H.F. _____ Section 1. Section 322.2, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 11A. “Motorcycle” means as defined in 3 section 321.1. “Motorcycle” does not include an all-terrain 4 vehicle as defined in section 321.1. 5 Sec. 2. Section 322.4, subsection 1, paragraph g, Code 2011, 6 is amended to read as follows: 7 g. Before the issuance of a motor vehicle dealer’s license 8 to a dealer engaged in the sale of vehicles for which a 9 certificate of title is required under chapter 321 , or the 10 issuance of a temporary permit under section 322.5, subsection 11 6, paragraph “b” , the applicant shall furnish a surety bond 12 executed by the applicant as principal and executed by a 13 corporate surety company, licensed and qualified to do business 14 within this state, which bond shall run to the state of Iowa, 15 be in the amount of fifty thousand dollars and be conditioned 16 upon the faithful compliance by the applicant as a dealer with 17 all of the statutes of this state regulating or applicable to 18 the business of a dealer in motor vehicles, and indemnifying 19 any person who buys a motor vehicle from the dealer from any 20 loss or damage occasioned by the failure of the dealer to 21 comply with any of the provisions of chapter 321 and this 22 chapter , including but not limited to the furnishing of a 23 proper and valid certificate of title to the motor vehicle 24 involved in a transaction. The bond shall also indemnify any 25 motor vehicle purchaser from any loss or damage caused by the 26 failure of the dealer to comply with the odometer requirements 27 in section 321.71 , regardless of whether the motor vehicle was 28 purchased directly from the dealer. The bond shall be filed 29 with the department prior to the issuance of a license or 30 permit . The aggregate liability of the surety, however, shall 31 not exceed the amount of the bond. 32 Sec. 3. Section 322.5, Code 2011, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 6. a. Upon application for and receipt 35 -1- LSB 6062HC (2) 84 dea/nh 1/ 4

H.F. _____ of a temporary permit issued by the department under this 1 subsection, a motor vehicle dealer authorized to sell used 2 motorcycles may display, offer for sale, and negotiate sales of 3 used motorcycles at a motorcycle rally located in this state 4 that meets all of the following conditions: 5 (1) The sponsor of the rally conducts not more than one 6 rally annually in this state. 7 (2) The rally is conducted for a single period of not less 8 than three and not more than seven consecutive days. 9 (3) Attendance at the rally is restricted to persons who 10 have paid a nonrefundable admission fee to the sponsor of the 11 rally. 12 b. A person licensed as a motor vehicle dealer in another 13 state may apply for and be issued a temporary permit under this 14 subsection if the person meets all of the following conditions: 15 (1) The person presents the department with a current motor 16 vehicle dealer license valid for the sale of used motorcycles 17 at retail in the person’s state of residence. 18 (2) The state in which the person is licensed as a motor 19 vehicle dealer allows a motor vehicle dealer licensed in Iowa 20 to be issued a permit substantially similar to the temporary 21 permit authorized under this section. 22 (3) The person furnishes to the department a surety bond 23 that meets the requirements of section 322.4, subsection 1, 24 paragraph “g” . 25 (4) The person presents any additional information the 26 department may require. 27 c. Application for a temporary permit under this subsection 28 shall be made on forms provided by the department accompanied 29 by a fee established by the department by rule. 30 d. A sale of a motorcycle at a motorcycle rally shall not be 31 completed and an agreement for the sale of a motorcycle shall 32 not be signed at a motorcycle rally. All such sales shall be 33 consummated at the motor vehicle dealer’s principal place of 34 business. 35 -2- LSB 6062HC (2) 84 dea/nh 2/ 4

H.F. _____ e. The department may issue a temporary permit under this 1 subsection for a period not to exceed seven consecutive days. 2 A motor vehicle dealer may not receive more than one temporary 3 permit issued under this subsection in a calendar year. 4 Sec. 4. Section 322C.2, subsection 10, Code 2011, is amended 5 to read as follows: 6 10. “Travel trailer” means a vehicle without motive power 7 used or so manufactured or constructed as to permit its being 8 used as a conveyance upon the public streets and highways and 9 designed to permit the vehicle to be used as a place of human 10 habitation by one or more persons. The vehicle may be up to 11 eight feet six inches in width and its overall length shall not 12 exceed forty feet. “Travel trailer” does not include a vehicle 13 that is so designed as to permit it to be towed exclusively by 14 a motorcycle. 15 EXPLANATION 16 This bill provides for the display of used motorcycles 17 offered for sale at motorcycle rallies, provided the sponsor of 18 the rally holds no more than one rally per year in this state, 19 the rally is conducted for not less than three and not more 20 than seven days, and attendance at the rally is restricted to 21 persons paying a nonrefundable admission fee. 22 Under the bill, a person licensed as a motor vehicle dealer 23 and authorized to sell used motorcycles may apply to the 24 department of transportation for a temporary permit to display, 25 offer for sale, and negotiate sales of used motorcycles at a 26 rally. The fee for the permit is to be established by the 27 department by rule. A temporary permit may be issued for a 28 period of not more than seven days, and a motor vehicle dealer 29 may not be issued more than one such permit in a calendar year. 30 A person licensed as a motor vehicle dealer in another 31 state may be issued a temporary permit to display, offer for 32 sale, and negotiate sales of used motorcycles at a rally in 33 this state if the dealer presents to the department a current 34 license valid for the sale of used motorcycles at retail in 35 -3- LSB 6062HC (2) 84 dea/nh 3/ 4

H.F. _____ the person’s state of residence, provided that the dealer’s 1 home state extends similar privileges to a dealer licensed in 2 this state. A dealer from another state must furnish a surety 3 bond that meets current requirements for motor vehicle dealer 4 licensing. 5 A temporary permit issued under the bill does not allow 6 a dealer to complete the sale of a used motorcycle at a 7 motorcycle rally. The bill specifies that the sale shall not 8 be completed and a sales agreement shall not be signed at the 9 rally. The sale must be consummated at the motor vehicle 10 dealer’s principal place of business. 11 The bill amends the definition of “travel trailer” for 12 purposes of Code chapter 322C to exclude vehicles designed to 13 be towed exclusively by a motorcycle. As a result, sales of 14 motorcycle trailers are exempt from the travel trailer dealer 15 licensing requirements and from a specific provision in Code 16 section 322C.12 relating to finance charges under a travel 17 trailer retail installment contract. 18 -4- LSB 6062HC (2) 84 dea/nh 4/ 4