H.F. 435 Section 1. Section 321.71, subsections 7 and 9, Code 2015, 1 are amended to read as follows: 2 7. A certificate of title shall not be issued for a motor 3 vehicle less than ten twenty-four model years old which is 4 equipped with an odometer by the manufacturer, unless an 5 odometer statement which is in compliance with federal law and 6 regulations has been made by the transferor of the vehicle and 7 is furnished with the application for certificate of title. 8 The new certificate of title shall record on its face the 9 odometer reading and the word “actual” if the true mileage is 10 known. If the odometer reading is not the true mileage or 11 the true mileage is unknown, the words “not actual” shall be 12 recorded. If the odometer reading is greater than the odometer 13 can mechanically count, the words “exceeds the mechanical 14 limits” shall be recorded. However, a certificate of title may 15 be issued for a motor vehicle to a person who moves into this 16 state if the person acquired ownership of the motor vehicle 17 prior to moving to this state. This subsection does not apply 18 to motor vehicles having a gross vehicle weight rating of more 19 than sixteen thousand pounds. 20 9. An Iowa licensed motor vehicle dealer shall not have in 21 possession as inventory for sale a used motor vehicle acquired 22 by the dealer after the tenth twenty-fourth model year prior 23 to the current registration year, for which the dealer does 24 not possess an odometer statement by the transferor which 25 is in compliance with federal law and regulations unless a 26 certificate of title has been issued for the vehicle in the 27 name of the dealer. Transfer of a new motor vehicle with 28 an ownership document which is a manufacturer’s statement of 29 origin requires an odometer statement only when transferred at 30 retail. 31 Sec. 2. Section 321.104, subsection 4, Code 2015, is amended 32 to read as follows: 33 4. To sell, offer for sale, or transfer a motor vehicle, 34 trailer, or semitrailer, except as provided in section 321.47 35 -1- LSB 2374YH (3) 86 ns/nh 1/ 5

H.F. 435 or 321.48 , without obtaining a certificate of title in the 1 name of the seller or transferor or without delivering to 2 the purchaser or transferee a certificate of title or a 3 manufacturer’s or importer’s certificate duly assigned to the 4 purchaser or transferee as provided in this chapter . 5 Sec. 3. Section 321.104, Code 2015, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4A. To sell, offer for sale, or transfer a 8 motor vehicle, trailer, or semitrailer, except as provided in 9 section 321.47 or 321.48, without delivering to the purchaser 10 or transferee a certificate of title or a manufacturer’s or 11 importer’s certificate duly assigned to the purchaser or 12 transferee as provided in this chapter. 13 Sec. 4. Section 322.2, subsection 7, Code 2015, is amended 14 to read as follows: 15 7. “Engaged in the business” means doing any of the 16 following acts for the purpose of the sale of motor vehicles 17 at retail: acquiring, selling, exchanging, holding, offering, 18 displaying, brokering, accepting on consignment, conducting a 19 retail auction, or advertising as being engaged in or acting 20 as an agent for the purpose of doing any of those acts. A 21 person selling at retail more than six motor vehicles during 22 a twelve-month period may be presumed to be engaged in the 23 business. 24 Sec. 5. Section 322.2, Code 2015, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 20A. “Salesperson” means a person employed 27 by a motor vehicle dealer for the purpose of selling motor 28 vehicles. 29 Sec. 6. Section 322.3, Code 2015, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 16. A person licensed under this chapter 32 as a motor vehicle dealer or wholesaler shall not sell, loan, 33 rent, lease, or charge a fee for the use of such license to 34 another person for the purpose of allowing that person to 35 -2- LSB 2374YH (3) 86 ns/nh 2/ 5

H.F. 435 sell a motor vehicle for financial gain. A violation of this 1 subsection shall result in the revocation of such license in 2 addition to the penalties set forth in section 322.14. 3 Sec. 7. Section 322.4, subsection 1, paragraph a, 4 subparagraphs (2) and (3), Code 2015, are amended to read as 5 follows: 6 (2) If the applicant is a partnership, the name or style 7 under which the partnership intends to engage in such business 8 and the name and bona fide address of two partners each 9 partner . 10 (3) If the applicant is a corporation, the state of 11 incorporation and the name and bona fide address of two 12 officers each officer of the corporation. 13 Sec. 8. Section 322.21, Code 2015, is amended to read as 14 follows: 15 322.21 Remaining balance on trade vehicle. 16 1. The extension of credit by a retail seller to a retail 17 buyer, pursuant to a retail installment contract, of the 18 amount actually paid or to be paid by the retail seller to 19 discharge a purchase-money security interest, as provided in 20 section 554.9103 , on a motor vehicle traded in by the retail 21 buyer shall not subject the retail seller to the provisions of 22 chapter 536 or 536A . 23 2. A motor vehicle dealer who takes possession of a motor 24 vehicle from a retail buyer for the purpose of resale upon 25 which there is an outstanding lien or encumbrance shall tender 26 full payment on the outstanding lien or encumbrance within ten 27 business days after the motor vehicle dealer takes possession 28 of the motor vehicle from the retail buyer, provided the retail 29 installment contract has been executed by the retail buyer and 30 the dealer. 31 Sec. 9. NEW SECTION . 322.34 Dealer advertising. 32 Advertising by a motor vehicle dealer licensed under this 33 chapter shall include the dealership’s name, address, and 34 landline telephone number, and may include the dealership’s 35 -3- LSB 2374YH (3) 86 ns/nh 3/ 5

H.F. 435 cellular telephone number, if applicable. 1 Sec. 10. Section 322C.2, Code 2015, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 8A. “Salesperson” means a person employed 4 by a travel trailer dealer for the purpose of selling travel 5 trailers. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the activities of motor vehicle dealers 10 and wholesalers. 11 Current law provides that a motor vehicle dealer shall not 12 have in its possession as inventory for sale, and a certificate 13 of title shall not be issued for, a motor vehicle less than 14 10 model years old which is equipped with an odometer by the 15 manufacturer unless an odometer statement has been made by the 16 transferor of the vehicle. The bill expands this provision 17 to include motor vehicles less than 24 model years old. A 18 violation of this provision is a fraudulent practice. 19 Current law provides that it is a simple misdemeanor 20 punishable by a $100 fine to sell, offer for sale, or transfer 21 a motor vehicle without obtaining a certificate of title in the 22 name of the seller or transferor. Current law also provides 23 that it is a simple misdemeanor punishable by a $100 fine 24 to sell, offer for sale, or transfer a motor vehicle without 25 delivering to the purchaser or transferee a certificate of 26 title or a manufacturer’s or importer’s certificate duly 27 assigned to the purchaser or transferee. The bill separates 28 these provisions into two subsections. 29 The bill alters the definition of “engaged in the business” 30 to include advertising as being engaged in acquiring, selling, 31 exchanging, holding, offering, displaying, brokering, accepting 32 on consignment, or conducting a retail auction of motor 33 vehicles for the purpose of sale at retail. The bill also 34 defines “salesperson” as a person employed by a motor vehicle 35 -4- LSB 2374YH (3) 86 ns/nh 4/ 5

H.F. 435 dealer for the purpose of selling motor vehicles. 1 The bill provides that a person licensed as a motor vehicle 2 dealer or wholesaler shall not sell, loan, rent, lease, or 3 charge a fee for the use of such license to another person for 4 the purpose of allowing that person to sell a motor vehicle for 5 financial gain. A violation of this provision shall result in 6 the revocation of such license in addition to the penalties set 7 forth in Code section 322.14. 8 Current law requires two partners of a partnership and two 9 officers of a corporation to be named on a motor vehicle dealer 10 license application. The bill requires all partners of a 11 partnership and all officers of corporation to be named on a 12 motor vehicle dealer license application. 13 The bill provides that a motor vehicle dealer who takes 14 possession of a motor vehicle from a retail buyer for the 15 purpose of resale upon which there is an outstanding lien 16 or encumbrance shall tender full payment on the outstanding 17 lien or encumbrance within 10 business days after the motor 18 vehicle dealer takes possession of the motor vehicle from the 19 retail buyer, provided the retail installment contract has been 20 executed by the retail buyer and the dealer. 21 The bill further provides that advertising by a motor 22 vehicle dealer shall include the dealership’s name, address, 23 and landline telephone number, and may include the dealership’s 24 cellular telephone number, if applicable. 25 Under Code section 322.14, a person who violates any of 26 the provisions of Code chapter 322 for which a penalty is 27 not specifically provided is guilty of a simple misdemeanor 28 punishable by a fine of not less than $250 nor more than 29 $1,500, or by imprisonment not to exceed 30 days. 30 For purposes of Code chapter 322C relating to travel trailer 31 dealers, manufacturers, and distributors, the bill defines 32 “salesperson” as a person employed by a travel trailer dealer 33 for the purpose of selling travel trailers. 34 -5- LSB 2374YH (3) 86 ns/nh 5/ 5