Bill Text: IA SF435 | 2019-2020 | 88th General Assembly | Enrolled

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Bill Title: A bill for an act relating to towable recreational vehicles, travel trailers, and fifth-wheel travel trailers, making penalties applicable, and including applicability provisions. (Formerly SSB 1180.) Effective 7-1-19.

Spectrum: Committee Bill

Status: (Passed) 2019-05-02 - Signed by Governor. S.J. 1196. [SF435 Detail]

Download: Iowa-2019-SF435-Enrolled.html

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Senate File 435 - Enrolled
Senate File 435
AN ACT
RELATING TO TOWABLE RECREATIONAL VEHICLES, TRAVEL TRAILERS, AND
FIFTH-WHEEL TRAVEL TRAILERS, MAKING PENALTIES APPLICABLE,
AND INCLUDING APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 321.1, subsection 36C, paragraph b, Code
2019, is amended to read as follows:
b. “Travel trailer” means a vehicle without motive power
used, manufactured, or constructed to permit its use as a
conveyance upon the public streets and highways and designed
to permit its use as a place of human habitation by one or
more persons. The vehicle may be up to eight feet six inches
in width and its overall length shall not exceed forty-five
feet. The vehicle shall be customarily or ordinarily used for
vacation or recreational purposes and not used as a place of
permanent habitation. If the vehicle is used in this state as
a place of human habitation for more than ninety one

Senate File 435, p. 2
hundred eighty consecutive days in one location it shall be
classed as a manufactured or mobile home regardless of the size
limitations provided in this paragraph.
Sec. 2. Section 322C.2, Code 2019, is amended to read as
follows:
322C.2 Definitions.
As used in this chapter unless the context otherwise
requires:
1. To sell “at retail” means to sell a travel trailer
towable recreational vehicle to a person who will devote it to
a consumer use.
2. “Community” means a towable recreational vehicle dealer’s
area of responsibility as stipulated in the manufacturer-dealer
agreement.
2. 3. “Department” means the state department of
transportation.
3. 4. “Distributor” means a person who sells or distributes
travel trailers towable recreational vehicles to travel trailer
towable recreational vehicle dealers either directly or through
a representative employed by a distributor.
5. “Factory campaign” means an effort by or on behalf of a
warrantor to contact towable recreational vehicle dealers or
owners to address an equipment or part issue.
6. “Family member” means a spouse, child, grandchild,
parent, sibling, niece, or nephew, or the spouse of a child,
grandchild, parent, sibling, niece, or nephew.
4. 7. “Fifth-wheel travel trailer” means a type of travel
trailer which is towed by a motor vehicle by a connecting
device known as a fifth wheel. When used in this chapter ,
“travel trailer” includes a fifth-wheel travel trailer vehicle
mounted on wheels that has an overall length of forty-five feet
or less, is designed to provide temporary living quarters for
recreational, camping, or travel use, is of such a size and
weight as to not require a permit under chapter 321E when moved
on a highway, and is designed to be towed by a motor vehicle
equipped with a towing mechanism located above or forward of
the motor vehicle’s rear axle . “Fifth-wheel travel trailer”
includes a toy-hauler fifth-wheel travel trailer.
8. “Folding camping trailer” means a vehicle mounted on

Senate File 435, p. 3
wheels and constructed with collapsible side walls designed to
be folded when towed by a motor vehicle and unfolded to provide
temporary living quarters for recreational, camping, or travel
use.
9. “Line-make” means a specific series of towable
recreational vehicles meeting all of the following criteria:
a. The vehicles are identified by a common series trade name
or trademark.
b. The vehicles are targeted at a particular market segment,
as determined by the vehicles’ decoration, features, equipment,
size, weight, and price range.
c. The vehicles have lengths and interior floor plans
distinguishable from other towable recreational vehicles with
substantially similar decoration, features, equipment, weight,
and price.
d. The vehicles belong to a single, distinct classification
of a towable recreational vehicle product type having a
substantial degree of commonality in the construction of the
chassis, frame, and body.
e. A manufacturer-dealer agreement authorizes a dealer to
sell the vehicles.
5. 10. “Manufacturer” means a person engaged in the
business of fabricating or assembling travel trailers of a type
required to be registered manufacture of towable recreational
vehicles .
11. “Manufacturer-dealer agreement” means a written
agreement or contract entered into between a manufacturer or
distributor and a towable recreational vehicle dealer that
specifies the rights and responsibilities of the parties
and authorizes the dealer to sell and service new towable
recreational vehicles.
6. 12. “New travel trailer” towable recreational vehicle”
means a travel trailer towable recreational vehicle that has
not been sold at retail.
13. “Park model recreational vehicle” means a vehicle
meeting all of the following criteria:
a. The vehicle is designed to provide, and marketed as
providing, temporary living quarters for recreational, camping,
travel, or seasonal use.

Senate File 435, p. 4
b. The vehicle is not permanently affixed to real property
for use as a permanent dwelling.
c. The vehicle is built on a single chassis mounted on
wheels with a gross trailer area not exceeding four hundred
square feet in the vehicle’s set-up mode.
d. The vehicle is certified by the manufacturer as in
compliance with the American national standard for park model
recreational vehicles, commonly cited as “ANSI A 119.5”.
7. 14. “Person” includes any individual, partnership,
corporation, association, fiduciary , or other legal entity
engaged in business, other than a unit or agency of government
or governmental subdivision.
8. 15. “Place of business” means a designated location
where facilities are maintained for displaying, reconditioning ,
and repairing either new or used travel trailers towable
recreational vehicles .
16. “Proprietary part” means any part manufactured by or
for, and sold exclusively by, a manufacturer.
9. 17. “Sell” includes barter, exchange , and other methods
of dealing.
18. “Supplier” means a person engaged in the manufacture of
towable recreational vehicle parts, accessories, or components.
19. “Towable recreational vehicle” means a vehicle
designed to be towed by a motor vehicle owned by a consumer
and to provide temporary living quarters for recreational,
camping, or travel use, that complies with all applicable
federal regulations, and that is certified by the vehicle’s
manufacturer as in compliance with the national fire protection
association standard on recreational vehicles, commonly cited
as “NFPA 1192”, or the American national standard for park
model recreational vehicles, commonly cited as “ANSI A 119.5”,
as applicable. “Towable recreational vehicle” includes a
travel trailer, toy-hauler travel trailer, fifth-wheel travel
trailer, toy-hauler fifth-wheel travel trailer, folding camping
trailer, truck camper, and park model recreational vehicle.
For purposes of registration and titling under chapter 321,
a towable recreational vehicle shall be considered a travel
trailer or fifth-wheel travel trailer, as those terms are
defined in section 321.1, as applicable.

Senate File 435, p. 5
20. “Towable recreational vehicle dealer” or “dealer” means a
person required to be licensed under this chapter authorized to
sell and service towable recreational vehicles.
21. “Toy-hauler fifth-wheel travel trailer” means a
fifth-wheel travel trailer equipped with a back wall capable
of being lowered to form a ramp for loading and unloading a
specialized rear compartment that can then be resecured for
travel.
22. “Toy-hauler travel trailer” means a travel trailer
equipped with a back wall capable of being lowered to form a
ramp for loading and unloading a specialized rear compartment
that can then be resecured for travel.
23. “Transient consumer” means a consumer who is temporarily
traveling through a towable recreational vehicle dealer’s
community.
10. 24. “Travel trailer” means a vehicle without motive
power used or so manufactured or constructed as to permit its
being used as a conveyance upon the public streets and highways
and designed to permit the vehicle to be used as a place of
human habitation by one or more persons. The vehicle may be
up to eight feet six inches in width and its overall length
shall not exceed forty-five feet mounted on wheels that has a
width of eight feet six inches or less and an overall length
of forty-five feet or less, is designed to provide temporary
living quarters for recreational, camping, or travel use,
and is of such a size and weight as to not require a permit
under chapter 321E when towed by a motor vehicle on a highway .
“Travel trailer” includes a toy-hauler travel trailer. “Travel
trailer” does not include a vehicle that is so designed as to
permit it to be towed exclusively by a motorcycle.
25. “Truck camper” means a vehicle designed to be placed in
the bed of a pickup truck to provide temporary living quarters
for recreational, camping, or travel use.
11. 26. “Used travel trailer” towable recreational vehicle”
means a travel trailer towable recreational vehicle which has
been sold at retail and previously registered in this or any
other state.
27. “Warrantor” means a person, including a manufacturer,
distributor, or supplier, that provides a written warranty

Senate File 435, p. 6
to a consumer in connection with a new towable recreational
vehicle or any part, accessory, or component of a new towable
recreational vehicle. “Warrantor” does not include a dealer,
distributor, supplier, or other person that is not owned or
controlled by a manufacturer that provides a service contract,
mechanical or other insurance, or an extended warranty sold for
separate consideration to a consumer.
Sec. 3. Section 322C.3, Code 2019, is amended to read as
follows:
322C.3 Prohibited acts —— exception.
1. A person shall not engage in this state in the business
of selling at retail new travel trailers towable recreational
vehicles of any make line-make , or represent or advertise that
the person is engaged in or intends to engage in such business
in this state, unless the person is authorized by a contract
in writing manufacturer-dealer agreement between that person
and the manufacturer or distributor of that make line-make
of new travel trailers towable recreational vehicles to sell
the trailers vehicles in this state, and unless the department
has issued to the person a license as a travel trailer towable
recreational vehicle dealer for the same make line-make of
travel trailer towable recreational vehicle which the dealer is
authorized to sell under the manufacturer-dealer agreement .
2. A person, other than a licensed travel trailer dealer
in new travel trailers towable recreational vehicles , shall
not engage in the business of selling at retail used travel
trailers towable recreational vehicles or represent or
advertise that the person is engaged in or intends to engage in
such business in this state unless the department has issued
to the person a license as a used travel trailer towable
recreational vehicle dealer.
3. A person is not required to obtain a license as a travel
trailer dealer if the person is disposing of a travel trailer
towable recreational vehicle acquired or repossessed, so long
as the person is exercising a power or right granted by a lien,
title-retention instrument, or security agreement given as
security for a loan or a purchase money obligation.
4. A travel trailer dealer shall not enter into a contract,
agreement, or understanding, expressed or implied, with a

Senate File 435, p. 7
manufacturer or distributor that the dealer will sell, assign,
or transfer an agreement or contract arising from the retail
installment sale of a travel trailer towable recreational
vehicle only to a designated person or class of persons.
Any such condition, agreement , or understanding between a
manufacturer or distributor and a travel trailer dealer is
against the public policy of this state and is unlawful and
void.
5. A manufacturer or distributor of travel trailers towable
recreational vehicles or an agent or representative of the
manufacturer or distributor, shall not refuse to renew a
contract manufacturer-dealer agreement for a term of less than
five years twelve months , and shall not terminate or threaten
to terminate a contract, agreement , or understanding for the
sale of new travel trailers towable recreational vehicles to a
travel trailer dealer in this state without just, reasonable ,
and lawful cause or because the travel trailer dealer failed
to sell, assign , or transfer a contract or agreement arising
from the retail sale of a travel trailer towable recreational
vehicle to only a person or a class of persons designated by
the manufacturer or distributor.
6. A travel trailer dealer shall not make and enter into a
security agreement or other contract unless the agreement or
contract meets the following requirements:
a. The security agreement or contract is in writing, is
signed by both the buyer and the seller and is complete as to
all essential provisions prior to the signing of the agreement
or contract by the buyer except that, if delivery of the
travel trailer towable recreational vehicle is not made at
the time of the execution of the agreement or contract, the
identifying numbers of the travel trailer towable recreational
vehicle or similar information and the due date of the first
installment may be inserted in the agreement or contract after
its execution.
b. The agreement or contract complies with the Iowa consumer
credit code, chapter 537 , where applicable.
7. A manufacturer or distributor of travel trailers towable
recreational vehicles or an agent or representative of a
manufacturer or distributor shall not coerce or attempt to

Senate File 435, p. 8
coerce a travel trailer dealer to accept delivery of a travel
trailer towable recreational vehicle, or travel trailer parts
or accessories thereof , or any other commodity which has not
been ordered by the dealer.
8. Except as provided under subsection 9 of this section , a
person licensed under section 322C.4 shall not, either directly
or through an agent, salesperson , or employee, engage or
represent or advertise that the person is engaged in or intends
to engage in this state , in the business of buying or selling
new or used travel trailers towable recreational vehicles on
Sunday.
9. A travel trailer dealer may display new travel trailers
towable recreational vehicles at fairs, shows, and exhibitions
on any day of the week as provided in this subsection . Travel
trailer dealers Dealers , in addition to selling travel trailers
towable recreational vehicles at their principal place of
business and lots, may, upon receipt of a temporary permit
approved by the department, display and offer new travel
trailers towable recreational vehicles for sale and negotiate
sales of new travel trailers towable recreational vehicles
at fairs, shows, and exhibitions. Application for temporary
permits shall be made upon forms provided by the department and
shall be accompanied by a ten dollar permit fee. Temporary
permits shall be issued for a period not to exceed fourteen
days. The department may issue multiple consecutive temporary
permits.
10. 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 , or has been
convicted of any other indictable offense in connection with
selling or other activity relating to 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
travel trailer towable recreational vehicle dealer or represent
themselves as an owner, salesperson, employee, officer of a
corporation, or representative of a licensed travel trailer
towable recreational vehicle dealer.
Sec. 4. Section 322C.4, Code 2019, is amended to read as

Senate File 435, p. 9
follows:
322C.4 Dealer’s license application and fees.
1. Upon application and payment of a fee, a person may
be licensed as a travel trailer towable recreational vehicle
dealer. The license fee is seventy dollars for a two-year
period or part thereof. The person shall pay an additional
fee of twenty dollars for a two-year period or part thereof
for each travel trailer towable recreational vehicle lot in
addition to the principal place of business unless the lot is
adjacent to the principal place of business. For purposes
of this subsection , “adjacent” means that the principal place
of business and each additional lot are adjoining parcels
of property. The applicant shall file in the office of the
department a verified application for license as a travel
trailer dealer in the form the department prescribes, which
shall include the following:
a. The name of the applicant and the applicant’s principal
place of business.
b. The name of the applicant’s business and whether the
applicant is an individual, partnership, corporation , or other
legal entity.
(1) If the applicant is a partnership , the name under which
the partnership intends to engage in business and the name and
post office address of each partner.
(2) If the applicant is a corporation, the state of
incorporation and the name and post office address of each
officer and director.
c. The make line-make or makes line-makes of new travel
trailers towable recreational vehicles , if any, which the
applicant will offer for sale at retail in this state.
d. The location of each place of business within this state
to be used by the applicant for the conduct of the business.
e. If the applicant is a party to a contract, agreement
including a manufacturer-dealer agreement , or understanding
with a manufacturer or distributor of travel trailers towable
recreational vehicles or is about to become a party to a
contract, agreement, or understanding, the applicant shall
state the name of each manufacturer and distributor and the
make line-make or makes line-makes of new travel trailers

Senate File 435, p. 10
towable recreational vehicles , if any, which are the subject
matter of the contract, agreement, or understanding.
f. Other information concerning the business of the
applicant the department reasonably requires for administration
of this chapter .
2. The license shall be granted or refused within thirty
days after application. A license is valid for a two-year
period and expires, unless revoked or suspended by the
department, on December 31 of even-numbered years. A licensee
shall have the month of expiration and the month after the
month of expiration to renew the license. A person who fails
to renew a license by the end of this time period and desires to
hold a license shall file a new license application and pay the
required fee. A separate license shall be obtained for each
county in which an applicant does business as a travel trailer
dealer.
3. A licensee shall file with the department a supplemental
statement when there is a change in an item of information
required under paragraphs “a” to “e” of subsection 1 ,
paragraphs “a” through “e” , within fifteen days after the
change. Upon filing a supplemental statement, the licensee
shall surrender its license to the department together with
a thirty-five-dollar fee. The department shall issue a new
license modified to reflect the changes on the supplemental
statement.
4. Before the issuance of a travel trailer dealer’s license,
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 twenty-five thousand dollars , and be conditioned upon
the faithful compliance by the applicant as a dealer with all
statutes of this state regulating or applicable to a travel
trailer dealer, and shall indemnify any person dealing or
transacting business with the dealer from loss or damage caused
by the failure of the dealer to comply with the provisions
of chapter 321 and this chapter , including the furnishing of
a proper and valid certificate of title to a travel trailer,
and that the towable recreational vehicle. The bond shall be

Senate File 435, p. 11
filed with the department prior to the issuance of the license.
A person licensed under chapter 322 , with the same name and
location or locations, is not subject to the provisions of this
subsection .
Sec. 5. Section 322C.6, subsections 2 and 7, Code 2019, are
amended to read as follows:
2. Made a material misrepresentation to the department in
connection with an application for a license, certificate of
title , or registration of a travel trailer towable recreational
vehicle or other vehicle.
7. Knowingly made misleading, deceptive, untrue , or
fraudulent representations in the business as a distributor of
travel trailers towable recreational vehicles or engaged in
unethical conduct or practice harmful or detrimental to the
public.
Sec. 6. Section 322C.7, Code 2019, is amended to read as
follows:
322C.7 Manufacturer’s or distributor’s license.
A manufacturer or distributor of travel trailers towable
recreational vehicles shall not engage in business in this
state without a license pursuant to this chapter .
Sec. 7. NEW SECTION . 322C.8 Applicability to agreements.
If a towable recreational vehicle dealer also sells
and services motorized recreational vehicles or other
motor vehicles, the provisions of this chapter relating to
manufacturer-dealer agreements apply only to such agreements,
or those provisions of such agreements, applicable to towable
recreational vehicles.
Sec. 8. Section 322C.9, Code 2019, is amended to read as
follows:
322C.9 License application and fees.
Upon application and payment of a seventy dollar fee for
a two-year period or part thereof, a person may be licensed
as a manufacturer or distributor of travel trailers towable
recreational vehicles . The application shall be in the form
and shall contain information as the department prescribes.
The license shall be granted or refused within thirty days
after application. The license expires, unless sooner revoked
or suspended by the department, on December 31 of even-numbered

Senate File 435, p. 12
years. A licensee shall have the month of expiration and the
month after the month of expiration to renew the license. A
person who fails to renew a license by the end of this time
period and desires to hold a license shall file a new license
application and pay the required fee.
Sec. 9. Section 322C.12, Code 2019, is amended to read as
follows:
322C.12 Semitrailer or travel trailer towable recreational
vehicle retail installment contract —— finance charges.
1. A retail installment contract or agreement for the sale
of a semitrailer or travel trailer towable recreational vehicle
may include a finance charge not in excess of the following
rates:
a. Class 1. Any new semitrailer or travel trailer towable
recreational vehicle designated by the manufacturer by a year
model not earlier than the year in which the sale is made,
an amount equivalent to one and three-fourths percent per
month simple interest on the declining balance of the amount
financed.
b. Class 2. Any new semitrailer or travel trailer towable
recreational vehicle not in class 1 and any used semitrailer
designated by the manufacturer by a year model of the same or
not more than two years prior to the year in which the sale
is made, an amount equivalent to two percent per month simple
interest on the declining balance of the amount financed.
c. Class 3. Any used semitrailer or travel trailer towable
recreational vehicle not in class 2 and designated by the
manufacturer by a year model more than two years prior to the
year in which the sale is made, an amount equivalent to two and
one-fourth percent per month simple interest on the declining
balance of the amount financed.
2. Amount financed shall be “Amount financed” means the same
as defined in section 537.1301 .
3. The limitations contained in this section do not apply
in a transaction referred to in section 535.2, subsection 2 .
With respect to a consumer credit sale, as defined in section
537.1301 , the limitations contained in this section supersede
conflicting provisions of chapter 537, article 2, part 2 .
Sec. 10. NEW SECTION . 322C.13 Manufacturer-dealer agreement

Senate File 435, p. 13
required —— community.
1. A manufacturer or distributor shall not sell a new
towable recreational vehicle in this state to or through a
towable recreational vehicle dealer without first entering into
a manufacturer-dealer agreement with the dealer that has been
signed by both parties. A dealer shall not sell a new towable
recreational vehicle in this state without first entering
into a manufacturer-dealer agreement with a manufacturer or
distributor that has been signed by both parties.
2. Except as provided in subsection 3, a
manufacturer-dealer agreement shall designate the community
exclusively assigned to a dealer by the manufacturer or
distributor, and the manufacturer or distributor shall not
change the community or contract with another dealer for the
sale of the same line-make of towable recreational vehicle in
the community for the duration of the agreement.
3. The community designated in a manufacturer-dealer
agreement may be reviewed or changed with the consent of both
parties not less than twelve months after execution of the
agreement.
Sec. 11. NEW SECTION . 322C.14 Manufacturer-dealer agreement
—— termination, cancellation, nonrenewal, or alteration by
manufacturer or distributor.
1. Notwithstanding section 322C.3, subsection 5, a
manufacturer or distributor may, either directly or through any
authorized officer, agent, or employee, terminate, cancel, or
fail to renew a manufacturer-dealer agreement with or without
good cause. If the manufacturer or distributor terminates,
cancels, or fails to renew a manufacturer-dealer agreement
without good cause, the manufacturer or distributor shall
comply with the repurchase requirements set forth in section
322C.16.
2. A manufacturer or distributor shall have the burden of
proof to demonstrate good cause for terminating, canceling, or
failing to renew a manufacturer-dealer agreement. For purposes
of determining whether good cause exists for the manufacturer’s
or distributor’s termination, cancellation, or failure to renew
a manufacturer-dealer agreement, any of the following factors
may be considered:

Senate File 435, p. 14
a. The extent of the dealer’s presence in the community.
b. The nature and extent of the dealer’s investment in the
dealer’s business.
c. The adequacy of the dealer’s service facilities,
equipment, parts, supplies, and personnel.
d. The effect that the proposed termination, cancellation,
or nonrenewal of the manufacturer-dealer agreement would have
on the community.
e. The extent and quality of the dealer’s service under the
warranties of the towable recreational vehicles sold by the
dealer.
f. The dealer’s failure to follow procedures or standards
related to the overall operation of the dealership that were
agreed to by the dealer.
g. The dealer’s performance under the terms of the
manufacturer-dealer agreement.
3. a. Except as otherwise provided in this subsection
or subsection 4, a manufacturer or distributor shall provide
to a dealer written notice of termination, cancellation, or
nonrenewal of a manufacturer-dealer agreement for good cause at
least ninety days prior to terminating, canceling, or failing
to renew the manufacturer-dealer agreement.
b. (1) The notice shall state all of the reasons for the
termination, cancellation, or nonrenewal and shall further
state that if, within thirty days following receipt of the
notice, the dealer provides to the manufacturer or distributor
a written notice of intent to cure all claimed deficiencies,
the dealer shall then have ninety days following receipt of the
notice to cure the deficiencies.
(2) If the deficiencies are cured within ninety days,
the manufacturer’s or distributor’s notice is voided. If
the dealer fails to provide the notice of intent to cure
the deficiencies within thirty days, or fails to cure the
deficiencies within ninety days, the termination, cancellation,
or nonrenewal takes effect as provided in the original notice.
If the dealer has possession of new and untitled inventory, the
inventory may be sold pursuant to section 322C.16.
c. The notice period for termination, cancellation, or
nonrenewal of a manufacturer-dealer agreement for good cause

Senate File 435, p. 15
may be reduced to thirty days if the grounds for termination,
cancellation, or nonrenewal are due to any of the following
factors:
(1) The dealer or one of the dealer’s owners has been
convicted of, or has entered a plea of guilty or nolo
contendere to, a felony.
(2) The dealer has abandoned or closed the dealer’s
business operations for ten consecutive business days. This
subparagraph does not apply if the closing is due to a normal
seasonal closing and the dealer notifies the manufacturer or
distributor of the planned closing, an act of God, a strike, a
labor difficulty, or any other cause over which the dealer has
no control.
(3) The dealer has made a significant misrepresentation
that materially affects the business relationship of the
manufacturer or distributor and the dealer.
(4) The dealer’s license has been suspended, revoked,
denied, or has not been renewed by the department.
(5) The dealer has committed a material violation of this
chapter which is not cured within thirty days after receipt of
written notice of the violation.
4. Subsection 3 does not apply if the manufacturer or
distributor terminates, cancels, or fails to renew the
manufacturer-dealer agreement because the dealer is insolvent,
or has filed for bankruptcy, receivership, or assignment for
the benefit of creditors.
Sec. 12. NEW SECTION . 322C.15 Manufacturer-dealer agreement
—— termination, cancellation, nonrenewal, or alteration by
dealer.
1. A dealer may terminate, cancel, or fail to renew a
manufacturer-dealer agreement with or without good cause.
If the dealer terminates, cancels, or fails to renew a
manufacturer-dealer agreement with good cause, the manufacturer
or distributor shall comply with the repurchase requirements
set forth in section 322C.16.
2. The dealer shall have the burden of proof to demonstrate
good cause for terminating, canceling, or failing to renew a
manufacturer-dealer agreement. For purposes of determining
whether good cause exists for the dealer’s termination,

Senate File 435, p. 16
cancellation, or failure to renew a manufacturer-dealer
agreement, any of the following factors shall be deemed to be
good cause:
a. The manufacturer or distributor has been convicted of, or
has entered a plea of guilty or nolo contendere to, a felony.
b. The manufacturer’s or distributor’s business operations
have been abandoned or caused the dealer’s business operations
to close for ten consecutive business days. This subparagraph
does not apply if the closing is due to a normal seasonal
closing and the manufacturer or distributor notifies the dealer
of the planned closing, an act of God, a strike, a labor
difficulty, or any other cause over which the manufacturer or
distributor has no control.
c. The manufacturer or distributor has made a significant
misrepresentation that materially affects the business
relationship of the manufacturer or distributor and the dealer.
d. The manufacturer or distributor has committed a material
violation of this chapter which is not cured within thirty days
after receipt of written notice of the violation.
e. The manufacturer or distributor is insolvent, or has
filed for bankruptcy, receivership, or assignment for the
benefit of creditors.
3. a. A dealer shall provide to a manufacturer or
distributor written notice of termination, cancellation, or
nonrenewal of a manufacturer-dealer agreement at least thirty
days prior to terminating, canceling, or failing to renew the
manufacturer-dealer agreement.
b. (1) If a termination or cancellation is for good cause,
the notice shall state all of the reasons for the termination
or cancellation and shall further state that if, within
thirty days following receipt of the notice, the manufacturer
or distributor provides to the dealer a written notice of
intent to cure all claimed deficiencies, the manufacturer or
distributor shall then have ninety days following receipt of
the notice to cure the deficiencies.
(2) If the deficiencies are cured within ninety days, the
dealer’s notice is voided. If the manufacturer or distributor
fails to provide the notice of intent to cure the deficiencies
within thirty days, or fails to cure the deficiencies within

Senate File 435, p. 17
ninety days, the termination or cancellation takes effect as
provided in the original notice.
Sec. 13. NEW SECTION . 322C.16 Repurchase or sale of
inventory.
1. If a manufacturer-dealer agreement is terminated,
canceled, or not renewed by the manufacturer or distributor
without good cause, or by a dealer with good cause and, in
the case of termination or cancellation, the manufacturer or
distributor fails to provide notice or cure the deficiencies
claimed by the dealer, the manufacturer or distributor shall,
at the dealer’s option and within forty-five days after
termination, cancellation, or nonrenewal, repurchase all of the
following:
a. All new, untitled towable recreational vehicles that
the dealer acquired from the manufacturer or distributor
within twelve months prior to the effective date of the
notice of termination, cancellation, or nonrenewal of the
manufacturer-dealer agreement that have not been used other
than for demonstration purposes, and that have not been altered
or damaged, at one hundred percent of the net invoice cost,
including transportation, less applicable rebates and discounts
to the dealer. If any of the towable recreational vehicles
repurchased pursuant to this paragraph are damaged, but do not
require a disclosure under section 321.69A, the amount due to
the dealer shall be reduced by the cost to repair the vehicle.
Damage incurred by a vehicle prior to delivery to the dealer
that was disclosed at the time of delivery shall not disqualify
repurchase pursuant to this paragraph.
b. All undamaged proprietary parts for any line-make subject
to the termination, cancellation, or nonrenewal that was sold
to the dealer for resale within twelve months prior to the
effective date of the termination, cancellation, or nonrenewal
of the manufacturer-dealer agreement, if accompanied by the
original invoice, at one hundred five percent of the original
net price paid to the manufacturer or distributor.
c. All properly functioning diagnostic equipment, special
tools, current signage, or other equipment and machinery
that was purchased by the dealer upon the request of the
manufacturer or distributor for any line-make subject to the

Senate File 435, p. 18
termination, cancellation, or nonrenewal within five years
prior to the effective date of the termination, cancellation,
or nonrenewal of the manufacturer-dealer agreement that can no
longer be used in the normal course of the dealer’s ongoing
business.
2. If towable recreational vehicles of a particular
line-make subject to a terminated, canceled, or nonrenewed
manufacturer-dealer agreement are not repurchased or required
to be repurchased pursuant to the agreement, the dealer
may continue to sell such vehicles existing in the dealer’s
inventory until the vehicles are no longer in the dealer’s
inventory.
Sec. 14. NEW SECTION . 322C.17 Transfer of ownership ——
family succession —— objection.
1. a. If a towable recreational vehicle dealer makes or
intends to make a change in ownership of a dealership by sale
of the business assets, a stock transfer, or in another manner,
the dealer shall provide to a manufacturer or distributor that
is a party to a manufacturer-dealer agreement with the dealer
written notice of the proposed change at least fifteen business
days before the change becomes effective. The notice shall
include all supporting documentation that may be reasonably
required by the manufacturer or distributor to determine
whether to make an objection to the change.
b. In the absence of a breach by the dealer of the
manufacturer-dealer agreement or a violation of this chapter,
the manufacturer or distributor shall not object to the
proposed change in ownership unless the objection is to the
prospective transferee for any of the following reasons:
(1) The transferee has previously been a party to a
manufacturer-dealer agreement with the manufacturer or
distributor and the agreement was terminated, canceled, or not
renewed by the manufacturer or distributor for good cause.
(2) The transferee has been convicted of a felony or any
crime of fraud, deceit, or moral turpitude.
(3) The transferee lacks any license required by law.
(4) The transferee does not have an active line of credit
sufficient to purchase the manufacturer’s or distributor’s
products.

Senate File 435, p. 19
(5) The transferee is insolvent or has been within the
previous ten years, or has filed for bankruptcy, receivership,
or assignment for the benefit of creditors within the previous
ten years.
c. If a manufacturer or distributor objects to a proposed
change in ownership of a dealership, the manufacturer or
distributor shall provide written notice of the reasons for
the objection to the dealer within fifteen business days
after receipt of the dealer’s notification and supporting
documentation about the proposed change. The manufacturer
or distributor shall have the burden of proof to demonstrate
that the objection complies with the requirements of this
subsection. If the manufacturer or distributor does not
provide the dealer with timely notice of the objection, the
dealer’s proposed change in ownership of the dealership shall
be deemed approved.
2. a. A manufacturer or distributor shall provide
to a dealer the opportunity to designate, in writing, a
family member as a successor to ownership of a dealership
in the event of the death, incapacity, or retirement of the
dealer. If a dealer desires to designate a family member as
a successor to ownership of a dealership, the dealer shall
provide to the manufacturer or distributor that is a party
to the manufacturer-dealer agreement with the dealer written
notice of the proposed designation, or modification of a
previous designation, at least fifteen business days before
the designation or proposed modification of a designation
becomes effective. The notice shall include all supporting
documentation as may be reasonably required by the manufacturer
or distributor to determine whether to make an objection to the
succession plan.
b. In the absence of a breach by the dealer of the
manufacturer-dealer agreement or a violation of this chapter,
the manufacturer or distributor shall not object to the
designation or proposed modification of a designation unless
the objection is to the designated successor for any of the
following reasons:
(1) The designated successor has previously been a party
to a manufacturer-dealer agreement with the manufacturer or

Senate File 435, p. 20
distributor and the agreement was terminated, canceled, or not
renewed by the manufacturer or distributor for good cause.
(2) The designated successor has been convicted of a felony
or any crime of fraud, deceit, or moral turpitude.
(3) The designated successor lacks any license required by
law at the time of succession.
(4) The designated successor does not have an active
line of credit sufficient to purchase the manufacturer’s or
distributor’s products at the time of succession.
(5) The designated successor is insolvent or has been
within the previous ten years, or has filed for bankruptcy,
receivership, or assignment for the benefit of creditors within
the previous ten years.
c. If a manufacturer or distributor objects to a succession
plan, the manufacturer or distributor shall provide written
notice of the reasons for the objection to the dealer
within fifteen business days after receipt of the dealer’s
notification and supporting documentation about the proposed
designation or proposed modification of a designation. The
manufacturer or distributor shall have the burden of proof to
demonstrate that the objection complies with the requirements
of this subsection. If the manufacturer or distributor does
not provide the dealer with timely notice of the objection, the
dealer’s proposed succession plan shall be deemed approved.
A manufacturer or distributor shall allow the succession of
ownership of a dealership to a designated family member when a
dealer is deceased, incapacitated, or has retired, unless the
manufacturer or distributor has provided to the dealer written
notice of the manufacturer’s or distributor’s objections to
the succession within fifteen days after receipt of notice of
the succession. However, a family member of a dealer shall
not succeed to ownership of a dealership if the succession
involves, without the manufacturer’s or distributor’s consent,
a relocation of the dealership or alteration of the terms and
conditions of the manufacturer-dealer agreement.
Sec. 15. NEW SECTION . 322C.18 Warranty obligations.
1. A warrantor shall do all of the following:
a. Specify in writing to each dealer what obligations the
dealer has, if any, for the preparation and delivery of, and

Senate File 435, p. 21
warranty services on, the warrantor’s products.
b. Compensate the dealer for warranty services the warrantor
requires the dealer to perform.
c. Provide the dealer with a schedule of compensation and
time allowances for the performance of warranty services. The
schedule of compensation shall include reasonable compensation
for warranty services performed by the dealer, including
diagnostic services.
2. a. Time allowances for the performance of warranty
services, including diagnostic services, shall be reasonable
for the service to be performed.
b. In determining what constitutes reasonable compensation
under this section, the principle factors to be given
consideration shall be the actual wage rates being paid by the
dealer and the actual retail wage rates being charged by other
dealers in the community in which the dealer is doing business.
The compensation of a dealer for warranty services shall not be
less than the lowest actual retail wage rates charged by the
dealer for similar nonwarranty services, as long as the actual
retail wage rates are reasonable.
3. A warrantor shall reimburse a dealer for any warranty
part, accessory, or complete component at actual wholesale
cost to the dealer plus a minimum of a thirty percent handling
charge, not to exceed one hundred fifty dollars, and plus the
cost, if any, to the dealer to return such part, component, or
accessory to the warrantor.
4. A warrantor may conduct a warranty audit of a dealer’s
records within twelve months after the payment of a warranty
claim. A warrantor shall not deny a dealer’s claim for
warranty compensation except for good cause, including
performance of nonwarranty repairs, material noncompliance with
the warrantor’s published policies and procedures, lack of
material documentation, fraud, or misrepresentation.
5. A dealer shall submit claims for compensation for the
performance of warranty services to the warrantor within
forty-five days after completion of the warranty services.
6. A dealer shall immediately notify a warrantor in writing
if the dealer is unable to perform warranty services, including
diagnostic services, within ten days of receipt of a written

Senate File 435, p. 22
complaint from a consumer.
7. A warrantor shall deny a claim submitted by a dealer
for compensation for the performance of warranty services,
in writing, within thirty days after submission of the claim
in the manner and form prescribed by the warrantor. A claim
not specifically denied as required by this subsection shall
be deemed approved and shall be paid within sixty days of
submission of the claim.
8. A warrantor shall not do any of the following:
a. Fail to perform any of the warrantor’s obligations with
respect to its warranted products.
b. Fail to include, in written notices of a factory
campaign to towable recreational vehicle owners and dealers,
the expected date by which necessary parts and equipment,
including tires and chassis or chassis parts, will be available
to dealers to perform the factory campaign work. The warrantor
may ship parts to a dealer for purposes of factory campaign
work, and, if such parts are in excess of the dealer’s
requirements, the dealer may return unused, undamaged parts
to the warrantor for credit after completion of the factory
campaign.
c. Fail to compensate the warrantor’s dealers for authorized
repairs performed by the dealer on merchandise damaged in
manufacture or in transit to the dealer by a carrier designated
by the warrantor, factory branch, distributor, or distributor
branch.
d. Fail to compensate the warrantor’s dealers in accordance
with the schedule of compensation provided to the dealer
pursuant to this section, if the warranty services for which
compensation is claimed are performed by the dealer in a timely
and competent manner as required in this section.
e. Intentionally misrepresent in any way to consumers that
warranties with respect to the manufacture, performance, or
design of towable recreational vehicles are made by the dealer
as warrantor or co-warrantor.
f. Require the warrantor’s dealers to make warranties to a
consumer that are in any manner related to the manufacture of a
towable recreational vehicle.
9. A dealer shall not do any of the following:

Senate File 435, p. 23
a. Fail to perform predelivery inspection functions, as
specified by the warrantor, in a competent and timely manner.
b. Fail to perform warranty services, as authorized by the
warrantor, in a competent and timely manner on any transient
consumer’s towable recreational vehicle of a line-make sold or
serviced by the dealer.
c. Fail to accurately document the time spent completing
each repair, the total number of repair attempts conducted on a
single towable recreational vehicle, and the number of repair
attempts for the same repair conducted on a single towable
recreational vehicle.
d. Fail to notify the warrantor within ten days of a second
repair attempt on a towable recreational vehicle which impairs
the use, value, or safety of the vehicle.
e. Fail to maintain written records, including a consumer’s
written or electronic verification or signature, regarding the
amount of time a towable recreational vehicle is stored for the
consumer’s convenience during a repair.
f. Make fraudulent warranty claims or misrepresent the terms
of any warranty.
Sec. 16. NEW SECTION . 322C.19 Indemnification —— warrantor
and dealer.
1. a. Notwithstanding the terms of a manufacturer-dealer
agreement, a warrantor shall indemnify and hold harmless the
warrantor’s dealer against any loss or damage, to the extent
the loss or damage is caused by willful misconduct of the
warrantor.
b. A warrantor shall not deny a dealer indemnification
for failure to discover, disclose, or remedy a defect in the
design or manufacture of a new towable recreational vehicle. A
warrantor may deny a dealer indemnification if the dealer fails
to remedy a known and announced defect in accordance with the
written instructions of the warrantor for whom the dealer is
obligated to perform warranty services.
c. A warrantor shall provide to the dealer a copy of any
pending lawsuit in which allegations are made against the
warrantor of willful misconduct. The warrantor shall provide
the copy to the dealer within ten days after receiving notice
of the lawsuit.

Senate File 435, p. 24
2. a. Notwithstanding the terms of a manufacturer-dealer
agreement, a dealer shall indemnify and hold harmless the
dealer’s warrantor against any loss or damage, to the extent
that the loss or damage is caused by willful misconduct of the
dealer.
b. A dealer shall provide to the warrantor a copy of any
pending lawsuit in which allegations are made against the
dealer of willful misconduct. The dealer shall provide the
copy to the warrantor within ten days after receiving notice
of the lawsuit.
3. Notwithstanding any provision of law to the contrary,
this section continues to apply after a new towable
recreational vehicle is titled.
Sec. 17. NEW SECTION . 322C.20 Inspection and rejection by
dealer.
1. Whenever a new towable recreational vehicle is damaged
prior to transit or is damaged in transit to a dealer and
the carrier or means of transportation has been selected by
the manufacturer or distributor, the dealer shall notify the
manufacturer or distributor of the damage within the time frame
specified in the manufacturer-dealer agreement and shall do
either of the following:
a. Request from the manufacturer or distributor
authorization to replace the components, parts, or accessories
damaged, or otherwise repair the vehicle to make it ready for
sale at retail.
b. Reject the vehicle within the time frame set forth in the
manufacturer-dealer agreement pursuant to subsection 4.
2. If the manufacturer or distributor refuses to authorize
repair of the new towable recreational vehicle within ten days
after receipt of a dealer’s notification, or if the dealer
rejects the new towable recreational vehicle because of damage
to the vehicle, ownership of the vehicle shall revert to the
manufacturer or distributor.
3. The dealer shall exercise due care when in custody of a
damaged new towable recreational vehicle, but the dealer shall
have no other obligations, financial or otherwise, with respect
to the vehicle following rejection in accordance with the
manufacturer-dealer agreement pursuant to subsection 4.

Senate File 435, p. 25
4. The time frame for inspection and rejection of a damaged
new towable recreational vehicle by a dealer shall be specified
in the manufacturer-dealer agreement, but shall not be less
than two business days after the physical delivery of the
vehicle to the dealer.
Sec. 18. NEW SECTION . 322C.21 Civil action —— mediation.
1. A dealer, manufacturer, distributor, or warrantor
injured by another party’s violation of this chapter may bring
a civil action in district court to recover actual damages
resulting from the violation. The court shall award reasonable
attorney fees and costs to the prevailing party in such an
action. Venue for a civil action authorized by this section
shall be exclusively in the county in which the dealer’s
business is located. In an action involving more than one
dealer, venue may be in any county in which any dealer that is a
party to the action is located.
2. a. Prior to bringing a civil action under this section,
the party alleging a violation of this chapter shall serve a
written demand for mediation upon the alleged offending party.
b. The demand for mediation shall be served upon the alleged
offending party via certified mail at the address stated in
the manufacturer-dealer agreement between the parties, if
applicable.
c. The demand for mediation shall contain a statement of the
dispute or violation alleged and the relief sought by the party
serving the demand.
d. Within twenty days after service of a demand for
mediation, the parties shall mutually select an independent
certified mediator and shall meet with the mediator for
the purpose of attempting to resolve the dispute or alleged
violation. The meeting place for the mediation shall be
in this state at a location selected by the mediator. The
mediator may extend the date before which the parties are
required to have the meeting for good cause shown by either
party or upon a stipulation by both parties.
e. The service of a demand for mediation under this section
shall toll the period during which a party is required to
file any complaint, petition, protest, or other action under
this chapter until representatives of both parties have met

Senate File 435, p. 26
with the mutually agreed-upon mediator for the purpose of
attempting to resolve the dispute or alleged violation. If a
complaint, petition, protest, or other action has been filed
before the mediation meeting, the court shall enter an order
suspending any proceeding or action relating to such complaint,
petition, protest, or other action until the mediation meeting
has occurred and may, upon written stipulation by all parties
to the proceeding or action that the parties wish to continue
mediation under this section, enter an order suspending
the proceeding or action for any period the court considers
appropriate.
f. Each party to the mediation shall pay its own costs for
attorney fees. The costs of the mediation services shall be
equally allocated among each party.
3. In addition to the remedies provided in this section, and
notwithstanding the existence of any additional remedy at law,
a manufacturer, distributor, warrantor, or dealer may petition
the district court, upon a hearing and for cause shown, for a
temporary or permanent injunction, or both, restraining any
person from acting as a dealer without being properly licensed,
from violating or continuing to violate any of the provisions
of this chapter, or from failing or refusing to comply with the
requirements of this chapter. Such injunction shall be issued
without bond. A single act in violation of this chapter shall
be considered sufficient cause to authorize the issuance of an
injunction pursuant to this subsection.
Sec. 19. Section 435.23, subsection 1, Code 2019, is amended
to read as follows:
1. The manufacturer’s and retailer’s inventory of mobile
homes, manufactured homes, or modular homes not in use as a
place of human habitation shall be exempt from the annual tax.
All travel trailers , fifth-wheel travel trailers, and towable
recreational vehicles shall be exempt from this tax. The
homes , and travel trailers , fifth-wheel travel trailers, and
towable recreational vehicles in the inventory of manufacturers
and retailers shall be exempt from personal property tax.
Sec. 20. APPLICABILITY. This Act applies to
manufacturer-dealer agreements pertaining to the sale
of new towable recreational vehicles entered into or renewed on

Senate File 435, p. 27
or after January 1, 2020.
______________________________ ______________________________
CHARLES SCHNEIDER LINDA UPMEYER
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate
andis known as Senate File 435, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2019 ______________________________
KIM REYNOLDS
Governor