Senate File 2082 - Introduced SENATE FILE 2082 BY CHELGREN A BILL FOR An Act relating to temporary permits for displaying, offering 1 for sale, and negotiating sales of new motor vehicles at 2 fair events, the state fair, vehicle shows, and vehicle 3 exhibitions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5634XS (2) 87 ns/rh

S.F. 2082 Section 1. Section 322.5, subsection 2, paragraph a, 1 subparagraph (2), Code 2018, is amended to read as follows: 2 (2) Display, offer for sale, and negotiate sales of new 3 motor vehicles at fair events, as defined in chapter 174 , the 4 state fair, as discussed in chapter 173 , vehicle shows, and 5 vehicle exhibitions, upon application for and receipt of a 6 temporary permit issued by the department. Such activities 7 may only be conducted at a fair event, the state fair, a 8 vehicle show, or a vehicle exhibition, if the fair event, 9 state fair, vehicle show, or vehicle exhibition is held in 10 the motor vehicle dealer’s community, as defined in section 11 322A.1 , for the vehicles that are displayed and offered for 12 sale. The department shall not issue a temporary permit under 13 this subparagraph unless the applicant is a motor vehicle 14 dealer with its principal place of business in this state and, 15 if the applicant is a corporation, limited liability company, 16 limited liability partnership, or other entity, the applicant 17 is incorporated or formed in this state. A sale of a motor 18 vehicle by a motor vehicle dealer shall not be completed and an 19 agreement for the sale of a motor vehicle shall not be signed 20 at a fair event, the state fair, a vehicle show, or a vehicle 21 exhibition. All such sales shall be consummated at the motor 22 vehicle dealer’s principal place of business. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 Under current law, motor vehicle dealers are allowed to 27 display, offer for sale, and negotiate sales of new motor 28 vehicles at fair events, the state fair, vehicle shows, and 29 vehicle exhibitions, upon application for and receipt of a 30 temporary permit issued by the department of transportation 31 (DOT). However, such activities may only be conducted if the 32 fair event, state fair, vehicle show, or vehicle exhibition is 33 held in the motor vehicle dealer’s community. In addition, a 34 sale of a motor vehicle by a motor vehicle dealer is prohibited 35 -1- LSB 5634XS (2) 87 ns/rh 1/ 2

S.F. 2082 from being completed at a fair event, the state fair, a vehicle 1 show, or a vehicle exhibition, and all such sales must be 2 consummated at the motor vehicle dealer’s principal place of 3 business. 4 This bill strikes the requirement that such activities may 5 only be conducted if the fair event, state fair, vehicle show, 6 or vehicle exhibition is held in the motor vehicle dealer’s 7 community. In addition, the bill provides that a temporary 8 permit allowing such activities shall not be issued by the 9 DOT unless the applicant is a motor vehicle dealer with its 10 principal place of business in this state and, if the applicant 11 is a corporation, limited liability company, limited liability 12 partnership, or other entity, the applicant is incorporated or 13 formed in this state. 14 -2- LSB 5634XS (2) 87 ns/rh 2/ 2