Senate File 504 S-3128 Amend Senate File 504 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 321.50, subsection 5, paragraph a, Code 4 2023, is amended to read as follows: 5 a. When Except as provided in section 321.48, subsection 6 1, paragraph “b” , when a security interest is discharged, the 7 holder shall note a cancellation of the security interest 8 on the face of the certificate of title over the holder’s 9 signature or may note the cancellation of the security interest 10 on a separate, notarized release form or letter. The holder 11 shall deliver the certificate of title and the form or letter, 12 if applicable, to the county treasurer where the title was 13 issued. In the case of a security interest that has been 14 delivered by electronic means, the holder shall notify the 15 department or the county treasurer, in a manner prescribed 16 by the department, of the release of the security interest. 17 The county treasurer shall immediately note the cancellation 18 of the security interest on the face of the certificate of 19 title, if applicable, and in the county records system. The 20 county treasurer shall on the same day deliver the certificate 21 of title, if applicable, and the separate, notarized release 22 form or letter, if applicable, to the then first secured party 23 or, if there is no such person, to the person as directed by 24 the owner, in writing, on a form prescribed by the department 25 or, if there is no person designated, then to the owner. The 26 cancellation of the security interest shall be noted on the 27 certificate of title by the county treasurer without charge. 28 The holder of a security interest discharged by payment who 29 fails to release the security interest within fifteen days 30 after being requested in writing to do so shall forfeit to the 31 person making the payment the sum of twenty-five dollars. 32 Sec. 2. Section 321.50, Code 2023, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 5A. Notwithstanding subsection 5, when 35 -1- SF 504.1749 (1) 90 (amending this SF 504 to CONFORM to HF 592) th/ns 1/ 3 #1.

an application for registration and issuance of a certificate 1 of title is made by the means described in section 321.20, 2 subsection 2, and the application includes a certificate of 3 title upon which a security interest has been discharged by the 4 secured party and the cancellation of the security interest is 5 noted by the secured party on the certificate of title above 6 the secured party’s signature, the county treasurer shall 7 not require any other notation of the cancellation of the 8 security interest on the face of the certificate of title, and, 9 if applicable, the county treasurer shall notify the county 10 treasurer of the county where the certificate of title was 11 issued that the security interest has been released as of the 12 specified date and shall update such release on the applicable 13 program or computer system. A dealer licensed under chapter 14 322 or chapter 322C is authorized to sell such a vehicle 15 pursuant to section 321.48, subsection 1, paragraph “b” . 16 Sec. 3. Section 322.2, Code 2023, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 20A. “Remote sale” means a sale of a 19 motor vehicle conducted via mail, either electronically or 20 by courier, including any offering, bartering, negotiating, 21 exchanging, and other communication regarding the sale of the 22 vehicle. “Remote sale” includes the delivery of the vehicle to 23 the residence of the buyer or another agreed-to location, if 24 requested by the buyer. 25 Sec. 4. Section 322.3, subsection 11, Code 2023, is amended 26 to read as follows: 27 11. A person who is engaged in the business of selling motor 28 vehicles at retail shall not sell, offer for sale, display, 29 represent, or advertise that the person intends to sell motor 30 vehicles from a location other than the person’s place of 31 business, except as provided in subsection 11A or section 32 322.5 . 33 Sec. 5. Section 322.3, Code 2023, is amended by adding the 34 following new subsection: 35 -2- SF 504.1749 (1) 90 (amending this SF 504 to CONFORM to HF 592) th/ns 2/ 3

NEW SUBSECTION . 11A. A retail seller licensed under this 1 chapter may engage in remote sales of motor vehicles located 2 at a place of business of the retail seller, as listed on the 3 license, under all of the following conditions: 4 a. The dealer shall possess, at the time of the sale, the 5 certificate of title to any motor vehicle offered for remote 6 sale. 7 b. The dealer may transmit a proposed purchase agreement 8 from the dealer to the prospective buyer if such agreement is 9 the result of negotiation between the parties. The dealer 10 shall not negotiate and shall not deliver a proposed purchase 11 agreement to a buyer in person at a location other than the 12 dealer’s place of business. 13 c. The dealer shall not sign a proposed purchase agreement 14 until the dealer receives an executed purchase agreement from 15 the buyer. A signed purchase agreement must be delivered to 16 the dealer’s place of business. 17 d. The dealer shall not deliver a motor vehicle to a buyer 18 away from the dealer’s place of business until the buyer’s 19 purchase of the motor vehicle is completed. 20 e. Remote sales are subject to chapter 554D. > 21 2. Title page, by striking lines 1 through 3 and inserting 22 < An Act relating to licensed vehicle dealers, including 23 vehicles for resale subject to a security interest and remote 24 sales of motor vehicles. > 25 ______________________________ MIKE BOUSSELOT -3- SF 504.1749 (1) 90 (amending this SF 504 to CONFORM to HF 592) th/ns 3/ 3 #2.