Senate Study Bill 3234
SENATE FILE
BY (PROPOSED COMMITTEE ON
TRANSPORTATION BILL BY
CO=CHAIRPERSONS McCOY AND
PUTNEY)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing prelicensing and continuing education
2 requirements for used motor vehicle dealers.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5751SC 81
5 dea/je/5
PAG LIN
1 1 Section 1. Section 322.4, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 8A. If the applicant is applying for a
1 4 used motor vehicle dealer license, certification that the
1 5 applicant has met the educational requirements for licensure
1 6 under section 322.7A. The certification may be transmitted to
1 7 the department by the education provider in electronic format.
1 8 Sec. 2. Section 322.7, subsection 4, Code 2005, is amended
1 9 to read as follows:
1 10 4. The motor vehicle dealer license provided for in this
1 11 chapter shall be renewed upon application in the form and
1 12 content prescribed by the department and upon payment of the
1 13 required fee. A used motor vehicle dealer license shall not
1 14 be renewed for an applicant who is subject to continuing
1 15 education requirements until the licensee certifies completion
1 16 of the educational requirements for license renewal under
1 17 section 322.7A. The certification may be transmitted to the
1 18 department by the education provider in electronic format. A
1 19 licensee shall have the month of expiration and the month
1 20 after the month of expiration to renew the license. A person
1 21 who fails to renew a license by the end of this time period
1 22 and desires to hold a license shall file a new license
1 23 application and pay the required fee.
1 24 Sec. 3. NEW SECTION. 322.7A USED MOTOR VEHICLE DEALER
1 25 EDUCATION PROGRAM.
1 26 1. An applicant for a license as a used motor vehicle
1 27 dealer shall complete a minimum of eight hours of prelicensing
1 28 education program courses pursuant to this section prior to
1 29 submitting an application to the department.
1 30 2. A person seeking renewal of a used motor vehicle dealer
1 31 license shall complete a minimum of five hours of continuing
1 32 education program courses over a two=year period pursuant to
1 33 this section prior to submitting an application for license
1 34 renewal. However, an applicant for renewal of a used motor
1 35 vehicle dealer license who has met the prelicensing education
2 1 requirement under subsection 1 within the preceding twelve
2 2 months is exempt from the continuing education requirement for
2 3 license renewal.
2 4 3. To meet the requirements of this section, at least one
2 5 individual who is associated with the used motor vehicle
2 6 dealer as an owner, principal, corporate officer, director, or
2 7 member or partner of a limited liability company or limited
2 8 liability partnership shall complete the education program
2 9 courses.
2 10 4. The Iowa independent auto dealers association shall
2 11 develop the prelicensing and continuing education course
2 12 curricula for the used motor vehicle dealer education program,
2 13 which shall include but not be limited to examination of
2 14 federal and state laws applicable to the motor vehicle
2 15 industry and federal, state, and local regulations pertaining
2 16 to used motor vehicle dealers. The education program courses
2 17 shall be provided by an Iowa nonprofit motor vehicle
2 18 association. Costs of the education program shall be borne by
2 19 the course provider, who may charge an applicant a reasonable
2 20 fee of not more than two hundred dollars for the prelicensing
2 21 education course and not more than one hundred fifty dollars
2 22 for the continuing education course.
2 23 5. The provisions of this section apply to all used motor
2 24 vehicle dealers, including but not limited to individuals,
2 25 corporations, and partnerships, except for the following:
2 26 a. Motor vehicle rental companies having a national
2 27 franchise.
2 28 b. National motor vehicle auction companies.
2 29 c. Wholesale dealer=only auction companies.
2 30 d. Used car dealerships owned by a franchise motor vehicle
2 31 dealer.
2 32 e. Banks, credit unions, and savings and loan
2 33 associations.
2 34 6. A provider of used motor vehicle dealer education
2 35 program courses shall transmit a report on the program
3 1 annually by December 31 to the chairpersons of the committees
3 2 on transportation of the senate and house of representatives.
3 3 Sec. 4. USED MOTOR VEHICLE DEALER EDUCATION PROGRAM ==
3 4 NOTICE. The state department of transportation shall provide
3 5 reasonable notice to current used motor vehicle dealer
3 6 licensees of the need to meet continuing education
3 7 requirements as a condition for future license renewal.
3 8 EXPLANATION
3 9 This bill establishes prelicensing education and continuing
3 10 education requirements for used motor vehicle dealers. An
3 11 applicant for licensure as a used motor vehicle dealer is
3 12 required to complete at least eight hours of prelicensing
3 13 education prior to licensure, and an applicant for renewal of
3 14 a license is required to complete at least five hours of
3 15 continuing education over a two=year period as a condition for
3 16 license renewal. The bill specifies those persons associated
3 17 with a dealer in an official capacity who can fulfill the
3 18 education requirements on behalf of the dealer. The education
3 19 requirements do not apply to nationally franchised rental
3 20 companies; national motor vehicle and wholesale dealer=only
3 21 auction companies; used car dealerships owned by a franchise
3 22 motor vehicle dealer; and banks, credit unions, and savings
3 23 and loan associations.
3 24 The bill requires the Iowa independent automobile dealers
3 25 association to develop course curricula for the education
3 26 program, and specifies that a provider of the program courses
3 27 shall be an Iowa nonprofit motor vehicle association. Costs
3 28 of the education program are the responsibility of the course
3 29 provider, and may be recouped by fees of up to $200 for
3 30 prelicensing courses and $150 for continuing education
3 31 courses. An education course provider is required to report
3 32 annually to the chairpersons of the transportation committees
3 33 of the senate and house of representatives.
3 34 The state department of transportation is directed to
3 35 provide timely notice of the new requirements to current
4 1 licensees.
4 2 LSB 5751SC 81
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