House Study Bill 542 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF TRANSPORTATION BILL) A BILL FOR An Act providing for exemptions relating to odometer 1 requirements, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5416DP (2) 88 mo/ns

S.F. _____ H.F. _____ Section 1. Section 321.71, subsections 7, 9, and 11, Code 1 2020, are amended to read as follows: 2 7. A certificate of title shall not be issued for a motor 3 vehicle less than ten model years old which is equipped with 4 an odometer by the manufacturer, unless an odometer statement 5 which is in compliance with federal law and regulations has 6 been made by the transferor of the vehicle and is furnished 7 with the application for certificate of title , or unless an 8 exemption applies under 49 C.F.R. §580.17 . The new certificate 9 of title shall record on its face the odometer reading and the 10 word “actual” if the true mileage is known. If the odometer 11 reading is not the true mileage or the true mileage is unknown, 12 the words “not actual” shall be recorded. If the odometer 13 reading is greater than the odometer can mechanically count, 14 the words “exceeds the mechanical limits” shall be recorded. 15 However, a certificate of title may be issued for a motor 16 vehicle to a person who moves into this state if the person 17 acquired ownership of the motor vehicle prior to moving to this 18 state. This subsection does not apply to motor vehicles having 19 a gross vehicle weight rating of more than sixteen thousand 20 pounds. 21 9. An Unless an exemption applies under 49 C.F.R. §580.17 or 22 unless a certificate of title has been issued for the vehicle 23 in the name of the dealer, an Iowa licensed motor vehicle 24 dealer shall not have in possession as inventory for sale a 25 used motor vehicle acquired by the dealer after the tenth model 26 year prior to the current registration year, for which the 27 dealer does not possess an odometer statement by the transferor 28 which is in compliance with federal law and regulations unless 29 a certificate of title has been issued for the vehicle in the 30 name of the dealer . Transfer of a new motor vehicle with 31 an ownership document which is a manufacturer’s statement of 32 origin requires an odometer statement only when transferred at 33 retail. 34 11. The department may adopt rules to administer this 35 -1- LSB 5416DP (2) 88 mo/ns 1/ 3

S.F. _____ H.F. _____ section, which rules shall be in compliance with the federal 1 Truth in Mileage Act of 1986, Pub. L. No. 99-579 , and 49 C.F.R. 2 pt. 580 . 3 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 4 2021. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 Under current law, a certificate of title must not be 9 issued for a motor vehicle less than 10 model years old which 10 is equipped with an odometer by the manufacturer, unless an 11 odometer statement that is in compliance with federal law and 12 regulations has been made by the transferor of the vehicle and 13 is furnished with the application for certificate of title. 14 This bill allows a certificate of title to be issued for a 15 motor vehicle without an odometer statement if the vehicle 16 falls within certain federally recognized exemptions. The bill 17 also allows a licensed motor vehicle dealer to have in its 18 possession as inventory for sale a used motor vehicle acquired 19 by the dealer for which the dealer does not possess an odometer 20 statement by the transferor if the federally recognized vehicle 21 exemptions apply or if a certificate of title has been issued 22 for the vehicle in the name of the dealer. 23 The federally recognized vehicle exemptions referenced by 24 the bill include the following: a vehicle that has a gross 25 vehicle weight rating of more than 16,000 pounds, a vehicle 26 that is not self-propelled, a vehicle that was manufactured 27 in a model year beginning at least 10 years before January 1 28 of the calendar year in which the vehicle is transferred, a 29 vehicle sold directly by the manufacturer to any agency of the 30 United States in conformity with contractual specifications, 31 and a new vehicle prior to its first transfer for purposes 32 other than resale. 33 The bill requires that any rules adopted by the department 34 to administer Code section 321.71 must be in compliance with 35 -2- LSB 5416DP (2) 88 mo/ns 2/ 3

S.F. _____ H.F. _____ 49 C.F.R. pt 580. 1 The bill takes effect January 1, 2021. 2 -3- LSB 5416DP (2) 88 mo/ns 3/ 3