Bill Text: IA SSB1180 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to towable recreational vehicles, making penalties applicable, and including applicability provisions.

Spectrum: Committee Bill

Status: (N/A - Dead) 2019-02-21 - Subcommittee recommends amendment and passage. [SSB1180 Detail]

Download: Iowa-2019-SSB1180-Introduced.html

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Senate Study Bill 1180 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
TRANSPORTATION BILL BY
CHAIRPERSON KAPUCIAN)
A BILL FOR
An Act relating to towable recreational vehicles, making
penalties applicable, and including applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 321.1, subsection 36C, paragraphs b and
c, Code 2019, are amended by striking the paragraphs.
Sec. 2. Section 321.1, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 083A. “Towable recreational vehicle”
means the same as defined in section 322C.2, except that the
vehicle shall be customarily or ordinarily used for vacation
or recreational purposes and not used as a place of permanent
habitation, and if the vehicle is used in this state as a
place of human habitation for more than one hundred eighty
consecutive days in one location, it shall be classified as a
manufactured or mobile home. “Towable recreational vehicle”
does not include a truck camper, as defined in section 322C.2,
for purposes of registration or brake requirements under this
chapter.
Sec. 3. Section 321.34, subsection 5, paragraph a, Code
2019, is amended to read as follows:
a. Upon application and the payment of a fee of twenty-five
dollars, the director may issue to the owner of a motor vehicle
registered in this state or a trailer or travel trailer towable
recreational vehicle registered in this state, personalized
registration plates marked with up to seven initials, letters,
or combination of numerals and letters requested by the owner.
However, personalized registration plates for autocycles,
motorcycles, and motorized bicycles shall be marked with no
more than six initials, letters, or combinations of numerals
and letters. Upon receipt of the personalized registration
plates, the applicant shall surrender the regular registration
plates to the county treasurer. The fee for issuance of the
personalized registration plates shall be in addition to the
regular annual registration fee.
Sec. 4. Section 321.34, subsection 7, paragraph a, Code
2019, is amended to read as follows:
a. Upon application and payment of the proper fees, the
director may issue to the owner of a motor vehicle subject
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to registration under section 321.109, subsection 1 , motor
truck, motor home, multipurpose vehicle, trailer over two
thousand pounds, or travel trailer towable recreational vehicle
registered in this state, collegiate registration plates
created pursuant to this subsection . Upon receipt of the
collegiate registration plates, the applicant shall surrender
the regular registration plates to the county treasurer.
Sec. 5. Section 321.34, subsection 7A, paragraph b, Code
2019, is amended to read as follows:
b. Upon application and payment of the proper fees, the
director may issue to the owner of a motor vehicle subject
to registration under section 321.109, subsection 1 , motor
truck, motor home, multipurpose vehicle, trailer over two
thousand pounds, or travel trailer towable recreational vehicle
registered in this state, collegiate registration plates
created pursuant to this subsection . The fee for the issuance
of collegiate registration plates is twenty-five dollars, which
fee is in addition to the regular annual registration fee for
the vehicle. An applicant may obtain a personalized collegiate
registration plate upon payment of the additional fee for a
personalized plate as provided in subsection 5 in addition to
the collegiate plate fee and the regular registration fee. The
county treasurer shall validate collegiate registration plates
issued under this subsection in the same manner as regular
registration plates, upon payment of five dollars in addition
to the regular annual registration fee. Upon receipt of the
collegiate registration plates, the applicant shall surrender
the regular registration plates to the county treasurer.
Sec. 6. Section 321.34, subsection 11, paragraph a, Code
2019, is amended to read as follows:
a. Upon application and payment of the proper fees, the
director may issue natural resources plates to the owner of a
motor vehicle subject to registration under section 321.109,
subsection 1 , autocycle, motor truck, motor home, multipurpose
vehicle, motorcycle, trailer, or travel trailer towable
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recreational vehicle .
Sec. 7. Section 321.34, subsection 11A, paragraph a, Code
2019, is amended to read as follows:
a. Upon application and payment of the proper fees, the
director may issue “love our kids” plates to the owner of a
motor vehicle subject to registration under section 321.109,
subsection 1 , autocycle, motor truck, motor home, multipurpose
vehicle, motorcycle, trailer, or travel trailer towable
recreational vehicle .
Sec. 8. Section 321.34, subsection 11B, paragraph a, Code
2019, is amended to read as follows:
a. Upon application and payment of the proper fees, the
director may issue “motorcycle rider education” plates to the
owner of a motor vehicle subject to registration under section
321.109, subsection 1 , autocycle, motor truck, motor home,
multipurpose vehicle, motorcycle, trailer, or travel trailer
towable recreational vehicle .
Sec. 9. Section 321.34, subsection 12, paragraph a, Code
2019, is amended to read as follows:
a. The owner of a motor vehicle subject to registration
pursuant to section 321.109, subsection 1 , autocycle,
motor truck, motor home, multipurpose vehicle, motorcycle,
trailer, or travel trailer towable recreational vehicle may,
upon written application to the department, order special
registration plates with a distinguishing processed emblem as
authorized by this section or as approved by the department.
The fee for the issuance of special registration plates is
twenty-five dollars for each vehicle, unless otherwise provided
by this section , which fee is in addition to the regular annual
registration fee. The county treasurer shall validate special
registration plates with a distinguishing processed emblem in
the same manner as regular registration plates, upon payment
of five dollars in addition to the regular annual registration
fee.
Sec. 10. Section 321.34, subsection 13, paragraph a,
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subparagraph (1), Code 2019, is amended to read as follows:
(1) The owner of a motor vehicle subject to registration
pursuant to section 321.109, subsection 1 , autocycle, motor
truck, motor home, multipurpose vehicle, motorcycle, trailer,
or travel trailer towable recreational vehicle may upon request
be issued special registration plates that contain a space
reserved for the placement of an organization decal. If the
special plates are requested at the time of initial application
for registration and certificate of title for the vehicle, no
special plate fee is required other than the regular annual
registration fee for the vehicle. If the special plates are
requested as replacement plates, the owner shall surrender the
current regular or special registration plates in exchange
for the special plates and shall pay a replacement plate fee
of five dollars. The county treasurer shall validate special
plates with an organization decal in the same manner as regular
plates, upon payment of the annual registration fee.
Sec. 11. Section 321.45, subsection 1, paragraph b, Code
2019, is amended to read as follows:
b. For each new mobile home, manufactured home, travel
trailer towable recreational vehicle , and camping trailer said
manufacturer’s or importer’s certificate shall also contain
thereon the exterior length and exterior width of said vehicle
not including any area occupied by any hitching device, and the
manufacturer’s shipping weight.
Sec. 12. Section 321.123, subsection 2, Code 2019, is
amended to read as follows:
2. a. Travel trailers and fifth-wheel travel trailers
Towable recreational vehicles , except those in manufacturer’s
or dealer’s stock, shall be subject to an annual registration
fee of thirty cents per square foot of floor space computed on
the exterior overall measurements, but excluding three feet
occupied by any trailer hitch as provided by and certified
to by the owner, to the nearest whole dollar. When a travel
trailer or fifth-wheel travel trailer towable recreational
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vehicle is registered in Iowa for the first time or when title
is transferred, the annual registration fee shall be prorated
on a monthly basis. The annual registration fee shall be
reduced to seventy-five percent of the full fee after the
vehicle is more than six model years old.
b. A travel trailer towable recreational vehicle may be
stored under section 321.134 , provided the travel trailer
towable recreational vehicle is not used for human habitation
for any period during storage and is not moved upon the
highways of the state. A travel trailer towable recreational
vehicle stored under section 321.134 is not subject to a
manufactured or mobile home tax assessed under chapter 435 .
Sec. 13. Section 321.176A, subsection 5, Code 2019, is
amended to read as follows:
5. A person operating a motor vehicle with a gross vehicle
weight rating of less than twenty-six thousand one pounds
towing a travel trailer or fifth-wheel travel trailer towable
recreational vehicle solely for personal or family use.
Sec. 14. Section 321.284A, subsection 2, Code 2019, is
amended to read as follows:
2. This section does not apply to a passenger being
transported in a motor vehicle designed, maintained, or used
primarily for the transportation of persons for compensation,
or a passenger being transported in the living quarters of a
motor home, motorsports recreational vehicle, manufactured or
mobile home, travel trailer, or fifth-wheel travel trailer or
towable recreational vehicle .
Sec. 15. Section 321.430, subsection 3, Code 2019, is
amended to read as follows:
3. Every trailer, semitrailer, or travel trailer towable
recreational vehicle of a gross weight of three thousand
pounds or more shall be equipped with brakes adequate to
control the movement of and to stop and hold such vehicle
when operated on the highways of this state. Every trailer,
semitrailer, or travel trailer towable recreational vehicle
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with a gross weight of three thousand pounds or more shall
be equipped with a separate, auxiliary means of applying the
brakes on the trailer, semitrailer, or travel trailer towable
recreational vehicle from the cab of the towing vehicle, or
with self-actuating brakes, and shall also be equipped with
a weight equalizing hitch with a sway control. Trailers or
semitrailers with a truck or truck tractor need only comply
with the brake requirements.
Sec. 16. Section 321.454, Code 2019, is amended to read as
follows:
321.454 Width of vehicles.
The total outside width of a vehicle or the load on
the vehicle shall not exceed eight feet six inches. This
limitation on the total outside width of a vehicle or the load
on the vehicle does not include safety equipment on a vehicle
or incidental appurtenances or retracted awnings on motor
homes, motorsports recreational vehicles, travel trailers, or
fifth-wheel travel trailers or towable recreational vehicles
if the incidental appurtenance or retracted awning is less
than six inches in width. However, if hay, straw, or stover
is moved on an implement of husbandry and the total width
of load of the implement of husbandry exceeds eight feet six
inches, the implement of husbandry is not subject to the permit
requirements of chapter 321E . If hay, straw, or stover is
moved on any other vehicle subject to registration, the moves
are subject to the permit requirements for transporting loads
exceeding eight feet six inches in width as required under
chapter 321E .
Sec. 17. Section 321.457, subsection 2, paragraph l, Code
2019, is amended to read as follows:
l. A combination of two vehicles coupled together, one of
which is a travel trailer or fifth-wheel travel trailer towable
recreational vehicle , shall not have an overall length in
excess of sixty-five feet.
Sec. 18. Section 322C.2, Code 2019, is amended to read as
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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
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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
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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.
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”,
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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.
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
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
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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
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. 19. 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
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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
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
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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
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
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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. 20. Section 322C.4, Code 2019, is amended to read as
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
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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
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
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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
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. 21. Section 322C.6, subsections 2 and 7, Code 2019, are
amended to read as follows:
2. Made a material misrepresentation to the department in
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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. 22. 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. 23. 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. 24. 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
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
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period and desires to hold a license shall file a new license
application and pay the required fee.
Sec. 25. 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 .
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Sec. 26. NEW SECTION . 322C.13 Manufacturer-dealer agreement
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. 27. 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
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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:
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,
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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
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.
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Sec. 28. 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,
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.
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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
ninety days, the termination or cancellation takes effect as
provided in the original notice.
Sec. 29. 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
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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
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. 30. NEW SECTION . 322C.17 Transfer of ownership ——
family succession —— objection.
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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.
(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
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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
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.
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(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. 31. 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
warranty services on, the warrantor’s products.
b. Compensate the dealer for warranty services the warrantor
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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
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if the dealer is unable to perform warranty services, including
diagnostic services, within ten days of receipt of a written
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
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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:
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. 32. 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
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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.
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. 33. 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
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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.
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. 34. 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
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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
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
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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. 35. 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 towable recreational vehicles shall be
exempt from this tax. The homes and travel trailers towable
recreational vehicles in the inventory of manufacturers and
retailers shall be exempt from personal property tax.
Sec. 36. APPLICABILITY. This Act applies to
manufacturer-dealer agreements pertaining to the sale
of new towable recreational vehicles entered into or renewed on
or after January 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to towable recreational vehicles (TRVs).
The bill defines “towable recreational vehicle” to mean 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 or
the American national standard for park model recreational
vehicles, as applicable. The term includes a travel trailer,
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toy-hauler travel trailer, fifth-wheel travel trailer,
toy-hauler fifth-wheel travel trailer, folding camping trailer,
truck camper, and park model recreational vehicle.
CODE CHAPTER 321. The bill strikes the terms “travel
trailer” and “fifth-wheel travel trailer” from Code chapter
321 (motor vehicles and law of the road) and inserts “towable
recreational vehicle” in place of those terms. For purposes
of Code chapter 321, the bill requires a TRV to be customarily
or ordinarily used for vacation or recreational purposes and
not used as a place of permanent habitation. If a TRV is used
as a place of human habitation for more than 180 consecutive
days in one location, it must be classified as a manufactured
or mobile home. A 90-day limitation exists under current law
in the definition of “travel trailer” struck by the bill. For
purposes of registration or brake requirements under Code
chapter 321, “towable recreational vehicle” does not include a
truck camper.
The bill makes corresponding changes to Code sections
321.34 (registration plates), 321.45 (title transfer), 321.123
(trailer registration fee), 321.176A (persons exempt from
commercial driver’s license requirements), 321.284A (open
containers in motor vehicles), 321.430 (brake requirements),
321.454 (vehicle width), and 321.457 (vehicle length).
CODE CHAPTER 322C. The bill defines or redefines various
terms for purposes of Code chapter 322C (travel trailer
dealers, manufacturers, and distributors), including
“community”, “factory campaign”, “family member”, “fifth-wheel
travel trailer”, “folding camping trailer”, “line-make”,
“manufacturer”, “manufacturer-dealer agreement”, “park model
recreational vehicle”, “proprietary part”, “supplier”, “towable
recreational vehicle”, “towable recreational vehicle dealer”,
“toy-hauler fifth-wheel travel trailer”, “toy-hauler travel
trailer”, “transient consumer”, “travel trailer”, “truck
camper”, and “warrantor”.
The bill defines “fifth-wheel travel trailer” as a vehicle
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with an overall length of 45 feet or less, which is the same
limitation present under current law in the definition of the
term under Code chapter 321 stricken by the bill. The bill
defines “travel trailer” as a vehicle with an overall length
of 40 feet or less, which is less than the 45-foot limitation
present under current law in the definition of the term under
Code chapter 321 stricken by the bill. Travel trailers were
limited to 40 feet in length prior to 2015, when the general
assembly increased the limitation to 45 feet.
The bill makes corresponding changes from the use of the term
“travel trailer” in Code chapter 322C to the use of the term
”towable recreational vehicle”.
Under current law, a manufacturer or distributor is
prohibited from refusing to renew a contract for a term of less
than five years. The bill changes the term to 12 months.
The bill strikes a provision in Code section 322C.4 that
exempts persons licensed under Code chapter 322 (motor vehicle
manufacturers, distributors, wholesalers, and dealers) from the
requirement to obtain a $25,000 surety bond as a prerequisite
to the issuance of a TRV dealer’s license.
APPLICABILITY TO AGREEMENTS. The bill provides that if a TRV
dealer also sells and services motorized recreational vehicles
or other motor vehicles, the provisions of Code chapter 322C
relating to manufacturer-dealer agreements apply only to such
agreements, or those provisions of such agreements, applicable
to TRVs.
AGREEMENT REQUIRED —— COMMUNITY. The bill prohibits a
manufacturer or distributor from selling a new TRV in this
state to or through a TRV dealer without first entering into
a manufacturer-dealer agreement with the dealer that has been
signed by both parties. The bill also prohibits a dealer
from selling a new TRV in this state without first entering
into a manufacturer-dealer agreement with a manufacturer or
distributor that has been signed by both parties.
The bill requires a manufacturer-dealer agreement to
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designate a community exclusively assigned to a dealer by the
manufacturer or distributor, and prohibits the manufacturer or
distributor from changing the community or from contracting
with another dealer for the sale of the same line-make of
TRV in the community for the duration of the agreement. The
community designated in a manufacturer-dealer agreement may be
reviewed or changed with the consent of both parties not less
than 12 months after execution of the agreement.
TERMINATION, CANCELLATION, OR NONRENEWAL BY MANUFACTURER OR
DISTRIBUTOR. The bill authorizes a manufacturer or distributor
to 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 an agreement
without good cause, the manufacturer or distributor is required
to comply with the repurchase requirements set forth in the
bill.
The manufacturer or distributor has the burden of proof to
demonstrate good cause. The bill sets forth certain factors to
consider in determining whether good cause exists.
The bill requires a manufacturer or distributor to provide
to a dealer written notice of termination, cancellation, or
nonrenewal of a manufacturer-dealer agreement for good cause
at least 90 days prior to terminating, canceling, or failing
to renew the manufacturer-dealer agreement. The notice must
state all of the reasons for the termination, cancellation, or
nonrenewal and that if, within 30 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 will then have 90 days following receipt of the
notice to cure the deficiencies. If the deficiencies are cured
within 90 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 30 days, or fails to cure the
deficiencies within 90 days, the termination, cancellation, or
nonrenewal takes effect as provided in the original notice.
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The bill specifies that the notice period for termination,
cancellation, or nonrenewal of a manufacturer-dealer agreement
for good cause may be reduced to 30 days if certain grounds
exist as set forth in the bill.
The manufacturer or distributor is not required to provide
the notice if the dealer is insolvent, or has filed for
bankruptcy, receivership, or assignment for the benefit of
creditors.
TERMINATION, CANCELLATION, OR NONRENEWAL BY DEALER. The
bill allows a dealer to 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 must comply with the repurchase requirements set
forth in the bill.
The dealer has the burden of proof to demonstrate good
cause for terminating, canceling, or failing to renew a
manufacturer-dealer agreement. The bill sets forth certain
factors to consider in determining whether good cause exists.
The bill requires a dealer to provide to a manufacturer
or distributor written notice of termination, cancellation,
or nonrenewal of a manufacturer-dealer agreement at least
30 days prior to terminating, canceling, or failing to
renew the manufacturer-dealer agreement. If a termination
or cancellation is for good cause, the notice must state
all of the reasons for the termination or cancellation and
that if, within 30 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 90 days
following receipt of the notice to cure the deficiencies.
If the deficiencies are cured within 90 days, the dealer’s
notice is voided. If the manufacturer or distributor fails to
provide the notice of intent to cure the deficiencies within
30 days, or fails to cure the deficiencies within 90 days, the
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termination or cancellation takes effect as provided in the
original notice.
REPURCHASE OR SALE OF INVENTORY. 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 bill
requires the manufacturer or distributor to, at the dealer’s
option and within 45 days after termination, cancellation, or
nonrenewal, repurchase certain items.
The repurchase includes all new, untitled TRVs that the
dealer acquired from the manufacturer or distributor within 12
months prior to the effective date of the notice that have not
been used other than for demonstration purposes, and that have
not been altered or damaged, at 100 percent of the net invoice
cost, including transportation, less applicable rebates and
discounts to the dealer.
The repurchase also includes all undamaged proprietary parts
for any line-make subject to the termination, cancellation,
or nonrenewal that was sold to the dealer for resale within
12 months prior to the effective date of the termination,
cancellation, or nonrenewal of the manufacturer-dealer
agreement, if accompanied by the original invoice, at 105
percent of the original net price paid to the manufacturer or
distributor.
The repurchase further includes 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 termination, cancellation, or
nonrenewal within five years prior to the effective date of the
termination, cancellation, or nonrenewal that can no longer be
used in the normal course of the dealer’s ongoing business.
The bill does not specify an amount at which such equipment,
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tools, or machinery must be repurchased.
The bill provides that TRVs not repurchased or required to
be repurchased that are in the dealer’s inventory may continue
to be sold by the dealer until the TRVs are no longer in the
dealer’s inventory.
TRANSFER OF OWNERSHIP. If a TRV dealer makes or intends to
make a change in ownership of a dealership, the dealer must
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 15 business days before the change
becomes effective.
In the absence of a breach by the dealer of the
manufacturer-dealer agreement or a violation of Code chapter
322C, the bill prohibits the manufacturer or distributor from
objecting to the proposed change in ownership unless the
objection is to the prospective transferee for previously
being 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; being convicted of a felony or any crime of
fraud, deceit, or moral turpitude; lacking any license required
by law; failing to have an active line of credit sufficient
to purchase the manufacturer’s or distributor’s products; or
being insolvent within the previous 10 years, or filing for
bankruptcy, receivership, or assignment for the benefit of
creditors within the previous 10 years.
If a manufacturer or distributor objects to a proposed
change in ownership of a dealership, the manufacturer or
distributor must provide written notice of the reasons for the
objection to the dealer within 15 business days after receipt
of the dealer’s notification and supporting documentation about
the proposed change. The manufacturer or distributor has the
burden of proof to demonstrate that the objection complies
with the requirements of the bill. If the manufacturer or
distributor does not provide the dealer with timely notice of
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the objection, the dealer’s proposed change in ownership of the
dealership is deemed approved.
The bill requires a manufacturer or distributor to 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 must 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 15 business days before the designation
or proposed modification of a designation becomes effective.
In the absence of a breach by the dealer of the
manufacturer-dealer agreement or a violation of Code chapter
322C, the bill prohibits the manufacturer or distributor from
objecting to the designation or proposed modification of a
designation unless the objection is to the designated successor
for any of the reasons stated above for objecting to a proposed
change in ownership.
If a manufacturer or distributor objects to a succession
plan, the manufacturer or distributor must provide written
notice of the reasons for the objection to the dealer within
15 business days after receipt of the dealer’s notification
about the proposed designation or proposed modification
of a designation. The manufacturer or distributor has the
burden of proof to demonstrate that the objection complies
with the requirements of the bill. If the manufacturer or
distributor does not provide the dealer with timely notice of
the objection, the dealer’s proposed succession plan is deemed
approved.
The bill requires a manufacturer or distributor to 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
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provided to the dealer written notice of the manufacturer’s
or distributor’s objections to the succession within 15 days
after receipt of notice of the succession. However, the bill
prohibits a family member of a dealer from succeeding 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.
WARRANTY OBLIGATIONS. The bill requires a warrantor to
specify in writing to each dealer what obligations the dealer
has, if any, for preparation and delivery of, and warranty
services on, the warrantor’s products; compensate the dealer
for warranty services the warrantor requires the dealer to
perform; and provide the dealer with a schedule of compensation
and time allowances for the performance of warranty services.
Time allowances for the performance of warranty services,
including diagnostic services, must be reasonable for the
service to be performed. In determining what constitutes
reasonable compensation, the bill specifies that the principle
factors to be given consideration must 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 bill prohibits the compensation of a
dealer for warranty services from being 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.
The bill requires a warrantor to reimburse a dealer for
any warranty part, accessory, or complete component at actual
wholesale cost to the dealer plus a minimum of a 30 percent
handling charge, not to exceed $150, and plus the cost, if any,
to the dealer to return such part, component, or accessory to
the warrantor.
The bill authorizes a warrantor to conduct a warranty audit
of a dealer’s records within 12 months after the payment
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of a warranty claim. The bill prohibits a warrantor from
denying 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.
The bill requires a dealer to submit claims for compensation
for the performance of warranty services to the warrantor
within 45 days after completion of the warranty services.
A dealer must immediately notify a warrantor in writing if
the dealer is unable to perform warranty services, including
diagnostic services, within 10 days of receipt of a written
complaint from a consumer.
A warrantor must deny a claim submitted by a dealer for
compensation for the performance of warranty services, in
writing, within 30 days after submission of the claim in the
manner and form prescribed by the warrantor. A claim not
specifically denied is deemed approved and must be paid within
60 days of submission of the claim.
The bill prohibits a warrantor from failing to perform any
of the warrantor’s obligations with respect to its warranted
products; failing to include, in written notices of a factory
campaign to TRV owners and dealers, the expected date by which
necessary parts and equipment will be available to dealers to
perform the factory campaign work; failing to compensate the
warrantor’s dealers for authorized repairs performed by the
dealer on merchandise damaged in manufacture or in transit to
the dealer; failing to compensate the warrantor’s dealers in
accordance with the schedule of compensation provided to the
dealer, if the warranty services for which compensation is
claimed are performed by the dealer in a timely and competent
manner; intentionally misrepresenting to consumers that
warranties with respect to the manufacture, performance,
or design of TRVs are made by the dealer as warrantor or
co-warrantor; or requiring the warrantor’s dealers to make
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warranties to a consumer that are in any manner related to the
manufacture of a TRV.
The bill prohibits a dealer from failing to perform
predelivery inspection functions, as specified by the
warrantor, in a competent and timely manner; failing to
perform warranty services, as authorized by the warrantor,
in a competent and timely manner on any transient consumer’s
TRV of a line-make sold or serviced by the dealer; failing to
accurately document the time spent completing each repair, the
total number of repair attempts conducted on a single TRV, and
the number of repair attempts for the same repair conducted on
a single TRV; failing to notify the warrantor within 10 days of
a second repair attempt on a TRV which impairs the use, value,
or safety of the TRV; failing to maintain written records,
including a consumer’s written or electronic verification or
signature, regarding the amount of time a TRV is stored for the
consumer’s convenience during a repair; or making fraudulent
warranty claims or misrepresenting the terms of any warranty.
INDEMNIFICATION. The bill requires a warrantor to 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. A warrantor is prohibited from
denying a dealer indemnification for failure to discover,
disclose, or remedy a defect in the design or manufacture
of a new TRV. However, 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. The bill requires a warrantor to provide to
the dealer a copy of any pending lawsuit in which allegations
are made against the warrantor of willful misconduct. The
warrantor must provide the copy to the dealer within 10 days
after receiving notice of the lawsuit.
The bill requires a dealer to indemnify and hold harmless the
dealer’s warrantor against any loss or damage, to the extent
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that the loss or damage is caused by willful misconduct of
the dealer. A dealer must provide to the warrantor a copy of
any pending lawsuit in which allegations are made against the
dealer of willful misconduct. The dealer must provide the copy
to the warrantor within 10 days after receiving notice of the
lawsuit.
INSPECTION AND REJECTION BY DEALER. Whenever a new TRV 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 is required to
notify the manufacturer or distributor of the damage within the
time frame specified in the manufacturer-dealer agreement and
shall do either request from the manufacturer or distributor
authorization to replace the components, parts, or accessories
damaged, or otherwise repair the vehicle, or reject the vehicle
within the time frame set forth in the manufacturer-dealer
agreement.
If the manufacturer or distributor refuses to authorize
repair of the new TRV within 10 days after receipt of a
dealer’s notification, or if the dealer rejects the new TRV
because of damage, ownership of the TRV will revert to the
manufacturer or distributor.
The bill requires the dealer to exercise due care when in
custody of a new, damaged TRV, but the bill specifies that the
dealer has no other obligations, financial or otherwise, with
respect to the TRV following rejection in accordance with the
manufacturer-dealer agreement.
The bill requires the time frame for inspection and
rejection of a damaged new TRV by a dealer to be specified in
the manufacturer-dealer agreement, but provides that it shall
not be less than two business days after the physical delivery
of the TRV to the dealer.
CIVIL ACTION AND MEDIATION. The bill authorizes a dealer,
manufacturer, distributor, or warrantor injured by another
party’s violation of Code chapter 322C to bring a civil action
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in district court to recover actual damages resulting from the
violation. The court must award reasonable attorney fees and
costs to the prevailing party in such an action. Venue for
such a civil action must 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.
Prior to bringing such a civil action, the party alleging a
violation must serve a written demand for mediation upon the
alleged offending party. The demand for mediation must be
served upon the alleged offending party via certified mail at
the address stated in the manufacturer-dealer agreement between
the parties, if applicable. The demand for mediation must
contain a statement of the dispute or violation alleged and the
relief sought by the party serving the demand.
Within 20 days after service of a demand for mediation, the
bill requires the parties to mutually select an independent
certified mediator and meet with the mediator for the purpose
of attempting to resolve the dispute or alleged violation. The
meeting place for the mediation must be in Iowa 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.
The service of a demand for mediation tolls the period
during which a party is required to file any complaint,
petition, protest, or other action under Code chapter 322C
until representatives of both parties have met 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 must 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
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the proceeding or action that the parties wish to continue
mediation, enter an order suspending the proceeding or action
for any period the court considers appropriate.
Each party to the mediation shall pay its own costs for
attorney fees and the costs of the mediation services shall be
equally allocated among each party.
The bill authorizes a manufacturer, distributor, warrantor,
or dealer to 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 Code chapter 322C, or from
failing or refusing to comply with the requirements of Code
chapter 322C. Such injunction must be issued without bond.
The bill specifies that a single act must be considered
sufficient cause to authorize the issuance of an injunction.
TAX EXEMPTION. The bill makes a corresponding change to
Code section 435.23 exempting TRVs from the property tax on
manufactured or mobile homes.
APPLICABILITY. The bill applies to manufacturer-dealer
agreements pertaining to the sale of new TRVs entered into or
renewed on or after January 1, 2020.
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