H.F. 2122 Section 1. Section 307.27, subsection 2, Code Supplement 1 2011, is amended to read as follows: 2 2. Administer and supervise the licensing of motor vehicle 3 or motor home manufacturers, distributors , and dealers pursuant 4 to chapter chapters 322 and 322C . 5 Sec. 2. Section 321.1, subsection 42, paragraphs b and c, 6 Code Supplement 2011, are amended to read as follows: 7 b. “Used motor vehicle” or “secondhand motor vehicle” 8 or “used car” means a motor vehicle of a type subject to 9 registration under the laws of this state which has been sold 10 “at retail” as defined in chapter chapters 322 and 322C and 11 previously registered in this or any other state. 12 c. “New motor vehicle or new car” means a motor vehicle 13 subject to registration which has not been sold “at retail” as 14 defined in chapter chapters 322 and 322C . 15 Sec. 3. Section 321.20B, subsection 8, Code 2011, is amended 16 to read as follows: 17 8. This section does not apply to a motor vehicle owned by 18 a motor vehicle or motor home dealer or wholesaler licensed 19 pursuant to chapter 322 or 322C . 20 Sec. 4. Section 321.23, subsection 3, Code 2011, is amended 21 to read as follows: 22 3. In the event an applicant for registration of a foreign 23 vehicle for which a certificate of title has been issued is 24 able to furnish evidence of being the registered owner of the 25 vehicle to the county treasurer of the owner’s residence, 26 although unable to surrender such certificate of title, the 27 county treasurer may issue a registration receipt and plates 28 upon receipt of the required annual registration fee and the 29 fee for new registration but shall not issue a certificate of 30 title thereto. Upon surrender of the certificate of title 31 from the foreign state, the county treasurer shall issue a 32 certificate of title to the owner, or person entitled thereto, 33 of such vehicle as provided in this chapter . The owner of a 34 vehicle registered under this subsection shall not be required 35 -1- LSB 5198YH (8) 84 ad/nh 1/ 36

H.F. 2122 to obtain a certificate of title in this state and may transfer 1 ownership of the vehicle to a motor vehicle or motor home 2 dealer licensed under chapter 322 or 322C if, at the time of 3 the transfer, the certificate of title is held by a secured 4 party and the dealer has forwarded to the secured party the 5 sum necessary to discharge the security interest pursuant to 6 section 321.48, subsection 1 . 7 Sec. 5. Section 321.52, subsection 4, paragraph a, Code 8 2011, is amended to read as follows: 9 a. A vehicle rebuilder or a person engaged in the business 10 of buying, selling, or exchanging vehicles of a type required 11 to be registered in this state, upon acquisition of a wrecked 12 or salvage vehicle, shall surrender the certificate of 13 title or manufacturer’s or importer’s statement of origin 14 properly assigned, together with an application for a salvage 15 certificate of title, to the county treasurer of the county of 16 residence of the purchaser or transferee within thirty days 17 after the date of assignment of the certificate of title for 18 the wrecked or salvage motor vehicle. This subsection applies 19 only to vehicles with a fair market value of five hundred 20 dollars or more, based on the value before the vehicle became 21 wrecked or salvage. Upon payment of a fee of ten dollars, the 22 county treasurer shall issue a salvage certificate of title 23 which shall bear the word “SALVAGE” stamped or printed on the 24 face of the title in a manner prescribed by the department. A 25 salvage certificate of title may be assigned to an educational 26 institution, a new motor vehicle dealer licensed under chapter 27 322 , a new motor home dealer licensed under chapter 322C, a 28 person engaged in the business of purchasing bodies, parts 29 of bodies, frames or component parts of vehicles for sale as 30 scrap metal, a salvage pool, or an authorized vehicle recycler 31 licensed under chapter 321H . An authorized vehicle recycler 32 licensed under chapter 321H or , a a new motor vehicle dealer 33 licensed under chapter 322 , or a new motor home dealer licensed 34 under chapter 322C, may assign or reassign an Iowa salvage 35 -2- LSB 5198YH (8) 84 ad/nh 2/ 36

H.F. 2122 certificate of title or a salvage certificate of title from 1 another state to any person, and the provisions of section 2 321.24, subsection 5 , requiring issuance of an Iowa salvage 3 certificate of title shall not apply. A vehicle on which 4 ownership has transferred to an insurer of the vehicle as a 5 result of a settlement with the owner of the vehicle arising 6 out of damage to, or unrecovered theft of, the vehicle shall be 7 deemed to be a wrecked or salvage vehicle and the insurer shall 8 comply with this subsection to obtain a salvage certificate of 9 title within thirty days after the date of assignment of the 10 certificate of title of the vehicle. 11 Sec. 6. Section 321.57, subsections 5 and 6, Code 2011, are 12 amended to read as follows: 13 5. A dealer licensed as a wholesaler for a new motor vehicle 14 model under chapter 322 or a dealer licensed as a wholesaler 15 for a new motor home model under chapter 322C may operate a new 16 motor vehicle or new motor home of that model, owned by the 17 wholesaler, upon the highway when there is displayed on the 18 vehicle a special plate issued to the wholesaler as provided in 19 sections 321.58 through 321.62 and when operated solely for the 20 purposes of demonstration, show, or exhibition. 21 6. A manufacturer licensed under chapter 322 or 322C that 22 manufactures ambulances, rescue vehicles, or fire vehicles 23 may operate or move a new ambulance, rescue vehicle, or fire 24 vehicle manufactured and owned by the manufacturer solely for 25 purposes of transporting, demonstrating, showing, or exhibiting 26 the vehicle when there is displayed on the vehicle a special 27 plate issued to the manufacturer as provided in sections 321.58 28 through 321.62 . 29 Sec. 7. Section 321.58, Code 2011, is amended to read as 30 follows: 31 321.58 Application. 32 All dealers, transporters, and new motor vehicle or new 33 motor home wholesalers licensed under chapter 322 or 322C , 34 upon payment of a fee of seventy dollars for a two-year 35 -3- LSB 5198YH (8) 84 ad/nh 3/ 36

H.F. 2122 period or part thereof, may make application to the department 1 upon the appropriate form for a certificate containing a 2 general distinguishing number and for one or more special 3 plates as appropriate to various types of vehicles subject 4 to registration. The applicant shall also submit proof of 5 the applicant’s status as a bona fide transporter, new motor 6 vehicle wholesaler , or new motor home wholesaler licensed under 7 chapter 322 or 322C , or dealer, as reasonably required by the 8 department. Dealers in new vehicles shall furnish satisfactory 9 evidence of a valid franchise with the manufacturer of the 10 vehicles authorizing the dealership. 11 Sec. 8. Section 321.69, subsections 6, 8, and 11, Code 2011, 12 are amended to read as follows: 13 6. Authorized vehicle recyclers licensed under chapter 14 321H , and motor vehicle dealers licensed under chapter 322 , and 15 motor home dealers licensed under chapter 322C shall maintain 16 copies of all damage disclosure statements where the recycler 17 or dealer is either the transferor or the transferee for five 18 years following the date of the statement. The copies shall be 19 made available to the department or the attorney general upon 20 request. 21 8. A person, authorized vehicle recycler licensed under 22 chapter 321H , or motor vehicle dealer licensed under chapter 23 322 , or motor home dealer licensed under chapter 322C shall 24 not be liable to a subsequent owner, driver, or passenger of 25 a vehicle because a prior owner or lessee gave a false or 26 inaccurate damage disclosure statement or failed to disclose 27 that the vehicle had previously been damaged and repaired or 28 had been titled on a salvage, rebuilt, or flood certificate of 29 title unless the person, recycler, or dealer knew or reasonably 30 should have known that the prior owner or lessee gave a false 31 or inaccurate damage disclosure statement or failed to disclose 32 that the vehicle had been damaged and repaired or had been 33 titled on a salvage, rebuilt, or flood certificate of title. 34 11. A person who knowingly makes a false damage disclosure 35 -4- LSB 5198YH (8) 84 ad/nh 4/ 36

H.F. 2122 statement or fails to make a damage disclosure statement 1 required by this section commits a fraudulent practice. 2 Failure of a person, authorized vehicle recycler licensed under 3 chapter 321H , or motor vehicle dealer licensed under chapter 4 322 , or motor home dealer licensed under chapter 322C to comply 5 with any duty imposed by this section constitutes a violation 6 of section 714.16, subsection 2 , paragraph “a” . 7 Sec. 9. Section 321.69A, subsection 1, paragraph a, 8 unnumbered paragraph 1, Code Supplement 2011, is amended to 9 read as follows: 10 A person licensed as a new motor vehicle or new motor home 11 dealer pursuant to chapter 322 or 322C, shall not be required 12 to disclose to a prospective or actual buyer or lessee of a 13 new motor vehicle repairs of damage to or adjustments on or 14 replacements of parts with new parts on the motor vehicle if 15 all of the following are true: 16 Sec. 10. Section 321.69A, subsection 2, Code Supplement 17 2011, is amended to read as follows: 18 2. A person licensed as a new motor vehicle or new motor 19 home dealer pursuant to chapter 322 or 322C, shall disclose 20 in writing, at or before the time of sale or lease, to the 21 buyer or lessee of a new motor vehicle that the vehicle has 22 been subject to any repairs of damage to or adjustments on or 23 replacements of parts with new parts if the actual cost of any 24 labor or parts charged to or performed by the dealer for any 25 such repairs, adjustments, or parts exceeds four percent of the 26 dealer’s adjusted cost. The written disclosure shall include 27 the signature of the buyer or lessee and be in a form and in 28 a format approved by the attorney general by rule. A dealer 29 shall retain a copy of each written disclosure issued pursuant 30 to this section for five years from the date of issuance. 31 Sec. 11. Section 321.71, subsection 9, Code 2011, is amended 32 to read as follows: 33 9. An Iowa licensed motor vehicle or motor home dealer 34 shall not have in possession as inventory for sale a used motor 35 -5- LSB 5198YH (8) 84 ad/nh 5/ 36

H.F. 2122 vehicle acquired by the dealer after the tenth model year 1 prior to the current registration year, for which the dealer 2 does not possess an odometer statement by the transferor which 3 is in compliance with federal law and regulations unless a 4 certificate of title has been issued for the vehicle in the 5 name of the dealer. Transfer of a new motor vehicle with 6 an ownership document which is a manufacturer’s statement of 7 origin requires an odometer statement only when transferred at 8 retail. 9 Sec. 12. Section 321.95, subsection 1, Code 2011, is amended 10 to read as follows: 11 1. Peace officers shall have the authority to inspect any 12 vehicle or component part in possession of a vehicle rebuilder, 13 vehicle salvager, used vehicle parts dealer, or any person 14 licensed under chapter 322 or 322C , or found upon the public 15 highway or in any public garage, enclosure, or property in 16 which vehicles or component parts are kept for sale, storage, 17 hire, or repair and for that purpose may enter any such public 18 garage, enclosure, or property. Every vehicle rebuilder, 19 vehicle salvager, used vehicle parts dealer, or any person 20 licensed under chapter 322 or 322C , or a person having used 21 engines or transmissions which are component parts for sale 22 shall keep an accurate and complete record of all vehicles 23 demolished and of such component parts purchased or received 24 for resale as component parts in the course of business. These 25 records shall contain the name and address of the person from 26 whom each such vehicle or component part was purchased or 27 received and the date when the purchase or receipt occurred or 28 the junking certificate if required for the vehicle. These 29 records shall be open for inspection by any peace officer at 30 any time during normal business hours. Records required by 31 this section shall be kept for at least three years after the 32 transaction which they record. 33 Sec. 13. Section 321.105A, subsection 2, paragraph a, 34 subparagraphs (1) and (3), Code Supplement 2011, are amended 35 -6- LSB 5198YH (8) 84 ad/nh 6/ 36

H.F. 2122 to read as follows: 1 (1) Exempted from the purchase price of any vehicle subject 2 to registration is the amount of any cash rebate which is 3 provided by a motor vehicle or motor home manufacturer to the 4 purchaser of the vehicle subject to registration so long as the 5 rebate is applied to the purchase price of the vehicle. 6 (3) Exempted from the purchase price of a replacement 7 motor vehicle owned by a motor vehicle or motor home dealer 8 licensed under chapter 322 or 322C which is being registered 9 by that dealer and is not otherwise exempt from the fee for 10 new registration is the fair market value of a replaced motor 11 vehicle if all of the following conditions are met: 12 (a) The motor vehicle being registered is being placed in 13 service as a replacement motor vehicle for a motor vehicle 14 registered by the motor vehicle or motor home dealer. 15 (b) The motor vehicle being registered is taken from the 16 motor vehicle or motor home dealer’s inventory. 17 (c) Use tax or the fee for new registration on the motor 18 vehicle being replaced was paid by the motor vehicle or motor 19 home dealer when that motor vehicle was registered. 20 (d) The replaced motor vehicle is returned to the motor 21 vehicle or motor home dealer’s inventory for sale. 22 (e) The application for registration and title of the motor 23 vehicle being registered is filed with the county treasurer 24 within two weeks of the date the replaced motor vehicle is 25 returned to the motor vehicle or motor home dealer’s inventory. 26 (f) The motor vehicle being registered is placed in the same 27 or substantially similar service as the replaced motor vehicle. 28 Sec. 14. Section 321.105A, subsection 2, paragraph c, 29 subparagraphs (6) and (14), Code Supplement 2011, are amended 30 to read as follows: 31 (6) Vehicles subject to registration in any state when 32 purchased for rental or registered and titled by a motor 33 vehicle or motor home dealer licensed pursuant to chapter 34 322 or 322C for rental use, and held for rental for a period 35 -7- LSB 5198YH (8) 84 ad/nh 7/ 36

H.F. 2122 of one hundred twenty days or more and actually rented for 1 periods of sixty days or less by a person regularly engaged in 2 the business of renting vehicles including but not limited to 3 motor vehicle dealers licensed pursuant to chapter 322 who rent 4 automobiles to users, if the rental of the vehicles is subject 5 to taxation under chapter 423C . 6 (14) Vehicles purchased by a licensed motor vehicle or motor 7 home dealer for resale. 8 Sec. 15. Section 321.115, subsection 2, Code 2011, is 9 amended to read as follows: 10 2. The sale of a motor vehicle twenty years old or older 11 which is primarily of value as a collector’s item and not as 12 transportation is not subject to chapter 322 or 322C , and any 13 person may sell such a vehicle at retail without a license as 14 required under chapter 322 or 322C . 15 Sec. 16. Section 321.124, subsection 2, Code 2011, is 16 amended to read as follows: 17 2. Class A motor homes and class C motor homes are exempt 18 from the provisions of section 322.5, subsection 2 322C.4A , 19 except that a motor vehicle dealer showing class A motor 20 homes and class C motor homes shall apply for a temporary 21 permit upon forms and for such time as provided in section 22 322.5, subsection 2 322C.4A , and the department may issue the 23 temporary permit upon payment of the fee provided therein. 24 Sec. 17. Section 321.157, subsection 1, Code 2011, is 25 amended to read as follows: 26 1. A manufacturer or importer of a motor vehicle sold or 27 offered for sale in this state, either by the manufacturer, 28 importer, distributor, dealer, or any other person, shall file 29 in the office of the department a sworn statement showing the 30 various models manufactured by the manufacturer, importer, 31 distributor, dealer, or other person, and the retail list 32 price and weight of each model concurrently with a public 33 announcement of such prices or concurrently with notification 34 of such prices to dealers licensed to sell such motor vehicles 35 -8- LSB 5198YH (8) 84 ad/nh 8/ 36

H.F. 2122 or motor homes under chapter 322 or 322C , whichever comes 1 first. The manufacturer, importer, distributor, dealer, or 2 other person shall also make the same report on subsequent new 3 models manufactured. 4 Sec. 18. Section 321A.39, subsection 1, unnumbered 5 paragraph 1, Code 2011, is amended to read as follows: 6 Whenever any dealer licensed under chapter 322 or 322C sells 7 a motor vehicle at retail and the transaction does not include 8 the sale of liability insurance coverage which will protect the 9 purchaser under the Iowa motor vehicle financial and safety 10 responsibility Act the purchase order or invoice evidencing the 11 transaction shall contain a statement in the following form: 12 Sec. 19. Section 321F.9, Code 2011, is amended to read as 13 follows: 14 321F.9 Option to purchase —— dealer’s license. 15 Any person engaged in business in this state shall not 16 enter into any agreement for the use of a motor vehicle under 17 the terms of which that person grants to another an option 18 to purchase the motor vehicle without first having obtained 19 a motor vehicle or motor home dealer’s license under the 20 provisions of chapter 322 or 322C , and all sales of motor 21 vehicles under such options shall be subject to sales or use 22 taxes imposed under the provisions of chapter 423 . Nothing 23 contained in this section shall require such person to have a 24 place of business as provided by section 322.6, subsection 1 , 25 paragraph “h” or chapter 322C . 26 Sec. 20. Section 321H.3, unnumbered paragraph 1, Code 2011, 27 is amended to read as follows: 28 Except for educational institutions; persons licensed as new 29 vehicle or new motor home dealers under chapter 322 or 322C ; 30 persons engaged in a hobby not for profit; persons engaged in 31 the business of purchasing bodies, parts of bodies, frames, 32 or component parts of vehicles only for sale as scrap metal; 33 or persons licensed under the provisions of this chapter as 34 authorized vehicle recyclers, a person in this state shall not 35 -9- LSB 5198YH (8) 84 ad/nh 9/ 36

H.F. 2122 engage in the business of any of the following: 1 Sec. 21. Section 322.2, subsections 11 and 12, Code 2011, 2 are amended to read as follows: 3 11. “Manufacturer” means any person engaged in the business 4 of fabricating or assembling motor vehicles. It does not 5 include a person who converts, modifies, or alters a completed 6 motor vehicle manufactured by another person. It includes 7 a person who uses a completed motor vehicle manufactured by 8 another person to construct a class “B” motor home as defined 9 in section 321.124 . 10 12. “Motor vehicle” means any self-propelled vehicle subject 11 to registration under chapter 321 except a motor home as 12 defined in section 322C.2 . 13 Sec. 22. Section 322.2, Code 2011, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 14A. “Recreational vehicle” means a motor 16 home as defined in section 321.1, subsection 36C, or a travel 17 trailer as defined in section 322C.2, subsection 10. 18 Sec. 23. Section 322.3, subsection 14, paragraph d, Code 19 2011, is amended by striking the paragraph. 20 Sec. 24. Section 322.36, Code 2011, is amended to read as 21 follows: 22 322.36 Motorcycle and recreational vehicle dealer business 23 hours. 24 1. A person in the business of selling motorcycles under 25 chapter 322D is not required to maintain regular business hours 26 at the dealer’s principal place of business or other place of 27 business. 28 2. a. A person in the business of selling recreational 29 vehicles under chapter 322C is not required to maintain regular 30 business hours at the dealer’s principal place of business or 31 other place of business unless the person sells motor vehicles 32 at the same place of business. 33 b. A person in the business of selling recreational vehicles 34 under chapter 322C shall post the dealer’s contact information 35 -10- LSB 5198YH (8) 84 ad/nh 10/ 36

H.F. 2122 and a business telephone number in a conspicuous location in 1 the dealer’s place of business. The person shall maintain 2 a business telephone number which is answered by a person 3 employed by the dealer or by a recorded message which provides 4 the business’s contact information. 5 Sec. 25. Section 322A.2, subsection 2, Code 2011, is amended 6 to read as follows: 7 2. A franchiser may terminate a franchise for a particular 8 line-make if the franchiser discontinues that line-make and 9 a franchiser may terminate a franchise if the franchisee’s 10 license as a motor vehicle or motor home dealer is revoked 11 pursuant to the provisions of chapter 322 or 322C . 12 Sec. 26. Section 322A.12, subsection 1, Code 2011, is 13 amended to read as follows: 14 1. Notwithstanding the terms, provisions, or conditions of 15 an agreement or franchise, subject to the provisions of section 16 322A.11, subsection 2 , in the event of the sale or transfer of 17 ownership of a franchisee’s dealership by sale or transfer of 18 the business or by stock transfer or in the event of a change 19 in the executive management of a franchisee’s dealership, the 20 franchiser shall give effect to the change in the franchise 21 unless the transfer of the franchisee’s license under chapter 22 322 or 322C is denied or the new owner is unable to obtain a 23 license under that chapter. 24 Sec. 27. Section 322A.14, Code 2011, is amended to read as 25 follows: 26 322A.14 License to dealer denied. 27 In the event that a franchiser enters into or attempts to 28 enter into a franchise, whether upon termination or refusal 29 to continue another franchise or upon the establishment of an 30 additional motor vehicle dealership in a community where the 31 same line-make is then represented, without first complying 32 with the provisions of this chapter , no license under chapter 33 322 or 322C shall be issued to that franchisee or proposed 34 franchisee to engage in the business of selling motor vehicles 35 -11- LSB 5198YH (8) 84 ad/nh 11/ 36

H.F. 2122 manufactured or distributed by that franchiser. 1 Sec. 28. Section 322C.2, subsections 1, 3, 5, and 8, Code 2 2011, are amended to read as follows: 3 1. To sell “at retail” means to sell a travel trailer or 4 motor home to a person who will devote it to a consumer use. 5 3. “Distributor” or “wholesaler” means a person who in whole 6 or in part sells or distributes travel trailers to travel 7 trailer dealers , or a person who in whole or in part sells or 8 distributes motor homes to motor home dealers, either directly 9 or through a representative employed by a distributor. 10 5. “Manufacturer” means a person engaged in the business of 11 fabricating or assembling travel trailers or motor homes of a 12 type required to be registered. It includes a person who uses 13 a completed motor vehicle manufactured by another person to 14 construct a class “B” motor home as defined in section 321.124. 15 8. “Place of business” means a designated location where 16 facilities are maintained for displaying, reconditioning and 17 repairing either new or used travel trailers or motor homes . 18 Sec. 29. Section 322C.2, Code 2011, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 4A. The “holder” of a retail installment 21 contract means the retail seller of the motor home under or 22 subject to the contract or, if the contract is purchased by 23 a sales finance company or other assignee, the sales finance 24 company or other assignee. 25 NEW SUBSECTION . 5A. “Motor home” means the same as defined 26 in section 321.1, subsection 36C, paragraph “d” . 27 NEW SUBSECTION . 5B. “New motor home” means a motor home 28 that has not been sold at retail. 29 NEW SUBSECTION . 8A. “Retail buyer” or “buyer” means a 30 person who buys a motor home from a retail seller. 31 NEW SUBSECTION . 8B. “Retail installment contract” means an 32 agreement entered into in this state, pursuant to which the 33 title to, the property in or a lien upon the motor home, which 34 is the subject matter of a retail installment transaction, is 35 -12- LSB 5198YH (8) 84 ad/nh 12/ 36

H.F. 2122 retained or taken by a retail seller from a retail buyer as 1 security, in whole or in part, for the buyer’s obligation. The 2 term includes a chattel mortgage, a conditional sales contract, 3 and a contract for the bailment or leasing of a motor home by 4 which the bailee or lessee contracts to pay as compensation for 5 its use a sum substantially equivalent to or in excess of its 6 value and by which it is agreed that the bailee or lessee is 7 bound to become, or has the option of becoming, the owner of 8 the motor home upon full compliance with the provisions of the 9 contract. 10 NEW SUBSECTION . 8C. “Retail installment transaction” means 11 any sale evidenced by a retail installment contract between a 12 retail buyer and a retail seller wherein the retail buyer buys 13 a motor home from a retail seller at a time price payable in one 14 or more installments. 15 NEW SUBSECTION . 8D. “Retail seller” or “seller” means a 16 person who sells a motor home to a retail buyer. 17 NEW SUBSECTION . 8E. “Sales finance company” means a person 18 engaged, in whole or in part, in the business of purchasing 19 retail installment contracts from one or more retail sellers. 20 The term also includes a retail seller engaged, in whole 21 or in part, in the business of creating and holding retail 22 installment contracts. The term does not include the pledgee 23 of an aggregate number of such contracts to secure a bona fide 24 loan thereon. 25 NEW SUBSECTION . 10A. “Used motor home” means a motor home 26 which has been sold at retail and previously registered in this 27 or any other state. 28 Sec. 30. Section 322C.3, Code Supplement 2011, is amended 29 to read as follows: 30 322C.3 Prohibited acts —— exception. 31 1. a. A person shall not engage in this state in the 32 business of selling at retail new travel trailers of any make, 33 or represent or advertise that the person is engaged or intends 34 to engage in such business in this state, unless the person is 35 -13- LSB 5198YH (8) 84 ad/nh 13/ 36

H.F. 2122 authorized by a contract in writing between that person and the 1 manufacturer or distributor of that make of new travel trailers 2 to sell the trailers in this state, and unless the department 3 has issued to the person a license as a travel trailer dealer 4 for the same make of travel trailer. 5 b. A person shall not engage in this state in the business 6 of selling at retail new motor homes of any make, or represent 7 or advertise that the person is engaged or intends to engage in 8 such business in this state, unless the person is authorized by 9 a contract in writing between that person and the manufacturer 10 or distributor of that make of new motor homes to sell the 11 motor homes in this state, and unless the department has issued 12 to the person a license as a motor home dealer for the same make 13 of motor homes. 14 2. a. A person, other than a licensed travel trailer 15 dealer in new travel trailers, shall not engage in the business 16 of selling at retail used travel trailers or represent or 17 advertise that the person is engaged or intends to engage in 18 such business in this state unless the department has issued to 19 the person a license as a used travel trailer dealer. 20 b. A person, other than a licensed motor home dealer in 21 new motor homes, shall not engage in the business of selling 22 at retail used motor homes or represent or advertise that the 23 person is engaged or intends to engage in such business in this 24 state unless the department has issued to the person a license 25 as a used motor home dealer. 26 3. A person is not required to obtain a license as a travel 27 trailer or motor home dealer if the person is disposing of a 28 travel trailer or motor home acquired or repossessed, so long 29 as the person is exercising a power or right granted by a lien, 30 title-retention instrument, or security agreement given as 31 security for a loan or a purchase money obligation. 32 4. a. A travel trailer dealer shall not enter into a 33 contract, agreement, or understanding, expressed or implied, 34 with a manufacturer or distributor that the dealer will sell, 35 -14- LSB 5198YH (8) 84 ad/nh 14/ 36

H.F. 2122 assign, or transfer an agreement or contract arising from 1 the retail installment sale of a travel trailer only to a 2 designated person or class of persons. Any such condition, 3 agreement , or understanding between a manufacturer or 4 distributor and a travel trailer dealer is against the public 5 policy of this state and is unlawful and void. 6 b. A motor home dealer shall not enter into a contract, 7 agreement, or understanding, expressed or implied, with a 8 manufacturer or distributor that the dealer will sell, assign, 9 or transfer an agreement or contract arising from the retail 10 installment sale of a motor home only to a designated person 11 or class of persons. Any such condition, agreement, or 12 understanding between a manufacturer or distributor and a motor 13 home dealer is against the public policy of this state and is 14 unlawful and void. 15 5. a. A manufacturer or distributor of travel trailers or 16 an agent or representative of the manufacturer or distributor, 17 shall not refuse to renew a contract for a term of less than 18 five years, and shall not terminate or threaten to terminate 19 a contract, agreement or understanding for the sale of new 20 travel trailers to a travel trailer dealer in this state 21 without just, reasonable and lawful cause or because the travel 22 trailer dealer failed to sell, assign or transfer a contract 23 or agreement arising from the retail sale of a travel trailer 24 to only a person or a class of persons designated by the 25 manufacturer or distributor. 26 b. A manufacturer or distributor of motor homes or an agent 27 or representative of the manufacturer or distributor shall not 28 terminate, threaten to terminate, or fail to renew a contract, 29 agreement, or understanding for the sale of new motor homes to 30 a motor home dealer in this state without just, reasonable, 31 and lawful cause or because the motor home dealer failed to 32 sell, assign, or transfer any retail installment contract 33 arising from the retail sale of a motor home or any one or more 34 of them to a person or a class of persons designated by the 35 -15- LSB 5198YH (8) 84 ad/nh 15/ 36

H.F. 2122 manufacturer or distributor. 1 6. A travel trailer or motor home dealer shall not make and 2 enter into a security agreement , retail installment contract, 3 or other contract unless the agreement or contract meets the 4 following requirements: 5 a. The security agreement , retail installment contract, 6 or other contract is in writing, is signed by both the buyer 7 and the seller , and is complete as to all essential provisions 8 prior to the signing of the agreement , retail installment 9 contract, or other contract by the buyer except that, if 10 delivery of the travel trailer or motor home is not made at 11 the time of the execution of the agreement or contract, the 12 identifying numbers of the travel trailer or motor home or 13 similar information and the due date of the first installment 14 may be inserted in the agreement or contract after its 15 execution. 16 b. The agreement , retail installment contract, or other 17 contract complies with the Iowa consumer credit code, chapter 18 537 , where applicable. 19 7. a. A manufacturer or distributor of travel trailers or 20 an agent or representative of a manufacturer or distributor 21 shall not coerce or attempt to coerce a travel trailer dealer 22 to accept delivery of a travel trailer or travel trailer parts 23 or accessories, or any other commodity which has not been 24 ordered by the dealer. 25 b. A manufacturer or distributor of motor homes or an agent 26 or representative of a manufacturer or distributor of motor 27 homes shall not coerce or attempt to coerce a motor home dealer 28 to accept delivery of a motor home or motor home parts or 29 accessories, or any other commodity which has not been ordered 30 by the dealer. 31 8. Except under subsection 9 of this section or section 32 322C.4A , a person licensed under section 322C.4 shall not, 33 either directly or through an agent, salesperson or employee, 34 engage or represent or advertise that the person is engaged or 35 -16- LSB 5198YH (8) 84 ad/nh 16/ 36

H.F. 2122 intends to engage in this state, in the business of buying or 1 selling new or used travel trailers or motor homes on Sunday. 2 9. A travel trailer dealer may display new travel trailers 3 at fairs, shows, and exhibitions on any day of the week as 4 provided in this subsection . Travel trailer dealers, in 5 addition to selling travel trailers at their principal place 6 of business and lots, may, upon receipt of a temporary permit 7 approved by the department, display and offer new travel 8 trailers for sale and negotiate sales of new travel trailers 9 at fairs, shows, and exhibitions. Application for temporary 10 permits shall be made upon forms provided by the department and 11 shall be accompanied by a ten dollar permit fee. Temporary 12 permits shall be issued for a period not to exceed fourteen 13 days. The department may issue multiple consecutive temporary 14 permits. 15 10. A person who has been convicted of a fraudulent 16 practice, has been convicted of three or more violations of 17 section 321.92, subsection 2 , or section 321.99 , or has been 18 convicted of any other indictable offense in connection with 19 selling or other activity relating to vehicles, in this state 20 or any other state, shall not for a period of five years from 21 the date of conviction be an owner, salesperson, employee, 22 officer of a corporation, or representative of a licensed 23 travel trailer or motor home dealer or represent themselves 24 as an owner, salesperson, employee, officer of a corporation, 25 or representative of a licensed travel trailer or motor home 26 dealer. 27 11. A manufacturer, distributor, or importer of motor homes 28 or agent or representative of such manufacturer, distributor, 29 or importer shall not require a motor home dealer to submit to 30 arbitration to resolve a controversy before the controversy 31 arises. The parties may enter into a voluntary agreement to 32 arbitrate a controversy after it arises. Such an agreement 33 shall require that the arbitrator apply Iowa law in resolving 34 the controversy. Either party may appeal a decision of an 35 -17- LSB 5198YH (8) 84 ad/nh 17/ 36

H.F. 2122 arbitrator to the district court on the grounds that the 1 arbitrator failed to apply Iowa law. 2 12. a. A manufacturer, distributor, or importer of 3 motor homes or agent or representative of such manufacturer, 4 distributor, or importer shall not reduce the amount of 5 compensation for, or disallow a claim for, any of the following 6 if twelve months or more have passed since the claim was 7 submitted to the manufacturer, distributor, or importer or 8 agent or representative thereof: 9 (1) Warranty parts, repairs, or service supplied by a motor 10 home dealer. 11 (2) Sales or leasing incentives provided to a motor home 12 dealer or to a customer of a motor home dealer including but 13 not limited to rebates and discounted interest rates. 14 b. The twelve-month limitation shall not apply if a court 15 of competent jurisdiction in this state finds the claim was 16 fraudulent. 17 13. A manufacturer, distributor, or importer of motor homes 18 or an agent or representative of a manufacturer, distributor, 19 or importer shall not reduce the amount of compensation for, 20 or disallow a claim for, warranty parts, repairs, or service 21 supplied by a motor home dealer on the grounds that the dealer 22 failed to submit a claim fewer than sixty days after the 23 motor home dealer completed the work underlying the claim for 24 warranty parts, repairs, or service. 25 Sec. 31. Section 322C.4, Code 2011, is amended to read as 26 follows: 27 322C.4 Dealer’s license application and fees. 28 1. Upon application and payment of a fee, a person may 29 be licensed as a travel trailer or motor home dealer. The 30 license fee is seventy dollars for a two-year period or part 31 thereof. The person shall pay an additional fee of twenty 32 dollars for a two-year period or part thereof for each travel 33 trailer or motor home lot in addition to the principal place 34 of business unless the lot is adjacent to the principal place 35 -18- LSB 5198YH (8) 84 ad/nh 18/ 36

H.F. 2122 of business. For purposes of this subsection , “adjacent” means 1 that the principal place of business and each additional lot 2 are adjoining parcels of property. The applicant shall file 3 in the office of the department a verified application for 4 license as a travel trailer or motor home dealer in the form 5 the department prescribes, which shall include the following: 6 a. The name of the applicant and the applicant’s principal 7 place of business. 8 b. The name of the applicant’s business and whether the 9 applicant is an individual, partnership, corporation or other 10 legal entity. 11 (1) If the applicant is a partnership the name under which 12 the partnership intends to engage in business and the name and 13 post office address of each partner. 14 (2) If the applicant is a corporation, the state of 15 incorporation and the name and post office address of each 16 officer and director. 17 c. The make or makes of new travel trailers or motor homes , 18 if any, which the applicant will offer for sale at retail in 19 this state. 20 d. The location of each place of business within this state 21 to be used by the applicant for the conduct of the business. 22 e. If the applicant is a party to a contract, agreement, 23 or understanding with a manufacturer or distributor of travel 24 trailers or motor homes or is about to become a party to a 25 contract, agreement, or understanding, the applicant shall 26 state the name of each manufacturer and distributor and the 27 make or makes of new travel trailers or motor homes , if any, 28 which are the subject matter of the contract, agreement, or 29 understanding. 30 f. Other information concerning the business of the 31 applicant the department reasonably requires for administration 32 of this chapter . 33 g. Proof that the applicant for a license as a motor home 34 dealer has financial liability coverage as defined in section 35 -19- LSB 5198YH (8) 84 ad/nh 19/ 36

H.F. 2122 321.1, except that such coverage shall be in limits of not less 1 than one hundred thousand dollars because of bodily injury to 2 or death of one person in any one accident and, subject to the 3 limit for one person, three hundred thousand dollars because 4 of bodily injury to or death of two or more persons in any one 5 accident, and fifty thousand dollars because of injury to or 6 destruction of property of others in any one accident. 7 h. If the applicant is applying for a used motor home 8 dealer license, certification that the applicant has met the 9 educational requirements for licensure under section 322C.6A. 10 The certification may be transmitted to the department by the 11 education provider in electronic format. 12 2. The license shall be granted or refused within thirty 13 days after application. A license is valid for a two-year 14 period and expires, unless revoked or suspended by the 15 department, on December 31 of even-numbered years. A licensee 16 shall have the month of expiration and the month after the 17 month of expiration to renew the license. A used motor home 18 dealer license shall not be renewed for an applicant who is 19 subject to continuing education requirements until the licensee 20 certifies completion of the educational requirements for 21 license renewal under section 322C.6A. The certification may 22 be transmitted to the department by the education provider in 23 electronic format. A person who fails to renew a license by 24 the end of this time period and desires to hold a license shall 25 file a new license application and pay the required fee. A 26 separate license shall be obtained for each county in which 27 an applicant does business as a travel trailer or motor home 28 dealer. 29 3. A licensee shall file with the department a supplemental 30 statement when there is a change in an item of information 31 required under paragraphs “a” to “e” “h” of subsection 1 , within 32 fifteen days after the change. Upon filing a supplemental 33 statement, the licensee shall surrender its license to the 34 department together with a thirty-five-dollar fee. The 35 -20- LSB 5198YH (8) 84 ad/nh 20/ 36

H.F. 2122 department shall issue a new license modified to reflect the 1 changes on the supplemental statement. 2 4. Before the issuance of a travel trailer dealer’s license, 3 the applicant shall furnish a surety bond executed by the 4 applicant as principal and executed by a corporate surety 5 company, licensed and qualified to do business within this 6 state, which bond shall run to the state of Iowa, be in the 7 amount of twenty-five thousand dollars and be conditioned upon 8 the faithful compliance by the applicant as a dealer with all 9 statutes of this state regulating or applicable to a travel 10 trailer dealer, and shall indemnify any person dealing or 11 transacting business with the dealer from loss or damage caused 12 by the failure of the dealer to comply with the provisions of 13 chapter 321 and this chapter , including the furnishing of a 14 proper and valid certificate of title to a travel trailer, and 15 that the bond shall be filed with the department prior to the 16 issuance of the license. A person licensed under subsection 5 17 or chapter 322 , with the same name and location or locations, 18 is not subject to the provisions of this subsection . 19 5. Before the issuance of a motor home dealer’s license 20 to be a dealer engaged in the sale of motor homes for which 21 a certificate of title is required under chapter 321, the 22 applicant shall furnish a surety bond executed by the applicant 23 as principal and executed by a corporate surety company, 24 licensed and qualified to do business within this state, 25 which bond shall run to the state of Iowa, be in the amount of 26 fifty thousand dollars and be conditioned upon the faithful 27 compliance by the applicant as a dealer with all of the 28 statutes of this state regulating or applicable to the business 29 of a dealer in motor homes, and indemnifying any person who 30 buys a motor home from the dealer from any loss or damage 31 occasioned by the failure of the dealer to comply with any of 32 the provisions of chapter 321 and this chapter, including but 33 not limited to the furnishing of a proper and valid certificate 34 of title to the motor home involved in a transaction. The bond 35 -21- LSB 5198YH (8) 84 ad/nh 21/ 36

H.F. 2122 shall also indemnify any motor home purchaser from any loss 1 or damage caused by the failure of the dealer to comply with 2 the odometer requirements in section 321.71, regardless of 3 whether the motor home was purchased directly from the dealer. 4 The bond shall be filed with the department prior to the 5 issuance of a license. The aggregate liability of the surety, 6 however, shall not exceed the amount of the bond. A person 7 licensed under chapter 322, with the same name and location or 8 locations, is not subject to the provisions of this subsection. 9 Sec. 32. NEW SECTION . 322C.4A Temporary permits. 10 1. A motor home dealer may do any of the following: 11 a. Display new motor homes at fairs, vehicle shows, and 12 vehicle exhibitions, upon application for and receipt of a 13 temporary permit issued by the department. 14 b. Display, offer for sale, and negotiate sales of new motor 15 homes at fair events, as defined in chapter 174, vehicle shows, 16 and vehicle exhibitions, upon application for and receipt of a 17 temporary permit issued by the department. Such activities may 18 only be conducted at fair events, vehicle shows, and vehicle 19 exhibitions that are held in the county of the motor home 20 dealer’s principal place of business. A sale of a motor home 21 by a motor home dealer shall not be completed and an agreement 22 for the sale of a motor home shall not be signed at a fair 23 event, vehicle show, or vehicle exhibition. All such sales 24 shall be consummated at the motor home dealer’s principal place 25 of business. 26 2. An application for a temporary permit under this 27 subsection shall be made upon a form provided by the department 28 and shall be accompanied by a ten dollar permit fee. The 29 department may issue a temporary permit for a period not to 30 exceed fourteen days. The department may issue multiple 31 consecutive temporary permits. 32 Sec. 33. Section 322C.5, Code 2011, is amended to read as 33 follows: 34 322C.5 Display of license. 35 -22- LSB 5198YH (8) 84 ad/nh 22/ 36

H.F. 2122 1. A license issued under section 322C.4 shall specify the 1 location of the principal place of business and the location 2 of each additional place of business, if any, for which the 3 license is issued, and the license shall be conspicuously 4 displayed at the principal place of business except during 5 periods when the license is surrendered for modification. 6 2. A license issued under section 322C.9 for manufacturers 7 and distributors of motor homes shall specify the location 8 of the office and must be conspicuously displayed at such 9 location. In case such location be changed, the department 10 shall endorse the change of location on the license without 11 charge if it be within the same municipality. A change of 12 location to another municipality shall require a new license. 13 Sec. 34. Section 322C.6, unnumbered paragraph 1, Code 2011, 14 is amended to read as follows: 15 A license or permit issued under section 322C.4 , 322C.4A, or 16 322C.9 may be denied, revoked, or suspended, after opportunity 17 for a hearing before the department of inspections and appeals 18 in accordance with chapters 10A and 17A , if it is determined 19 that the licensee or applicant has done any of the following: 20 Sec. 35. Section 322C.6, subsection 2, Code 2011, is amended 21 to read as follows: 22 2. Made a material misrepresentation to the department in 23 connection with an application for a license, certificate of 24 title , or registration of a travel trailer , motor home, or 25 other vehicle. 26 Sec. 36. Section 322C.6, Code 2011, is amended by adding the 27 following new subsections: 28 NEW SUBSECTION . 8. Failing upon the sale or transfer of 29 a motor home to deliver to the purchaser or transferee of the 30 motor home sold or transferred, a manufacturer’s or importer’s 31 certificate, or a certificate of title duly assigned as 32 provided in chapter 321. 33 NEW SUBSECTION . 9. Failing upon the purchasing or otherwise 34 acquiring of a motor home to obtain a manufacturer’s or 35 -23- LSB 5198YH (8) 84 ad/nh 23/ 36

H.F. 2122 importer’s certificate, or a certificate of title duly assigned 1 as provided in chapter 321. 2 NEW SUBSECTION . 10. Failing upon the purchasing or 3 otherwise acquiring of a motor home to obtain a new certificate 4 of title to such motor home when and where required in chapter 5 321. 6 Sec. 37. NEW SECTION . 322C.6A Used motor home dealer 7 education program. 8 1. An applicant for a license as a used motor home dealer 9 shall complete prelicensing education program courses pursuant 10 to section 322.7A prior to submitting an application to the 11 department. 12 2. A person seeking renewal of a used motor home dealer 13 license shall complete continuing education program courses as 14 provided in section 322.7A. 15 Sec. 38. Section 322C.7, Code 2011, is amended to read as 16 follows: 17 322C.7 Manufacturer’s or distributor’s license. 18 1. A manufacturer or distributor of travel trailers shall 19 not engage in business in this state without a license pursuant 20 to this chapter . 21 2. A manufacturer of motor homes, except an alien 22 manufacturer represented by an importer, shall not engage in 23 business as a manufacturer in this state or employ, appoint, 24 or maintain distributors or wholesalers or dealers, without a 25 license as provided in this chapter. However, new motor home 26 dealers may wholesale motor homes without an additional license 27 and used motor home dealers may wholesale used motor homes 28 without an additional license. 29 Sec. 39. NEW SECTION . 322C.8 Wholesaler and distributor’s 30 license. 31 1. A person shall not engage in business as a wholesaler 32 of new motor homes in this state without a license as provided 33 in this chapter. Prior to the issuance of such license, 34 the department, at a minimum, and in addition to any other 35 -24- LSB 5198YH (8) 84 ad/nh 24/ 36

H.F. 2122 information the department deems necessary to the application, 1 shall require proof that the applicant has financial liability 2 coverage as defined in section 321.1, except that such coverage 3 shall be in limits of not less than one hundred thousand 4 dollars because of bodily injury to or death of one person in 5 any one accident and, subject to the limit for one person, 6 three hundred thousand dollars because of bodily injury to 7 or death of two or more persons in any one accident, and 8 fifty thousand dollars because of injury to or destruction of 9 property of others in any one accident. 10 2. A distributor or wholesaler of new motor homes shall 11 not sell or offer for sale a new motor home at retail unless 12 licensed as a new motor home dealer. A licensed distributor 13 or wholesaler of a new motor home shall not register or title a 14 new motor home held for sale and shall transfer ownership of 15 a new motor home by assigning the manufacturer’s statement of 16 origin for the motor home. 17 Sec. 40. Section 322C.9, Code 2011, is amended to read as 18 follows: 19 322C.9 License application and fees. 20 1. Upon application and payment of a seventy dollar fee for 21 a two-year period or part thereof, a person may be licensed as 22 a manufacturer , wholesaler, or distributor of travel trailers 23 or motor homes . The application shall be in the form and 24 shall contain information as the department prescribes. The 25 license shall be granted or refused within thirty days after 26 application. The license expires, unless sooner revoked or 27 suspended by the department, on December 31 of even-numbered 28 years. A licensee shall have the month of expiration and the 29 month after the month of expiration to renew the license. A 30 person who fails to renew a license by the end of this time 31 period and desires to hold a license shall file a new license 32 application and pay the required fee. 33 2. License fees for each two-year period or part thereof are 34 as follows: 35 -25- LSB 5198YH (8) 84 ad/nh 25/ 36

H.F. 2122 a. For a motor home manufacturer, seventy dollars. 1 b. For a travel trailer manufacturer or distributor, seventy 2 dollars. 3 c. For a new motor home distributor or wholesaler, forty 4 dollars. 5 3. A license shall not be issued to a person as a 6 distributor or wholesaler for a new motor home model unless the 7 distributor or wholesaler has written authorization from the 8 manufacturer as a distributor or wholesaler of the motor home 9 model. 10 4. Upon payment of the license fee as provided in this 11 section, a person who rebuilds new completed motor homes by 12 fabricating, altering, adding, or replacing essential parts, 13 components, or equipment for the purpose of building an 14 ambulance, rescue vehicle, fire vehicle, or towing or recovery 15 vehicle as defined in chapter 321 may be issued a license as 16 a wholesaler of new motor homes of the make and model rebuilt 17 without written authorization from the manufacturer. 18 5. Notwithstanding any other provision of this chapter, 19 a person licensed as a wholesaler under subsection 4 may be 20 licensed as a used motor home dealer. 21 Sec. 41. NEW SECTION . 322C.13 Copy of contract to buyer. 22 A copy of every retail installment contract shall be 23 furnished to the buyer at the time of the execution of the 24 contract. An acknowledgment by the buyer contained in the body 25 of the retail installment contract of the delivery of a copy 26 thereof shall be conclusive proof of delivery in any action or 27 proceeding by or against any assignee of a retail installment 28 contract. 29 Sec. 42. NEW SECTION . 322C.14 Dual-interest insurance. 30 If dual-interest insurance on the motor home is purchased 31 by the holder it shall, within thirty days after execution of 32 the retail installment contract, send or cause to be sent to 33 the buyer a policy or policies or certificate of insurance, 34 written by an insurance company authorized to do business in 35 -26- LSB 5198YH (8) 84 ad/nh 26/ 36

H.F. 2122 this state, clearly setting forth the amount of the premium, 1 the kind or kinds of insurance and the coverages. The buyer 2 shall have the privilege of purchasing such insurance from an 3 agent or broker of the buyer’s own selection and of selecting 4 an insurance company acceptable to the holder; but in such 5 case the inclusion of the insurance premium in the retail 6 installment contract shall be optional with the seller. If 7 any insurance is canceled, unearned insurance premium refunds 8 received by the holder shall be credited to the final maturing 9 installments of the contract except to the extent applied 10 toward payment for similar insurance protecting the interests 11 of the buyer and the holder or either of them. 12 Sec. 43. NEW SECTION . 322C.15 Motor home retail installment 13 transactions —— finance charges —— amount. 14 1. Notwithstanding the provisions of any other existing 15 law, a retail installment transaction may include a finance 16 charge not in excess of the following rates: 17 a. Class 1. Any new motor home designated by the 18 manufacturer by a year model not earlier than the year in which 19 the sale is made, an amount equivalent to one and three-fourths 20 percent per month simple interest on the declining balance of 21 the amount financed. 22 b. Class 2. Any new motor home not in Class 1 and any 23 used motor home designated by the manufacturer by a year model 24 of the same or not more than two years prior to the year in 25 which the sale is made, an amount equivalent to two percent per 26 month simple interest on the declining balance of the amount 27 financed. 28 c. Class 3. Any used motor home not in Class 2 and 29 designated by the manufacturer by a year model more than two 30 years prior to the year in which the sale is made, an amount 31 equivalent to two and one-fourth percent per month simple 32 interest on the declining balance of the amount financed. 33 2. For purposes of this section, “amount financed” means 34 as defined in section 537.1301. However, notwithstanding 35 -27- LSB 5198YH (8) 84 ad/nh 27/ 36

H.F. 2122 section 322C.21, subsection 3, the amount financed may also 1 include additional charges for the following, which shall not 2 be included in the finance charge: 3 a. A service contract as defined in section 516E.1. 4 b. Voluntary debt cancellation coverage, whether insurance 5 or debt waiver, which may be excluded from the finance charge 6 under the federal Truth in Lending Act as defined in section 7 537.1302. 8 Sec. 44. NEW SECTION . 322C.16 Extension of time. 9 Sections 537.2503 and 537.3402 notwithstanding, if the 10 holder of a retail installment contract in connection with the 11 purchase or sale of a motor home, at the request of the buyer, 12 renews the loan or extends the scheduled due date of all or 13 any part of an installment or installments, the holder may 14 restate the amount of installments and the time schedule for 15 paying installments and collect for installments, subject to 16 the renewal or extension, a finance charge on the outstanding 17 declining balance of the amount financed for the period of 18 the extension or renewal. The finance charge on a renewal or 19 extension under this subsection shall not exceed the rate on 20 the original retail installment contract as limited by section 21 322C.15. 22 Sec. 45. NEW SECTION . 322C.17 Remaining balance on trade 23 vehicle. 24 The extension of credit by a retail seller to a retail 25 buyer, pursuant to a retail installment contract, of the amount 26 actually paid or to be paid by the retail seller to discharge 27 a purchase-money security interest, as provided in section 28 554.9103, on a motor home traded in by the retail buyer shall 29 not subject the retail seller to the provisions of chapter 536 30 or 536A. 31 Sec. 46. NEW SECTION . 322C.18 Complaints. 32 Any retail buyer having reason to believe that the 33 provisions of this chapter relating to the buyer’s installment 34 contract have been violated may file with the department a 35 -28- LSB 5198YH (8) 84 ad/nh 28/ 36

H.F. 2122 written complaint setting forth the details of such alleged 1 violation and the department, upon the receipt of such 2 complaint, may inspect the pertinent books, records, letters 3 and contracts of the licensee or other person relating to such 4 specific complaint. 5 Sec. 47. NEW SECTION . 322C.19 Hearings —— subpoenas. 6 1. The department of transportation and the department 7 of inspections and appeals may issue subpoenas to compel the 8 attendance of witnesses and the production of documents, 9 papers, books, records, and other evidence in any matter over 10 which the respective department has jurisdiction, control, or 11 supervision pertaining to this chapter. 12 2. If a person refuses to obey a subpoena, to give 13 testimony, or to produce evidence as required, a judge of the 14 district court of the state of Iowa in and for Polk county 15 may, upon application and proof of the refusal, make an order 16 awarding process of subpoena, or subpoena duces tecum, out of 17 the court, for the witness to appear before the respective 18 department, to give testimony, and to produce evidence as 19 required. Upon filing the order in the office of the clerk of 20 the district court, the clerk shall issue process of subpoena 21 as directed, under the seal of the court, requiring the 22 person to whom it is directed to appear at the time and place 23 designated. 24 Sec. 48. NEW SECTION . 322C.20 Construction and 25 applicability to contracts. 26 Nothing in this chapter shall be construed to impair the 27 obligations of a contract or to prevent a licensee hereunder 28 from requiring performance of a written contract entered into 29 with another licensee hereunder, nor shall the requirement 30 of such performance constitute a violation of any of the 31 provisions of this chapter. 32 Sec. 49. NEW SECTION . 322C.21 Applicability of Iowa 33 consumer credit code. 34 1. The provisions of the Iowa consumer credit code, chapter 35 -29- LSB 5198YH (8) 84 ad/nh 29/ 36

H.F. 2122 537, shall apply to a consumer credit sale in which a licensed 1 motor home dealer participates or engages, and any violation of 2 that code shall be a violation of this chapter. 3 2. Article 2, parts 5 and 6, and article 3, sections 4 537.3203, 537.3206, 537.3209, 537.3304, 537.3305, and 537.3306 5 shall apply to any credit transaction as defined in section 6 537.1301, that is a retail installment transaction. For the 7 purpose of applying provisions of the consumer credit code in 8 those transactions, “consumer credit sale” shall include a sale 9 for a business purpose. 10 3. A provision of the Iowa consumer credit code, chapter 11 537, shall supersede a conflicting provision of this chapter. 12 Sec. 50. Section 322G.1, Code 2011, is amended to read as 13 follows: 14 322G.1 Legislative intent. 15 The general assembly recognizes that a motor vehicle 16 is a major consumer acquisition and that a defective motor 17 vehicle undoubtedly creates a hardship for the consumer. The 18 general assembly further recognizes that a duly franchised 19 motor vehicle or motor home dealer is an authorized service 20 agent of the manufacturer. It is the intent of the general 21 assembly that a good faith motor vehicle warranty complaint by 22 a consumer be resolved by the manufacturer within a specified 23 period of time. It is further the intent of the general 24 assembly to provide the statutory procedures whereby a consumer 25 may receive a replacement motor vehicle, or a full refund, 26 for a motor vehicle which cannot be brought into conformity 27 with the warranty provided for in this chapter . However, 28 this chapter does not limit the rights or remedies which are 29 otherwise available to a consumer under any other law. 30 Sec. 51. Section 322G.2, subsection 12, Code 2011, is 31 amended to read as follows: 32 12. “Manufacturer” means a person engaged in the business 33 of constructing or assembling new motor vehicles or installing 34 on previously assembled vehicle chassis special bodies or 35 -30- LSB 5198YH (8) 84 ad/nh 30/ 36

H.F. 2122 equipment which, when installed, form an integral part of the 1 new motor vehicle, or a person engaged in the business of 2 importing new motor vehicles into the United States for the 3 purpose of selling or distributing the new motor vehicles to 4 new motor vehicle or motor home dealers. 5 Sec. 52. Section 423C.2, subsection 3, Code 2011, is amended 6 to read as follows: 7 3. “Lessor” means a person engaged in the business of 8 renting automobiles to users. “Lessor” includes a motor 9 vehicle or motor home dealer licensed pursuant to chapter 322 10 or 322C who rents automobiles to users. For this purpose, 11 the objective of making a profit is not necessary to make the 12 renting activity a business. 13 Sec. 53. Section 535.2, subsection 2, paragraph b, 14 subparagraph (6), Code Supplement 2011, is amended to read as 15 follows: 16 (6) With respect to any transaction referred to in paragraph 17 “a” of this subsection , this subsection supersedes any 18 interest-rate or finance-charge limitations contained in the 19 Code, including but not limited to this chapter and chapters 20 321 , 322 , 322C, 524 , 533 , 534 , 536A , and 537 . 21 Sec. 54. Section 537.2201, subsection 1, Code 2011, is 22 amended to read as follows: 23 1. With respect to a consumer credit sale, other than a 24 sale pursuant to open end credit, a creditor may contract for 25 and receive a finance charge not exceeding the maximum charge 26 permitted by the law of this state or the United States for 27 similar creditors. In addition, with respect to a consumer 28 credit sale of goods or services, other than a sale pursuant 29 to open end credit or a sale of a motor vehicle, a creditor may 30 contract for and receive a finance charge not exceeding that 31 permitted in subsections 2 to 6. With respect to a consumer 32 credit sale of a motor vehicle, a creditor may contract for 33 and receive a finance charge as provided in section 322.19 or 34 322C.15 , and a finance charge in excess of that provided in 35 -31- LSB 5198YH (8) 84 ad/nh 31/ 36

H.F. 2122 section 322.19 or 322C.15 , is an excess charge in violation of 1 this chapter . 2 Sec. 55. Section 602.8102, Code 2011, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 55A. Carry out duties relating to the 5 licensing of motor home dealers as provided in section 322C.19. 6 Sec. 56. TRANSITION PROVISIONS. The department 7 of transportation shall establish procedures for the 8 implementation of this Act. The procedures shall provide 9 for the transition of the licensure of motor home dealers, 10 manufacturers, wholesalers, and distributors under chapter 322, 11 Code 2011, to licensure under chapter 322C, as amended by this 12 Act. 13 Sec. 57. EFFECTIVE UPON ENACTMENT. The following 14 provisions of this Act, being deemed of immediate importance, 15 take effect upon enactment: 16 1. The section of this Act enacting section 322.2, 17 subsection 14A. 18 2. The section of this Act amending section 322.36. 19 Sec. 58. APPLICABILITY. 20 1. The provisions of this Act enacting section 322.2, 21 subsection 14A, and amending section 322.36, apply to all 22 persons in the business of selling recreational vehicles, as 23 defined in section 322.2, as amended in this Act. 24 2. Unless otherwise provided, this Act applies to motor home 25 dealers, manufacturers, wholesalers, and distributors applying 26 for initial licensure or renewal of licensure on or after July 27 1, 2012. 28 3. Unless otherwise provided, this Act applies to all motor 29 home dealers, manufacturers, wholesalers, and distributors on 30 July 1, 2014. 31 EXPLANATION 32 This bill relates to motor home dealer licensing and the 33 business hours of recreational vehicle dealers. 34 The bill amends Code section 322.2 by adding a definition 35 -32- LSB 5198YH (8) 84 ad/nh 32/ 36

H.F. 2122 for “recreational vehicle” which means a motor home or travel 1 trailer. The bill amends the definition of “motor vehicle” for 2 purposes of Code chapter 322 by excluding “motor home” from 3 the definition. The bill provides that a person who sells 4 recreational vehicles is not required to maintain regular 5 business hours at the principal place of business or another 6 place of business. The bill does require a person selling 7 recreational vehicles to post business contact information and 8 a business telephone number in a conspicuous location in the 9 place of business. The business telephone must be answered 10 by an employee of the dealer or by a recorded message which 11 provides the business’s contact information. 12 The bill requires motor home dealers, manufacturers, 13 wholesalers, and distributors to be licensed under Code 14 chapter 322C, rather than Code chapter 322. Under the bill, 15 the department of transportation may employ employees as is 16 necessary to administer the licensing requirements for motor 17 home dealers, manufacturers, wholesalers, and distributors 18 without the Code chapter 322 limitation that the amount 19 expended in a year cannot exceed the amount generated. 20 The bill amends Code chapter 322C.3 to add that the 21 prohibited acts therein apply to motor home dealers, 22 manufacturers, and sales. Code chapters 322 and 322C contain 23 similar prohibitions on a person engaging in the sale of new 24 vehicles or motor homes and used vehicles or motor homes and 25 entering into contracts with manufacturers or distributors for 26 the motor vehicles or motor homes. However, unlike in Code 27 chapter 322, Code chapter 322C does not specifically require 28 the separate licensing of persons employed as salespersons. 29 The bill amends Code section 322C.3 to include provisions 30 regarding a manufacturer or distributor’s retaliatory action, 31 entrance into retail installment agreements, the sale of motor 32 homes on Sunday, fraudulent practices, arbitration, and the 33 amount of compensation. These provisions are substantially 34 similar to provisions in Code section 322.3. 35 -33- LSB 5198YH (8) 84 ad/nh 33/ 36

H.F. 2122 Unlike Code section 322.3, the bill does not prohibit a 1 person from selling a motor home from a location other than 2 the person’s place of business and also does not prohibit a 3 manufacturer from having ownership or interest in a dealership. 4 The bill amends Code section 322C.3 to provide that a person 5 is not required to obtain a license as a motor home dealer if 6 disposing of a motor home so long as the person is exercising 7 a power or right granted by certain legal instruments or 8 agreements. Code chapter 322 does not contain a similar 9 provision. 10 The bill amends Code section 322C.4 regarding application 11 for licensure as a dealer. Unlike in Code chapter 322, an 12 application for licensure, under the provisions of the bill, 13 would not need to include a statement of the applicant’s 14 previous history, a description of the general plan, or a 15 method of doing business. 16 The bill amends Code section 322C.4 to require a motor home 17 dealer to furnish a surety bond, proof of financial liability 18 coverage, and certification of the requisite educational 19 requirements as is required under Code chapter 322. Unlike 20 in Code chapter 322, the bill does not provide requirements 21 for the information included in a dealer license once the 22 license is granted. Additionally, under the provisions of the 23 bill, motor home dealer licensees would be required to submit 24 supplemental statements within 15 days and pay a $35 fee. Code 25 chapter 322 did not specify a fee or the number of days within 26 which to submit a supplemental statement for dealer licenses. 27 The bill adds provisions to Code chapter 322C regarding 28 temporary permits and display of licenses to mirror provisions 29 in Code chapter 322. 30 The bill amends Code section 322C.6, relating to the denial, 31 suspension, or revocation of a dealer or manufacturer license 32 to add similar provisions to those provided in Code section 33 322.6. Code chapters 322 and 322C contain different criterion 34 for denial, suspension, or revocation of a license. The bill 35 -34- LSB 5198YH (8) 84 ad/nh 34/ 36

H.F. 2122 amends Code section 322C.6 to add the following reasons for 1 the department to deny, revoke, or suspend a license that 2 are contained in Code section 322.9: failing to deliver a 3 motor home upon its sale or transfer, failing to obtain a 4 manufacturer’s or importer’s certificate upon the purchase of a 5 motor home, and failing to obtain a new certificate of title. 6 The bill amends Code chapter 322C to add Code section 322C.6A 7 regarding continuing education requirements for used motor home 8 dealers, referencing the specific provisions for such education 9 in Code section 322.7A. 10 The bill adds Code section 322C.8 regarding wholesaler and 11 distributor’s licenses. This provision is similar to that 12 provided in Code sections 322.27A and 322.28. 13 The bill amends Code section 322C.9, regarding the license 14 and application fees for a manufacturer or distributor 15 to include license and application fees for motor home 16 manufacturers, distributors, and wholesalers. The additions 17 are similar to that provided in Code section 322.29. 18 Unlike in Code chapter 322, which has a penalty of a 19 simple misdemeanor and a fine for violation of the chapter, 20 Code section 322C.11 provides that a person who violates 21 the provisions regarding prohibited acts of dealers and a 22 manufacturer or distributor engaging in business in the state 23 without a license is guilty of a serious misdemeanor. 24 The bill also adds provisions to Code chapter 322C regarding 25 copy of a contract to a buyer, dual-interest insurance, finance 26 charges, extension of time in a retail installment contract, 27 remaining balance on trade vehicles, complaints, hearings, 28 the construction and applicability to contracts, and the 29 applicability of the Iowa consumer credit code as related to 30 motor home sales, dealers, manufacturers, wholesalers, and 31 distributors. These provisions mirror those contained in Code 32 chapter 322. 33 Unlike in Code sections 322.10 and 322.11, the bill does 34 not explicitly provide for judicial review of the department’s 35 -35- LSB 5198YH (8) 84 ad/nh 35/ 36

H.F. 2122 actions and injunctions related to motor home dealers, 1 manufacturers, wholesalers, and distributors in Code chapter 2 322C. Code chapter 322C also does not explicitly contain 3 language allowing the department to adopt rules related 4 to motor home dealers, manufacturers, wholesalers, and 5 distributors. 6 The bill also makes conforming amendments regarding the 7 licensing for motor homes. 8 The bill requires the department of transportation to 9 establish rules to implement the bill. The bill provides 10 that the provisions of the bill enacting Code section 322.2, 11 subsection 14A, regarding the definition of recreational 12 vehicles, and the section amending Code section 322.36 13 regarding dealer business hours are effective upon enactment 14 and apply to all persons in the business of selling 15 recreational vehicles, as defined by the bill. 16 The bill applies to motor home dealers, manufacturers, 17 wholesalers, and distributors applying for initial or renewal 18 of licensure on or after July 1, 2012, and applies on July 1, 19 2014, to all motor home dealers, manufacturers, wholesalers, 20 and distributors. 21 -36- LSB 5198YH (8) 84 ad/nh 36/ 36