Senate
File
2247
-
Introduced
SENATE
FILE
2247
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
3124)
A
BILL
FOR
An
Act
relating
to
the
use
of
licenses
and
advertisements
by
1
motor
vehicle
dealers
and
wholesalers,
and
making
penalties
2
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5585SV
(3)
86
ns/nh
S.F.
2247
Section
1.
Section
322.2,
subsection
7,
Code
2016,
is
1
amended
to
read
as
follows:
2
7.
“Engaged
in
the
business”
means
doing
any
of
the
3
following
acts
for
the
purpose
of
the
sale
of
motor
vehicles
4
at
retail:
acquiring,
selling,
exchanging,
holding,
offering,
5
displaying,
brokering,
accepting
on
consignment,
conducting
a
6
retail
auction,
advertising
as
being
engaged
in
any
of
those
7
acts,
or
acting
as
an
agent
for
the
purpose
of
doing
any
of
8
those
acts.
A
person
selling
at
retail
more
than
six
motor
9
vehicles
during
a
twelve-month
period
may
be
presumed
to
be
10
engaged
in
the
business.
11
Sec.
2.
Section
322.3,
subsection
3,
Code
2016,
is
amended
12
to
read
as
follows:
13
3.
Subsections
1
,
and
2
,
and
16
shall
not
be
construed
14
to
require
the
separate
licensing
of
persons
employed
as
15
salespersons
of
motor
vehicles
by
a
retail
motor
vehicle
16
dealer.
However,
the
department
may
promulgate
reasonable
17
rules
as
necessary
for
the
proper
identification
of
persons
18
employed
as
salespersons.
19
Sec.
3.
Section
322.3,
subsection
12,
Code
2016,
is
amended
20
to
read
as
follows:
21
12.
A
person
who
has
been
convicted
of
a
fraudulent
22
practice,
has
been
convicted
of
three
or
more
violations
of
23
section
321.92,
subsection
2
,
or
section
321.99
,
has
been
24
convicted
of
three
or
more
violations
of
subsection
16
of
25
this
section
in
the
previous
three-year
period,
or
has
been
26
convicted
of
any
other
indictable
offense
in
connection
with
27
selling
or
other
activity
relating
to
motor
vehicles,
in
this
28
state
or
any
other
state,
shall
not
for
a
period
of
five
29
years
from
the
date
of
conviction
be
an
owner,
salesperson,
30
employee,
officer
of
a
corporation,
or
representative
of
a
31
licensed
motor
vehicle
dealer
or
represent
themselves
as
an
32
owner,
salesperson,
employee,
officer
of
a
corporation,
or
33
representative
of
a
licensed
motor
vehicle
dealer.
34
Sec.
4.
Section
322.3,
Code
2016,
is
amended
by
adding
the
35
-1-
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(3)
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3
S.F.
2247
following
new
subsection:
1
NEW
SUBSECTION
.
16.
A
motor
vehicle
dealer
or
wholesaler
2
licensed
under
this
chapter
shall
not
sell,
loan,
rent,
lease,
3
or
charge
a
fee
for
the
use
of
the
license
to
another
person
for
4
the
purpose
of
allowing
the
person
to
engage
in
the
business
of
5
selling
motor
vehicles.
6
Sec.
5.
NEW
SECTION
.
322.7C
Motor
vehicle
dealer
7
advertising.
8
A
print
publication
or
digital
media
advertisement
for
the
9
sale
of
a
particular
motor
vehicle
by
a
motor
vehicle
dealer
10
licensed
under
this
chapter,
other
than
an
advertisement
11
located
on
the
premises
of
the
dealer’s
place
of
business,
12
shall
include
the
name
under
which
the
dealer
engages
in
13
the
business
and
the
dealer’s
general
distinguishing
number
14
assigned
by
the
department
pursuant
to
section
321.59.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
expands
the
definition
of
“engaged
in
the
19
business”
as
the
term
relates
to
motor
vehicle
manufacturers,
20
distributors,
wholesalers,
and
dealers
to
include
advertising
21
as
being
engaged
in
acquiring,
selling,
exchanging,
holding,
22
offering,
displaying,
brokering,
accepting
on
consignment,
or
23
conducting
a
retail
auction
of
motor
vehicles.
24
The
bill
prohibits
a
licensed
motor
vehicle
dealer
or
25
wholesaler
from
selling,
loaning,
renting,
leasing,
or
charging
26
a
fee
for
the
use
of
the
license
to
another
person
for
the
27
purpose
of
allowing
the
person
to
engage
in
the
business
of
28
selling
motor
vehicles.
Three
or
more
violations
of
this
29
provision
in
a
three-year
period
will
result
in
the
violator
30
being
barred
from
being
an
owner,
salesperson,
employee,
31
officer
of
a
corporation,
or
representative
of
a
licensed
motor
32
vehicle
dealer
or
representing
themselves
as
such
for
five
33
years.
The
provision
does
not
require
the
separate
licensing
34
of
persons
employed
as
salespersons
by
a
dealer.
35
-2-
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S.F.
2247
The
bill
requires
a
print
publication
or
digital
media
1
advertisement
for
the
sale
of
a
particular
motor
vehicle
by
2
a
motor
vehicle
dealer,
other
than
an
advertisement
located
3
on
the
premises
of
the
dealer’s
place
of
business,
to
include
4
the
name
under
which
the
dealer
engages
in
the
business
and
5
the
dealer’s
general
distinguishing
number
assigned
by
the
6
department
of
transportation.
7
Under
current
law,
a
violation
of
a
provision
of
Code
chapter
8
322
(motor
vehicle
manufacturers,
distributors,
wholesalers,
9
and
dealers)
is
a
simple
misdemeanor
punishable
by
a
fine
of
10
not
less
than
$250
nor
more
than
$1,500
or
by
imprisonment
not
11
to
exceed
30
days.
12
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(3)
86
ns/nh
3/
3