.
5. A violation of this section is an unlawful practice under
section 714.16.
PAM JOCHUM
President of the Senate
LINDA UPMEYER
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2228, Eighty=sixth General Assembly.
MICHAEL E. MARSHALL
Secretary of the Senate
Approved , 2016
TERRY E. BRANSTAD
Governor
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