Senate Study Bill 1140 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON KAPUCIAN) A BILL FOR An Act relating to dealers and lienholders of motor vehicles 1 and travel trailers, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2242XC (4) 87 ns/nh
S.F. _____ Section 1. Section 321.30, subsection 1, Code 2017, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . n. If the applicant has not paid a 3 delinquent registration fee charged to the applicant pursuant 4 to section 321.48A. 5 Sec. 2. Section 321.40, Code 2017, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 5A. The county treasurer shall refuse to 8 renew the registration of a vehicle registered to the applicant 9 if the applicant has not paid a delinquent registration fee 10 charged to the applicant pursuant to section 321.48A. 11 Sec. 3. NEW SECTION . 321.48A Dealers —— delinquent 12 registration fees. 13 Notwithstanding section 321.46, subsection 4, or any other 14 provision of law to the contrary, if a dealer licensed pursuant 15 to chapter 322 acquires a motor vehicle at a wholesale auction 16 for the purpose of resale, and the annual registration fee 17 for the vehicle was delinquent at the time the vehicle was 18 acquired by the dealer, the dealer may register the vehicle and 19 be issued a certificate of title for the vehicle upon proper 20 application as provided in this chapter without paying the 21 delinquent registration fee or any penalty on the delinquent 22 registration fee. The delinquent registration fee and any 23 penalty on the delinquent registration fee shall be charged to 24 the registered owner of the vehicle at the time the fee became 25 delinquent, and shall be collected from such owner by a county 26 treasurer at the time the owner applies for registration, 27 registration renewal, or issuance of a certificate of title for 28 another vehicle. 29 Sec. 4. Section 321.89, subsection 3, paragraph a, Code 30 2017, is amended to read as follows: 31 a. A police authority or private entity that takes into 32 custody an abandoned vehicle shall notify, within twenty five 33 days, by certified mail, the last known registered owner of 34 the vehicle, all lienholders of record, and any other known 35 -1- LSB 2242XC (4) 87 ns/nh 1/ 7
S.F. _____ claimant to the vehicle or to personal property found in the 1 vehicle, addressed to the parties’ last known addresses of 2 record, that the abandoned vehicle has been taken into custody. 3 Notice shall be deemed given when mailed. The notice shall 4 describe the year, make, model, and vehicle identification 5 number of the vehicle, describe the personal property found 6 in the vehicle, set forth the location of the facility where 7 the vehicle is being held, and inform the persons receiving 8 the notice of their right to reclaim the vehicle and personal 9 property within ten days after the effective date of the 10 notice upon payment of all towing, preservation, and storage 11 charges resulting from placing the vehicle in custody and 12 upon payment of the costs of notice required pursuant to this 13 subsection . The notice shall also state that the failure of 14 the owner, lienholders, or claimants to exercise their right 15 to reclaim the vehicle or personal property within the time 16 provided shall be deemed a waiver by the owner, lienholders, 17 and claimants of all right, title, claim, and interest in the 18 vehicle or personal property and that failure to reclaim the 19 vehicle or personal property is deemed consent to the sale of 20 the vehicle at a public auction or disposal of the vehicle to a 21 demolisher and to disposal of the personal property by sale or 22 destruction. If the abandoned vehicle was taken into custody 23 by a private entity without a police authority’s initiative, 24 the notice shall state that the private entity may claim a 25 garagekeeper’s lien as described in section 321.90, subsection 26 1 , and may proceed to sell or dispose of the vehicle. If the 27 abandoned vehicle was taken into custody by a police authority 28 or by a private entity hired by a police authority, the notice 29 shall state that any person claiming rightful possession of 30 the vehicle or personal property who disputes the planned 31 disposition of the vehicle or property by the police authority 32 or private entity or of the assessment of fees and charges 33 provided by this section may ask for an evidentiary hearing 34 before the police authority to contest those matters. If the 35 -2- LSB 2242XC (4) 87 ns/nh 2/ 7
S.F. _____ persons receiving notice do not ask for a hearing or exercise 1 their right to reclaim the vehicle or personal property within 2 the ten-day reclaiming period, the owner, lienholders, or 3 claimants shall no longer have any right, title, claim, or 4 interest in or to the vehicle or the personal property. A 5 court in any case in law or equity shall not recognize any 6 right, title, claim, or interest of the owner, lienholders, 7 or claimants after the expiration of the ten-day reclaiming 8 period. 9 Sec. 5. Section 322.5, subsection 2, paragraph a, Code 2017, 10 is amended to read as follows: 11 a. In addition to selling motor vehicles at the motor 12 vehicle dealer’s principal place of business and at car lots, a 13 motor vehicle dealer may do any of the following: 14 (1) Display new motor vehicles at fairs, vehicle shows, 15 and vehicle exhibitions, upon application for and receipt of a 16 temporary permit issued by the department. 17 (2) Display, offer for sale, and negotiate sales of new 18 motor vehicles at fair events, as defined in chapter 174 , the 19 state fair, as discussed in chapter 173 , vehicle shows, and 20 vehicle exhibitions, upon application for and receipt of a 21 temporary permit issued by the department. Such activities 22 may only be conducted at a fair event, the state fair, a 23 vehicle show, or a vehicle exhibition, if the fair event, 24 state fair, vehicle show, or vehicle exhibition is held in 25 the motor vehicle dealer’s community, as defined in section 26 322A.1 , for the vehicles that are displayed and offered for 27 sale. A sale of a motor vehicle by a motor vehicle dealer 28 shall not be completed and an agreement for the sale of a motor 29 vehicle shall not be signed at a fair event, the state fair, a 30 vehicle show, or a vehicle exhibition. All such sales shall 31 be consummated at the motor vehicle dealer’s principal place 32 of business. 33 Sec. 6. NEW SECTION . 322.37 Record retention. 34 1. A motor vehicle dealer licensed under this chapter shall 35 -3- LSB 2242XC (4) 87 ns/nh 3/ 7
S.F. _____ retain paper or electronic records of all purchases or sales of 1 motor vehicles made by the dealer. The records shall contain 2 all of the following: 3 a. Each motor vehicle’s make, model, model year, vehicle 4 identification number, and odometer reading at the time of 5 purchase or sale. 6 b. The name and address of the seller or purchaser. 7 c. The seller’s or purchaser’s driver’s license or 8 nonoperator’s identification card number, or if the seller or 9 purchaser is licensed to buy or sell motor vehicles in this 10 state, the number of such a license. 11 2. The records shall be retained at a facility or office 12 of the motor vehicle dealer located within this state for 13 five years after the purchase or sale of the vehicle, and 14 the location’s address and the contact information for the 15 designated agent responsible for the records shall be provided 16 to the department. 17 3. The department shall have access to a motor vehicle 18 dealer’s records within a reasonable period of time of a 19 request by the department to review the motor vehicle dealer’s 20 records. 21 Sec. 7. Section 322C.11, Code 2017, is amended to read as 22 follows: 23 322C.11 Penalties. 24 A person violating a provision of section 322C.3 or 322C.7 25 is guilty of a serious misdemeanor. A person violating a 26 provision of section 322C.13 is guilty of a simple misdemeanor 27 punishable by a fine of not less than two hundred fifty 28 dollars nor more than one thousand five hundred dollars or by 29 imprisonment not to exceed thirty days. 30 Sec. 8. NEW SECTION . 322C.13 Record retention. 31 1. A travel trailer dealer licensed under this chapter shall 32 retain paper or electronic records of all purchases or sales of 33 travel trailers made by the dealer. The records shall contain 34 all of the following: 35 -4- LSB 2242XC (4) 87 ns/nh 4/ 7
S.F. _____ a. Each travel trailer’s make, model, model year, and 1 vehicle identification number. 2 b. The name and address of the seller or purchaser. 3 c. The seller’s or purchaser’s driver’s license or 4 nonoperator’s identification card number, or if the seller or 5 purchaser is licensed to buy or sell travel trailers in this 6 state, the number of such a license. 7 2. The records shall be retained at a facility or office 8 of the travel trailer dealer located within this state for 9 five years after the purchase or sale of the travel trailer, 10 and the location’s address and the contact information for the 11 designated agent responsible for the records shall be provided 12 to the department. 13 3. The department shall have access to a travel trailer 14 dealer’s records within a reasonable period of time of a 15 request by the department to review the travel trailer dealer’s 16 records. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill provides that a licensed motor vehicle dealer who 21 has acquired a vehicle at a wholesale auction for the purpose 22 of resale, and the annual registration fee for the vehicle 23 was delinquent at the time the vehicle was acquired by the 24 dealer, is permitted to register the vehicle and be issued a 25 certificate of title for the vehicle upon proper application 26 without paying the delinquent registration fee or any penalty 27 on the delinquent registration fee. The bill requires the 28 delinquent registration fee and any penalty on the delinquent 29 registration fee to be charged to the registered owner of 30 the vehicle at the time the fee became delinquent, and to be 31 collected from such owner by a county treasurer at the time 32 the owner applies for registration, registration renewal, 33 or issuance of a certificate of title for another vehicle. 34 The bill provides that any application for registration, 35 -5- LSB 2242XC (4) 87 ns/nh 5/ 7
S.F. _____ registration renewal, or issuance of a certificate of title 1 for another vehicle by the owner must be refused if the owner 2 has not paid a delinquent registration fee charged to the 3 owner under the bill. However, the bill does not authorize 4 the department of transportation (DOT) to suspend or revoke a 5 current registration of the owner under Code section 321.101. 6 The bill decreases the period of time within which a 7 police authority or private entity that takes into custody an 8 abandoned vehicle is required to notify by certified mail the 9 last known registered owner of the vehicle, all lienholders 10 of record, and any other known claimant to the vehicle or to 11 personal property found in the vehicle from 20 days to five 12 days. 13 Under current law, licensed motor vehicle dealers are 14 permitted to display, offer for sale, and negotiate sales 15 of new motor vehicles at fairs, vehicle shows, and vehicle 16 exhibitions. The bill permits licensed motor vehicle dealers 17 to display, offer for sale, and negotiate sales of all motor 18 vehicles at fairs, vehicle shows, and vehicle exhibitions. 19 The bill requires licensed motor vehicle dealers to retain 20 paper or electronic records of all purchases or sales of 21 motor vehicles made by the dealer. The bill requires the 22 records to contain each vehicle’s make, model, model year, 23 vehicle identification number, and odometer reading at the 24 time of purchase or sale; the name and address of the seller 25 or purchaser; and the seller’s or purchaser’s driver’s license 26 or nonoperator’s identification card number, or if the seller 27 or purchaser is licensed to buy or sell motor vehicles in 28 this state, the number of such a license. The bill further 29 requires the records to be retained at a facility or office of 30 the motor vehicle dealer located within this state for five 31 years after the purchase or sale of the vehicle, and requires 32 the location’s address and the contact information for the 33 designated agent responsible for the records to be provided to 34 the DOT. The bill permits the DOT to have access to a dealer’s 35 -6- LSB 2242XC (4) 87 ns/nh 6/ 7
S.F. _____ records within a reasonable period of time of a request by the 1 DOT to review the dealer’s records. The bill applies similar 2 record retention requirements to licensed travel trailer 3 dealers. Under Code section 322.14 and as provided by the 4 bill, a violation of these provisions is a simple misdemeanor 5 punishable by a fine of not less than $250 nor more than $1,500 6 or by imprisonment not to exceed 30 days. 7 -7- LSB 2242XC (4) 87 ns/nh 7/ 7