H.F. _____ Section 1. Section 321.26, subsection 2, Code 2020, is 1 amended to read as follows: 2 2. The county treasurer may adjust the renewal or 3 expiration date of vehicles registered in the county when 4 deemed necessary to equalize the number of vehicles registered 5 in each twelve-month period or for the administrative 6 efficiency of the county treasurer’s office. The adjustment 7 shall be accomplished by delivery of a written notice to the 8 vehicle owner of the adjustment and allowance of a credit 9 for the remaining months of the unused portion of the annual 10 registration fee, rounded to the nearest whole dollar, which 11 amount shall be deducted from the annual registration fee due 12 at the time of registration. Upon receipt of the notification 13 the owner shall, within thirty days, surrender the registration 14 card and registration plates to the a county treasurer of 15 the county where the vehicle is registered , except that the 16 registration plates shall not be surrendered if validation 17 stickers or other emblems are used to designate the month and 18 year of expiration of registration. A county treasurer who 19 receives the surrendered registration card and registration 20 plates of a vehicle not registered in the county treasurer’s 21 county shall immediately notify the county treasurer of the 22 county where the vehicle is registered that the registration 23 card and registration plates have been surrendered. Upon 24 payment of the annual registration fee, less the credit allowed 25 for the remaining months of the unused portion of the annual 26 registration fee, the county treasurer of the county where the 27 vehicle is registered shall issue a new registration card and 28 registration plates, validation stickers, or emblems which 29 indicate the month and year of expiration of registration. 30 Sec. 2. Section 321.34, subsection 1, Code 2020, is amended 31 to read as follows: 32 1. Plates issued. The county treasurer upon receiving 33 application, accompanied by proper fee, for registration of a 34 vehicle shall issue to the owner one registration plate for 35 -1- LSB 5564YC (5) 88 mo/ns 1/ 5

H.F. _____ a motorcycle, motorized bicycle, autocycle, truck tractor, 1 trailer, or semitrailer and two registration plates for every 2 other motor vehicle. The registration plates, including 3 special registration plates, shall be assigned to the owner of 4 a vehicle. When the owner of a registered vehicle transfers 5 or assigns ownership of the vehicle to another person, the 6 owner shall remove the registration plates from the vehicle. 7 The owner shall forward the plates to the a county treasurer 8 where the vehicle is registered or the owner may have the 9 plates assigned to another vehicle within thirty days after 10 transfer, upon payment of the fees required by law. A county 11 treasurer who receives the registration plates of a vehicle not 12 registered in the county treasurer’s county shall immediately 13 notify the county treasurer of the county where the vehicle is 14 registered that the registration plates have been received. 15 The owner shall immediately affix registration plates retained 16 by the owner to another vehicle owned or acquired by the 17 owner, providing the owner complies with section 321.46 . The 18 department shall adopt rules providing for the assignment of 19 registration plates to the transferee of a vehicle for which a 20 credit is allowed under section 321.46, subsection 6 . 21 Sec. 3. Section 321.47, subsection 3, Code 2020, is amended 22 to read as follows: 23 3. Whenever ownership of a vehicle is transferred under the 24 provisions of this section , the registration plates shall be 25 removed and forwarded to the a county treasurer , of the county 26 where the vehicle is registered or to the department if the 27 vehicle is owned by a nonresident. A county treasurer who 28 receives the registration plates of a vehicle not registered 29 in the county treasurer’s county shall immediately notify the 30 county treasurer of the county where the vehicle is registered 31 that the registration plates have been received. Upon transfer 32 the vehicle shall not be operated upon the highways of this 33 state until the person entitled to possession of the vehicle 34 applies for and obtains registration for the vehicle. 35 -2- LSB 5564YC (5) 88 mo/ns 2/ 5

H.F. _____ Sec. 4. Section 322.19A, subsection 2, Code 2020, is amended 1 to read as follows: 2 2. A Subject to subsections 3 and 3A, a motor vehicle dealer 3 may charge a documentary fee not to exceed one hundred eighty 4 dollars for each motor vehicle sold in a transaction. 5 Sec. 5. Section 322.19A, Code 2020, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 3A. On and after January 1, 2021, the 8 maximum permitted documentary fee shall be subject to an annual 9 rate adjustment equal to the percentage change in the consumer 10 price index published by the United States department of labor 11 bureau of labor statistics, rounded to the nearest whole cent. 12 The department shall calculate and publish the annual maximum 13 documentary fee for the following calendar year on or before 14 December 15 of each year. 15 Sec. 6. Section 322A.5, subsection 2, Code 2020, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . c. The franchiser shall provide to the 18 franchisee a list of time allowances for the performance of 19 warranty services. Time allowances for the performance of 20 warranty services, including diagnostic services, shall be 21 reasonable and adequate for the services to be performed. 22 Sec. 7. Section 322A.5, subsection 3, Code 2020, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . c. Recover from a franchisee the 25 franchiser’s costs associated with reimbursing the franchisee 26 for parts and labor pursuant to this section, including but not 27 limited to by increasing the wholesale price of a vehicle or by 28 imposing a surcharge on a franchisee. However, this paragraph 29 does not prohibit a franchiser from increasing the price of 30 vehicles or parts in the normal course of business. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill allows a person who receives a written notice of 35 -3- LSB 5564YC (5) 88 mo/ns 3/ 5

H.F. _____ an adjustment of the renewal or expiration of the person’s 1 motor vehicle registration to surrender their registration 2 card and registration plates to a county treasurer of any 3 county in the state rather than the county treasurer of the 4 county where the vehicle is registered. The bill further 5 allows the registration plates of a motor vehicle whose 6 ownership is transferred or assigned to another person pursuant 7 to Code section 321.34(1) or transferred by operation of 8 law pursuant to Code section 321.47(1) to be removed and 9 forwarded to any county treasurer in the state rather than 10 to the county treasurer where the vehicle is registered. In 11 any instance where the registration card or the registration 12 plates of a vehicle are surrendered or forwarded to a county 13 treasurer of a county where the vehicle is not registered, the 14 county treasurer who has received the registration card or 15 registration plates must notify the county treasurer of the 16 county where the vehicle is registered that the registration 17 card or registration plates have been surrendered or received. 18 The bill does not modify Code section 321.134, which allows an 19 owner of a motor vehicle who surrenders the registration plates 20 of a vehicle prior to the plates becoming delinquent to a 21 county treasurer of the county where the vehicle is registered 22 to register the vehicle any time thereafter without penalty. 23 Under current law, a motor vehicle dealer may charge a 24 documentary fee to a customer for the preparation of documents 25 related to an application for motor vehicle registration and 26 an application for issuance of a certificate of title, and 27 the performance of other related services for the customer, 28 which must not exceed $180 for each motor vehicle sold in a 29 transaction. The bill provides that on and after January 1, 30 2021, the maximum permitted documentary fee is subject to an 31 annual rate adjustment equal to the percentage change in the 32 consumer price index published by the United States department 33 of labor bureau of labor statistics, rounded to the nearest 34 whole cent. The department must calculate and publish the 35 -4- LSB 5564YC (5) 88 mo/ns 4/ 5

H.F. _____ annual maximum documentary fee for the following calendar year 1 on or before December 15 of each year. 2 Under the provisions of the bill, a motor vehicle franchiser 3 must provide a franchisee a list of time allowances for the 4 performance of warranty services, which must be reasonable and 5 adequate for the services to be performed. 6 The bill prohibits a motor vehicle franchiser from 7 recovering from a franchisee its costs of reimbursing the 8 franchisee for parts and labor pursuant to Code section 322A.5, 9 including but not limited to by increasing the wholesale price 10 of a vehicle or by imposing a surcharge on a franchisee. 11 However, a franchiser is not prohibited from increasing the 12 price of vehicles or parts in the normal course of business. 13 -5- LSB 5564YC (5) 88 mo/ns 5/ 5