Senate File 452 S-3229 Amend the Senate amendment, S-3223, to the House 1 amendment, S-3218, to Senate File 452, as amended, 2 passed, and reprinted by the Senate, as follows: 3 1. Page 61, after line 22 by inserting: 4 < DIVISION ___ 5 MOTOR VEHICLE REGISTRATION FEE EQUITY 6 Sec. ___. Section 321.55, Code 2013, is amended to 7 read as follows: 8 321.55 Registration and financial liability coverage 9 required for certain vehicles owned or operated by 10 nonresidents. 11 1. A nonresident owner or operator engaged in 12 remunerative employment within the this state or 13 carrying on business within the this state and owning 14 or operating a motor vehicle, trailer, or semitrailer 15 within the this state shall register and maintain 16 financial liability coverage as required under section 17 321.20B for each vehicle and pay the same fees for 18 registration as are paid for like vehicles owned by 19 residents of this state. However, this paragraph 20 subsection does not apply to a person commuting from 21 the person’s residence in another state or whose 22 employment is seasonal or temporary, not exceeding 23 ninety days. 24 2. a. A nonresident owner of a motor vehicle 25 operated within the this state by a resident of 26 the this state shall register the vehicle and shall 27 maintain financial liability coverage as required 28 under section 321.20B for the vehicle. The nonresident 29 owner shall pay the same fees for registration as are 30 paid for like vehicles owned by residents of this 31 state. However, registration under this paragraph is 32 not required for vehicles being operated by residents 33 temporarily , not exceeding for not more than ninety 34 days. For purposes of this paragraph, a vehicle 35 is not operated in the state temporarily, and is 36 therefore subject to registration and the owner is 37 required to pay the applicable fees, if the vehicle 38 is located in Iowa for more than ninety consecutive 39 or nonconsecutive days and is operated on an Iowa 40 highway by an Iowa resident during that time. It is 41 unlawful for a resident to operate within the state an 42 unregistered motor vehicle required to be registered 43 under this paragraph. The ninety-day temporary period 44 of operation provided for under this paragraph does 45 not apply to a vehicle owned by a shell business as 46 provided in paragraph “b” . 47 b. On or after July 1, 2013, if the department, 48 in consultation with the department of revenue, 49 determines that the nonresident owner of a vehicle is a 50 -1- S3223.2228 (1) 85 dea/tm 1/ 3 #1.

partnership, limited liability company, or corporation 1 that is a shell business, it shall be rebuttably 2 presumed that the Iowa resident in control of the 3 vehicle is the actual owner of the vehicle, that the 4 vehicle is subject to registration in this state, and 5 that payment of the fee for new registration for the 6 vehicle is owed by the Iowa resident. 7 (1) Factors which indicate that a partnership, 8 limited liability company, or corporation is a shell 9 business include but are not limited to the following: 10 (a) The partnership, limited liability company, 11 or corporation lacks a specific business activity or 12 purpose. 13 (b) The partnership, limited liability company, or 14 corporation fails to maintain a physical location in 15 the foreign state. 16 (c) The partnership, limited liability company, 17 or corporation fails to employ individual persons and 18 provide those persons with internal revenue service 19 form W-2 wage and tax statements. 20 (d) The partnership, limited liability company, or 21 corporation fails to file federal tax returns, or fails 22 to file a required state tax return in the foreign 23 state. 24 (2) Factors which indicate that a person is in 25 control of a vehicle include but are not limited to the 26 following: 27 (a) The person was the initial purchaser of the 28 vehicle. 29 (b) The person operated or stored the vehicle in 30 Iowa for any period of time. 31 (c) The person is a partner, member, or shareholder 32 of the nonresident partnership, limited liability 33 company, or corporation that purports to be the owner 34 of the vehicle. 35 (d) The person is insured to drive the vehicle. 36 (3) If the department determines that the 37 nonresident owner of a vehicle is a shell business, the 38 department shall notify the Iowa resident in control 39 of the vehicle in writing that the Iowa resident is 40 required to obtain an Iowa certificate of title and 41 registration for the vehicle and pay the fee for new 42 registration owed for the vehicle not later than thirty 43 days from the date of the notice. 44 Sec. ___. Section 321.105A, subsection 7, Code 45 2013, is amended to read as follows: 46 7. Penalty for false statement or evasion of fee . 47 a. A person who willfully makes a false statement 48 in regard to the purchase price of a vehicle subject 49 to a fee for new registration or willfully attempts 50 -2- S3223.2228 (1) 85 dea/tm 2/ 3

in any manner to evade payment of the fee required by 1 this section is guilty of a fraudulent practice. A 2 person who willfully makes a false statement in regard 3 to the purchase price of such a vehicle with the intent 4 to evade payment of the fee for new registration or 5 willfully attempts in any manner to evade payment of 6 the fee required by this section shall be assessed 7 a penalty of seventy-five percent of the amount of 8 the fee unpaid and required to be paid on the actual 9 purchase price less trade-in allowance. 10 b. An Iowa resident found to be in control of 11 a vehicle which is owned by a shell business and 12 for which the fee for new registration has not been 13 paid, as provided in section 321.55, subsection 2, is 14 guilty of a fraudulent practice. An Iowa resident 15 found to be in control of a vehicle which is owned 16 by a shell business and for which the fee for new 17 registration has not been paid, as provided in section 18 321.55, subsection 2, shall be assessed a penalty of 19 seventy-five percent of the amount of the fee unpaid 20 and required to be paid on the actual purchase price 21 less trade-in allowance. 22 Sec. ___. REPEAL. Section 321.116, Code 2013, is 23 repealed. 24 Sec. ___. APPLICABILITY —— PRIOR ELECTRIC VEHICLE 25 REGISTRATIONS. 26 1. Except as provided in subsection 2, the section 27 of this division of this Act that repeals section 28 321.116 applies to the registration of electric motor 29 vehicles for registration years beginning on or after 30 January 1, 2014. 31 2. For an annual renewal of registration for an 32 electric motor vehicle which was registered to the 33 same owner for a registration year beginning prior to 34 January 1, 2014, the annual registration fee shall be 35 according to the terms of section 321.116, Code 2013. > 36 2. By renumbering as necessary. 37 ______________________________ TOD R. BOWMAN -3- S3223.2228 (1) 85 dea/tm 3/ 3 #2.