House File 2361 H-8032 Amend House File 2361 as follows: 1 1. Page 26, after line 22 by inserting: 2 < DIVISION ___ 3 MOTOR VEHICLE DEALERS 4 Sec. ___. Section 321.48, Code 2014, is amended by 5 adding the following new subsection: 6 NEW SUBSECTION . 2A. Notwithstanding subsections 1 7 and 2, requirements in those subsections for obtaining 8 title to a vehicle or acknowledging assignment and 9 warranty of title do not apply to a dealer who sells 10 a motor vehicle to a purchaser in a consignment 11 transaction authorized under section 322.7B. 12 Sec. ___. Section 321.57, subsection 1, Code 2014, 13 is amended to read as follows: 14 1. A dealer owning any vehicle of a type otherwise 15 required to be registered under this chapter may 16 operate or move the vehicle upon the highways solely 17 for purposes of transporting, testing, demonstrating, 18 or selling the vehicle without registering the vehicle, 19 upon condition that the vehicle display in the manner 20 prescribed in sections 321.37 and 321.38 a special 21 plate issued to the owner as provided in sections 22 321.58 through 321.62 . A dealer may operate or move 23 upon the highways a vehicle owned by the dealer for 24 either private or business purposes , including hauling 25 a load or towing a trailer, without registering it 26 if the vehicle is in the dealer’s inventory and is 27 continuously offered for sale at retail, and there is 28 displayed on it a special plate issued to the dealer as 29 provided in sections 321.58 through 321.62 . A dealer 30 may operate or move upon the highways an unregistered 31 vehicle owned by a lessor licensed pursuant to chapter 32 321F solely for the purpose of delivering the vehicle 33 to the owner or transporting the vehicle to or from an 34 auction if there is displayed on the vehicle a special 35 plate issued to the dealer as provided in sections 36 321.58 through 321.62 . 37 Sec. ___. Section 321.60, Code 2014, is amended to 38 read as follows: 39 321.60 Issuance of special plates. 40 The department shall also issue special plates 41 as applied for, which shall display the general 42 distinguishing number assigned to the applicant. Each 43 plate so issued shall also contain a number or symbol 44 identifying the plate and distinguishing it from every 45 other plate bearing the same general distinguishing 46 number. The fee for each special plate is forty 47 dollars for a two-year period or part thereof. The fee 48 for a special plate used on a vehicle that is hauling a 49 load or towing a trailer is seven hundred fifty dollars 50 -1- HF2361.2976 (2) 85 dea/nh 1/ 3 #1.

for a two-year period or part thereof. 1 Sec. ___. Section 321.69A, subsection 1, paragraph 2 a, subparagraph (2), Code 2014, is amended to read as 3 follows: 4 (2) The actual cost of any labor or parts charged 5 to or performed by the dealer for any such repairs, 6 adjustments, or parts does not exceed four percent of 7 the dealer’s adjusted cost manufacturer’s suggested 8 retail price . 9 Sec. ___. Section 321.69A, subsections 2 and 3, 10 Code 2014, are amended to read as follows: 11 2. A person licensed as a new motor vehicle dealer 12 pursuant to chapter 322 shall disclose in writing, at 13 or before the time of sale or lease, to the buyer or 14 lessee of a new motor vehicle that the vehicle has been 15 subject to any repairs of damage to or adjustments on 16 or replacements of parts with new parts if the actual 17 cost of any labor or parts charged to or performed by 18 the dealer for any such repairs, adjustments, or parts 19 exceeds four percent of the dealer’s adjusted cost 20 manufacturer’s suggested retail price . The written 21 disclosure shall include the signature of the buyer or 22 lessee and be in a form and in a format approved by 23 the attorney general by rule. A dealer shall retain a 24 copy of each written disclosure issued pursuant to this 25 section for five years from the date of issuance. 26 3. As used in this section , “dealer’s adjusted 27 cost” “manufacturer’s suggested retail price” means 28 the amount paid by the dealer to the manufacturer or 29 other source for the vehicle, including any freight 30 charges, but excluding any sum paid by the manufacturer 31 to the dealer as a holdback or other monetary incentive 32 relating to the vehicle required to be disclosed by a 33 dealer pursuant to 15 U.S.C. §1232(f)(4) . 34 Sec. ___. Section 321.105A, subsection 2, paragraph 35 c, subparagraph (14), Code 2014, is amended to read as 36 follows: 37 (14) Vehicles purchased by a licensed motor vehicle 38 dealer for resale or primarily for use by the dealer’s 39 customers while the customers’ vehicles are being 40 serviced or repaired by the dealer . 41 Sec. ___. NEW SECTION . 322.7B Consignment sales 42 of motor trucks. 43 A licensed motor vehicle dealer may sell a used 44 motor truck on a consignment basis if all of the 45 following conditions apply: 46 1. The dealer is licensed to sell used motor 47 vehicles. 48 2. The motor truck offered for sale has a gross 49 vehicle weight rating of twenty-six thousand one or 50 -2- HF2361.2976 (2) 85 dea/nh 2/ 3

more pounds. 1 3. The dealer prominently displays the words 2 “consignment vehicle” on the motor truck and indicates 3 clearly in the sales documentation that the motor 4 truck is a consignment vehicle. The dealer shall put 5 customers on notice that the dealer does not have title 6 to the vehicle and does not warranty the title. 7 4. The purchaser certifies to the dealer that the 8 person is either a corporation, limited liability 9 company, or partnership or a person who files a 10 schedule C or schedule F form for federal income tax 11 purposes, and that the motor truck is being purchased 12 for business purposes, and not for personal use. 13 5. The dealer assumes no liability for damages 14 resulting from a customer’s test drive of the motor 15 truck, and the consignor maintains financial liability 16 coverage as required under section 321.20B or 325A.6, 17 as appropriate, for the motor truck throughout the term 18 of the consignment. 19 Sec. ___. Section 322.9, subsection 2, paragraphs 20 a, b, and c, Code 2014, are amended to read as follows: 21 a. Failing upon the sale or transfer of a vehicle , 22 except upon the sale of a vehicle under section 23 322.7B, to deliver to the purchaser or transferee of 24 the vehicle sold or transferred, a manufacturer’s or 25 importer’s certificate, or a certificate of title duly 26 assigned, as provided in chapter 321 . 27 b. Failing upon the purchasing or otherwise 28 acquiring of a vehicle , except a vehicle acquired 29 on consignment under section 322.7B, to obtain a 30 manufacturer’s or importer’s certificate, or a 31 certificate of title duly assigned as provided in 32 chapter 321 . 33 c. Failing upon the purchasing or otherwise 34 acquiring of a vehicle , except a vehicle acquired on 35 consignment under section 322.7B, to obtain a new 36 certificate of title to such vehicle when and where 37 required in chapter 321 . > 38 2. By renumbering as necessary. 39 ______________________________ MOORE of Jackson -3- HF2361.2976 (2) 85 dea/nh 3/ 3 #2.