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House Study Bill 168 - IntroducedA Bill ForAn Act 1relating to certain place-of-business requirements for
2licensed motor vehicle dealers who conduct sales via the
3internet and deliver vehicles to buyers.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.3, subsection 11, Code 2023, is
2amended to read as follows:
311. A person who is engaged in the business of selling
4motor vehicles at retail shall not sell, offer for sale,
5display, represent, or advertise that the person intends to
6sell motor vehicles from a location other than the person’s
7place of business, except as provided in this subsection or
8as authorized under a temporary permit as provided in section
9322.5. A motor vehicle dealer licensed under this chapter may
10sell, offer for sale, negotiate sales of, display, represent,
11or advertise that the dealer intends to sell motor vehicles
12via the internet, and deliver vehicles sold by the dealer to a
13buyer at the buyer’s residence or other suitable location if
14the delivery is requested by the buyer.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Under current law, a person who is engaged in the business
19of selling motor vehicles at retail must have a dealer license
20issued by the department of transportation (DOT). To obtain
21a license, a dealer must have a designated location wherein
22proper and adequate facilities are required to be maintained
23for displaying, reconditioning, and repairing either new or
24used cars (place of business), unless the person sells motor
25vehicles at retail solely for the purpose of disposing of
26vehicles acquired or repossessed through the exercise of
27powers or rights given as security for loans or purchase money
28obligations. A person is prohibited from selling, offering
29for sale, displaying, representing, or advertising that the
30person intends to sell motor vehicles from a location other
31than the person’s place of business, unless the person receives
32a temporary permit that authorizes limited business at fairs,
33vehicle shows, and vehicle exhibitions as provided in Code
34section 322.5. However, all such sales must be consummated at
35the dealer’s principal place of business.
-1- 1This bill authorizes licensed motor vehicle dealers to sell,
2offer for sale, negotiate sales of, display, represent, or
3advertise that the dealer intends to sell motor vehicles via
4the internet, and deliver vehicles sold by the dealer to a
5buyer at the buyer’s residence or other suitable location if
6the delivery is requested by the buyer.
7The bill does not amend the requirements under current law
8that a dealer have a place of business for purposes of the
9license application, license issuance and fees, and information
10contained on the license.
-2-th/ns
2licensed motor vehicle dealers who conduct sales via the
3internet and deliver vehicles to buyers.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.3, subsection 11, Code 2023, is
2amended to read as follows:
311. A person who is engaged in the business of selling
4motor vehicles at retail shall not sell, offer for sale,
5display, represent, or advertise that the person intends to
6sell motor vehicles from a location other than the person’s
7place of business, except as provided in this subsection or
8as authorized under a temporary permit as provided in section
9322.5. A motor vehicle dealer licensed under this chapter may
10sell, offer for sale, negotiate sales of, display, represent,
11or advertise that the dealer intends to sell motor vehicles
12via the internet, and deliver vehicles sold by the dealer to a
13buyer at the buyer’s residence or other suitable location if
14the delivery is requested by the buyer.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18Under current law, a person who is engaged in the business
19of selling motor vehicles at retail must have a dealer license
20issued by the department of transportation (DOT). To obtain
21a license, a dealer must have a designated location wherein
22proper and adequate facilities are required to be maintained
23for displaying, reconditioning, and repairing either new or
24used cars (place of business), unless the person sells motor
25vehicles at retail solely for the purpose of disposing of
26vehicles acquired or repossessed through the exercise of
27powers or rights given as security for loans or purchase money
28obligations. A person is prohibited from selling, offering
29for sale, displaying, representing, or advertising that the
30person intends to sell motor vehicles from a location other
31than the person’s place of business, unless the person receives
32a temporary permit that authorizes limited business at fairs,
33vehicle shows, and vehicle exhibitions as provided in Code
34section 322.5. However, all such sales must be consummated at
35the dealer’s principal place of business.
-1- 1This bill authorizes licensed motor vehicle dealers to sell,
2offer for sale, negotiate sales of, display, represent, or
3advertise that the dealer intends to sell motor vehicles via
4the internet, and deliver vehicles sold by the dealer to a
5buyer at the buyer’s residence or other suitable location if
6the delivery is requested by the buyer.
7The bill does not amend the requirements under current law
8that a dealer have a place of business for purposes of the
9license application, license issuance and fees, and information
10contained on the license.
-2-th/ns