S.F. 2047 Section 1. Section 321.48, subsection 3, Code 2018, is 1 amended to read as follows: 2 3. Notwithstanding subsections 1 and 2 , requirements 3 in those subsections for obtaining title to a vehicle or 4 acknowledging assignment and warranty of title do not apply 5 to a dealer who sells a motor vehicle to a purchaser in a 6 consignment transaction authorized under section 322.7B 7 or 322.7C, or to a dealer who sells a travel trailer to a 8 purchaser in a consignment transaction authorized under section 9 322C.13 . 10 Sec. 2. NEW SECTION . 322.7C Consignment sales of motor 11 homes. 12 A licensed motor vehicle dealer may sell a motor home as 13 defined in section 321.1 that is a used motor vehicle on a 14 consignment basis if all of the following conditions apply: 15 1. The dealer is licensed to sell used motor vehicles. 16 2. The dealer prominently displays the words “consignment 17 vehicle” on the motor home and indicates clearly in the sales 18 documentation that the motor home is a consignment vehicle. 19 The dealer shall put customers on notice that the dealer does 20 not have title to the motor home and does not warranty the 21 title. 22 3. The dealer assumes no liability for damages resulting 23 from a customer’s test drive of the motor home, and the 24 consignor maintains financial liability coverage as required 25 under section 321.20B for the motor home throughout the term 26 of the consignment. 27 4. The consignor provides the dealer with a damage 28 disclosure statement meeting the requirements of section 321.69 29 and an odometer statement meeting the requirements of section 30 321.71, which the dealer shall make available upon request to 31 a customer. For purposes of section 321.69 and 321.71, the 32 consignor, not the dealer, shall be deemed to be the transferor 33 or seller of the motor home. 34 Sec. 3. Section 322.9, subsection 2, Code 2018, is amended 35 -1- LSB 5069XS (3) 87 ns/rh 1/ 5

S.F. 2047 to read as follows: 1 2. The department may revoke or suspend the license of a 2 retail motor vehicle dealer if, after notice and hearing by 3 the department of inspections and appeals, it finds that the 4 licensee has been convicted or has forfeited bail on three 5 charges of: 6 a. Failing upon the sale or transfer of a vehicle, except 7 upon the sale of a vehicle under section 322.7B or 322.7C , to 8 deliver to the purchaser or transferee of the vehicle sold or 9 transferred, a manufacturer’s or importer’s certificate, or a 10 certificate of title duly assigned, as provided in chapter 321 . 11 b. Failing upon the purchasing or otherwise acquiring of a 12 vehicle, except a vehicle acquired on consignment under section 13 322.7B or 322.7C , to obtain a manufacturer’s or importer’s 14 certificate, or a certificate of title duly assigned as 15 provided in chapter 321 . 16 c. Failing upon the purchasing or otherwise acquiring of a 17 vehicle, except a vehicle acquired on consignment under section 18 322.7B or 322.7C , to obtain a new certificate of title to such 19 vehicle when and where required in chapter 321 . 20 Sec. 4. NEW SECTION . 322C.13 Consignment sales of travel 21 trailers. 22 A licensed travel trailer dealer may sell a used travel 23 trailer on a consignment basis if all of the following 24 conditions apply: 25 1. The dealer is licensed to sell used travel trailers. 26 2. The dealer prominently displays the words “consignment 27 vehicle” on the travel trailer and indicates clearly in the 28 sales documentation that the travel trailer is a consignment 29 vehicle. The dealer shall put customers on notice that the 30 dealer does not have title to the travel trailer and does not 31 warranty the title. 32 3. The dealer assumes no liability for damages resulting 33 from a customer’s test drive of a motor vehicle towing the 34 travel trailer. 35 -2- LSB 5069XS (3) 87 ns/rh 2/ 5

S.F. 2047 4. The consignor provides the dealer with a damage 1 disclosure statement for the travel trailer, which the dealer 2 shall make available upon request to a customer. The damage 3 disclosure statement shall, at a minimum, state whether the 4 consignor knows if the travel trailer was titled as a salvage, 5 rebuilt, or flood vehicle in this or any other state, as 6 applicable, prior to the consignor’s ownership of the travel 7 trailer and, if not, whether the consignor knows if the travel 8 trailer was damaged to the extent that, were the travel trailer 9 a motor vehicle, it would be a wrecked or salvage vehicle as 10 defined in section 321.52, subsection 4, paragraph “e” , during 11 or prior to the consignor’s ownership of the travel trailer. 12 The damage disclosure statement forms shall be approved by the 13 department. The consignor shall maintain a copy of the damage 14 disclosure statement for five years following the date of the 15 statement. The copy shall be made available to the department 16 or the attorney general upon request. A consignor who 17 knowingly makes a false damage disclosure statement or fails to 18 make a damage disclosure statement required by this subsection 19 commits a fraudulent practice. Failure of a consignor to 20 comply with any duty imposed by this subsection constitutes a 21 violation of section 714.16, subsection 2, paragraph “a” . 22 Sec. 5. Section 714H.3, subsection 2, paragraph a, Code 23 2018, is amended to read as follows: 24 a. Section 321.69 or section 322C.13, subsection 4 . 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill allows a licensed motor vehicle dealer to sell 29 a used motor home on a consignment basis if the dealer is 30 licensed to sell used motor vehicles, the dealer prominently 31 displays the words “consignment vehicle” on the motor home 32 and indicates clearly in the sales documentation that the 33 motor home is a consignment vehicle, the dealer puts customers 34 on notice that the dealer does not have title to the motor 35 -3- LSB 5069XS (3) 87 ns/rh 3/ 5

S.F. 2047 home and does not warranty the title, the dealer assumes 1 no liability for damages resulting from a customer’s test 2 drive of the motor home, the consignor maintains financial 3 liability coverage for the motor home throughout the term of 4 the consignment, and the consignor provides the dealer with a 5 damage disclosure statement and an odometer statement for the 6 motor home, which the dealer must make available upon request 7 to a customer. The bill provides that for purposes of Code 8 section 321.69 (damage disclosure statement) and Code section 9 321.71 (odometer requirements), the consignor, not the dealer, 10 shall be deemed the transferor or seller of the motor home. 11 The bill allows a licensed travel trailer dealer to sell a 12 used travel trailer on a consignment basis if the dealer is 13 licensed to sell used travel trailers, the dealer prominently 14 displays the words “consignment vehicle” on the travel trailer 15 and indicates clearly in the sales documentation that the 16 travel trailer is a consignment vehicle, the dealer puts 17 customers on notice that the dealer does not have title to the 18 travel trailer and does not warranty the title, the dealer 19 assumes no liability for damages resulting from a customer’s 20 test drive of a motor vehicle towing the travel trailer, and 21 the consignor provides the dealer with a damage disclosure 22 statement for the travel trailer, which the dealer shall make 23 available upon request to a customer. 24 The bill requires travel trailer damage disclosure 25 statements to, at a minimum, state whether the consignor 26 knows if the travel trailer was titled as a salvage, rebuilt, 27 or flood vehicle in this or any other state, as applicable, 28 prior to the consignor’s ownership of the vehicle and, if 29 not, whether the consignor knows if the travel trailer was 30 damaged to the extent that, were the travel trailer a motor 31 vehicle, it would be a wrecked or salvage vehicle as defined 32 in Code section 321.52 during or prior to the consignor’s 33 ownership of the travel trailer. The bill provides that damage 34 disclosure statement forms shall be approved by the department 35 -4- LSB 5069XS (3) 87 ns/rh 4/ 5

S.F. 2047 of transportation (DOT). The bill requires the consignor to 1 maintain a copy of the damage disclosure statement for five 2 years following the date of the statement, which copy must be 3 made available to the DOT or the attorney general upon request. 4 Under current law, Code section 321.69 provides that 5 a person who knowingly makes a false motor vehicle damage 6 disclosure statement or fails to make a required motor 7 vehicle damage disclosure statement commits a fraudulent 8 practice punishable by certain criminal penalties under 9 Code sections 714.9 through 714.13. Failure of a person, 10 vehicle recycler, or vehicle dealer to comply with any duty 11 imposed by Code section 321.69 constitutes a violation of 12 Code section 714.16(2)(a) (consumer frauds), which is subject 13 to civil remedies and penalties. The bill provides that a 14 consignor who knowingly makes a false travel trailer damage 15 disclosure statement or fails to make a travel trailer damage 16 disclosure statement required by the bill commits a fraudulent 17 practice punishable by criminal penalties under Code sections 18 714.9 through 714.13. The bill also provides that failure 19 of a consignor to comply with any duty imposed by new Code 20 section 322C.13(4) constitutes a violation of Code section 21 714.16(2)(a), which is subject to civil remedies and penalties. 22 In addition, the bill provides that a person who commits the 23 violation may be subject to a private cause of action under 24 Code chapter 714H (consumer fraud —— private actions). 25 The bill excludes dealers selling motor homes or travel 26 trailers on a consignment basis from various requirements 27 for obtaining a title or a manufacturer’s or importer’s 28 certificate, or acknowledging assignment and warranty of title. 29 -5- LSB 5069XS (3) 87 ns/rh 5/ 5