House Study Bill 593 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act allowing certain final-stage motor vehicle manufacturers 1 to be licensed as motor vehicle dealers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5789HC (4) 87 ns/rh

H.F. _____ Section 1. Section 321.1, subsection 37, Code 2018, is 1 amended to read as follows: 2 37. “Manufacturer” means every person engaged in the 3 business of fabricating or assembling vehicles of a type 4 required to be registered. “Manufacturer” does not include 5 a person who converts, modifies, or alters a completed 6 motor vehicle manufactured by another person or a person who 7 assembles a glider kit vehicle. “Manufacturer” includes a 8 person who uses a completed motor vehicle manufactured by 9 another person to construct a class “B” motor home as defined 10 in section 321.124 . “Manufacturer” also includes a final-stage 11 manufacturer as defined in section 322.2. 12 Sec. 2. Section 322.2, Code 2018, is amended by adding the 13 following new subsections: 14 NEW SUBSECTION . 10A. “Final-stage manufacturer” means 15 a manufacturer engaged in the business of performing 16 manufacturing operations on incomplete motor vehicles in order 17 to produce completed motor vehicles. 18 NEW SUBSECTION . 11A. “Incomplete motor vehicle” means an 19 assemblage of parts including but not limited to a power train, 20 steering system, suspension system, braking system, and chassis 21 structure including a frame, that is assembled in order to 22 become part of a completed motor vehicle but that requires 23 further manufacturing operations to become a completed motor 24 vehicle. 25 NEW SUBSECTION . 14A. “Multi-stage manufactured vehicle” 26 means a motor vehicle built in two or more stages in which 27 an incomplete motor vehicle, built by one manufacturer, is 28 completed by another manufacturer who adds cargo carrying 29 components or other components to the vehicle. 30 Sec. 3. Section 322.2, subsection 12, Code 2018, is amended 31 to read as follows: 32 12. “Manufacturer” means any person engaged in the business 33 of fabricating or assembling motor vehicles. “Manufacturer” 34 does not include a person who converts, modifies, or alters a 35 -1- LSB 5789HC (4) 87 ns/rh 1/ 3

H.F. _____ completed motor vehicle manufactured by another person or a 1 person who assembles a glider kit vehicle as defined in section 2 321.1 . “Manufacturer” includes a person who uses a completed 3 motor vehicle manufactured by another person to construct 4 a class “B” motor home as defined in section 321.124 or a 5 motorsports recreational vehicle as defined in section 321.1 . 6 “Manufacturer” also includes a final-stage manufacturer. 7 Sec. 4. Section 322.3, subsection 14, Code 2018, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . f. A final-stage manufacturer from being 10 licensed as a motor vehicle dealer only of incomplete motor 11 vehicles manufactured by that final-stage manufacturer. 12 This paragraph applies only if the final-stage manufacturer 13 manufactures multi-stage manufactured vehicles. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill provides that “manufacturer” under Code sections 18 321.1 and 322.2 includes a final-stage manufacturer. The 19 bill further provides that “final-stage manufacturer” 20 means a manufacturer engaged in the business of performing 21 manufacturing operations on incomplete motor vehicles in 22 order to produce completed motor vehicles. “Incomplete motor 23 vehicle” means an assemblage of parts including but not limited 24 to a power train, steering system, suspension system, braking 25 system, and chassis structure including a frame, that is 26 assembled in order to become part of a completed motor vehicle 27 but that requires further manufacturing operations to become a 28 completed motor vehicle. 29 Under current law, Code section 322.3(14) prohibits a motor 30 vehicle manufacturer or importer from directly or indirectly 31 being licensed as, owning an interest in, operating, or 32 controlling a motor vehicle dealer, with certain exceptions. 33 The bill adds to the list of exceptions a provision allowing 34 a final-stage manufacturer to be licensed as a motor vehicle 35 -2- LSB 5789HC (4) 87 ns/rh 2/ 3

H.F. _____ dealer only of incomplete motor vehicles manufactured by that 1 final-stage manufacturer. The exception applies only if the 2 final-stage manufacturer manufactures multi-stage manufactured 3 vehicles. “Multi-stage manufactured vehicle” means a motor 4 vehicle built in two or more stages in which an incomplete 5 motor vehicle, built by one manufacturer, is completed by 6 another manufacturer who adds cargo carrying components or 7 other components to the vehicle. 8 -3- LSB 5789HC (4) 87 ns/rh 3/ 3