House File 2005 - Introduced HOUSE FILE 2005 BY SCHUELLER A BILL FOR An Act eliminating the continuing education requirement for 1 used motor vehicle dealers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5172YH (2) 83 dea/nh

H.F. 2005 Section 1. Section 322.7, subsection 4, Code 2009, is 1 amended to read as follows: 2 4. The motor vehicle dealer license provided for in this 3 chapter shall be renewed upon application in the form and 4 content prescribed by the department and upon payment of the 5 required fee. A used motor vehicle dealer license shall not be 6 renewed for an applicant who is subject to continuing education 7 requirements until the licensee certifies completion of the 8 educational requirements for license renewal under section 9 322.7A . The certification may be transmitted to the department 10 by the education provider in electronic format. A licensee 11 shall have the month of expiration and the month after the 12 month of expiration to renew the license. A person who fails 13 to renew a license by the end of this time period and desires 14 to hold a license shall file a new license application and pay 15 the required fee. 16 Sec. 2. Section 322.7A, Code 2009, is amended to read as 17 follows: 18 322.7A Used motor vehicle dealer education program. 19 1. An applicant for a license as a used motor vehicle dealer 20 shall complete a minimum of eight hours of prelicensing used 21 motor vehicle dealer education program courses pursuant to this 22 section prior to submitting an application to the department. 23 2. A person seeking renewal of a used motor vehicle dealer 24 license shall complete a minimum of five hours of continuing 25 education program courses over a two-year period pursuant to 26 this section prior to submitting an application for license 27 renewal. However, an applicant for renewal of a used motor 28 vehicle dealer license who has met the prelicensing education 29 requirement under subsection 1 within the preceding twenty-four 30 months is exempt from the continuing education requirement for 31 license renewal. 32 3. 2. To meet the requirements of this section, at least 33 one individual who is associated with the used motor vehicle 34 dealer as an owner, principal, corporate officer, director, or 35 -1- LSB 5172YH (2) 83 dea/nh 1/ 3

H.F. 2005 member or partner of a limited liability company or limited 1 liability partnership shall complete the education program 2 courses. 3 4. 3. The Iowa independent automobile dealers association, 4 in consultation with the state department of transportation, 5 the department of education, the attorney general, and the 6 Iowa association of community college trustees, shall develop 7 the prelicensing and continuing education course curricula 8 for the used motor vehicle dealer education program, which 9 shall include but not be limited to examination of federal 10 and state laws applicable to the motor vehicle industry and 11 federal and state regulations pertaining to used motor vehicle 12 dealers. The education program courses shall be provided by 13 community colleges as defined in section 260C.2 or by the Iowa 14 independent automobile dealers association in conjunction 15 with a community college. The department of education shall 16 adopt rules establishing reasonable fees to be charged 17 for the prelicensing education courses and the continuing 18 education courses. 19 5. 4. A community college shall issue a certificate to 20 each person who successfully completes the prelicensing used 21 motor vehicle dealer education program or a continuing 22 education program under this section. The current certificate 23 of completion, or a copy of the certificate, shall be posted 24 conspicuously in the principal office of the licensee. 25 6. 5. The provisions of this section apply to all 26 used motor vehicle dealers, including but not limited to 27 individuals, corporations, and partnerships, except for the 28 following: 29 a. Motor vehicle rental companies having a national 30 franchise. 31 b. National motor vehicle auction companies. 32 c. Wholesale dealer-only auction companies. 33 d. Used car dealerships owned by a franchise motor vehicle 34 dealer. 35 -2- LSB 5172YH (2) 83 dea/nh 2/ 3

H.F. 2005 e. Banks, credit unions, and savings and loan associations. 1 7. 6. Each community college providing used motor vehicle 2 dealer education program courses shall transmit a report 3 on the program annually by December 31 to the director of 4 transportation, the director of the department of education, 5 the attorney general, and the president of the Iowa association 6 of community college trustees. 7 EXPLANATION 8 This bill eliminates the continuing education requirement 9 for used motor vehicle dealers. The used motor vehicle 10 dealer education program currently consists of eight hours 11 of prelicensing education courses to be completed prior to 12 licensure and five hours of continuing education courses 13 to be completed over a two-year period prior to license 14 renewal. Under the bill, an applicant for a new license is 15 still required to complete eight hours of used motor vehicle 16 dealer education as a condition for licensure, but there is no 17 continuing education requirement for renewal of the license. 18 -3- LSB 5172YH (2) 83 dea/nh 3/ 3