Bill Text: IA SSB1140 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to dealers and lienholders of motor vehicles and travel trailers, and providing penalties.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-03-01 - Subcommittee recommends amendment and passage. [SSB1140 Detail]
Download: Iowa-2017-SSB1140-Introduced.html
Senate
Study
Bill
1140
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
KAPUCIAN)
A
BILL
FOR
An
Act
relating
to
dealers
and
lienholders
of
motor
vehicles
1
and
travel
trailers,
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2242XC
(4)
87
ns/nh
S.F.
_____
Section
1.
Section
321.30,
subsection
1,
Code
2017,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
n.
If
the
applicant
has
not
paid
a
3
delinquent
registration
fee
charged
to
the
applicant
pursuant
4
to
section
321.48A.
5
Sec.
2.
Section
321.40,
Code
2017,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
5A.
The
county
treasurer
shall
refuse
to
8
renew
the
registration
of
a
vehicle
registered
to
the
applicant
9
if
the
applicant
has
not
paid
a
delinquent
registration
fee
10
charged
to
the
applicant
pursuant
to
section
321.48A.
11
Sec.
3.
NEW
SECTION
.
321.48A
Dealers
——
delinquent
12
registration
fees.
13
Notwithstanding
section
321.46,
subsection
4,
or
any
other
14
provision
of
law
to
the
contrary,
if
a
dealer
licensed
pursuant
15
to
chapter
322
acquires
a
motor
vehicle
at
a
wholesale
auction
16
for
the
purpose
of
resale,
and
the
annual
registration
fee
17
for
the
vehicle
was
delinquent
at
the
time
the
vehicle
was
18
acquired
by
the
dealer,
the
dealer
may
register
the
vehicle
and
19
be
issued
a
certificate
of
title
for
the
vehicle
upon
proper
20
application
as
provided
in
this
chapter
without
paying
the
21
delinquent
registration
fee
or
any
penalty
on
the
delinquent
22
registration
fee.
The
delinquent
registration
fee
and
any
23
penalty
on
the
delinquent
registration
fee
shall
be
charged
to
24
the
registered
owner
of
the
vehicle
at
the
time
the
fee
became
25
delinquent,
and
shall
be
collected
from
such
owner
by
a
county
26
treasurer
at
the
time
the
owner
applies
for
registration,
27
registration
renewal,
or
issuance
of
a
certificate
of
title
for
28
another
vehicle.
29
Sec.
4.
Section
321.89,
subsection
3,
paragraph
a,
Code
30
2017,
is
amended
to
read
as
follows:
31
a.
A
police
authority
or
private
entity
that
takes
into
32
custody
an
abandoned
vehicle
shall
notify,
within
twenty
five
33
days,
by
certified
mail,
the
last
known
registered
owner
of
34
the
vehicle,
all
lienholders
of
record,
and
any
other
known
35
-1-
LSB
2242XC
(4)
87
ns/nh
1/
7
S.F.
_____
claimant
to
the
vehicle
or
to
personal
property
found
in
the
1
vehicle,
addressed
to
the
parties’
last
known
addresses
of
2
record,
that
the
abandoned
vehicle
has
been
taken
into
custody.
3
Notice
shall
be
deemed
given
when
mailed.
The
notice
shall
4
describe
the
year,
make,
model,
and
vehicle
identification
5
number
of
the
vehicle,
describe
the
personal
property
found
6
in
the
vehicle,
set
forth
the
location
of
the
facility
where
7
the
vehicle
is
being
held,
and
inform
the
persons
receiving
8
the
notice
of
their
right
to
reclaim
the
vehicle
and
personal
9
property
within
ten
days
after
the
effective
date
of
the
10
notice
upon
payment
of
all
towing,
preservation,
and
storage
11
charges
resulting
from
placing
the
vehicle
in
custody
and
12
upon
payment
of
the
costs
of
notice
required
pursuant
to
this
13
subsection
.
The
notice
shall
also
state
that
the
failure
of
14
the
owner,
lienholders,
or
claimants
to
exercise
their
right
15
to
reclaim
the
vehicle
or
personal
property
within
the
time
16
provided
shall
be
deemed
a
waiver
by
the
owner,
lienholders,
17
and
claimants
of
all
right,
title,
claim,
and
interest
in
the
18
vehicle
or
personal
property
and
that
failure
to
reclaim
the
19
vehicle
or
personal
property
is
deemed
consent
to
the
sale
of
20
the
vehicle
at
a
public
auction
or
disposal
of
the
vehicle
to
a
21
demolisher
and
to
disposal
of
the
personal
property
by
sale
or
22
destruction.
If
the
abandoned
vehicle
was
taken
into
custody
23
by
a
private
entity
without
a
police
authority’s
initiative,
24
the
notice
shall
state
that
the
private
entity
may
claim
a
25
garagekeeper’s
lien
as
described
in
section
321.90,
subsection
26
1
,
and
may
proceed
to
sell
or
dispose
of
the
vehicle.
If
the
27
abandoned
vehicle
was
taken
into
custody
by
a
police
authority
28
or
by
a
private
entity
hired
by
a
police
authority,
the
notice
29
shall
state
that
any
person
claiming
rightful
possession
of
30
the
vehicle
or
personal
property
who
disputes
the
planned
31
disposition
of
the
vehicle
or
property
by
the
police
authority
32
or
private
entity
or
of
the
assessment
of
fees
and
charges
33
provided
by
this
section
may
ask
for
an
evidentiary
hearing
34
before
the
police
authority
to
contest
those
matters.
If
the
35
-2-
LSB
2242XC
(4)
87
ns/nh
2/
7
S.F.
_____
persons
receiving
notice
do
not
ask
for
a
hearing
or
exercise
1
their
right
to
reclaim
the
vehicle
or
personal
property
within
2
the
ten-day
reclaiming
period,
the
owner,
lienholders,
or
3
claimants
shall
no
longer
have
any
right,
title,
claim,
or
4
interest
in
or
to
the
vehicle
or
the
personal
property.
A
5
court
in
any
case
in
law
or
equity
shall
not
recognize
any
6
right,
title,
claim,
or
interest
of
the
owner,
lienholders,
7
or
claimants
after
the
expiration
of
the
ten-day
reclaiming
8
period.
9
Sec.
5.
Section
322.5,
subsection
2,
paragraph
a,
Code
2017,
10
is
amended
to
read
as
follows:
11
a.
In
addition
to
selling
motor
vehicles
at
the
motor
12
vehicle
dealer’s
principal
place
of
business
and
at
car
lots,
a
13
motor
vehicle
dealer
may
do
any
of
the
following:
14
(1)
Display
new
motor
vehicles
at
fairs,
vehicle
shows,
15
and
vehicle
exhibitions,
upon
application
for
and
receipt
of
a
16
temporary
permit
issued
by
the
department.
17
(2)
Display,
offer
for
sale,
and
negotiate
sales
of
new
18
motor
vehicles
at
fair
events,
as
defined
in
chapter
174
,
the
19
state
fair,
as
discussed
in
chapter
173
,
vehicle
shows,
and
20
vehicle
exhibitions,
upon
application
for
and
receipt
of
a
21
temporary
permit
issued
by
the
department.
Such
activities
22
may
only
be
conducted
at
a
fair
event,
the
state
fair,
a
23
vehicle
show,
or
a
vehicle
exhibition,
if
the
fair
event,
24
state
fair,
vehicle
show,
or
vehicle
exhibition
is
held
in
25
the
motor
vehicle
dealer’s
community,
as
defined
in
section
26
322A.1
,
for
the
vehicles
that
are
displayed
and
offered
for
27
sale.
A
sale
of
a
motor
vehicle
by
a
motor
vehicle
dealer
28
shall
not
be
completed
and
an
agreement
for
the
sale
of
a
motor
29
vehicle
shall
not
be
signed
at
a
fair
event,
the
state
fair,
a
30
vehicle
show,
or
a
vehicle
exhibition.
All
such
sales
shall
31
be
consummated
at
the
motor
vehicle
dealer’s
principal
place
32
of
business.
33
Sec.
6.
NEW
SECTION
.
322.37
Record
retention.
34
1.
A
motor
vehicle
dealer
licensed
under
this
chapter
shall
35
-3-
LSB
2242XC
(4)
87
ns/nh
3/
7
S.F.
_____
retain
paper
or
electronic
records
of
all
purchases
or
sales
of
1
motor
vehicles
made
by
the
dealer.
The
records
shall
contain
2
all
of
the
following:
3
a.
Each
motor
vehicle’s
make,
model,
model
year,
vehicle
4
identification
number,
and
odometer
reading
at
the
time
of
5
purchase
or
sale.
6
b.
The
name
and
address
of
the
seller
or
purchaser.
7
c.
The
seller’s
or
purchaser’s
driver’s
license
or
8
nonoperator’s
identification
card
number,
or
if
the
seller
or
9
purchaser
is
licensed
to
buy
or
sell
motor
vehicles
in
this
10
state,
the
number
of
such
a
license.
11
2.
The
records
shall
be
retained
at
a
facility
or
office
12
of
the
motor
vehicle
dealer
located
within
this
state
for
13
five
years
after
the
purchase
or
sale
of
the
vehicle,
and
14
the
location’s
address
and
the
contact
information
for
the
15
designated
agent
responsible
for
the
records
shall
be
provided
16
to
the
department.
17
3.
The
department
shall
have
access
to
a
motor
vehicle
18
dealer’s
records
within
a
reasonable
period
of
time
of
a
19
request
by
the
department
to
review
the
motor
vehicle
dealer’s
20
records.
21
Sec.
7.
Section
322C.11,
Code
2017,
is
amended
to
read
as
22
follows:
23
322C.11
Penalties.
24
A
person
violating
a
provision
of
section
322C.3
or
322C.7
25
is
guilty
of
a
serious
misdemeanor.
A
person
violating
a
26
provision
of
section
322C.13
is
guilty
of
a
simple
misdemeanor
27
punishable
by
a
fine
of
not
less
than
two
hundred
fifty
28
dollars
nor
more
than
one
thousand
five
hundred
dollars
or
by
29
imprisonment
not
to
exceed
thirty
days.
30
Sec.
8.
NEW
SECTION
.
322C.13
Record
retention.
31
1.
A
travel
trailer
dealer
licensed
under
this
chapter
shall
32
retain
paper
or
electronic
records
of
all
purchases
or
sales
of
33
travel
trailers
made
by
the
dealer.
The
records
shall
contain
34
all
of
the
following:
35
-4-
LSB
2242XC
(4)
87
ns/nh
4/
7
S.F.
_____
a.
Each
travel
trailer’s
make,
model,
model
year,
and
1
vehicle
identification
number.
2
b.
The
name
and
address
of
the
seller
or
purchaser.
3
c.
The
seller’s
or
purchaser’s
driver’s
license
or
4
nonoperator’s
identification
card
number,
or
if
the
seller
or
5
purchaser
is
licensed
to
buy
or
sell
travel
trailers
in
this
6
state,
the
number
of
such
a
license.
7
2.
The
records
shall
be
retained
at
a
facility
or
office
8
of
the
travel
trailer
dealer
located
within
this
state
for
9
five
years
after
the
purchase
or
sale
of
the
travel
trailer,
10
and
the
location’s
address
and
the
contact
information
for
the
11
designated
agent
responsible
for
the
records
shall
be
provided
12
to
the
department.
13
3.
The
department
shall
have
access
to
a
travel
trailer
14
dealer’s
records
within
a
reasonable
period
of
time
of
a
15
request
by
the
department
to
review
the
travel
trailer
dealer’s
16
records.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
provides
that
a
licensed
motor
vehicle
dealer
who
21
has
acquired
a
vehicle
at
a
wholesale
auction
for
the
purpose
22
of
resale,
and
the
annual
registration
fee
for
the
vehicle
23
was
delinquent
at
the
time
the
vehicle
was
acquired
by
the
24
dealer,
is
permitted
to
register
the
vehicle
and
be
issued
a
25
certificate
of
title
for
the
vehicle
upon
proper
application
26
without
paying
the
delinquent
registration
fee
or
any
penalty
27
on
the
delinquent
registration
fee.
The
bill
requires
the
28
delinquent
registration
fee
and
any
penalty
on
the
delinquent
29
registration
fee
to
be
charged
to
the
registered
owner
of
30
the
vehicle
at
the
time
the
fee
became
delinquent,
and
to
be
31
collected
from
such
owner
by
a
county
treasurer
at
the
time
32
the
owner
applies
for
registration,
registration
renewal,
33
or
issuance
of
a
certificate
of
title
for
another
vehicle.
34
The
bill
provides
that
any
application
for
registration,
35
-5-
LSB
2242XC
(4)
87
ns/nh
5/
7
S.F.
_____
registration
renewal,
or
issuance
of
a
certificate
of
title
1
for
another
vehicle
by
the
owner
must
be
refused
if
the
owner
2
has
not
paid
a
delinquent
registration
fee
charged
to
the
3
owner
under
the
bill.
However,
the
bill
does
not
authorize
4
the
department
of
transportation
(DOT)
to
suspend
or
revoke
a
5
current
registration
of
the
owner
under
Code
section
321.101.
6
The
bill
decreases
the
period
of
time
within
which
a
7
police
authority
or
private
entity
that
takes
into
custody
an
8
abandoned
vehicle
is
required
to
notify
by
certified
mail
the
9
last
known
registered
owner
of
the
vehicle,
all
lienholders
10
of
record,
and
any
other
known
claimant
to
the
vehicle
or
to
11
personal
property
found
in
the
vehicle
from
20
days
to
five
12
days.
13
Under
current
law,
licensed
motor
vehicle
dealers
are
14
permitted
to
display,
offer
for
sale,
and
negotiate
sales
15
of
new
motor
vehicles
at
fairs,
vehicle
shows,
and
vehicle
16
exhibitions.
The
bill
permits
licensed
motor
vehicle
dealers
17
to
display,
offer
for
sale,
and
negotiate
sales
of
all
motor
18
vehicles
at
fairs,
vehicle
shows,
and
vehicle
exhibitions.
19
The
bill
requires
licensed
motor
vehicle
dealers
to
retain
20
paper
or
electronic
records
of
all
purchases
or
sales
of
21
motor
vehicles
made
by
the
dealer.
The
bill
requires
the
22
records
to
contain
each
vehicle’s
make,
model,
model
year,
23
vehicle
identification
number,
and
odometer
reading
at
the
24
time
of
purchase
or
sale;
the
name
and
address
of
the
seller
25
or
purchaser;
and
the
seller’s
or
purchaser’s
driver’s
license
26
or
nonoperator’s
identification
card
number,
or
if
the
seller
27
or
purchaser
is
licensed
to
buy
or
sell
motor
vehicles
in
28
this
state,
the
number
of
such
a
license.
The
bill
further
29
requires
the
records
to
be
retained
at
a
facility
or
office
of
30
the
motor
vehicle
dealer
located
within
this
state
for
five
31
years
after
the
purchase
or
sale
of
the
vehicle,
and
requires
32
the
location’s
address
and
the
contact
information
for
the
33
designated
agent
responsible
for
the
records
to
be
provided
to
34
the
DOT.
The
bill
permits
the
DOT
to
have
access
to
a
dealer’s
35
-6-
LSB
2242XC
(4)
87
ns/nh
6/
7
S.F.
_____
records
within
a
reasonable
period
of
time
of
a
request
by
the
1
DOT
to
review
the
dealer’s
records.
The
bill
applies
similar
2
record
retention
requirements
to
licensed
travel
trailer
3
dealers.
Under
Code
section
322.14
and
as
provided
by
the
4
bill,
a
violation
of
these
provisions
is
a
simple
misdemeanor
5
punishable
by
a
fine
of
not
less
than
$250
nor
more
than
$1,500
6
or
by
imprisonment
not
to
exceed
30
days.
7
-7-
LSB
2242XC
(4)
87
ns/nh
7/
7