HSB 13 (LSB 1225DP (2) 88)

SENATE/HOUSE FILE _____

BY  (PROPOSED ATTORNEY GENERAL BILL)

A BILL FOR

An Act increasing the required amount for a surety bond necessary for the issuance of a travel trailer dealer’s license, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 322C.4, subsection 4, Code 2019, is amended to read as follows:
   4.  Before the issuance of a travel trailer dealer’s license, the applicant shall furnish a surety bond executed by the applicant as principal and executed by a corporate surety company, licensed and qualified to do business within this state, which bond shall run to the state of Iowa, be in the amount of twenty-five seventy-five thousand dollars and be conditioned upon the faithful compliance by the applicant as a dealer with all statutes of this state regulating or applicable to a travel trailer dealer, and shall indemnify any person dealing or transacting business with the dealer from loss or damage caused by the failure of the dealer to comply with the provisions of chapter 321 and this chapter, including the furnishing of a proper and valid certificate of title to a travel trailer, and that the bond shall be filed with the department prior to the issuance of the license. A person licensed under chapter 322, with the same name and location or locations, is not subject to the provisions of this subsection.
    Sec. 2.  APPLICABILITY.  This Act applies to applications for a travel trailer dealer’s license submitted to the department of transportation on or after July 1, 2019.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill increases the required amount for a surety bond necessary for the issuance of a travel trailer dealer’s license by the department of transportation (DOT) from $25,000 to $75,000. The bill applies to applications for a travel trailer dealer’s license submitted to the DOT on or after July 1, 2019.