Bill Text: IA SSB3078 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to the activities of motor vehicle dealers, including the electronic submission of applications for motor vehicle registration and issuance of certificates of title, the furnishing of surety bonds, and the assessment of documentary fees, and making a penalty applicable.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-02-16 - Voted - Transportation. [SSB3078 Detail]
Download: Iowa-2015-SSB3078-Introduced.html
Senate
Study
Bill
3078
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
BOWMAN)
A
BILL
FOR
An
Act
relating
to
the
activities
of
motor
vehicle
dealers,
1
including
the
electronic
submission
of
applications
for
2
motor
vehicle
registration
and
issuance
of
certificates
of
3
title,
the
furnishing
of
surety
bonds,
and
the
assessment
of
4
documentary
fees,
and
making
a
penalty
applicable.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5657SC
(2)
86
ns/nh
S.F.
_____
Section
1.
Section
321.20,
subsections
2
and
3,
Code
2016,
1
are
amended
to
read
as
follows:
2
2.
Notwithstanding
contrary
provisions
of
this
chapter
3
or
chapter
326
regarding
titling
and
registration
by
means
4
other
than
electronic
means,
the
department
may
shall,
by
5
July
1,
2017,
develop
and
implement
a
program
to
allow
for
6
electronic
applications,
titling,
registering,
and
electronic
7
funds
transfer
transfers
for
vehicles
subject
to
registration
8
in
order
to
improve
the
efficiency
and
timeliness
of
the
9
processes
and
to
reduce
costs
for
all
parties
involved.
The
10
program
shall
also
provide
for
the
electronic
submission
of
any
11
statement
required
by
this
section,
except
where
prohibited
by
12
federal
law.
13
3.
The
department
shall
adopt
rules
on
the
method
for
14
providing
signatures
for
applications
and
statements
required
15
by
this
section
that
are
made
by
electronic
means.
16
Sec.
2.
Section
321.20,
Code
2016,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
4.
Notwithstanding
this
section
or
any
19
other
provision
of
law
to
the
contrary,
if
the
program
required
20
by
subsection
2
is
not
implemented
by
July
1,
2017,
an
owner
21
of
a
vehicle
subject
to
registration
may
apply
to
the
county
22
treasurer
of
any
county
in
the
state
for
registration
and
23
issuance
of
a
certificate
of
title
regardless
of
the
owner’s
24
county
of
residence
or
the
county
where
the
primary
users
of
25
the
vehicle
are
located.
26
Sec.
3.
Section
322.4,
subsection
1,
paragraph
g,
Code
2016,
27
is
amended
to
read
as
follows:
28
g.
Before
the
issuance
of
a
motor
vehicle
dealer’s
license
29
to
a
dealer
engaged
in
the
sale
of
vehicles
for
which
a
30
certificate
of
title
is
required
under
chapter
321
,
or
the
31
issuance
of
a
temporary
permit
under
section
322.5,
subsection
32
6
,
paragraph
“b”
,
the
applicant
shall
furnish
a
surety
bond
33
executed
by
the
applicant
as
principal
and
executed
by
a
34
corporate
surety
company,
licensed
and
qualified
to
do
business
35
-1-
LSB
5657SC
(2)
86
ns/nh
1/
4
S.F.
_____
within
this
state,
which
bond
shall
run
to
the
state
of
Iowa,
1
be
in
the
amount
of
fifty
five
hundred
thousand
dollars
and
2
be
conditioned
upon
the
faithful
compliance
by
the
applicant
3
as
a
dealer
with
all
of
the
statutes
of
this
state
regulating
4
or
applicable
to
the
business
of
a
dealer
in
motor
vehicles,
5
and
indemnifying
any
person
who
buys
a
motor
vehicle
from
the
6
dealer
from
any
loss
or
damage
occasioned
by
the
failure
of
the
7
dealer
to
comply
with
any
of
the
provisions
of
chapter
321
and
8
this
chapter
,
including
but
not
limited
to
the
furnishing
of
9
a
proper
and
valid
certificate
of
title
to
the
motor
vehicle
10
involved
in
a
transaction.
The
bond
shall
also
indemnify
any
11
motor
vehicle
purchaser
from
any
loss
or
damage
caused
by
the
12
failure
of
the
dealer
to
comply
with
the
odometer
requirements
13
in
section
321.71
,
regardless
of
whether
the
motor
vehicle
was
14
purchased
directly
from
the
dealer.
The
bond
shall
be
filed
15
with
the
department
prior
to
the
issuance
of
a
license
or
16
permit.
The
aggregate
liability
of
the
surety,
however,
shall
17
not
exceed
the
amount
of
the
bond.
18
Sec.
4.
NEW
SECTION
.
322.19A
Documentary
fee.
19
1.
For
purposes
of
this
section,
“documentary
fee”
means
a
20
fee
that
may
be
charged
to
a
customer
by
a
motor
vehicle
dealer
21
for
the
preparation
of
documents
related
to
an
application
for
22
motor
vehicle
registration
and
issuance
of
a
certificate
of
23
title,
and
the
performance
of
other
services
for
the
customer
24
related
to
the
sale
of
a
motor
vehicle.
“Documentary
fee”
does
25
not
include
any
costs
or
fees
charged
to
a
motor
vehicle
dealer
26
or
a
dealer’s
customer
by
a
third
party.
27
2.
A
motor
vehicle
dealer
may
charge
a
documentary
fee
not
28
to
exceed
one
hundred
fifty
dollars
for
each
motor
vehicle
29
sold
in
a
transaction.
Beginning
January
1,
2017,
and
each
30
year
thereafter,
the
maximum
documentary
fee
permitted
by
31
this
section
shall
be
subject
to
a
rate
adjustment
equal
to
32
the
percentage
change
in
the
consumer
price
index
for
all
33
urban
consumers
for
the
most
recent
available
twelve-month
34
period
published
in
the
federal
register
by
the
United
States
35
-2-
LSB
5657SC
(2)
86
ns/nh
2/
4
S.F.
_____
department
of
labor,
bureau
of
labor
statistics.
On
or
before
1
December
15
of
each
year,
the
department
shall
publish
a
notice
2
of
the
new
maximum
documentary
fee
permitted
for
the
following
3
calendar
year.
4
3.
After
the
department
has
implemented
a
statewide
5
program
pursuant
to
section
321.20,
subsection
2,
the
maximum
6
documentary
fee
permitted
by
subsection
2
shall
be
reduced
by
7
twenty-five
dollars.
The
reduction
shall
be
reflected
in
the
8
notice
published
by
the
department
pursuant
to
subsection
2.
9
4.
A
motor
vehicle
dealer
who
charges
a
documentary
fee
to
10
a
customer
shall
provide
the
following
notice
to
the
customer,
11
which
notice
shall
be
included
in
any
retail
installment
12
contract
with
the
customer:
13
DOCUMENTARY
FEE.
A
DOCUMENTARY
FEE
IS
NOT
AN
OFFICIAL
FEE.
14
A
DOCUMENTARY
FEE
IS
NOT
REQUIRED
BY
LAW,
BUT
MAY
BE
CHARGED
TO
15
A
BUYER
FOR
THE
PREPARATION
OF
DOCUMENTS
AND
THE
PERFORMANCE
OF
16
SERVICES
RELATED
TO
THE
SALE
OF
A
MOTOR
VEHICLE.
THE
MAXIMUM
17
AMOUNT
THAT
MAY
BE
CHARGED
FOR
A
DOCUMENTARY
FEE
IS
DETERMINED
18
BY
IOWA
CODE
SECTION
322.19A.
THIS
NOTICE
IS
REQUIRED
BY
LAW.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
Current
law
permits,
but
does
not
require,
the
department
23
of
transportation
(DOT)
to
develop
and
implement
a
program
24
allowing
for
the
electronic
submission
of
applications
and
the
25
electronic
transfer
of
funds
for
motor
vehicle
registration
26
and
issuance
of
certificates
of
title.
This
bill
requires
27
the
DOT
to
develop
and
implement
the
program
by
July
1,
28
2017.
The
bill
also
requires
the
program
to
provide
for
the
29
electronic
submission
of
related
statements
required
by
law.
30
If
the
program
is
not
implemented
by
July
1,
2017,
an
owner
31
of
a
vehicle
subject
to
registration
may
apply
to
the
county
32
treasurer
of
any
county
in
the
state
for
registration
and
33
issuance
of
a
certificate
of
title
regardless
of
the
owner’s
34
county
of
residence
or
the
county
where
the
primary
users
of
35
-3-
LSB
5657SC
(2)
86
ns/nh
3/
4
S.F.
_____
the
vehicle
are
located.
1
Code
section
322.4
sets
forth
certain
application
2
requirements
for
a
motor
vehicle
dealer’s
license.
One
such
3
requirement
is
that
the
applicant
furnish
a
surety
bond.
This
4
bill
increases
the
required
amount
of
the
surety
bond
from
5
$50,000
to
$500,000.
6
The
bill
provides
that
a
motor
vehicle
dealer
may
charge
7
a
documentary
fee
not
to
exceed
$150
for
the
preparation
8
of
documents
related
to
the
application
for
motor
vehicle
9
registration
and
issuance
of
a
certificate
of
title,
and
the
10
performance
of
other
services
related
to
the
sale
of
a
motor
11
vehicle.
Beginning
January
1,
2017,
the
maximum
permitted
12
documentary
fee
is
subject
to
a
rate
adjustment
equal
to
the
13
percentage
change
in
the
consumer
price
index.
The
bill
14
requires
the
DOT
to
publish,
on
or
before
December
15
of
each
15
year,
a
notice
of
the
new
maximum
documentary
fee
permitted
16
for
the
following
calendar
year.
The
bill
provides
that
17
the
maximum
documentary
fee
shall
be
reduced
by
$25
after
18
implementation
of
the
program
allowing
for
the
electronic
19
submission
of
applications
and
the
electronic
transfer
of
funds
20
for
motor
vehicle
registration
and
issuance
of
certificates
of
21
title.
The
bill
requires
a
motor
vehicle
dealer
who
charges
a
22
documentary
fee
to
a
customer
to
provide
the
customer
a
legal
23
notification
related
to
the
fee,
which
notification
shall
be
24
included
in
any
retail
installment
contract
with
the
customer.
25
By
operation
of
law,
a
violation
of
the
documentary
fee
26
requirements
of
the
bill
is
a
simple
misdemeanor
punishable
27
by
a
fine
of
not
less
than
$250
nor
more
than
$1,500,
or
by
28
imprisonment
not
to
exceed
30
days.
29
-4-
LSB
5657SC
(2)
86
ns/nh
4/
4
