Print
House File 493 - IntroducedA Bill ForAn Act 1relating to optional equipment and subscription service
2fees included with the sale of motor vehicles by licensed
3motor vehicle dealers, and making penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.3, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 6A. A person who is engaged in the
4business of selling motor vehicles at retail shall not make
5or enter into a contract containing an optional equipment or
6subscription service fee unless the cost of the additional fee
7is included with the advertised sales price of the vehicle.
8A contract containing an optional equipment or subscription
9service fee must include all of the following:
10a. A detailed description of the optional equipment
11installed in the vehicle.
12b. The cost of the optional equipment and any associated
13subscription fee, including but not limited to the monthly cost
14necessary to use the optional equipment.
15c. Contact information of the manufacturer of the optional
16equipment, including a telephone number and email address, that
17directs the buyer to a customer service representative who can
18assist with the termination of the subscription service.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill prohibits a person who is engaged in the business
23of selling motor vehicles at retail from making or entering
24into a contract that has an optional equipment or subscription
25service fee unless the cost of the additional fee is included
26with the advertised sales price of the vehicle. A contract
27that has an optional equipment or subscription service fee
28must include a detailed description of the optional equipment
29installed in the vehicle, a breakdown of the cost of the
30optional equipment and any associated subscription fee,
31including but not limited to the monthly cost necessary to
32use the optional equipment, and contact information of the
33manufacturer of the optional equipment, including a telephone
34number and email address, that directs the buyer to a customer
35service representative who can assist with the termination of
-1-1the subscription service.
2By operation of law, the department of transportation (DOT)
3may revoke or suspend the motor vehicle dealer license granted
4to a person if, after notice and hearing by the department of
5inspections and appeals, the DOT finds that the person has,
6among other things, not complied with Code chapter 322 or
7any rules or regulations adopted by the DOT, including the
8provisions of the bill. In addition, a person who violates
9any provisions of Code chapter 322 for which a penalty is
10not specifically provided is guilty of a simple misdemeanor
11punishable by a fine of not less than $250 nor more than $1,500
12or by imprisonment not to exceed 30 days. If the violation
13involves a retail installment contract, the person is subject
14to the applicable penalties under Code chapter 537 (consumer
15credit code).
-2-th/ns
2fees included with the sale of motor vehicles by licensed
3motor vehicle dealers, and making penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.3, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 6A. A person who is engaged in the
4business of selling motor vehicles at retail shall not make
5or enter into a contract containing an optional equipment or
6subscription service fee unless the cost of the additional fee
7is included with the advertised sales price of the vehicle.
8A contract containing an optional equipment or subscription
9service fee must include all of the following:
10a. A detailed description of the optional equipment
11installed in the vehicle.
12b. The cost of the optional equipment and any associated
13subscription fee, including but not limited to the monthly cost
14necessary to use the optional equipment.
15c. Contact information of the manufacturer of the optional
16equipment, including a telephone number and email address, that
17directs the buyer to a customer service representative who can
18assist with the termination of the subscription service.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill prohibits a person who is engaged in the business
23of selling motor vehicles at retail from making or entering
24into a contract that has an optional equipment or subscription
25service fee unless the cost of the additional fee is included
26with the advertised sales price of the vehicle. A contract
27that has an optional equipment or subscription service fee
28must include a detailed description of the optional equipment
29installed in the vehicle, a breakdown of the cost of the
30optional equipment and any associated subscription fee,
31including but not limited to the monthly cost necessary to
32use the optional equipment, and contact information of the
33manufacturer of the optional equipment, including a telephone
34number and email address, that directs the buyer to a customer
35service representative who can assist with the termination of
-1-1the subscription service.
2By operation of law, the department of transportation (DOT)
3may revoke or suspend the motor vehicle dealer license granted
4to a person if, after notice and hearing by the department of
5inspections and appeals, the DOT finds that the person has,
6among other things, not complied with Code chapter 322 or
7any rules or regulations adopted by the DOT, including the
8provisions of the bill. In addition, a person who violates
9any provisions of Code chapter 322 for which a penalty is
10not specifically provided is guilty of a simple misdemeanor
11punishable by a fine of not less than $250 nor more than $1,500
12or by imprisonment not to exceed 30 days. If the violation
13involves a retail installment contract, the person is subject
14to the applicable penalties under Code chapter 537 (consumer
15credit code).
-2-th/ns