Bill Text: IA SF2247 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the use of licenses and advertisements by motor vehicle dealers and wholesalers, and making penalties applicable. (Formerly SSB 3124.)

Sponsorship: Committee Bill

Status: (Engrossed - Dead) 2016-03-18 - Rereferred to Transportation. H.J. 507. [SF2247 Detail]

Download: Iowa-2015-SF2247-Introduced.html

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Senate File 2247 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON
                                     TRANSPORTATION

                                 (SUCCESSOR TO SSB
                                     3124)

                                      A BILL FOR

  1 An Act relating to the use of licenses and advertisements by
  2    motor vehicle dealers and wholesalers, and making penalties
  3    applicable.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 322.2, subsection 7, Code 2016, is
  1  2 amended to read as follows:
  1  3    7.  "Engaged in the business" means doing any of the
  1  4 following acts for the purpose of the sale of motor vehicles
  1  5 at retail:  acquiring, selling, exchanging, holding, offering,
  1  6 displaying, brokering, accepting on consignment, conducting a
  1  7 retail auction, advertising as being engaged in any of those
  1  8 acts, or acting as an agent for the purpose of doing any of
  1  9 those acts. A person selling at retail more than six motor
  1 10 vehicles during a twelve=month period may be presumed to be
  1 11 engaged in the business.
  1 12    Sec. 2.  Section 322.3, subsection 3, Code 2016, is amended
  1 13 to read as follows:
  1 14    3.  Subsections 1, and 2, and 16 shall not be construed
  1 15 to require the separate licensing of persons employed as
  1 16 salespersons of motor vehicles by a retail motor vehicle
  1 17 dealer. However, the department may promulgate reasonable
  1 18 rules as necessary for the proper identification of persons
  1 19 employed as salespersons.
  1 20    Sec. 3.  Section 322.3, subsection 12, Code 2016, is amended
  1 21 to read as follows:
  1 22    12.  A person who has been convicted of a fraudulent
  1 23 practice, has been convicted of three or more violations of
  1 24 section 321.92, subsection 2, or section 321.99, has been
  1 25 convicted of three or more violations of subsection 16 of
  1 26 this section in the previous three=year period, or has been
  1 27 convicted of any other indictable offense in connection with
  1 28 selling or other activity relating to motor vehicles, in this
  1 29 state or any other state, shall not for a period of five
  1 30 years from the date of conviction be an owner, salesperson,
  1 31 employee, officer of a corporation, or representative of a
  1 32 licensed motor vehicle dealer or represent themselves as an
  1 33 owner, salesperson, employee, officer of a corporation, or
  1 34 representative of a licensed motor vehicle dealer.
  1 35    Sec. 4.  Section 322.3, Code 2016, is amended by adding the
  2  1 following new subsection:
  2  2    NEW SUBSECTION.  16.  A motor vehicle dealer or wholesaler
  2  3 licensed under this chapter shall not sell, loan, rent, lease,
  2  4 or charge a fee for the use of the license to another person for
  2  5 the purpose of allowing the person to engage in the business of
  2  6 selling motor vehicles.
  2  7    Sec. 5.  NEW SECTION.  322.7C  Motor vehicle dealer
  2  8 advertising.
  2  9    A print publication or digital media advertisement for the
  2 10 sale of a particular motor vehicle by a motor vehicle dealer
  2 11 licensed under this chapter, other than an advertisement
  2 12 located on the premises of the dealer's place of business,
  2 13 shall include the name under which the dealer engages in
  2 14 the business and the dealer's general distinguishing number
  2 15 assigned by the department pursuant to section 321.59.
  2 16                           EXPLANATION
  2 17 The inclusion of this explanation does not constitute agreement with
  2 18 the explanation's substance by the members of the general assembly.
  2 19    This bill expands the definition of "engaged in the
  2 20 business" as the term relates to motor vehicle manufacturers,
  2 21 distributors, wholesalers, and dealers to include advertising
  2 22 as being engaged in acquiring, selling, exchanging, holding,
  2 23 offering, displaying, brokering, accepting on consignment, or
  2 24 conducting a retail auction of motor vehicles.
  2 25    The bill prohibits a licensed motor vehicle dealer or
  2 26 wholesaler from selling, loaning, renting, leasing, or charging
  2 27 a fee for the use of the license to another person for the
  2 28 purpose of allowing the person to engage in the business of
  2 29 selling motor vehicles. Three or more violations of this
  2 30 provision in a three=year period will result in the violator
  2 31 being barred from being an owner, salesperson, employee,
  2 32 officer of a corporation, or representative of a licensed motor
  2 33 vehicle dealer or representing themselves as such for five
  2 34 years. The provision does not require the separate licensing
  2 35 of persons employed as salespersons by a dealer.
  3  1 The bill requires a print publication or digital media
  3  2 advertisement for the sale of a particular motor vehicle by
  3  3 a motor vehicle dealer, other than an advertisement located
  3  4 on the premises of the dealer's place of business, to include
  3  5 the name under which the dealer engages in the business and
  3  6 the dealer's general distinguishing number assigned by the
  3  7 department of transportation.
  3  8    Under current law, a violation of a provision of Code chapter
  3  9 322 (motor vehicle manufacturers, distributors, wholesalers,
  3 10 and dealers) is a simple misdemeanor punishable by a fine of
  3 11 not less than $250 nor more than $1,500 or by imprisonment not
  3 12 to exceed 30 days.
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