S.F. 435 Section 1. Section 321.1, subsection 36C, paragraph b, Code 1 2019, is amended to read as follows: 2 b. “Travel trailer” means a vehicle without motive power 3 used, manufactured, or constructed to permit its use as a 4 conveyance upon the public streets and highways and designed 5 to permit its use as a place of human habitation by one or 6 more persons. The vehicle may be up to eight feet six inches 7 in width and its overall length shall not exceed forty-five 8 feet. The vehicle shall be customarily or ordinarily used 9 for vacation or recreational purposes and not used as a place 10 of permanent habitation. If the vehicle is used in this 11 state as a place of human habitation for more than ninety one 12 hundred eighty consecutive days in one location it shall be 13 classed as a manufactured or mobile home regardless of the size 14 limitations provided in this paragraph. 15 Sec. 2. Section 322C.2, Code 2019, is amended to read as 16 follows: 17 322C.2 Definitions. 18 As used in this chapter unless the context otherwise 19 requires: 20 1. To sell “at retail” means to sell a travel trailer 21 towable recreational vehicle to a person who will devote it to 22 a consumer use. 23 2. “Community” means a towable recreational vehicle dealer’s 24 area of responsibility as stipulated in the manufacturer-dealer 25 agreement. 26 2. 3. “Department” means the state department of 27 transportation. 28 3. 4. “Distributor” means a person who sells or distributes 29 travel trailers towable recreational vehicles to travel trailer 30 towable recreational vehicle dealers either directly or through 31 a representative employed by a distributor. 32 5. “Factory campaign” means an effort by or on behalf of a 33 warrantor to contact towable recreational vehicle dealers or 34 owners to address an equipment or part issue. 35 -1- LSB 1301SV (3) 88 ns/rh 1/ 41

S.F. 435 6. “Family member” means a spouse, child, grandchild, 1 parent, sibling, niece, or nephew, or the spouse of a child, 2 grandchild, parent, sibling, niece, or nephew. 3 4. 7. “Fifth-wheel travel trailer” means a type of travel 4 trailer which is towed by a motor vehicle by a connecting 5 device known as a fifth wheel. When used in this chapter , 6 “travel trailer” includes a fifth-wheel travel trailer vehicle 7 mounted on wheels that has an overall length of forty-five feet 8 or less, is designed to provide temporary living quarters for 9 recreational, camping, or travel use, is of such a size and 10 weight as to not require a permit under chapter 321E when moved 11 on a highway, and is designed to be towed by a motor vehicle 12 equipped with a towing mechanism located above or forward of 13 the motor vehicle’s rear axle . “Fifth-wheel travel trailer” 14 includes a toy-hauler fifth-wheel travel trailer. 15 8. “Folding camping trailer” means a vehicle mounted on 16 wheels and constructed with collapsible side walls designed to 17 be folded when towed by a motor vehicle and unfolded to provide 18 temporary living quarters for recreational, camping, or travel 19 use. 20 9. “Line-make” means a specific series of towable 21 recreational vehicles meeting all of the following criteria: 22 a. The vehicles are identified by a common series trade name 23 or trademark. 24 b. The vehicles are targeted at a particular market segment, 25 as determined by the vehicles’ decoration, features, equipment, 26 size, weight, and price range. 27 c. The vehicles have lengths and interior floor plans 28 distinguishable from other towable recreational vehicles with 29 substantially similar decoration, features, equipment, weight, 30 and price. 31 d. The vehicles belong to a single, distinct classification 32 of a towable recreational vehicle product type having a 33 substantial degree of commonality in the construction of the 34 chassis, frame, and body. 35 -2- LSB 1301SV (3) 88 ns/rh 2/ 41

S.F. 435 e. A manufacturer-dealer agreement authorizes a dealer to 1 sell the vehicles. 2 5. 10. “Manufacturer” means a person engaged in the 3 business of fabricating or assembling travel trailers of a type 4 required to be registered manufacture of towable recreational 5 vehicles . 6 11. “Manufacturer-dealer agreement” means a written 7 agreement or contract entered into between a manufacturer or 8 distributor and a towable recreational vehicle dealer that 9 specifies the rights and responsibilities of the parties 10 and authorizes the dealer to sell and service new towable 11 recreational vehicles. 12 6. 12. “New travel trailer” towable recreational vehicle” 13 means a travel trailer towable recreational vehicle that has 14 not been sold at retail. 15 13. “Park model recreational vehicle” means a vehicle 16 meeting all of the following criteria: 17 a. The vehicle is designed to provide, and marketed as 18 providing, temporary living quarters for recreational, camping, 19 travel, or seasonal use. 20 b. The vehicle is not permanently affixed to real property 21 for use as a permanent dwelling. 22 c. The vehicle is built on a single chassis mounted on 23 wheels with a gross trailer area not exceeding four hundred 24 square feet in the vehicle’s set-up mode. 25 d. The vehicle is certified by the manufacturer as in 26 compliance with the American national standard for park model 27 recreational vehicles, commonly cited as “ANSI A 119.5”. 28 7. 14. “Person” includes any individual, partnership, 29 corporation, association, fiduciary , or other legal entity 30 engaged in business, other than a unit or agency of government 31 or governmental subdivision. 32 8. 15. “Place of business” means a designated location 33 where facilities are maintained for displaying, reconditioning , 34 and repairing either new or used travel trailers towable 35 -3- LSB 1301SV (3) 88 ns/rh 3/ 41

S.F. 435 recreational vehicles . 1 16. “Proprietary part” means any part manufactured by or 2 for, and sold exclusively by, a manufacturer. 3 9. 17. “Sell” includes barter, exchange , and other methods 4 of dealing. 5 18. “Supplier” means a person engaged in the manufacture of 6 towable recreational vehicle parts, accessories, or components. 7 19. “Towable recreational vehicle” means a vehicle 8 designed to be towed by a motor vehicle owned by a consumer 9 and to provide temporary living quarters for recreational, 10 camping, or travel use, that complies with all applicable 11 federal regulations, and that is certified by the vehicle’s 12 manufacturer as in compliance with the national fire protection 13 association standard on recreational vehicles, commonly cited 14 as “NFPA 1192”, or the American national standard for park 15 model recreational vehicles, commonly cited as “ANSI A 119.5”, 16 as applicable. “Towable recreational vehicle” includes a 17 travel trailer, toy-hauler travel trailer, fifth-wheel travel 18 trailer, toy-hauler fifth-wheel travel trailer, folding camping 19 trailer, truck camper, and park model recreational vehicle. 20 For purposes of registration and titling under chapter 321, 21 a towable recreational vehicle shall be considered a travel 22 trailer or fifth-wheel travel trailer, as those terms are 23 defined in section 321.1, as applicable. 24 20. “Towable recreational vehicle dealer” or “dealer” means a 25 person required to be licensed under this chapter authorized to 26 sell and service towable recreational vehicles. 27 21. “Toy-hauler fifth-wheel travel trailer” means a 28 fifth-wheel travel trailer equipped with a back wall capable 29 of being lowered to form a ramp for loading and unloading a 30 specialized rear compartment that can then be resecured for 31 travel. 32 22. “Toy-hauler travel trailer” means a travel trailer 33 equipped with a back wall capable of being lowered to form a 34 ramp for loading and unloading a specialized rear compartment 35 -4- LSB 1301SV (3) 88 ns/rh 4/ 41

S.F. 435 that can then be resecured for travel. 1 23. “Transient consumer” means a consumer who is temporarily 2 traveling through a towable recreational vehicle dealer’s 3 community. 4 10. 24. “Travel trailer” means a vehicle without motive 5 power used or so manufactured or constructed as to permit its 6 being used as a conveyance upon the public streets and highways 7 and designed to permit the vehicle to be used as a place of 8 human habitation by one or more persons. The vehicle may be 9 up to eight feet six inches in width and its overall length 10 shall not exceed forty-five feet mounted on wheels that has a 11 width of eight feet six inches or less and an overall length 12 of forty-five feet or less, is designed to provide temporary 13 living quarters for recreational, camping, or travel use, 14 and is of such a size and weight as to not require a permit 15 under chapter 321E when towed by a motor vehicle on a highway . 16 “Travel trailer” includes a toy-hauler travel trailer. “Travel 17 trailer” does not include a vehicle that is so designed as to 18 permit it to be towed exclusively by a motorcycle. 19 25. “Truck camper” means a vehicle designed to be placed in 20 the bed of a pickup truck to provide temporary living quarters 21 for recreational, camping, or travel use. 22 11. 26. “Used travel trailer” towable recreational vehicle” 23 means a travel trailer towable recreational vehicle which has 24 been sold at retail and previously registered in this or any 25 other state. 26 27. “Warrantor” means a person, including a manufacturer, 27 distributor, or supplier, that provides a written warranty 28 to a consumer in connection with a new towable recreational 29 vehicle or any part, accessory, or component of a new towable 30 recreational vehicle. “Warrantor” does not include a dealer, 31 distributor, supplier, or other person that is not owned or 32 controlled by a manufacturer that provides a service contract, 33 mechanical or other insurance, or an extended warranty sold for 34 separate consideration to a consumer. 35 -5- LSB 1301SV (3) 88 ns/rh 5/ 41

S.F. 435 Sec. 3. Section 322C.3, Code 2019, is amended to read as 1 follows: 2 322C.3 Prohibited acts —— exception. 3 1. A person shall not engage in this state in the business 4 of selling at retail new travel trailers towable recreational 5 vehicles of any make line-make , or represent or advertise that 6 the person is engaged in or intends to engage in such business 7 in this state, unless the person is authorized by a contract 8 in writing manufacturer-dealer agreement between that person 9 and the manufacturer or distributor of that make line-make 10 of new travel trailers towable recreational vehicles to sell 11 the trailers vehicles in this state, and unless the department 12 has issued to the person a license as a travel trailer towable 13 recreational vehicle dealer for the same make line-make of 14 travel trailer towable recreational vehicle which the dealer is 15 authorized to sell under the manufacturer-dealer agreement . 16 2. A person, other than a licensed travel trailer dealer 17 in new travel trailers towable recreational vehicles , shall 18 not engage in the business of selling at retail used travel 19 trailers towable recreational vehicles or represent or 20 advertise that the person is engaged in or intends to engage in 21 such business in this state unless the department has issued 22 to the person a license as a used travel trailer towable 23 recreational vehicle dealer. 24 3. A person is not required to obtain a license as a travel 25 trailer dealer if the person is disposing of a travel trailer 26 towable recreational vehicle acquired or repossessed, so long 27 as the person is exercising a power or right granted by a lien, 28 title-retention instrument, or security agreement given as 29 security for a loan or a purchase money obligation. 30 4. A travel trailer dealer shall not enter into a contract, 31 agreement, or understanding, expressed or implied, with a 32 manufacturer or distributor that the dealer will sell, assign, 33 or transfer an agreement or contract arising from the retail 34 installment sale of a travel trailer towable recreational 35 -6- LSB 1301SV (3) 88 ns/rh 6/ 41

S.F. 435 vehicle only to a designated person or class of persons. 1 Any such condition, agreement , or understanding between a 2 manufacturer or distributor and a travel trailer dealer is 3 against the public policy of this state and is unlawful and 4 void. 5 5. A manufacturer or distributor of travel trailers towable 6 recreational vehicles or an agent or representative of the 7 manufacturer or distributor, shall not refuse to renew a 8 contract manufacturer-dealer agreement for a term of less than 9 five years twelve months , and shall not terminate or threaten 10 to terminate a contract, agreement , or understanding for the 11 sale of new travel trailers towable recreational vehicles to a 12 travel trailer dealer in this state without just, reasonable , 13 and lawful cause or because the travel trailer dealer failed 14 to sell, assign , or transfer a contract or agreement arising 15 from the retail sale of a travel trailer towable recreational 16 vehicle to only a person or a class of persons designated by 17 the manufacturer or distributor. 18 6. A travel trailer dealer shall not make and enter into a 19 security agreement or other contract unless the agreement or 20 contract meets the following requirements: 21 a. The security agreement or contract is in writing, is 22 signed by both the buyer and the seller and is complete as to 23 all essential provisions prior to the signing of the agreement 24 or contract by the buyer except that, if delivery of the 25 travel trailer towable recreational vehicle is not made at 26 the time of the execution of the agreement or contract, the 27 identifying numbers of the travel trailer towable recreational 28 vehicle or similar information and the due date of the first 29 installment may be inserted in the agreement or contract after 30 its execution. 31 b. The agreement or contract complies with the Iowa consumer 32 credit code, chapter 537 , where applicable. 33 7. A manufacturer or distributor of travel trailers towable 34 recreational vehicles or an agent or representative of a 35 -7- LSB 1301SV (3) 88 ns/rh 7/ 41

S.F. 435 manufacturer or distributor shall not coerce or attempt to 1 coerce a travel trailer dealer to accept delivery of a travel 2 trailer towable recreational vehicle, or travel trailer parts 3 or accessories thereof , or any other commodity which has not 4 been ordered by the dealer. 5 8. Except as provided under subsection 9 of this section , a 6 person licensed under section 322C.4 shall not, either directly 7 or through an agent, salesperson , or employee, engage or 8 represent or advertise that the person is engaged in or intends 9 to engage in this state , in the business of buying or selling 10 new or used travel trailers towable recreational vehicles on 11 Sunday. 12 9. A travel trailer dealer may display new travel trailers 13 towable recreational vehicles at fairs, shows, and exhibitions 14 on any day of the week as provided in this subsection . Travel 15 trailer dealers Dealers , in addition to selling travel trailers 16 towable recreational vehicles at their principal place of 17 business and lots, may, upon receipt of a temporary permit 18 approved by the department, display and offer new travel 19 trailers towable recreational vehicles for sale and negotiate 20 sales of new travel trailers towable recreational vehicles 21 at fairs, shows, and exhibitions. Application for temporary 22 permits shall be made upon forms provided by the department and 23 shall be accompanied by a ten dollar permit fee. Temporary 24 permits shall be issued for a period not to exceed fourteen 25 days. The department may issue multiple consecutive temporary 26 permits. 27 10. A person who has been convicted of a fraudulent 28 practice, has been convicted of three or more violations of 29 section 321.92, subsection 2 , or section 321.99 , or has been 30 convicted of any other indictable offense in connection with 31 selling or other activity relating to vehicles, in this state 32 or any other state, shall not for a period of five years from 33 the date of conviction be an owner, salesperson, employee, 34 officer of a corporation, or representative of a licensed 35 -8- LSB 1301SV (3) 88 ns/rh 8/ 41

S.F. 435 travel trailer towable recreational vehicle dealer or represent 1 themselves as an owner, salesperson, employee, officer of a 2 corporation, or representative of a licensed travel trailer 3 towable recreational vehicle dealer. 4 Sec. 4. Section 322C.4, Code 2019, is amended to read as 5 follows: 6 322C.4 Dealer’s license application and fees. 7 1. Upon application and payment of a fee, a person may 8 be licensed as a travel trailer towable recreational vehicle 9 dealer. The license fee is seventy dollars for a two-year 10 period or part thereof. The person shall pay an additional 11 fee of twenty dollars for a two-year period or part thereof 12 for each travel trailer towable recreational vehicle lot in 13 addition to the principal place of business unless the lot is 14 adjacent to the principal place of business. For purposes 15 of this subsection , “adjacent” means that the principal place 16 of business and each additional lot are adjoining parcels 17 of property. The applicant shall file in the office of the 18 department a verified application for license as a travel 19 trailer dealer in the form the department prescribes, which 20 shall include the following: 21 a. The name of the applicant and the applicant’s principal 22 place of business. 23 b. The name of the applicant’s business and whether the 24 applicant is an individual, partnership, corporation , or other 25 legal entity. 26 (1) If the applicant is a partnership , the name under which 27 the partnership intends to engage in business and the name and 28 post office address of each partner. 29 (2) If the applicant is a corporation, the state of 30 incorporation and the name and post office address of each 31 officer and director. 32 c. The make line-make or makes line-makes of new travel 33 trailers towable recreational vehicles , if any, which the 34 applicant will offer for sale at retail in this state. 35 -9- LSB 1301SV (3) 88 ns/rh 9/ 41

S.F. 435 d. The location of each place of business within this state 1 to be used by the applicant for the conduct of the business. 2 e. If the applicant is a party to a contract, agreement 3 including a manufacturer-dealer agreement , or understanding 4 with a manufacturer or distributor of travel trailers towable 5 recreational vehicles or is about to become a party to a 6 contract, agreement, or understanding, the applicant shall 7 state the name of each manufacturer and distributor and the 8 make line-make or makes line-makes of new travel trailers 9 towable recreational vehicles , if any, which are the subject 10 matter of the contract, agreement, or understanding. 11 f. Other information concerning the business of the 12 applicant the department reasonably requires for administration 13 of this chapter . 14 2. The license shall be granted or refused within thirty 15 days after application. A license is valid for a two-year 16 period and expires, unless revoked or suspended by the 17 department, on December 31 of even-numbered years. A licensee 18 shall have the month of expiration and the month after the 19 month of expiration to renew the license. A person who fails 20 to renew a license by the end of this time period and desires to 21 hold a license shall file a new license application and pay the 22 required fee. A separate license shall be obtained for each 23 county in which an applicant does business as a travel trailer 24 dealer. 25 3. A licensee shall file with the department a supplemental 26 statement when there is a change in an item of information 27 required under paragraphs “a” to “e” of subsection 1 , 28 paragraphs “a” through “e” , within fifteen days after the 29 change. Upon filing a supplemental statement, the licensee 30 shall surrender its license to the department together with 31 a thirty-five-dollar fee. The department shall issue a new 32 license modified to reflect the changes on the supplemental 33 statement. 34 4. Before the issuance of a travel trailer dealer’s license, 35 -10- LSB 1301SV (3) 88 ns/rh 10/ 41

S.F. 435 the applicant shall furnish a surety bond executed by the 1 applicant as principal and executed by a corporate surety 2 company , licensed and qualified to do business within this 3 state, which bond shall run to the state of Iowa, be in the 4 amount of twenty-five thousand dollars , and be conditioned upon 5 the faithful compliance by the applicant as a dealer with all 6 statutes of this state regulating or applicable to a travel 7 trailer dealer, and shall indemnify any person dealing or 8 transacting business with the dealer from loss or damage caused 9 by the failure of the dealer to comply with the provisions 10 of chapter 321 and this chapter , including the furnishing of 11 a proper and valid certificate of title to a travel trailer, 12 and that the towable recreational vehicle. The bond shall be 13 filed with the department prior to the issuance of the license. 14 A person licensed under chapter 322 , with the same name and 15 location or locations, is not subject to the provisions of this 16 subsection . 17 Sec. 5. Section 322C.6, subsections 2 and 7, Code 2019, are 18 amended to read as follows: 19 2. Made a material misrepresentation to the department in 20 connection with an application for a license, certificate of 21 title , or registration of a travel trailer towable recreational 22 vehicle or other vehicle. 23 7. Knowingly made misleading, deceptive, untrue , or 24 fraudulent representations in the business as a distributor of 25 travel trailers towable recreational vehicles or engaged in 26 unethical conduct or practice harmful or detrimental to the 27 public. 28 Sec. 6. Section 322C.7, Code 2019, is amended to read as 29 follows: 30 322C.7 Manufacturer’s or distributor’s license. 31 A manufacturer or distributor of travel trailers towable 32 recreational vehicles shall not engage in business in this 33 state without a license pursuant to this chapter . 34 Sec. 7. NEW SECTION . 322C.8 Applicability to agreements. 35 -11- LSB 1301SV (3) 88 ns/rh 11/ 41

S.F. 435 If a towable recreational vehicle dealer also sells 1 and services motorized recreational vehicles or other 2 motor vehicles, the provisions of this chapter relating to 3 manufacturer-dealer agreements apply only to such agreements, 4 or those provisions of such agreements, applicable to towable 5 recreational vehicles. 6 Sec. 8. Section 322C.9, Code 2019, is amended to read as 7 follows: 8 322C.9 License application and fees. 9 Upon application and payment of a seventy dollar fee for 10 a two-year period or part thereof, a person may be licensed 11 as a manufacturer or distributor of travel trailers towable 12 recreational vehicles . The application shall be in the form 13 and shall contain information as the department prescribes. 14 The license shall be granted or refused within thirty days 15 after application. The license expires, unless sooner revoked 16 or suspended by the department, on December 31 of even-numbered 17 years. A licensee shall have the month of expiration and the 18 month after the month of expiration to renew the license. A 19 person who fails to renew a license by the end of this time 20 period and desires to hold a license shall file a new license 21 application and pay the required fee. 22 Sec. 9. Section 322C.12, Code 2019, is amended to read as 23 follows: 24 322C.12 Semitrailer or travel trailer towable recreational 25 vehicle retail installment contract —— finance charges. 26 1. A retail installment contract or agreement for the sale 27 of a semitrailer or travel trailer towable recreational vehicle 28 may include a finance charge not in excess of the following 29 rates: 30 a. Class 1. Any new semitrailer or travel trailer towable 31 recreational vehicle designated by the manufacturer by a year 32 model not earlier than the year in which the sale is made, 33 an amount equivalent to one and three-fourths percent per 34 month simple interest on the declining balance of the amount 35 -12- LSB 1301SV (3) 88 ns/rh 12/ 41

S.F. 435 financed. 1 b. Class 2. Any new semitrailer or travel trailer towable 2 recreational vehicle not in class 1 and any used semitrailer 3 designated by the manufacturer by a year model of the same or 4 not more than two years prior to the year in which the sale 5 is made, an amount equivalent to two percent per month simple 6 interest on the declining balance of the amount financed. 7 c. Class 3. Any used semitrailer or travel trailer towable 8 recreational vehicle not in class 2 and designated by the 9 manufacturer by a year model more than two years prior to the 10 year in which the sale is made, an amount equivalent to two and 11 one-fourth percent per month simple interest on the declining 12 balance of the amount financed. 13 2. Amount financed shall be “Amount financed” means the same 14 as defined in section 537.1301 . 15 3. The limitations contained in this section do not apply 16 in a transaction referred to in section 535.2, subsection 2 . 17 With respect to a consumer credit sale, as defined in section 18 537.1301 , the limitations contained in this section supersede 19 conflicting provisions of chapter 537, article 2, part 2 . 20 Sec. 10. NEW SECTION . 322C.13 Manufacturer-dealer agreement 21 required —— community. 22 1. A manufacturer or distributor shall not sell a new 23 towable recreational vehicle in this state to or through a 24 towable recreational vehicle dealer without first entering into 25 a manufacturer-dealer agreement with the dealer that has been 26 signed by both parties. A dealer shall not sell a new towable 27 recreational vehicle in this state without first entering 28 into a manufacturer-dealer agreement with a manufacturer or 29 distributor that has been signed by both parties. 30 2. Except as provided in subsection 3, a 31 manufacturer-dealer agreement shall designate the community 32 exclusively assigned to a dealer by the manufacturer or 33 distributor, and the manufacturer or distributor shall not 34 change the community or contract with another dealer for the 35 -13- LSB 1301SV (3) 88 ns/rh 13/ 41

S.F. 435 sale of the same line-make of towable recreational vehicle in 1 the community for the duration of the agreement. 2 3. The community designated in a manufacturer-dealer 3 agreement may be reviewed or changed with the consent of both 4 parties not less than twelve months after execution of the 5 agreement. 6 Sec. 11. NEW SECTION . 322C.14 Manufacturer-dealer agreement 7 —— termination, cancellation, nonrenewal, or alteration by 8 manufacturer or distributor. 9 1. Notwithstanding section 322C.3, subsection 5, a 10 manufacturer or distributor may, either directly or through any 11 authorized officer, agent, or employee, terminate, cancel, or 12 fail to renew a manufacturer-dealer agreement with or without 13 good cause. If the manufacturer or distributor terminates, 14 cancels, or fails to renew a manufacturer-dealer agreement 15 without good cause, the manufacturer or distributor shall 16 comply with the repurchase requirements set forth in section 17 322C.16. 18 2. A manufacturer or distributor shall have the burden of 19 proof to demonstrate good cause for terminating, canceling, or 20 failing to renew a manufacturer-dealer agreement. For purposes 21 of determining whether good cause exists for the manufacturer’s 22 or distributor’s termination, cancellation, or failure to renew 23 a manufacturer-dealer agreement, any of the following factors 24 may be considered: 25 a. The extent of the dealer’s presence in the community. 26 b. The nature and extent of the dealer’s investment in the 27 dealer’s business. 28 c. The adequacy of the dealer’s service facilities, 29 equipment, parts, supplies, and personnel. 30 d. The effect that the proposed termination, cancellation, 31 or nonrenewal of the manufacturer-dealer agreement would have 32 on the community. 33 e. The extent and quality of the dealer’s service under the 34 warranties of the towable recreational vehicles sold by the 35 -14- LSB 1301SV (3) 88 ns/rh 14/ 41

S.F. 435 dealer. 1 f. The dealer’s failure to follow procedures or standards 2 related to the overall operation of the dealership that were 3 agreed to by the dealer. 4 g. The dealer’s performance under the terms of the 5 manufacturer-dealer agreement. 6 3. a. Except as otherwise provided in this subsection 7 or subsection 4, a manufacturer or distributor shall provide 8 to a dealer written notice of termination, cancellation, or 9 nonrenewal of a manufacturer-dealer agreement for good cause at 10 least ninety days prior to terminating, canceling, or failing 11 to renew the manufacturer-dealer agreement. 12 b. (1) The notice shall state all of the reasons for the 13 termination, cancellation, or nonrenewal and shall further 14 state that if, within thirty days following receipt of the 15 notice, the dealer provides to the manufacturer or distributor 16 a written notice of intent to cure all claimed deficiencies, 17 the dealer shall then have ninety days following receipt of the 18 notice to cure the deficiencies. 19 (2) If the deficiencies are cured within ninety days, 20 the manufacturer’s or distributor’s notice is voided. If 21 the dealer fails to provide the notice of intent to cure 22 the deficiencies within thirty days, or fails to cure the 23 deficiencies within ninety days, the termination, cancellation, 24 or nonrenewal takes effect as provided in the original notice. 25 If the dealer has possession of new and untitled inventory, the 26 inventory may be sold pursuant to section 322C.16. 27 c. The notice period for termination, cancellation, or 28 nonrenewal of a manufacturer-dealer agreement for good cause 29 may be reduced to thirty days if the grounds for termination, 30 cancellation, or nonrenewal are due to any of the following 31 factors: 32 (1) The dealer or one of the dealer’s owners has been 33 convicted of, or has entered a plea of guilty or nolo 34 contendere to, a felony. 35 -15- LSB 1301SV (3) 88 ns/rh 15/ 41

S.F. 435 (2) The dealer has abandoned or closed the dealer’s 1 business operations for ten consecutive business days. This 2 subparagraph does not apply if the closing is due to a normal 3 seasonal closing and the dealer notifies the manufacturer or 4 distributor of the planned closing, an act of God, a strike, a 5 labor difficulty, or any other cause over which the dealer has 6 no control. 7 (3) The dealer has made a significant misrepresentation 8 that materially affects the business relationship of the 9 manufacturer or distributor and the dealer. 10 (4) The dealer’s license has been suspended, revoked, 11 denied, or has not been renewed by the department. 12 (5) The dealer has committed a material violation of this 13 chapter which is not cured within thirty days after receipt of 14 written notice of the violation. 15 4. Subsection 3 does not apply if the manufacturer or 16 distributor terminates, cancels, or fails to renew the 17 manufacturer-dealer agreement because the dealer is insolvent, 18 or has filed for bankruptcy, receivership, or assignment for 19 the benefit of creditors. 20 Sec. 12. NEW SECTION . 322C.15 Manufacturer-dealer agreement 21 —— termination, cancellation, nonrenewal, or alteration by 22 dealer. 23 1. A dealer may terminate, cancel, or fail to renew a 24 manufacturer-dealer agreement with or without good cause. 25 If the dealer terminates, cancels, or fails to renew a 26 manufacturer-dealer agreement with good cause, the manufacturer 27 or distributor shall comply with the repurchase requirements 28 set forth in section 322C.16. 29 2. The dealer shall have the burden of proof to demonstrate 30 good cause for terminating, canceling, or failing to renew a 31 manufacturer-dealer agreement. For purposes of determining 32 whether good cause exists for the dealer’s termination, 33 cancellation, or failure to renew a manufacturer-dealer 34 agreement, any of the following factors shall be deemed to be 35 -16- LSB 1301SV (3) 88 ns/rh 16/ 41

S.F. 435 good cause: 1 a. The manufacturer or distributor has been convicted of, or 2 has entered a plea of guilty or nolo contendere to, a felony. 3 b. The manufacturer’s or distributor’s business operations 4 have been abandoned or caused the dealer’s business operations 5 to close for ten consecutive business days. This subparagraph 6 does not apply if the closing is due to a normal seasonal 7 closing and the manufacturer or distributor notifies the dealer 8 of the planned closing, an act of God, a strike, a labor 9 difficulty, or any other cause over which the manufacturer or 10 distributor has no control. 11 c. The manufacturer or distributor has made a significant 12 misrepresentation that materially affects the business 13 relationship of the manufacturer or distributor and the dealer. 14 d. The manufacturer or distributor has committed a material 15 violation of this chapter which is not cured within thirty days 16 after receipt of written notice of the violation. 17 e. The manufacturer or distributor is insolvent, or has 18 filed for bankruptcy, receivership, or assignment for the 19 benefit of creditors. 20 3. a. A dealer shall provide to a manufacturer or 21 distributor written notice of termination, cancellation, or 22 nonrenewal of a manufacturer-dealer agreement at least thirty 23 days prior to terminating, canceling, or failing to renew the 24 manufacturer-dealer agreement. 25 b. (1) If a termination or cancellation is for good cause, 26 the notice shall state all of the reasons for the termination 27 or cancellation and shall further state that if, within 28 thirty days following receipt of the notice, the manufacturer 29 or distributor provides to the dealer a written notice of 30 intent to cure all claimed deficiencies, the manufacturer or 31 distributor shall then have ninety days following receipt of 32 the notice to cure the deficiencies. 33 (2) If the deficiencies are cured within ninety days, the 34 dealer’s notice is voided. If the manufacturer or distributor 35 -17- LSB 1301SV (3) 88 ns/rh 17/ 41

S.F. 435 fails to provide the notice of intent to cure the deficiencies 1 within thirty days, or fails to cure the deficiencies within 2 ninety days, the termination or cancellation takes effect as 3 provided in the original notice. 4 Sec. 13. NEW SECTION . 322C.16 Repurchase or sale of 5 inventory. 6 1. If a manufacturer-dealer agreement is terminated, 7 canceled, or not renewed by the manufacturer or distributor 8 without good cause, or by a dealer with good cause and, in 9 the case of termination or cancellation, the manufacturer or 10 distributor fails to provide notice or cure the deficiencies 11 claimed by the dealer, the manufacturer or distributor shall, 12 at the dealer’s option and within forty-five days after 13 termination, cancellation, or nonrenewal, repurchase all of the 14 following: 15 a. All new, untitled towable recreational vehicles that 16 the dealer acquired from the manufacturer or distributor 17 within twelve months prior to the effective date of the 18 notice of termination, cancellation, or nonrenewal of the 19 manufacturer-dealer agreement that have not been used other 20 than for demonstration purposes, and that have not been altered 21 or damaged, at one hundred percent of the net invoice cost, 22 including transportation, less applicable rebates and discounts 23 to the dealer. If any of the towable recreational vehicles 24 repurchased pursuant to this paragraph are damaged, but do not 25 require a disclosure under section 321.69A, the amount due to 26 the dealer shall be reduced by the cost to repair the vehicle. 27 Damage incurred by a vehicle prior to delivery to the dealer 28 that was disclosed at the time of delivery shall not disqualify 29 repurchase pursuant to this paragraph. 30 b. All undamaged proprietary parts for any line-make subject 31 to the termination, cancellation, or nonrenewal that was sold 32 to the dealer for resale within twelve months prior to the 33 effective date of the termination, cancellation, or nonrenewal 34 of the manufacturer-dealer agreement, if accompanied by the 35 -18- LSB 1301SV (3) 88 ns/rh 18/ 41

S.F. 435 original invoice, at one hundred five percent of the original 1 net price paid to the manufacturer or distributor. 2 c. All properly functioning diagnostic equipment, special 3 tools, current signage, or other equipment and machinery 4 that was purchased by the dealer upon the request of the 5 manufacturer or distributor for any line-make subject to the 6 termination, cancellation, or nonrenewal within five years 7 prior to the effective date of the termination, cancellation, 8 or nonrenewal of the manufacturer-dealer agreement that can no 9 longer be used in the normal course of the dealer’s ongoing 10 business. 11 2. If towable recreational vehicles of a particular 12 line-make subject to a terminated, canceled, or nonrenewed 13 manufacturer-dealer agreement are not repurchased or required 14 to be repurchased pursuant to the agreement, the dealer 15 may continue to sell such vehicles existing in the dealer’s 16 inventory until the vehicles are no longer in the dealer’s 17 inventory. 18 Sec. 14. NEW SECTION . 322C.17 Transfer of ownership —— 19 family succession —— objection. 20 1. a. If a towable recreational vehicle dealer makes or 21 intends to make a change in ownership of a dealership by sale 22 of the business assets, a stock transfer, or in another manner, 23 the dealer shall provide to a manufacturer or distributor that 24 is a party to a manufacturer-dealer agreement with the dealer 25 written notice of the proposed change at least fifteen business 26 days before the change becomes effective. The notice shall 27 include all supporting documentation that may be reasonably 28 required by the manufacturer or distributor to determine 29 whether to make an objection to the change. 30 b. In the absence of a breach by the dealer of the 31 manufacturer-dealer agreement or a violation of this chapter, 32 the manufacturer or distributor shall not object to the 33 proposed change in ownership unless the objection is to the 34 prospective transferee for any of the following reasons: 35 -19- LSB 1301SV (3) 88 ns/rh 19/ 41

S.F. 435 (1) The transferee has previously been a party to a 1 manufacturer-dealer agreement with the manufacturer or 2 distributor and the agreement was terminated, canceled, or not 3 renewed by the manufacturer or distributor for good cause. 4 (2) The transferee has been convicted of a felony or any 5 crime of fraud, deceit, or moral turpitude. 6 (3) The transferee lacks any license required by law. 7 (4) The transferee does not have an active line of credit 8 sufficient to purchase the manufacturer’s or distributor’s 9 products. 10 (5) The transferee is insolvent or has been within the 11 previous ten years, or has filed for bankruptcy, receivership, 12 or assignment for the benefit of creditors within the previous 13 ten years. 14 c. If a manufacturer or distributor objects to a proposed 15 change in ownership of a dealership, the manufacturer or 16 distributor shall provide written notice of the reasons for 17 the objection to the dealer within fifteen business days 18 after receipt of the dealer’s notification and supporting 19 documentation about the proposed change. The manufacturer 20 or distributor shall have the burden of proof to demonstrate 21 that the objection complies with the requirements of this 22 subsection. If the manufacturer or distributor does not 23 provide the dealer with timely notice of the objection, the 24 dealer’s proposed change in ownership of the dealership shall 25 be deemed approved. 26 2. a. A manufacturer or distributor shall provide 27 to a dealer the opportunity to designate, in writing, a 28 family member as a successor to ownership of a dealership 29 in the event of the death, incapacity, or retirement of the 30 dealer. If a dealer desires to designate a family member as 31 a successor to ownership of a dealership, the dealer shall 32 provide to the manufacturer or distributor that is a party 33 to the manufacturer-dealer agreement with the dealer written 34 notice of the proposed designation, or modification of a 35 -20- LSB 1301SV (3) 88 ns/rh 20/ 41

S.F. 435 previous designation, at least fifteen business days before 1 the designation or proposed modification of a designation 2 becomes effective. The notice shall include all supporting 3 documentation as may be reasonably required by the manufacturer 4 or distributor to determine whether to make an objection to the 5 succession plan. 6 b. In the absence of a breach by the dealer of the 7 manufacturer-dealer agreement or a violation of this chapter, 8 the manufacturer or distributor shall not object to the 9 designation or proposed modification of a designation unless 10 the objection is to the designated successor for any of the 11 following reasons: 12 (1) The designated successor has previously been a party 13 to a manufacturer-dealer agreement with the manufacturer or 14 distributor and the agreement was terminated, canceled, or not 15 renewed by the manufacturer or distributor for good cause. 16 (2) The designated successor has been convicted of a felony 17 or any crime of fraud, deceit, or moral turpitude. 18 (3) The designated successor lacks any license required by 19 law at the time of succession. 20 (4) The designated successor does not have an active 21 line of credit sufficient to purchase the manufacturer’s or 22 distributor’s products at the time of succession. 23 (5) The designated successor is insolvent or has been 24 within the previous ten years, or has filed for bankruptcy, 25 receivership, or assignment for the benefit of creditors within 26 the previous ten years. 27 c. If a manufacturer or distributor objects to a succession 28 plan, the manufacturer or distributor shall provide written 29 notice of the reasons for the objection to the dealer 30 within fifteen business days after receipt of the dealer’s 31 notification and supporting documentation about the proposed 32 designation or proposed modification of a designation. The 33 manufacturer or distributor shall have the burden of proof to 34 demonstrate that the objection complies with the requirements 35 -21- LSB 1301SV (3) 88 ns/rh 21/ 41

S.F. 435 of this subsection. If the manufacturer or distributor does 1 not provide the dealer with timely notice of the objection, the 2 dealer’s proposed succession plan shall be deemed approved. 3 A manufacturer or distributor shall allow the succession of 4 ownership of a dealership to a designated family member when a 5 dealer is deceased, incapacitated, or has retired, unless the 6 manufacturer or distributor has provided to the dealer written 7 notice of the manufacturer’s or distributor’s objections to 8 the succession within fifteen days after receipt of notice of 9 the succession. However, a family member of a dealer shall 10 not succeed to ownership of a dealership if the succession 11 involves, without the manufacturer’s or distributor’s consent, 12 a relocation of the dealership or alteration of the terms and 13 conditions of the manufacturer-dealer agreement. 14 Sec. 15. NEW SECTION . 322C.18 Warranty obligations. 15 1. A warrantor shall do all of the following: 16 a. Specify in writing to each dealer what obligations the 17 dealer has, if any, for the preparation and delivery of, and 18 warranty services on, the warrantor’s products. 19 b. Compensate the dealer for warranty services the warrantor 20 requires the dealer to perform. 21 c. Provide the dealer with a schedule of compensation and 22 time allowances for the performance of warranty services. The 23 schedule of compensation shall include reasonable compensation 24 for warranty services performed by the dealer, including 25 diagnostic services. 26 2. a. Time allowances for the performance of warranty 27 services, including diagnostic services, shall be reasonable 28 for the service to be performed. 29 b. In determining what constitutes reasonable compensation 30 under this section, the principle factors to be given 31 consideration shall be the actual wage rates being paid by the 32 dealer and the actual retail wage rates being charged by other 33 dealers in the community in which the dealer is doing business. 34 The compensation of a dealer for warranty services shall not be 35 -22- LSB 1301SV (3) 88 ns/rh 22/ 41

S.F. 435 less than the lowest actual retail wage rates charged by the 1 dealer for similar nonwarranty services, as long as the actual 2 retail wage rates are reasonable. 3 3. A warrantor shall reimburse a dealer for any warranty 4 part, accessory, or complete component at actual wholesale 5 cost to the dealer plus a minimum of a thirty percent handling 6 charge, not to exceed one hundred fifty dollars, and plus the 7 cost, if any, to the dealer to return such part, component, or 8 accessory to the warrantor. 9 4. A warrantor may conduct a warranty audit of a dealer’s 10 records within twelve months after the payment of a warranty 11 claim. A warrantor shall not deny a dealer’s claim for 12 warranty compensation except for good cause, including 13 performance of nonwarranty repairs, material noncompliance with 14 the warrantor’s published policies and procedures, lack of 15 material documentation, fraud, or misrepresentation. 16 5. A dealer shall submit claims for compensation for the 17 performance of warranty services to the warrantor within 18 forty-five days after completion of the warranty services. 19 6. A dealer shall immediately notify a warrantor in writing 20 if the dealer is unable to perform warranty services, including 21 diagnostic services, within ten days of receipt of a written 22 complaint from a consumer. 23 7. A warrantor shall deny a claim submitted by a dealer 24 for compensation for the performance of warranty services, 25 in writing, within thirty days after submission of the claim 26 in the manner and form prescribed by the warrantor. A claim 27 not specifically denied as required by this subsection shall 28 be deemed approved and shall be paid within sixty days of 29 submission of the claim. 30 8. A warrantor shall not do any of the following: 31 a. Fail to perform any of the warrantor’s obligations with 32 respect to its warranted products. 33 b. Fail to include, in written notices of a factory 34 campaign to towable recreational vehicle owners and dealers, 35 -23- LSB 1301SV (3) 88 ns/rh 23/ 41

S.F. 435 the expected date by which necessary parts and equipment, 1 including tires and chassis or chassis parts, will be available 2 to dealers to perform the factory campaign work. The warrantor 3 may ship parts to a dealer for purposes of factory campaign 4 work, and, if such parts are in excess of the dealer’s 5 requirements, the dealer may return unused, undamaged parts 6 to the warrantor for credit after completion of the factory 7 campaign. 8 c. Fail to compensate the warrantor’s dealers for authorized 9 repairs performed by the dealer on merchandise damaged in 10 manufacture or in transit to the dealer by a carrier designated 11 by the warrantor, factory branch, distributor, or distributor 12 branch. 13 d. Fail to compensate the warrantor’s dealers in accordance 14 with the schedule of compensation provided to the dealer 15 pursuant to this section, if the warranty services for which 16 compensation is claimed are performed by the dealer in a timely 17 and competent manner as required in this section. 18 e. Intentionally misrepresent in any way to consumers that 19 warranties with respect to the manufacture, performance, or 20 design of towable recreational vehicles are made by the dealer 21 as warrantor or co-warrantor. 22 f. Require the warrantor’s dealers to make warranties to a 23 consumer that are in any manner related to the manufacture of a 24 towable recreational vehicle. 25 9. A dealer shall not do any of the following: 26 a. Fail to perform predelivery inspection functions, as 27 specified by the warrantor, in a competent and timely manner. 28 b. Fail to perform warranty services, as authorized by the 29 warrantor, in a competent and timely manner on any transient 30 consumer’s towable recreational vehicle of a line-make sold or 31 serviced by the dealer. 32 c. Fail to accurately document the time spent completing 33 each repair, the total number of repair attempts conducted on a 34 single towable recreational vehicle, and the number of repair 35 -24- LSB 1301SV (3) 88 ns/rh 24/ 41

S.F. 435 attempts for the same repair conducted on a single towable 1 recreational vehicle. 2 d. Fail to notify the warrantor within ten days of a second 3 repair attempt on a towable recreational vehicle which impairs 4 the use, value, or safety of the vehicle. 5 e. Fail to maintain written records, including a consumer’s 6 written or electronic verification or signature, regarding the 7 amount of time a towable recreational vehicle is stored for the 8 consumer’s convenience during a repair. 9 f. Make fraudulent warranty claims or misrepresent the terms 10 of any warranty. 11 Sec. 16. NEW SECTION . 322C.19 Indemnification —— warrantor 12 and dealer. 13 1. a. Notwithstanding the terms of a manufacturer-dealer 14 agreement, a warrantor shall indemnify and hold harmless the 15 warrantor’s dealer against any loss or damage, to the extent 16 the loss or damage is caused by willful misconduct of the 17 warrantor. 18 b. A warrantor shall not deny a dealer indemnification 19 for failure to discover, disclose, or remedy a defect in the 20 design or manufacture of a new towable recreational vehicle. A 21 warrantor may deny a dealer indemnification if the dealer fails 22 to remedy a known and announced defect in accordance with the 23 written instructions of the warrantor for whom the dealer is 24 obligated to perform warranty services. 25 c. A warrantor shall provide to the dealer a copy of any 26 pending lawsuit in which allegations are made against the 27 warrantor of willful misconduct. The warrantor shall provide 28 the copy to the dealer within ten days after receiving notice 29 of the lawsuit. 30 2. a. Notwithstanding the terms of a manufacturer-dealer 31 agreement, a dealer shall indemnify and hold harmless the 32 dealer’s warrantor against any loss or damage, to the extent 33 that the loss or damage is caused by willful misconduct of the 34 dealer. 35 -25- LSB 1301SV (3) 88 ns/rh 25/ 41

S.F. 435 b. A dealer shall provide to the warrantor a copy of any 1 pending lawsuit in which allegations are made against the 2 dealer of willful misconduct. The dealer shall provide the 3 copy to the warrantor within ten days after receiving notice 4 of the lawsuit. 5 3. Notwithstanding any provision of law to the contrary, 6 this section continues to apply after a new towable 7 recreational vehicle is titled. 8 Sec. 17. NEW SECTION . 322C.20 Inspection and rejection by 9 dealer. 10 1. Whenever a new towable recreational vehicle is damaged 11 prior to transit or is damaged in transit to a dealer and 12 the carrier or means of transportation has been selected by 13 the manufacturer or distributor, the dealer shall notify the 14 manufacturer or distributor of the damage within the time frame 15 specified in the manufacturer-dealer agreement and shall do 16 either of the following: 17 a. Request from the manufacturer or distributor 18 authorization to replace the components, parts, or accessories 19 damaged, or otherwise repair the vehicle to make it ready for 20 sale at retail. 21 b. Reject the vehicle within the time frame set forth in the 22 manufacturer-dealer agreement pursuant to subsection 4. 23 2. If the manufacturer or distributor refuses to authorize 24 repair of the new towable recreational vehicle within ten days 25 after receipt of a dealer’s notification, or if the dealer 26 rejects the new towable recreational vehicle because of damage 27 to the vehicle, ownership of the vehicle shall revert to the 28 manufacturer or distributor. 29 3. The dealer shall exercise due care when in custody of a 30 damaged new towable recreational vehicle, but the dealer shall 31 have no other obligations, financial or otherwise, with respect 32 to the vehicle following rejection in accordance with the 33 manufacturer-dealer agreement pursuant to subsection 4. 34 4. The time frame for inspection and rejection of a damaged 35 -26- LSB 1301SV (3) 88 ns/rh 26/ 41

S.F. 435 new towable recreational vehicle by a dealer shall be specified 1 in the manufacturer-dealer agreement, but shall not be less 2 than two business days after the physical delivery of the 3 vehicle to the dealer. 4 Sec. 18. NEW SECTION . 322C.21 Civil action —— mediation. 5 1. A dealer, manufacturer, distributor, or warrantor 6 injured by another party’s violation of this chapter may bring 7 a civil action in district court to recover actual damages 8 resulting from the violation. The court shall award reasonable 9 attorney fees and costs to the prevailing party in such an 10 action. Venue for a civil action authorized by this section 11 shall be exclusively in the county in which the dealer’s 12 business is located. In an action involving more than one 13 dealer, venue may be in any county in which any dealer that is a 14 party to the action is located. 15 2. a. Prior to bringing a civil action under this section, 16 the party alleging a violation of this chapter shall serve a 17 written demand for mediation upon the alleged offending party. 18 b. The demand for mediation shall be served upon the alleged 19 offending party via certified mail at the address stated in 20 the manufacturer-dealer agreement between the parties, if 21 applicable. 22 c. The demand for mediation shall contain a statement of the 23 dispute or violation alleged and the relief sought by the party 24 serving the demand. 25 d. Within twenty days after service of a demand for 26 mediation, the parties shall mutually select an independent 27 certified mediator and shall meet with the mediator for 28 the purpose of attempting to resolve the dispute or alleged 29 violation. The meeting place for the mediation shall be 30 in this state at a location selected by the mediator. The 31 mediator may extend the date before which the parties are 32 required to have the meeting for good cause shown by either 33 party or upon a stipulation by both parties. 34 e. The service of a demand for mediation under this section 35 -27- LSB 1301SV (3) 88 ns/rh 27/ 41

S.F. 435 shall toll the period during which a party is required to 1 file any complaint, petition, protest, or other action under 2 this chapter until representatives of both parties have met 3 with the mutually agreed-upon mediator for the purpose of 4 attempting to resolve the dispute or alleged violation. If a 5 complaint, petition, protest, or other action has been filed 6 before the mediation meeting, the court shall enter an order 7 suspending any proceeding or action relating to such complaint, 8 petition, protest, or other action until the mediation meeting 9 has occurred and may, upon written stipulation by all parties 10 to the proceeding or action that the parties wish to continue 11 mediation under this section, enter an order suspending 12 the proceeding or action for any period the court considers 13 appropriate. 14 f. Each party to the mediation shall pay its own costs for 15 attorney fees. The costs of the mediation services shall be 16 equally allocated among each party. 17 3. In addition to the remedies provided in this section, and 18 notwithstanding the existence of any additional remedy at law, 19 a manufacturer, distributor, warrantor, or dealer may petition 20 the district court, upon a hearing and for cause shown, for a 21 temporary or permanent injunction, or both, restraining any 22 person from acting as a dealer without being properly licensed, 23 from violating or continuing to violate any of the provisions 24 of this chapter, or from failing or refusing to comply with the 25 requirements of this chapter. Such injunction shall be issued 26 without bond. A single act in violation of this chapter shall 27 be considered sufficient cause to authorize the issuance of an 28 injunction pursuant to this subsection. 29 Sec. 19. Section 435.23, subsection 1, Code 2019, is amended 30 to read as follows: 31 1. The manufacturer’s and retailer’s inventory of mobile 32 homes, manufactured homes, or modular homes not in use as a 33 place of human habitation shall be exempt from the annual tax. 34 All travel trailers , fifth-wheel travel trailers, and towable 35 -28- LSB 1301SV (3) 88 ns/rh 28/ 41

S.F. 435 recreational vehicles shall be exempt from this tax. The 1 homes , and travel trailers , fifth-wheel travel trailers, and 2 towable recreational vehicles in the inventory of manufacturers 3 and retailers shall be exempt from personal property tax. 4 Sec. 20. APPLICABILITY. This Act applies to 5 manufacturer-dealer agreements pertaining to the sale 6 of new towable recreational vehicles entered into or renewed on 7 or after January 1, 2020. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to towable recreational vehicles (TRVs), 12 travel trailers, and fifth-wheel travel trailers. 13 CODE CHAPTER 321. Under current law, if a travel trailer 14 is used as a place of human habitation for more than 90 15 consecutive days in one location, it must be classified as a 16 manufactured or mobile home. The bill increases the threshold 17 to 180 consecutive days. 18 CODE CHAPTER 322C. The bill defines or redefines various 19 terms for purposes of Code chapter 322C (travel trailer 20 dealers, manufacturers, and distributors), including 21 “community”, “factory campaign”, “family member”, “fifth-wheel 22 travel trailer”, “folding camping trailer”, “line-make”, 23 “manufacturer”, “manufacturer-dealer agreement”, “park model 24 recreational vehicle”, “proprietary part”, “supplier”, “towable 25 recreational vehicle”, “towable recreational vehicle dealer”, 26 “toy-hauler fifth-wheel travel trailer”, “toy-hauler travel 27 trailer”, “transient consumer”, “travel trailer”, “truck 28 camper”, and “warrantor”. The bill provides that for purposes 29 of registration and titling, towable recreational vehicles are 30 considered travel trailers or fifth-wheel travel trailers under 31 Code chapter 321. 32 The bill makes corresponding changes from the use of the term 33 “travel trailer” in Code chapter 322C to the use of the term 34 “towable recreational vehicle”. 35 -29- LSB 1301SV (3) 88 ns/rh 29/ 41

S.F. 435 Under current law, a manufacturer or distributor is 1 prohibited from refusing to renew a contract for a term of less 2 than five years. The bill changes the term to 12 months. 3 The bill strikes a provision in Code section 322C.4 that 4 exempts persons licensed under Code chapter 322 (motor vehicle 5 manufacturers, distributors, wholesalers, and dealers) from the 6 requirement to obtain a $25,000 surety bond as a prerequisite 7 to the issuance of a TRV dealer’s license. 8 APPLICABILITY TO AGREEMENTS. The bill provides that if a TRV 9 dealer also sells and services motorized recreational vehicles 10 or other motor vehicles, the provisions of Code chapter 322C 11 relating to manufacturer-dealer agreements apply only to such 12 agreements, or those provisions of such agreements, applicable 13 to TRVs. 14 AGREEMENT REQUIRED —— COMMUNITY. The bill prohibits a 15 manufacturer or distributor from selling a new TRV in this 16 state to or through a TRV dealer without first entering into 17 a manufacturer-dealer agreement with the dealer that has been 18 signed by both parties. The bill also prohibits a dealer 19 from selling a new TRV in this state without first entering 20 into a manufacturer-dealer agreement with a manufacturer or 21 distributor that has been signed by both parties. 22 The bill requires a manufacturer-dealer agreement to 23 designate a community exclusively assigned to a dealer by the 24 manufacturer or distributor, and prohibits the manufacturer or 25 distributor from changing the community or from contracting 26 with another dealer for the sale of the same line-make of 27 TRV in the community for the duration of the agreement. The 28 community designated in a manufacturer-dealer agreement may be 29 reviewed or changed with the consent of both parties not less 30 than 12 months after execution of the agreement. 31 TERMINATION, CANCELLATION, OR NONRENEWAL BY MANUFACTURER OR 32 DISTRIBUTOR. The bill authorizes a manufacturer or distributor 33 to terminate, cancel, or fail to renew a manufacturer-dealer 34 agreement with or without good cause. If the manufacturer or 35 -30- LSB 1301SV (3) 88 ns/rh 30/ 41

S.F. 435 distributor terminates, cancels, or fails to renew an agreement 1 without good cause, the manufacturer or distributor is required 2 to comply with the repurchase requirements set forth in the 3 bill. 4 The manufacturer or distributor has the burden of proof to 5 demonstrate good cause. The bill sets forth certain factors to 6 consider in determining whether good cause exists. 7 The bill requires a manufacturer or distributor to provide 8 to a dealer written notice of termination, cancellation, or 9 nonrenewal of a manufacturer-dealer agreement for good cause 10 at least 90 days prior to terminating, canceling, or failing 11 to renew the manufacturer-dealer agreement. The notice must 12 state all of the reasons for the termination, cancellation, or 13 nonrenewal and that if, within 30 days following receipt of the 14 notice, the dealer provides to the manufacturer or distributor 15 a written notice of intent to cure all claimed deficiencies, 16 the dealer will then have 90 days following receipt of the 17 notice to cure the deficiencies. If the deficiencies are cured 18 within 90 days, the manufacturer’s or distributor’s notice is 19 voided. If the dealer fails to provide the notice of intent 20 to cure the deficiencies within 30 days, or fails to cure the 21 deficiencies within 90 days, the termination, cancellation, or 22 nonrenewal takes effect as provided in the original notice. 23 The bill specifies that the notice period for termination, 24 cancellation, or nonrenewal of a manufacturer-dealer agreement 25 for good cause may be reduced to 30 days if certain grounds 26 exist as set forth in the bill. 27 The manufacturer or distributor is not required to provide 28 the notice if the dealer is insolvent, or has filed for 29 bankruptcy, receivership, or assignment for the benefit of 30 creditors. 31 TERMINATION, CANCELLATION, OR NONRENEWAL BY DEALER. The 32 bill allows a dealer to terminate, cancel, or fail to renew 33 a manufacturer-dealer agreement with or without good cause. 34 If the dealer terminates, cancels, or fails to renew a 35 -31- LSB 1301SV (3) 88 ns/rh 31/ 41

S.F. 435 manufacturer-dealer agreement with good cause, the manufacturer 1 or distributor must comply with the repurchase requirements set 2 forth in the bill. 3 The dealer has the burden of proof to demonstrate good 4 cause for terminating, canceling, or failing to renew a 5 manufacturer-dealer agreement. The bill sets forth certain 6 factors to consider in determining whether good cause exists. 7 The bill requires a dealer to provide to a manufacturer 8 or distributor written notice of termination, cancellation, 9 or nonrenewal of a manufacturer-dealer agreement at least 10 30 days prior to terminating, canceling, or failing to 11 renew the manufacturer-dealer agreement. If a termination 12 or cancellation is for good cause, the notice must state 13 all of the reasons for the termination or cancellation and 14 that if, within 30 days following receipt of the notice, 15 the manufacturer or distributor provides to the dealer a 16 written notice of intent to cure all claimed deficiencies, 17 the manufacturer or distributor shall then have 90 days 18 following receipt of the notice to cure the deficiencies. 19 If the deficiencies are cured within 90 days, the dealer’s 20 notice is voided. If the manufacturer or distributor fails to 21 provide the notice of intent to cure the deficiencies within 22 30 days, or fails to cure the deficiencies within 90 days, the 23 termination or cancellation takes effect as provided in the 24 original notice. 25 REPURCHASE OR SALE OF INVENTORY. If a manufacturer-dealer 26 agreement is terminated, canceled, or not renewed by the 27 manufacturer or distributor without good cause, or by a 28 dealer with good cause and, in the case of termination or 29 cancellation, the manufacturer or distributor fails to provide 30 notice or cure the deficiencies claimed by the dealer, the bill 31 requires the manufacturer or distributor to, at the dealer’s 32 option and within 45 days after termination, cancellation, or 33 nonrenewal, repurchase certain items. 34 The repurchase includes all new, untitled TRVs that the 35 -32- LSB 1301SV (3) 88 ns/rh 32/ 41

S.F. 435 dealer acquired from the manufacturer or distributor within 12 1 months prior to the effective date of the notice that have not 2 been used other than for demonstration purposes, and that have 3 not been altered or damaged, at 100 percent of the net invoice 4 cost, including transportation, less applicable rebates and 5 discounts to the dealer. 6 The repurchase also includes all undamaged proprietary parts 7 for any line-make subject to the termination, cancellation, 8 or nonrenewal that was sold to the dealer for resale within 9 12 months prior to the effective date of the termination, 10 cancellation, or nonrenewal of the manufacturer-dealer 11 agreement, if accompanied by the original invoice, at 105 12 percent of the original net price paid to the manufacturer or 13 distributor. 14 The repurchase further includes all properly functioning 15 diagnostic equipment, special tools, current signage, or 16 other equipment and machinery that was purchased by the 17 dealer upon the request of the manufacturer or distributor for 18 any line-make subject to the termination, cancellation, or 19 nonrenewal within five years prior to the effective date of the 20 termination, cancellation, or nonrenewal that can no longer be 21 used in the normal course of the dealer’s ongoing business. 22 The bill does not specify an amount at which such equipment, 23 tools, or machinery must be repurchased. 24 The bill provides that TRVs not repurchased or required to 25 be repurchased that are in the dealer’s inventory may continue 26 to be sold by the dealer until the TRVs are no longer in the 27 dealer’s inventory. 28 TRANSFER OF OWNERSHIP. If a TRV dealer makes or intends to 29 make a change in ownership of a dealership, the dealer must 30 provide to a manufacturer or distributor that is a party to a 31 manufacturer-dealer agreement with the dealer written notice of 32 the proposed change at least 15 business days before the change 33 becomes effective. 34 In the absence of a breach by the dealer of the 35 -33- LSB 1301SV (3) 88 ns/rh 33/ 41

S.F. 435 manufacturer-dealer agreement or a violation of Code chapter 1 322C, the bill prohibits the manufacturer or distributor from 2 objecting to the proposed change in ownership unless the 3 objection is to the prospective transferee for previously 4 being a party to a manufacturer-dealer agreement with the 5 manufacturer or distributor and the agreement was terminated, 6 canceled, or not renewed by the manufacturer or distributor 7 for good cause; being convicted of a felony or any crime of 8 fraud, deceit, or moral turpitude; lacking any license required 9 by law; failing to have an active line of credit sufficient 10 to purchase the manufacturer’s or distributor’s products; or 11 being insolvent within the previous 10 years, or filing for 12 bankruptcy, receivership, or assignment for the benefit of 13 creditors within the previous 10 years. 14 If a manufacturer or distributor objects to a proposed 15 change in ownership of a dealership, the manufacturer or 16 distributor must provide written notice of the reasons for the 17 objection to the dealer within 15 business days after receipt 18 of the dealer’s notification and supporting documentation about 19 the proposed change. The manufacturer or distributor has the 20 burden of proof to demonstrate that the objection complies 21 with the requirements of the bill. If the manufacturer or 22 distributor does not provide the dealer with timely notice of 23 the objection, the dealer’s proposed change in ownership of the 24 dealership is deemed approved. 25 The bill requires a manufacturer or distributor to provide 26 to a dealer the opportunity to designate, in writing, a 27 family member as a successor to ownership of a dealership 28 in the event of the death, incapacity, or retirement of the 29 dealer. If a dealer desires to designate a family member as a 30 successor to ownership of a dealership, the dealer must provide 31 to the manufacturer or distributor that is a party to the 32 manufacturer-dealer agreement with the dealer written notice 33 of the proposed designation, or modification of a previous 34 designation, at least 15 business days before the designation 35 -34- LSB 1301SV (3) 88 ns/rh 34/ 41

S.F. 435 or proposed modification of a designation becomes effective. 1 In the absence of a breach by the dealer of the 2 manufacturer-dealer agreement or a violation of Code chapter 3 322C, the bill prohibits the manufacturer or distributor from 4 objecting to the designation or proposed modification of a 5 designation unless the objection is to the designated successor 6 for any of the reasons stated above for objecting to a proposed 7 change in ownership. 8 If a manufacturer or distributor objects to a succession 9 plan, the manufacturer or distributor must provide written 10 notice of the reasons for the objection to the dealer within 11 15 business days after receipt of the dealer’s notification 12 about the proposed designation or proposed modification 13 of a designation. The manufacturer or distributor has the 14 burden of proof to demonstrate that the objection complies 15 with the requirements of the bill. If the manufacturer or 16 distributor does not provide the dealer with timely notice of 17 the objection, the dealer’s proposed succession plan is deemed 18 approved. 19 The bill requires a manufacturer or distributor to allow 20 the succession of ownership of a dealership to a designated 21 family member when a dealer is deceased, incapacitated, 22 or has retired, unless the manufacturer or distributor has 23 provided to the dealer written notice of the manufacturer’s 24 or distributor’s objections to the succession within 15 days 25 after receipt of notice of the succession. However, the bill 26 prohibits a family member of a dealer from succeeding to 27 ownership of a dealership if the succession involves, without 28 the manufacturer’s or distributor’s consent, a relocation of 29 the dealership or alteration of the terms and conditions of the 30 manufacturer-dealer agreement. 31 WARRANTY OBLIGATIONS. The bill requires a warrantor to 32 specify in writing to each dealer what obligations the dealer 33 has, if any, for preparation and delivery of, and warranty 34 services on, the warrantor’s products; compensate the dealer 35 -35- LSB 1301SV (3) 88 ns/rh 35/ 41

S.F. 435 for warranty services the warrantor requires the dealer to 1 perform; and provide the dealer with a schedule of compensation 2 and time allowances for the performance of warranty services. 3 Time allowances for the performance of warranty services, 4 including diagnostic services, must be reasonable for the 5 service to be performed. In determining what constitutes 6 reasonable compensation, the bill specifies that the principle 7 factors to be given consideration must be the actual wage rates 8 being paid by the dealer and the actual retail wage rates being 9 charged by other dealers in the community in which the dealer 10 is doing business. The bill prohibits the compensation of a 11 dealer for warranty services from being less than the lowest 12 actual retail wage rates charged by the dealer for similar 13 nonwarranty services, as long as the actual retail wage rates 14 are reasonable. 15 The bill requires a warrantor to reimburse a dealer for 16 any warranty part, accessory, or complete component at actual 17 wholesale cost to the dealer plus a minimum of a 30 percent 18 handling charge, not to exceed $150, and plus the cost, if any, 19 to the dealer to return such part, component, or accessory to 20 the warrantor. 21 The bill authorizes a warrantor to conduct a warranty audit 22 of a dealer’s records within 12 months after the payment 23 of a warranty claim. The bill prohibits a warrantor from 24 denying a dealer’s claim for warranty compensation except for 25 good cause, including performance of nonwarranty repairs, 26 material noncompliance with the warrantor’s published policies 27 and procedures, lack of material documentation, fraud, or 28 misrepresentation. 29 The bill requires a dealer to submit claims for compensation 30 for the performance of warranty services to the warrantor 31 within 45 days after completion of the warranty services. 32 A dealer must immediately notify a warrantor in writing if 33 the dealer is unable to perform warranty services, including 34 diagnostic services, within 10 days of receipt of a written 35 -36- LSB 1301SV (3) 88 ns/rh 36/ 41

S.F. 435 complaint from a consumer. 1 A warrantor must deny a claim submitted by a dealer for 2 compensation for the performance of warranty services, in 3 writing, within 30 days after submission of the claim in the 4 manner and form prescribed by the warrantor. A claim not 5 specifically denied is deemed approved and must be paid within 6 60 days of submission of the claim. 7 The bill prohibits a warrantor from failing to perform any 8 of the warrantor’s obligations with respect to its warranted 9 products; failing to include, in written notices of a factory 10 campaign to TRV owners and dealers, the expected date by which 11 necessary parts and equipment will be available to dealers to 12 perform the factory campaign work; failing to compensate the 13 warrantor’s dealers for authorized repairs performed by the 14 dealer on merchandise damaged in manufacture or in transit to 15 the dealer; failing to compensate the warrantor’s dealers in 16 accordance with the schedule of compensation provided to the 17 dealer, if the warranty services for which compensation is 18 claimed are performed by the dealer in a timely and competent 19 manner; intentionally misrepresenting to consumers that 20 warranties with respect to the manufacture, performance, 21 or design of TRVs are made by the dealer as warrantor or 22 co-warrantor; or requiring the warrantor’s dealers to make 23 warranties to a consumer that are in any manner related to the 24 manufacture of a TRV. 25 The bill prohibits a dealer from failing to perform 26 predelivery inspection functions, as specified by the 27 warrantor, in a competent and timely manner; failing to 28 perform warranty services, as authorized by the warrantor, 29 in a competent and timely manner on any transient consumer’s 30 TRV of a line-make sold or serviced by the dealer; failing to 31 accurately document the time spent completing each repair, the 32 total number of repair attempts conducted on a single TRV, and 33 the number of repair attempts for the same repair conducted on 34 a single TRV; failing to notify the warrantor within 10 days of 35 -37- LSB 1301SV (3) 88 ns/rh 37/ 41

S.F. 435 a second repair attempt on a TRV which impairs the use, value, 1 or safety of the TRV; failing to maintain written records, 2 including a consumer’s written or electronic verification or 3 signature, regarding the amount of time a TRV is stored for the 4 consumer’s convenience during a repair; or making fraudulent 5 warranty claims or misrepresenting the terms of any warranty. 6 INDEMNIFICATION. The bill requires a warrantor to indemnify 7 and hold harmless the warrantor’s dealer against any loss or 8 damage, to the extent the loss or damage is caused by willful 9 misconduct of the warrantor. A warrantor is prohibited from 10 denying a dealer indemnification for failure to discover, 11 disclose, or remedy a defect in the design or manufacture 12 of a new TRV. However, a warrantor may deny a dealer 13 indemnification if the dealer fails to remedy a known and 14 announced defect in accordance with the written instructions 15 of the warrantor for whom the dealer is obligated to perform 16 warranty services. The bill requires a warrantor to provide to 17 the dealer a copy of any pending lawsuit in which allegations 18 are made against the warrantor of willful misconduct. The 19 warrantor must provide the copy to the dealer within 10 days 20 after receiving notice of the lawsuit. 21 The bill requires a dealer to indemnify and hold harmless the 22 dealer’s warrantor against any loss or damage, to the extent 23 that the loss or damage is caused by willful misconduct of 24 the dealer. A dealer must provide to the warrantor a copy of 25 any pending lawsuit in which allegations are made against the 26 dealer of willful misconduct. The dealer must provide the copy 27 to the warrantor within 10 days after receiving notice of the 28 lawsuit. 29 INSPECTION AND REJECTION BY DEALER. Whenever a new TRV is 30 damaged prior to transit or is damaged in transit to a dealer 31 and the carrier or means of transportation has been selected 32 by the manufacturer or distributor, the dealer is required to 33 notify the manufacturer or distributor of the damage within 34 the time frame specified in the manufacturer-dealer agreement 35 -38- LSB 1301SV (3) 88 ns/rh 38/ 41

S.F. 435 and either request from the manufacturer or distributor 1 authorization to replace the components, parts, or accessories 2 damaged, or otherwise repair the vehicle, or reject the vehicle 3 within the time frame set forth in the manufacturer-dealer 4 agreement. 5 If the manufacturer or distributor refuses to authorize 6 repair of the new TRV within 10 days after receipt of a 7 dealer’s notification, or if the dealer rejects the new TRV 8 because of damage, ownership of the TRV will revert to the 9 manufacturer or distributor. 10 The bill requires the dealer to exercise due care when in 11 custody of a new, damaged TRV, but the bill specifies that the 12 dealer has no other obligations, financial or otherwise, with 13 respect to the TRV following rejection in accordance with the 14 manufacturer-dealer agreement. 15 The bill requires the time frame for inspection and 16 rejection of a damaged new TRV by a dealer to be specified in 17 the manufacturer-dealer agreement, but provides that it shall 18 not be less than two business days after the physical delivery 19 of the TRV to the dealer. 20 CIVIL ACTION AND MEDIATION. The bill authorizes a dealer, 21 manufacturer, distributor, or warrantor injured by another 22 party’s violation of Code chapter 322C to bring a civil action 23 in district court to recover actual damages resulting from the 24 violation. The court must award reasonable attorney fees and 25 costs to the prevailing party in such an action. Venue for 26 such a civil action must be exclusively in the county in which 27 the dealer’s business is located. In an action involving more 28 than one dealer, venue may be in any county in which any dealer 29 that is a party to the action is located. 30 Prior to bringing such a civil action, the party alleging a 31 violation must serve a written demand for mediation upon the 32 alleged offending party. The demand for mediation must be 33 served upon the alleged offending party via certified mail at 34 the address stated in the manufacturer-dealer agreement between 35 -39- LSB 1301SV (3) 88 ns/rh 39/ 41

S.F. 435 the parties, if applicable. The demand for mediation must 1 contain a statement of the dispute or violation alleged and the 2 relief sought by the party serving the demand. 3 Within 20 days after service of a demand for mediation, the 4 bill requires the parties to mutually select an independent 5 certified mediator and meet with the mediator for the purpose 6 of attempting to resolve the dispute or alleged violation. The 7 meeting place for the mediation must be in Iowa at a location 8 selected by the mediator. The mediator may extend the date 9 before which the parties are required to have the meeting for 10 good cause shown by either party or upon a stipulation by both 11 parties. 12 The service of a demand for mediation tolls the period 13 during which a party is required to file any complaint, 14 petition, protest, or other action under Code chapter 322C 15 until representatives of both parties have met with the 16 mutually agreed-upon mediator for the purpose of attempting 17 to resolve the dispute or alleged violation. If a complaint, 18 petition, protest, or other action has been filed before the 19 mediation meeting, the court must enter an order suspending 20 any proceeding or action relating to such complaint, petition, 21 protest, or other action until the mediation meeting has 22 occurred and may, upon written stipulation by all parties to 23 the proceeding or action that the parties wish to continue 24 mediation, enter an order suspending the proceeding or action 25 for any period the court considers appropriate. 26 Each party to the mediation must pay its own costs for 27 attorney fees and the costs of the mediation services must be 28 equally allocated among each party. 29 The bill authorizes a manufacturer, distributor, warrantor, 30 or dealer to petition the district court, upon a hearing and 31 for cause shown, for a temporary or permanent injunction, or 32 both, restraining any person from acting as a dealer without 33 being properly licensed, from violating or continuing to 34 violate any of the provisions of Code chapter 322C, or from 35 -40- LSB 1301SV (3) 88 ns/rh 40/ 41

S.F. 435 failing or refusing to comply with the requirements of Code 1 chapter 322C. Such injunction must be issued without bond. 2 The bill specifies that a single act is considered sufficient 3 cause to authorize the issuance of an injunction. 4 TAX EXEMPTION. The bill makes a corresponding change to Code 5 section 435.23 exempting TRVs and fifth-wheel travel trailers 6 from the property tax on manufactured or mobile homes. 7 APPLICABILITY. The bill applies to manufacturer-dealer 8 agreements pertaining to the sale of new TRVs entered into or 9 renewed on or after January 1, 2020. 10 -41- LSB 1301SV (3) 88 ns/rh 41/ 41