Senate Study Bill 1180 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON KAPUCIAN) A BILL FOR An Act relating to towable recreational vehicles, making 1 penalties applicable, and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1301XC (9) 88 ns/rh
S.F. _____ Section 1. Section 321.1, subsection 36C, paragraphs b and 1 c, Code 2019, are amended by striking the paragraphs. 2 Sec. 2. Section 321.1, Code 2019, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 083A. “Towable recreational vehicle” 5 means the same as defined in section 322C.2, except that the 6 vehicle shall be customarily or ordinarily used for vacation 7 or recreational purposes and not used as a place of permanent 8 habitation, and if the vehicle is used in this state as a 9 place of human habitation for more than one hundred eighty 10 consecutive days in one location, it shall be classified as a 11 manufactured or mobile home. “Towable recreational vehicle” 12 does not include a truck camper, as defined in section 322C.2, 13 for purposes of registration or brake requirements under this 14 chapter. 15 Sec. 3. Section 321.34, subsection 5, paragraph a, Code 16 2019, is amended to read as follows: 17 a. Upon application and the payment of a fee of twenty-five 18 dollars, the director may issue to the owner of a motor vehicle 19 registered in this state or a trailer or travel trailer towable 20 recreational vehicle registered in this state, personalized 21 registration plates marked with up to seven initials, letters, 22 or combination of numerals and letters requested by the owner. 23 However, personalized registration plates for autocycles, 24 motorcycles, and motorized bicycles shall be marked with no 25 more than six initials, letters, or combinations of numerals 26 and letters. Upon receipt of the personalized registration 27 plates, the applicant shall surrender the regular registration 28 plates to the county treasurer. The fee for issuance of the 29 personalized registration plates shall be in addition to the 30 regular annual registration fee. 31 Sec. 4. Section 321.34, subsection 7, paragraph a, Code 32 2019, is amended to read as follows: 33 a. Upon application and payment of the proper fees, the 34 director may issue to the owner of a motor vehicle subject 35 -1- LSB 1301XC (9) 88 ns/rh 1/ 47
S.F. _____ to registration under section 321.109, subsection 1 , motor 1 truck, motor home, multipurpose vehicle, trailer over two 2 thousand pounds, or travel trailer towable recreational vehicle 3 registered in this state, collegiate registration plates 4 created pursuant to this subsection . Upon receipt of the 5 collegiate registration plates, the applicant shall surrender 6 the regular registration plates to the county treasurer. 7 Sec. 5. Section 321.34, subsection 7A, paragraph b, Code 8 2019, is amended to read as follows: 9 b. Upon application and payment of the proper fees, the 10 director may issue to the owner of a motor vehicle subject 11 to registration under section 321.109, subsection 1 , motor 12 truck, motor home, multipurpose vehicle, trailer over two 13 thousand pounds, or travel trailer towable recreational vehicle 14 registered in this state, collegiate registration plates 15 created pursuant to this subsection . The fee for the issuance 16 of collegiate registration plates is twenty-five dollars, which 17 fee is in addition to the regular annual registration fee for 18 the vehicle. An applicant may obtain a personalized collegiate 19 registration plate upon payment of the additional fee for a 20 personalized plate as provided in subsection 5 in addition to 21 the collegiate plate fee and the regular registration fee. The 22 county treasurer shall validate collegiate registration plates 23 issued under this subsection in the same manner as regular 24 registration plates, upon payment of five dollars in addition 25 to the regular annual registration fee. Upon receipt of the 26 collegiate registration plates, the applicant shall surrender 27 the regular registration plates to the county treasurer. 28 Sec. 6. Section 321.34, subsection 11, paragraph a, Code 29 2019, is amended to read as follows: 30 a. Upon application and payment of the proper fees, the 31 director may issue natural resources plates to the owner of a 32 motor vehicle subject to registration under section 321.109, 33 subsection 1 , autocycle, motor truck, motor home, multipurpose 34 vehicle, motorcycle, trailer, or travel trailer towable 35 -2- LSB 1301XC (9) 88 ns/rh 2/ 47
S.F. _____ recreational vehicle . 1 Sec. 7. Section 321.34, subsection 11A, paragraph a, Code 2 2019, is amended to read as follows: 3 a. Upon application and payment of the proper fees, the 4 director may issue “love our kids” plates to the owner of a 5 motor vehicle subject to registration under section 321.109, 6 subsection 1 , autocycle, motor truck, motor home, multipurpose 7 vehicle, motorcycle, trailer, or travel trailer towable 8 recreational vehicle . 9 Sec. 8. Section 321.34, subsection 11B, paragraph a, Code 10 2019, is amended to read as follows: 11 a. Upon application and payment of the proper fees, the 12 director may issue “motorcycle rider education” plates to the 13 owner of a motor vehicle subject to registration under section 14 321.109, subsection 1 , autocycle, motor truck, motor home, 15 multipurpose vehicle, motorcycle, trailer, or travel trailer 16 towable recreational vehicle . 17 Sec. 9. Section 321.34, subsection 12, paragraph a, Code 18 2019, is amended to read as follows: 19 a. The owner of a motor vehicle subject to registration 20 pursuant to section 321.109, subsection 1 , autocycle, 21 motor truck, motor home, multipurpose vehicle, motorcycle, 22 trailer, or travel trailer towable recreational vehicle may, 23 upon written application to the department, order special 24 registration plates with a distinguishing processed emblem as 25 authorized by this section or as approved by the department. 26 The fee for the issuance of special registration plates is 27 twenty-five dollars for each vehicle, unless otherwise provided 28 by this section , which fee is in addition to the regular annual 29 registration fee. The county treasurer shall validate special 30 registration plates with a distinguishing processed emblem in 31 the same manner as regular registration plates, upon payment 32 of five dollars in addition to the regular annual registration 33 fee. 34 Sec. 10. Section 321.34, subsection 13, paragraph a, 35 -3- LSB 1301XC (9) 88 ns/rh 3/ 47
S.F. _____ subparagraph (1), Code 2019, is amended to read as follows: 1 (1) The owner of a motor vehicle subject to registration 2 pursuant to section 321.109, subsection 1 , autocycle, motor 3 truck, motor home, multipurpose vehicle, motorcycle, trailer, 4 or travel trailer towable recreational vehicle may upon request 5 be issued special registration plates that contain a space 6 reserved for the placement of an organization decal. If the 7 special plates are requested at the time of initial application 8 for registration and certificate of title for the vehicle, no 9 special plate fee is required other than the regular annual 10 registration fee for the vehicle. If the special plates are 11 requested as replacement plates, the owner shall surrender the 12 current regular or special registration plates in exchange 13 for the special plates and shall pay a replacement plate fee 14 of five dollars. The county treasurer shall validate special 15 plates with an organization decal in the same manner as regular 16 plates, upon payment of the annual registration fee. 17 Sec. 11. Section 321.45, subsection 1, paragraph b, Code 18 2019, is amended to read as follows: 19 b. For each new mobile home, manufactured home, travel 20 trailer towable recreational vehicle , and camping trailer said 21 manufacturer’s or importer’s certificate shall also contain 22 thereon the exterior length and exterior width of said vehicle 23 not including any area occupied by any hitching device, and the 24 manufacturer’s shipping weight. 25 Sec. 12. Section 321.123, subsection 2, Code 2019, is 26 amended to read as follows: 27 2. a. Travel trailers and fifth-wheel travel trailers 28 Towable recreational vehicles , except those in manufacturer’s 29 or dealer’s stock, shall be subject to an annual registration 30 fee of thirty cents per square foot of floor space computed on 31 the exterior overall measurements, but excluding three feet 32 occupied by any trailer hitch as provided by and certified 33 to by the owner, to the nearest whole dollar. When a travel 34 trailer or fifth-wheel travel trailer towable recreational 35 -4- LSB 1301XC (9) 88 ns/rh 4/ 47
S.F. _____ vehicle is registered in Iowa for the first time or when title 1 is transferred, the annual registration fee shall be prorated 2 on a monthly basis. The annual registration fee shall be 3 reduced to seventy-five percent of the full fee after the 4 vehicle is more than six model years old. 5 b. A travel trailer towable recreational vehicle may be 6 stored under section 321.134 , provided the travel trailer 7 towable recreational vehicle is not used for human habitation 8 for any period during storage and is not moved upon the 9 highways of the state. A travel trailer towable recreational 10 vehicle stored under section 321.134 is not subject to a 11 manufactured or mobile home tax assessed under chapter 435 . 12 Sec. 13. Section 321.176A, subsection 5, Code 2019, is 13 amended to read as follows: 14 5. A person operating a motor vehicle with a gross vehicle 15 weight rating of less than twenty-six thousand one pounds 16 towing a travel trailer or fifth-wheel travel trailer towable 17 recreational vehicle solely for personal or family use. 18 Sec. 14. Section 321.284A, subsection 2, Code 2019, is 19 amended to read as follows: 20 2. This section does not apply to a passenger being 21 transported in a motor vehicle designed, maintained, or used 22 primarily for the transportation of persons for compensation, 23 or a passenger being transported in the living quarters of a 24 motor home, motorsports recreational vehicle, manufactured or 25 mobile home, travel trailer, or fifth-wheel travel trailer or 26 towable recreational vehicle . 27 Sec. 15. Section 321.430, subsection 3, Code 2019, is 28 amended to read as follows: 29 3. Every trailer, semitrailer, or travel trailer towable 30 recreational vehicle of a gross weight of three thousand 31 pounds or more shall be equipped with brakes adequate to 32 control the movement of and to stop and hold such vehicle 33 when operated on the highways of this state. Every trailer, 34 semitrailer, or travel trailer towable recreational vehicle 35 -5- LSB 1301XC (9) 88 ns/rh 5/ 47
S.F. _____ with a gross weight of three thousand pounds or more shall 1 be equipped with a separate, auxiliary means of applying the 2 brakes on the trailer, semitrailer, or travel trailer towable 3 recreational vehicle from the cab of the towing vehicle, or 4 with self-actuating brakes, and shall also be equipped with 5 a weight equalizing hitch with a sway control. Trailers or 6 semitrailers with a truck or truck tractor need only comply 7 with the brake requirements. 8 Sec. 16. Section 321.454, Code 2019, is amended to read as 9 follows: 10 321.454 Width of vehicles. 11 The total outside width of a vehicle or the load on 12 the vehicle shall not exceed eight feet six inches. This 13 limitation on the total outside width of a vehicle or the load 14 on the vehicle does not include safety equipment on a vehicle 15 or incidental appurtenances or retracted awnings on motor 16 homes, motorsports recreational vehicles, travel trailers, or 17 fifth-wheel travel trailers or towable recreational vehicles 18 if the incidental appurtenance or retracted awning is less 19 than six inches in width. However, if hay, straw, or stover 20 is moved on an implement of husbandry and the total width 21 of load of the implement of husbandry exceeds eight feet six 22 inches, the implement of husbandry is not subject to the permit 23 requirements of chapter 321E . If hay, straw, or stover is 24 moved on any other vehicle subject to registration, the moves 25 are subject to the permit requirements for transporting loads 26 exceeding eight feet six inches in width as required under 27 chapter 321E . 28 Sec. 17. Section 321.457, subsection 2, paragraph l, Code 29 2019, is amended to read as follows: 30 l. A combination of two vehicles coupled together, one of 31 which is a travel trailer or fifth-wheel travel trailer towable 32 recreational vehicle , shall not have an overall length in 33 excess of sixty-five feet. 34 Sec. 18. Section 322C.2, Code 2019, is amended to read as 35 -6- LSB 1301XC (9) 88 ns/rh 6/ 47
S.F. _____ follows: 1 322C.2 Definitions. 2 As used in this chapter unless the context otherwise 3 requires: 4 1. To sell “at retail” means to sell a travel trailer 5 towable recreational vehicle to a person who will devote it to 6 a consumer use. 7 2. “Community” means a towable recreational vehicle dealer’s 8 area of responsibility as stipulated in the manufacturer-dealer 9 agreement. 10 2. 3. “Department” means the state department of 11 transportation. 12 3. 4. “Distributor” means a person who sells or distributes 13 travel trailers towable recreational vehicles to travel trailer 14 towable recreational vehicle dealers either directly or through 15 a representative employed by a distributor. 16 5. “Factory campaign” means an effort by or on behalf of a 17 warrantor to contact towable recreational vehicle dealers or 18 owners to address an equipment or part issue. 19 6. “Family member” means a spouse, child, grandchild, 20 parent, sibling, niece, or nephew, or the spouse of a child, 21 grandchild, parent, sibling, niece, or nephew. 22 4. 7. “Fifth-wheel travel trailer” means a type of travel 23 trailer which is towed by a motor vehicle by a connecting 24 device known as a fifth wheel. When used in this chapter , 25 “travel trailer” includes a fifth-wheel travel trailer vehicle 26 mounted on wheels that has an overall length of forty-five feet 27 or less, is designed to provide temporary living quarters for 28 recreational, camping, or travel use, is of such a size and 29 weight as to not require a permit under chapter 321E when moved 30 on a highway, and is designed to be towed by a motor vehicle 31 equipped with a towing mechanism located above or forward of 32 the motor vehicle’s rear axle . “Fifth-wheel travel trailer” 33 includes a toy-hauler fifth-wheel travel trailer. 34 8. “Folding camping trailer” means a vehicle mounted on 35 -7- LSB 1301XC (9) 88 ns/rh 7/ 47
S.F. _____ wheels and constructed with collapsible side walls designed to 1 be folded when towed by a motor vehicle and unfolded to provide 2 temporary living quarters for recreational, camping, or travel 3 use. 4 9. “Line-make” means a specific series of towable 5 recreational vehicles meeting all of the following criteria: 6 a. The vehicles are identified by a common series trade name 7 or trademark. 8 b. The vehicles are targeted at a particular market segment, 9 as determined by the vehicles’ decoration, features, equipment, 10 size, weight, and price range. 11 c. The vehicles have lengths and interior floor plans 12 distinguishable from other towable recreational vehicles with 13 substantially similar decoration, features, equipment, weight, 14 and price. 15 d. The vehicles belong to a single, distinct classification 16 of a towable recreational vehicle product type having a 17 substantial degree of commonality in the construction of the 18 chassis, frame, and body. 19 e. A manufacturer-dealer agreement authorizes a dealer to 20 sell the vehicles. 21 5. 10. “Manufacturer” means a person engaged in the 22 business of fabricating or assembling travel trailers of a type 23 required to be registered manufacture of towable recreational 24 vehicles . 25 11. “Manufacturer-dealer agreement” means a written 26 agreement or contract entered into between a manufacturer or 27 distributor and a towable recreational vehicle dealer that 28 specifies the rights and responsibilities of the parties 29 and authorizes the dealer to sell and service new towable 30 recreational vehicles. 31 6. 12. “New travel trailer” towable recreational vehicle” 32 means a travel trailer towable recreational vehicle that has 33 not been sold at retail. 34 13. “Park model recreational vehicle” means a vehicle 35 -8- LSB 1301XC (9) 88 ns/rh 8/ 47
S.F. _____ meeting all of the following criteria: 1 a. The vehicle is designed to provide, and marketed as 2 providing, temporary living quarters for recreational, camping, 3 travel, or seasonal use. 4 b. The vehicle is not permanently affixed to real property 5 for use as a permanent dwelling. 6 c. The vehicle is built on a single chassis mounted on 7 wheels with a gross trailer area not exceeding four hundred 8 square feet in the vehicle’s set-up mode. 9 d. The vehicle is certified by the manufacturer as in 10 compliance with the American national standard for park model 11 recreational vehicles, commonly cited as “ANSI A 119.5”. 12 7. 14. “Person” includes any individual, partnership, 13 corporation, association, fiduciary , or other legal entity 14 engaged in business, other than a unit or agency of government 15 or governmental subdivision. 16 8. 15. “Place of business” means a designated location 17 where facilities are maintained for displaying, reconditioning , 18 and repairing either new or used travel trailers towable 19 recreational vehicles . 20 16. “Proprietary part” means any part manufactured by or 21 for, and sold exclusively by, a manufacturer. 22 9. 17. “Sell” includes barter, exchange , and other methods 23 of dealing. 24 18. “Supplier” means a person engaged in the manufacture of 25 towable recreational vehicle parts, accessories, or components. 26 19. “Towable recreational vehicle” means a vehicle 27 designed to be towed by a motor vehicle owned by a consumer 28 and to provide temporary living quarters for recreational, 29 camping, or travel use, that complies with all applicable 30 federal regulations, and that is certified by the vehicle’s 31 manufacturer as in compliance with the national fire protection 32 association standard on recreational vehicles, commonly cited 33 as “NFPA 1192”, or the American national standard for park 34 model recreational vehicles, commonly cited as “ANSI A 119.5”, 35 -9- LSB 1301XC (9) 88 ns/rh 9/ 47
S.F. _____ as applicable. “Towable recreational vehicle” includes a travel 1 trailer, toy-hauler travel trailer, fifth-wheel travel trailer, 2 toy-hauler fifth-wheel travel trailer, folding camping trailer, 3 truck camper, and park model recreational vehicle. 4 20. “Towable recreational vehicle dealer” or “dealer” means a 5 person required to be licensed under this chapter authorized to 6 sell and service towable recreational vehicles. 7 21. “Toy-hauler fifth-wheel travel trailer” means a 8 fifth-wheel travel trailer equipped with a back wall capable 9 of being lowered to form a ramp for loading and unloading a 10 specialized rear compartment that can then be resecured for 11 travel. 12 22. “Toy-hauler travel trailer” means a travel trailer 13 equipped with a back wall capable of being lowered to form a 14 ramp for loading and unloading a specialized rear compartment 15 that can then be resecured for travel. 16 23. “Transient consumer” means a consumer who is temporarily 17 traveling through a towable recreational vehicle dealer’s 18 community. 19 10. 24. “Travel trailer” means a vehicle without motive 20 power used or so manufactured or constructed as to permit its 21 being used as a conveyance upon the public streets and highways 22 and designed to permit the vehicle to be used as a place of 23 human habitation by one or more persons. The vehicle may be up 24 to eight feet six inches in width and its overall length shall 25 not exceed forty-five feet mounted on wheels that has a width 26 of eight feet six inches or less and an overall length of forty 27 feet or less, is designed to provide temporary living quarters 28 for recreational, camping, or travel use, and is of such a 29 size and weight as to not require a permit under chapter 321E 30 when towed by a motor vehicle on a highway . “Travel trailer” 31 includes a toy-hauler travel trailer. “Travel trailer” does 32 not include a vehicle that is so designed as to permit it to be 33 towed exclusively by a motorcycle. 34 25. “Truck camper” means a vehicle designed to be placed in 35 -10- LSB 1301XC (9) 88 ns/rh 10/ 47
S.F. _____ the bed of a pickup truck to provide temporary living quarters 1 for recreational, camping, or travel use. 2 11. 26. “Used travel trailer” towable recreational vehicle” 3 means a travel trailer towable recreational vehicle which has 4 been sold at retail and previously registered in this or any 5 other state. 6 27. “Warrantor” means a person, including a manufacturer, 7 distributor, or supplier, that provides a written warranty 8 to a consumer in connection with a new towable recreational 9 vehicle or any part, accessory, or component of a new towable 10 recreational vehicle. “Warrantor” does not include a dealer, 11 distributor, supplier, or other person that is not owned or 12 controlled by a manufacturer that provides a service contract, 13 mechanical or other insurance, or an extended warranty sold for 14 separate consideration to a consumer. 15 Sec. 19. Section 322C.3, Code 2019, is amended to read as 16 follows: 17 322C.3 Prohibited acts —— exception. 18 1. A person shall not engage in this state in the business 19 of selling at retail new travel trailers towable recreational 20 vehicles of any make line-make , or represent or advertise that 21 the person is engaged in or intends to engage in such business 22 in this state, unless the person is authorized by a contract 23 in writing manufacturer-dealer agreement between that person 24 and the manufacturer or distributor of that make line-make 25 of new travel trailers towable recreational vehicles to sell 26 the trailers vehicles in this state, and unless the department 27 has issued to the person a license as a travel trailer towable 28 recreational vehicle dealer for the same make line-make of 29 travel trailer towable recreational vehicle which the dealer is 30 authorized to sell under the manufacturer-dealer agreement . 31 2. A person, other than a licensed travel trailer dealer 32 in new travel trailers towable recreational vehicles , shall 33 not engage in the business of selling at retail used travel 34 trailers towable recreational vehicles or represent or 35 -11- LSB 1301XC (9) 88 ns/rh 11/ 47
S.F. _____ advertise that the person is engaged in or intends to engage in 1 such business in this state unless the department has issued 2 to the person a license as a used travel trailer towable 3 recreational vehicle dealer. 4 3. A person is not required to obtain a license as a travel 5 trailer dealer if the person is disposing of a travel trailer 6 towable recreational vehicle acquired or repossessed, so long 7 as the person is exercising a power or right granted by a lien, 8 title-retention instrument, or security agreement given as 9 security for a loan or a purchase money obligation. 10 4. A travel trailer dealer shall not enter into a contract, 11 agreement, or understanding, expressed or implied, with a 12 manufacturer or distributor that the dealer will sell, assign, 13 or transfer an agreement or contract arising from the retail 14 installment sale of a travel trailer towable recreational 15 vehicle only to a designated person or class of persons. 16 Any such condition, agreement , or understanding between a 17 manufacturer or distributor and a travel trailer dealer is 18 against the public policy of this state and is unlawful and 19 void. 20 5. A manufacturer or distributor of travel trailers towable 21 recreational vehicles or an agent or representative of the 22 manufacturer or distributor, shall not refuse to renew a 23 contract manufacturer-dealer agreement for a term of less than 24 five years twelve months , and shall not terminate or threaten 25 to terminate a contract, agreement , or understanding for the 26 sale of new travel trailers towable recreational vehicles to a 27 travel trailer dealer in this state without just, reasonable , 28 and lawful cause or because the travel trailer dealer failed 29 to sell, assign , or transfer a contract or agreement arising 30 from the retail sale of a travel trailer towable recreational 31 vehicle to only a person or a class of persons designated by 32 the manufacturer or distributor. 33 6. A travel trailer dealer shall not make and enter into a 34 security agreement or other contract unless the agreement or 35 -12- LSB 1301XC (9) 88 ns/rh 12/ 47
S.F. _____ contract meets the following requirements: 1 a. The security agreement or contract is in writing, is 2 signed by both the buyer and the seller and is complete as to 3 all essential provisions prior to the signing of the agreement 4 or contract by the buyer except that, if delivery of the 5 travel trailer towable recreational vehicle is not made at 6 the time of the execution of the agreement or contract, the 7 identifying numbers of the travel trailer towable recreational 8 vehicle or similar information and the due date of the first 9 installment may be inserted in the agreement or contract after 10 its execution. 11 b. The agreement or contract complies with the Iowa consumer 12 credit code, chapter 537 , where applicable. 13 7. A manufacturer or distributor of travel trailers towable 14 recreational vehicles or an agent or representative of a 15 manufacturer or distributor shall not coerce or attempt to 16 coerce a travel trailer dealer to accept delivery of a travel 17 trailer towable recreational vehicle, or travel trailer parts 18 or accessories thereof , or any other commodity which has not 19 been ordered by the dealer. 20 8. Except as provided under subsection 9 of this section , a 21 person licensed under section 322C.4 shall not, either directly 22 or through an agent, salesperson , or employee, engage or 23 represent or advertise that the person is engaged in or intends 24 to engage in this state , in the business of buying or selling 25 new or used travel trailers towable recreational vehicles on 26 Sunday. 27 9. A travel trailer dealer may display new travel trailers 28 towable recreational vehicles at fairs, shows, and exhibitions 29 on any day of the week as provided in this subsection . Travel 30 trailer dealers Dealers , in addition to selling travel trailers 31 towable recreational vehicles at their principal place of 32 business and lots, may, upon receipt of a temporary permit 33 approved by the department, display and offer new travel 34 trailers towable recreational vehicles for sale and negotiate 35 -13- LSB 1301XC (9) 88 ns/rh 13/ 47
S.F. _____ sales of new travel trailers towable recreational vehicles 1 at fairs, shows, and exhibitions. Application for temporary 2 permits shall be made upon forms provided by the department and 3 shall be accompanied by a ten dollar permit fee. Temporary 4 permits shall be issued for a period not to exceed fourteen 5 days. The department may issue multiple consecutive temporary 6 permits. 7 10. A person who has been convicted of a fraudulent 8 practice, has been convicted of three or more violations of 9 section 321.92, subsection 2 , or section 321.99 , or has been 10 convicted of any other indictable offense in connection with 11 selling or other activity relating to vehicles, in this state 12 or any other state, shall not for a period of five years from 13 the date of conviction be an owner, salesperson, employee, 14 officer of a corporation, or representative of a licensed 15 travel trailer towable recreational vehicle dealer or represent 16 themselves as an owner, salesperson, employee, officer of a 17 corporation, or representative of a licensed travel trailer 18 towable recreational vehicle dealer. 19 Sec. 20. Section 322C.4, Code 2019, is amended to read as 20 follows: 21 322C.4 Dealer’s license application and fees. 22 1. Upon application and payment of a fee, a person may 23 be licensed as a travel trailer towable recreational vehicle 24 dealer. The license fee is seventy dollars for a two-year 25 period or part thereof. The person shall pay an additional 26 fee of twenty dollars for a two-year period or part thereof 27 for each travel trailer towable recreational vehicle lot in 28 addition to the principal place of business unless the lot is 29 adjacent to the principal place of business. For purposes 30 of this subsection , “adjacent” means that the principal place 31 of business and each additional lot are adjoining parcels 32 of property. The applicant shall file in the office of the 33 department a verified application for license as a travel 34 trailer dealer in the form the department prescribes, which 35 -14- LSB 1301XC (9) 88 ns/rh 14/ 47
S.F. _____ shall include the following: 1 a. The name of the applicant and the applicant’s principal 2 place of business. 3 b. The name of the applicant’s business and whether the 4 applicant is an individual, partnership, corporation , or other 5 legal entity. 6 (1) If the applicant is a partnership , the name under which 7 the partnership intends to engage in business and the name and 8 post office address of each partner. 9 (2) If the applicant is a corporation, the state of 10 incorporation and the name and post office address of each 11 officer and director. 12 c. The make line-make or makes line-makes of new travel 13 trailers towable recreational vehicles , if any, which the 14 applicant will offer for sale at retail in this state. 15 d. The location of each place of business within this state 16 to be used by the applicant for the conduct of the business. 17 e. If the applicant is a party to a contract, agreement 18 including a manufacturer-dealer agreement , or understanding 19 with a manufacturer or distributor of travel trailers towable 20 recreational vehicles or is about to become a party to a 21 contract, agreement, or understanding, the applicant shall 22 state the name of each manufacturer and distributor and the 23 make line-make or makes line-makes of new travel trailers 24 towable recreational vehicles , if any, which are the subject 25 matter of the contract, agreement, or understanding. 26 f. Other information concerning the business of the 27 applicant the department reasonably requires for administration 28 of this chapter . 29 2. The license shall be granted or refused within thirty 30 days after application. A license is valid for a two-year 31 period and expires, unless revoked or suspended by the 32 department, on December 31 of even-numbered years. A licensee 33 shall have the month of expiration and the month after the 34 month of expiration to renew the license. A person who fails 35 -15- LSB 1301XC (9) 88 ns/rh 15/ 47
S.F. _____ to renew a license by the end of this time period and desires to 1 hold a license shall file a new license application and pay the 2 required fee. A separate license shall be obtained for each 3 county in which an applicant does business as a travel trailer 4 dealer. 5 3. A licensee shall file with the department a supplemental 6 statement when there is a change in an item of information 7 required under paragraphs “a” to “e” of subsection 1 , 8 paragraphs “a” through “e” , within fifteen days after the 9 change. Upon filing a supplemental statement, the licensee 10 shall surrender its license to the department together with 11 a thirty-five-dollar fee. The department shall issue a new 12 license modified to reflect the changes on the supplemental 13 statement. 14 4. Before the issuance of a travel trailer dealer’s license, 15 the applicant shall furnish a surety bond executed by the 16 applicant as principal and executed by a corporate surety 17 company , licensed and qualified to do business within this 18 state, which bond shall run to the state of Iowa, be in the 19 amount of twenty-five thousand dollars , and be conditioned upon 20 the faithful compliance by the applicant as a dealer with all 21 statutes of this state regulating or applicable to a travel 22 trailer dealer, and shall indemnify any person dealing or 23 transacting business with the dealer from loss or damage caused 24 by the failure of the dealer to comply with the provisions 25 of chapter 321 and this chapter , including the furnishing of 26 a proper and valid certificate of title to a travel trailer, 27 and that the towable recreational vehicle. The bond shall be 28 filed with the department prior to the issuance of the license. 29 A person licensed under chapter 322 , with the same name and 30 location or locations, is not subject to the provisions of this 31 subsection . 32 Sec. 21. Section 322C.6, subsections 2 and 7, Code 2019, are 33 amended to read as follows: 34 2. Made a material misrepresentation to the department in 35 -16- LSB 1301XC (9) 88 ns/rh 16/ 47
S.F. _____ connection with an application for a license, certificate of 1 title , or registration of a travel trailer towable recreational 2 vehicle or other vehicle. 3 7. Knowingly made misleading, deceptive, untrue , or 4 fraudulent representations in the business as a distributor of 5 travel trailers towable recreational vehicles or engaged in 6 unethical conduct or practice harmful or detrimental to the 7 public. 8 Sec. 22. Section 322C.7, Code 2019, is amended to read as 9 follows: 10 322C.7 Manufacturer’s or distributor’s license. 11 A manufacturer or distributor of travel trailers towable 12 recreational vehicles shall not engage in business in this 13 state without a license pursuant to this chapter . 14 Sec. 23. NEW SECTION . 322C.8 Applicability to agreements. 15 If a towable recreational vehicle dealer also sells 16 and services motorized recreational vehicles or other 17 motor vehicles, the provisions of this chapter relating to 18 manufacturer-dealer agreements apply only to such agreements, 19 or those provisions of such agreements, applicable to towable 20 recreational vehicles. 21 Sec. 24. Section 322C.9, Code 2019, is amended to read as 22 follows: 23 322C.9 License application and fees. 24 Upon application and payment of a seventy dollar fee for 25 a two-year period or part thereof, a person may be licensed 26 as a manufacturer or distributor of travel trailers towable 27 recreational vehicles . The application shall be in the form 28 and shall contain information as the department prescribes. 29 The license shall be granted or refused within thirty days 30 after application. The license expires, unless sooner revoked 31 or suspended by the department, on December 31 of even-numbered 32 years. A licensee shall have the month of expiration and the 33 month after the month of expiration to renew the license. A 34 person who fails to renew a license by the end of this time 35 -17- LSB 1301XC (9) 88 ns/rh 17/ 47
S.F. _____ period and desires to hold a license shall file a new license 1 application and pay the required fee. 2 Sec. 25. Section 322C.12, Code 2019, is amended to read as 3 follows: 4 322C.12 Semitrailer or travel trailer towable recreational 5 vehicle retail installment contract —— finance charges. 6 1. A retail installment contract or agreement for the sale 7 of a semitrailer or travel trailer towable recreational vehicle 8 may include a finance charge not in excess of the following 9 rates: 10 a. Class 1. Any new semitrailer or travel trailer towable 11 recreational vehicle designated by the manufacturer by a year 12 model not earlier than the year in which the sale is made, 13 an amount equivalent to one and three-fourths percent per 14 month simple interest on the declining balance of the amount 15 financed. 16 b. Class 2. Any new semitrailer or travel trailer towable 17 recreational vehicle not in class 1 and any used semitrailer 18 designated by the manufacturer by a year model of the same or 19 not more than two years prior to the year in which the sale 20 is made, an amount equivalent to two percent per month simple 21 interest on the declining balance of the amount financed. 22 c. Class 3. Any used semitrailer or travel trailer towable 23 recreational vehicle not in class 2 and designated by the 24 manufacturer by a year model more than two years prior to the 25 year in which the sale is made, an amount equivalent to two and 26 one-fourth percent per month simple interest on the declining 27 balance of the amount financed. 28 2. Amount financed shall be “Amount financed” means the same 29 as defined in section 537.1301 . 30 3. The limitations contained in this section do not apply 31 in a transaction referred to in section 535.2, subsection 2 . 32 With respect to a consumer credit sale, as defined in section 33 537.1301 , the limitations contained in this section supersede 34 conflicting provisions of chapter 537, article 2, part 2 . 35 -18- LSB 1301XC (9) 88 ns/rh 18/ 47
S.F. _____ Sec. 26. NEW SECTION . 322C.13 Manufacturer-dealer agreement 1 required —— community. 2 1. A manufacturer or distributor shall not sell a new 3 towable recreational vehicle in this state to or through a 4 towable recreational vehicle dealer without first entering into 5 a manufacturer-dealer agreement with the dealer that has been 6 signed by both parties. A dealer shall not sell a new towable 7 recreational vehicle in this state without first entering 8 into a manufacturer-dealer agreement with a manufacturer or 9 distributor that has been signed by both parties. 10 2. Except as provided in subsection 3, a 11 manufacturer-dealer agreement shall designate the community 12 exclusively assigned to a dealer by the manufacturer or 13 distributor, and the manufacturer or distributor shall not 14 change the community or contract with another dealer for the 15 sale of the same line-make of towable recreational vehicle in 16 the community for the duration of the agreement. 17 3. The community designated in a manufacturer-dealer 18 agreement may be reviewed or changed with the consent of both 19 parties not less than twelve months after execution of the 20 agreement. 21 Sec. 27. NEW SECTION . 322C.14 Manufacturer-dealer agreement 22 —— termination, cancellation, nonrenewal, or alteration by 23 manufacturer or distributor. 24 1. Notwithstanding section 322C.3, subsection 5, a 25 manufacturer or distributor may, either directly or through any 26 authorized officer, agent, or employee, terminate, cancel, or 27 fail to renew a manufacturer-dealer agreement with or without 28 good cause. If the manufacturer or distributor terminates, 29 cancels, or fails to renew a manufacturer-dealer agreement 30 without good cause, the manufacturer or distributor shall 31 comply with the repurchase requirements set forth in section 32 322C.16. 33 2. A manufacturer or distributor shall have the burden of 34 proof to demonstrate good cause for terminating, canceling, or 35 -19- LSB 1301XC (9) 88 ns/rh 19/ 47
S.F. _____ failing to renew a manufacturer-dealer agreement. For purposes 1 of determining whether good cause exists for the manufacturer’s 2 or distributor’s termination, cancellation, or failure to renew 3 a manufacturer-dealer agreement, any of the following factors 4 may be considered: 5 a. The extent of the dealer’s presence in the community. 6 b. The nature and extent of the dealer’s investment in the 7 dealer’s business. 8 c. The adequacy of the dealer’s service facilities, 9 equipment, parts, supplies, and personnel. 10 d. The effect that the proposed termination, cancellation, 11 or nonrenewal of the manufacturer-dealer agreement would have 12 on the community. 13 e. The extent and quality of the dealer’s service under the 14 warranties of the towable recreational vehicles sold by the 15 dealer. 16 f. The dealer’s failure to follow procedures or standards 17 related to the overall operation of the dealership that were 18 agreed to by the dealer. 19 g. The dealer’s performance under the terms of the 20 manufacturer-dealer agreement. 21 3. a. Except as otherwise provided in this subsection 22 or subsection 4, a manufacturer or distributor shall provide 23 to a dealer written notice of termination, cancellation, or 24 nonrenewal of a manufacturer-dealer agreement for good cause at 25 least ninety days prior to terminating, canceling, or failing 26 to renew the manufacturer-dealer agreement. 27 b. (1) The notice shall state all of the reasons for the 28 termination, cancellation, or nonrenewal and shall further 29 state that if, within thirty days following receipt of the 30 notice, the dealer provides to the manufacturer or distributor 31 a written notice of intent to cure all claimed deficiencies, 32 the dealer shall then have ninety days following receipt of the 33 notice to cure the deficiencies. 34 (2) If the deficiencies are cured within ninety days, 35 -20- LSB 1301XC (9) 88 ns/rh 20/ 47
S.F. _____ the manufacturer’s or distributor’s notice is voided. If 1 the dealer fails to provide the notice of intent to cure 2 the deficiencies within thirty days, or fails to cure the 3 deficiencies within ninety days, the termination, cancellation, 4 or nonrenewal takes effect as provided in the original notice. 5 If the dealer has possession of new and untitled inventory, the 6 inventory may be sold pursuant to section 322C.16. 7 c. The notice period for termination, cancellation, or 8 nonrenewal of a manufacturer-dealer agreement for good cause 9 may be reduced to thirty days if the grounds for termination, 10 cancellation, or nonrenewal are due to any of the following 11 factors: 12 (1) The dealer or one of the dealer’s owners has been 13 convicted of, or has entered a plea of guilty or nolo 14 contendere to, a felony. 15 (2) The dealer has abandoned or closed the dealer’s 16 business operations for ten consecutive business days. This 17 subparagraph does not apply if the closing is due to a normal 18 seasonal closing and the dealer notifies the manufacturer or 19 distributor of the planned closing, an act of God, a strike, a 20 labor difficulty, or any other cause over which the dealer has 21 no control. 22 (3) The dealer has made a significant misrepresentation 23 that materially affects the business relationship of the 24 manufacturer or distributor and the dealer. 25 (4) The dealer’s license has been suspended, revoked, 26 denied, or has not been renewed by the department. 27 (5) The dealer has committed a material violation of this 28 chapter which is not cured within thirty days after receipt of 29 written notice of the violation. 30 4. Subsection 3 does not apply if the manufacturer or 31 distributor terminates, cancels, or fails to renew the 32 manufacturer-dealer agreement because the dealer is insolvent, 33 or has filed for bankruptcy, receivership, or assignment for 34 the benefit of creditors. 35 -21- LSB 1301XC (9) 88 ns/rh 21/ 47
S.F. _____ Sec. 28. NEW SECTION . 322C.15 Manufacturer-dealer agreement 1 —— termination, cancellation, nonrenewal, or alteration by 2 dealer. 3 1. A dealer may terminate, cancel, or fail to renew a 4 manufacturer-dealer agreement with or without good cause. 5 If the dealer terminates, cancels, or fails to renew a 6 manufacturer-dealer agreement with good cause, the manufacturer 7 or distributor shall comply with the repurchase requirements 8 set forth in section 322C.16. 9 2. The dealer shall have the burden of proof to demonstrate 10 good cause for terminating, canceling, or failing to renew a 11 manufacturer-dealer agreement. For purposes of determining 12 whether good cause exists for the dealer’s termination, 13 cancellation, or failure to renew a manufacturer-dealer 14 agreement, any of the following factors shall be deemed to be 15 good cause: 16 a. The manufacturer or distributor has been convicted of, or 17 has entered a plea of guilty or nolo contendere to, a felony. 18 b. The manufacturer’s or distributor’s business operations 19 have been abandoned or caused the dealer’s business operations 20 to close for ten consecutive business days. This subparagraph 21 does not apply if the closing is due to a normal seasonal 22 closing and the manufacturer or distributor notifies the dealer 23 of the planned closing, an act of God, a strike, a labor 24 difficulty, or any other cause over which the manufacturer or 25 distributor has no control. 26 c. The manufacturer or distributor has made a significant 27 misrepresentation that materially affects the business 28 relationship of the manufacturer or distributor and the dealer. 29 d. The manufacturer or distributor has committed a material 30 violation of this chapter which is not cured within thirty days 31 after receipt of written notice of the violation. 32 e. The manufacturer or distributor is insolvent, or has 33 filed for bankruptcy, receivership, or assignment for the 34 benefit of creditors. 35 -22- LSB 1301XC (9) 88 ns/rh 22/ 47
S.F. _____ 3. a. A dealer shall provide to a manufacturer or 1 distributor written notice of termination, cancellation, or 2 nonrenewal of a manufacturer-dealer agreement at least thirty 3 days prior to terminating, canceling, or failing to renew the 4 manufacturer-dealer agreement. 5 b. (1) If a termination or cancellation is for good cause, 6 the notice shall state all of the reasons for the termination 7 or cancellation and shall further state that if, within 8 thirty days following receipt of the notice, the manufacturer 9 or distributor provides to the dealer a written notice of 10 intent to cure all claimed deficiencies, the manufacturer or 11 distributor shall then have ninety days following receipt of 12 the notice to cure the deficiencies. 13 (2) If the deficiencies are cured within ninety days, the 14 dealer’s notice is voided. If the manufacturer or distributor 15 fails to provide the notice of intent to cure the deficiencies 16 within thirty days, or fails to cure the deficiencies within 17 ninety days, the termination or cancellation takes effect as 18 provided in the original notice. 19 Sec. 29. NEW SECTION . 322C.16 Repurchase or sale of 20 inventory. 21 1. If a manufacturer-dealer agreement is terminated, 22 canceled, or not renewed by the manufacturer or distributor 23 without good cause, or by a dealer with good cause and, in 24 the case of termination or cancellation, the manufacturer or 25 distributor fails to provide notice or cure the deficiencies 26 claimed by the dealer, the manufacturer or distributor shall, 27 at the dealer’s option and within forty-five days after 28 termination, cancellation, or nonrenewal, repurchase all of the 29 following: 30 a. All new, untitled towable recreational vehicles that 31 the dealer acquired from the manufacturer or distributor 32 within twelve months prior to the effective date of the 33 notice of termination, cancellation, or nonrenewal of the 34 manufacturer-dealer agreement that have not been used other 35 -23- LSB 1301XC (9) 88 ns/rh 23/ 47
S.F. _____ than for demonstration purposes, and that have not been altered 1 or damaged, at one hundred percent of the net invoice cost, 2 including transportation, less applicable rebates and discounts 3 to the dealer. If any of the towable recreational vehicles 4 repurchased pursuant to this paragraph are damaged, but do not 5 require a disclosure under section 321.69A, the amount due to 6 the dealer shall be reduced by the cost to repair the vehicle. 7 Damage incurred by a vehicle prior to delivery to the dealer 8 that was disclosed at the time of delivery shall not disqualify 9 repurchase pursuant to this paragraph. 10 b. All undamaged proprietary parts for any line-make subject 11 to the termination, cancellation, or nonrenewal that was sold 12 to the dealer for resale within twelve months prior to the 13 effective date of the termination, cancellation, or nonrenewal 14 of the manufacturer-dealer agreement, if accompanied by the 15 original invoice, at one hundred five percent of the original 16 net price paid to the manufacturer or distributor. 17 c. All properly functioning diagnostic equipment, special 18 tools, current signage, or other equipment and machinery 19 that was purchased by the dealer upon the request of the 20 manufacturer or distributor for any line-make subject to the 21 termination, cancellation, or nonrenewal within five years 22 prior to the effective date of the termination, cancellation, 23 or nonrenewal of the manufacturer-dealer agreement that can no 24 longer be used in the normal course of the dealer’s ongoing 25 business. 26 2. If towable recreational vehicles of a particular 27 line-make subject to a terminated, canceled, or nonrenewed 28 manufacturer-dealer agreement are not repurchased or required 29 to be repurchased pursuant to the agreement, the dealer 30 may continue to sell such vehicles existing in the dealer’s 31 inventory until the vehicles are no longer in the dealer’s 32 inventory. 33 Sec. 30. NEW SECTION . 322C.17 Transfer of ownership —— 34 family succession —— objection. 35 -24- LSB 1301XC (9) 88 ns/rh 24/ 47
S.F. _____ 1. a. If a towable recreational vehicle dealer makes or 1 intends to make a change in ownership of a dealership by sale 2 of the business assets, a stock transfer, or in another manner, 3 the dealer shall provide to a manufacturer or distributor that 4 is a party to a manufacturer-dealer agreement with the dealer 5 written notice of the proposed change at least fifteen business 6 days before the change becomes effective. The notice shall 7 include all supporting documentation that may be reasonably 8 required by the manufacturer or distributor to determine 9 whether to make an objection to the change. 10 b. In the absence of a breach by the dealer of the 11 manufacturer-dealer agreement or a violation of this chapter, 12 the manufacturer or distributor shall not object to the 13 proposed change in ownership unless the objection is to the 14 prospective transferee for any of the following reasons: 15 (1) The transferee has previously been a party to a 16 manufacturer-dealer agreement with the manufacturer or 17 distributor and the agreement was terminated, canceled, or not 18 renewed by the manufacturer or distributor for good cause. 19 (2) The transferee has been convicted of a felony or any 20 crime of fraud, deceit, or moral turpitude. 21 (3) The transferee lacks any license required by law. 22 (4) The transferee does not have an active line of credit 23 sufficient to purchase the manufacturer’s or distributor’s 24 products. 25 (5) The transferee is insolvent or has been within the 26 previous ten years, or has filed for bankruptcy, receivership, 27 or assignment for the benefit of creditors within the previous 28 ten years. 29 c. If a manufacturer or distributor objects to a proposed 30 change in ownership of a dealership, the manufacturer or 31 distributor shall provide written notice of the reasons for 32 the objection to the dealer within fifteen business days 33 after receipt of the dealer’s notification and supporting 34 documentation about the proposed change. The manufacturer 35 -25- LSB 1301XC (9) 88 ns/rh 25/ 47
S.F. _____ or distributor shall have the burden of proof to demonstrate 1 that the objection complies with the requirements of this 2 subsection. If the manufacturer or distributor does not 3 provide the dealer with timely notice of the objection, the 4 dealer’s proposed change in ownership of the dealership shall 5 be deemed approved. 6 2. a. A manufacturer or distributor shall provide 7 to a dealer the opportunity to designate, in writing, a 8 family member as a successor to ownership of a dealership 9 in the event of the death, incapacity, or retirement of the 10 dealer. If a dealer desires to designate a family member as 11 a successor to ownership of a dealership, the dealer shall 12 provide to the manufacturer or distributor that is a party 13 to the manufacturer-dealer agreement with the dealer written 14 notice of the proposed designation, or modification of a 15 previous designation, at least fifteen business days before 16 the designation or proposed modification of a designation 17 becomes effective. The notice shall include all supporting 18 documentation as may be reasonably required by the manufacturer 19 or distributor to determine whether to make an objection to the 20 succession plan. 21 b. In the absence of a breach by the dealer of the 22 manufacturer-dealer agreement or a violation of this chapter, 23 the manufacturer or distributor shall not object to the 24 designation or proposed modification of a designation unless 25 the objection is to the designated successor for any of the 26 following reasons: 27 (1) The designated successor has previously been a party 28 to a manufacturer-dealer agreement with the manufacturer or 29 distributor and the agreement was terminated, canceled, or not 30 renewed by the manufacturer or distributor for good cause. 31 (2) The designated successor has been convicted of a felony 32 or any crime of fraud, deceit, or moral turpitude. 33 (3) The designated successor lacks any license required by 34 law at the time of succession. 35 -26- LSB 1301XC (9) 88 ns/rh 26/ 47
S.F. _____ (4) The designated successor does not have an active 1 line of credit sufficient to purchase the manufacturer’s or 2 distributor’s products at the time of succession. 3 (5) The designated successor is insolvent or has been 4 within the previous ten years, or has filed for bankruptcy, 5 receivership, or assignment for the benefit of creditors within 6 the previous ten years. 7 c. If a manufacturer or distributor objects to a succession 8 plan, the manufacturer or distributor shall provide written 9 notice of the reasons for the objection to the dealer 10 within fifteen business days after receipt of the dealer’s 11 notification and supporting documentation about the proposed 12 designation or proposed modification of a designation. The 13 manufacturer or distributor shall have the burden of proof to 14 demonstrate that the objection complies with the requirements 15 of this subsection. If the manufacturer or distributor does 16 not provide the dealer with timely notice of the objection, the 17 dealer’s proposed succession plan shall be deemed approved. 18 A manufacturer or distributor shall allow the succession of 19 ownership of a dealership to a designated family member when a 20 dealer is deceased, incapacitated, or has retired, unless the 21 manufacturer or distributor has provided to the dealer written 22 notice of the manufacturer’s or distributor’s objections to 23 the succession within fifteen days after receipt of notice of 24 the succession. However, a family member of a dealer shall 25 not succeed to ownership of a dealership if the succession 26 involves, without the manufacturer’s or distributor’s consent, 27 a relocation of the dealership or alteration of the terms and 28 conditions of the manufacturer-dealer agreement. 29 Sec. 31. NEW SECTION . 322C.18 Warranty obligations. 30 1. A warrantor shall do all of the following: 31 a. Specify in writing to each dealer what obligations the 32 dealer has, if any, for the preparation and delivery of, and 33 warranty services on, the warrantor’s products. 34 b. Compensate the dealer for warranty services the warrantor 35 -27- LSB 1301XC (9) 88 ns/rh 27/ 47
S.F. _____ requires the dealer to perform. 1 c. Provide the dealer with a schedule of compensation and 2 time allowances for the performance of warranty services. The 3 schedule of compensation shall include reasonable compensation 4 for warranty services performed by the dealer, including 5 diagnostic services. 6 2. a. Time allowances for the performance of warranty 7 services, including diagnostic services, shall be reasonable 8 for the service to be performed. 9 b. In determining what constitutes reasonable compensation 10 under this section, the principle factors to be given 11 consideration shall be the actual wage rates being paid by the 12 dealer and the actual retail wage rates being charged by other 13 dealers in the community in which the dealer is doing business. 14 The compensation of a dealer for warranty services shall not be 15 less than the lowest actual retail wage rates charged by the 16 dealer for similar nonwarranty services, as long as the actual 17 retail wage rates are reasonable. 18 3. A warrantor shall reimburse a dealer for any warranty 19 part, accessory, or complete component at actual wholesale 20 cost to the dealer plus a minimum of a thirty percent handling 21 charge, not to exceed one hundred fifty dollars, and plus the 22 cost, if any, to the dealer to return such part, component, or 23 accessory to the warrantor. 24 4. A warrantor may conduct a warranty audit of a dealer’s 25 records within twelve months after the payment of a warranty 26 claim. A warrantor shall not deny a dealer’s claim for 27 warranty compensation except for good cause, including 28 performance of nonwarranty repairs, material noncompliance with 29 the warrantor’s published policies and procedures, lack of 30 material documentation, fraud, or misrepresentation. 31 5. A dealer shall submit claims for compensation for the 32 performance of warranty services to the warrantor within 33 forty-five days after completion of the warranty services. 34 6. A dealer shall immediately notify a warrantor in writing 35 -28- LSB 1301XC (9) 88 ns/rh 28/ 47
S.F. _____ if the dealer is unable to perform warranty services, including 1 diagnostic services, within ten days of receipt of a written 2 complaint from a consumer. 3 7. A warrantor shall deny a claim submitted by a dealer 4 for compensation for the performance of warranty services, 5 in writing, within thirty days after submission of the claim 6 in the manner and form prescribed by the warrantor. A claim 7 not specifically denied as required by this subsection shall 8 be deemed approved and shall be paid within sixty days of 9 submission of the claim. 10 8. A warrantor shall not do any of the following: 11 a. Fail to perform any of the warrantor’s obligations with 12 respect to its warranted products. 13 b. Fail to include, in written notices of a factory 14 campaign to towable recreational vehicle owners and dealers, 15 the expected date by which necessary parts and equipment, 16 including tires and chassis or chassis parts, will be available 17 to dealers to perform the factory campaign work. The warrantor 18 may ship parts to a dealer for purposes of factory campaign 19 work, and, if such parts are in excess of the dealer’s 20 requirements, the dealer may return unused, undamaged parts 21 to the warrantor for credit after completion of the factory 22 campaign. 23 c. Fail to compensate the warrantor’s dealers for authorized 24 repairs performed by the dealer on merchandise damaged in 25 manufacture or in transit to the dealer by a carrier designated 26 by the warrantor, factory branch, distributor, or distributor 27 branch. 28 d. Fail to compensate the warrantor’s dealers in accordance 29 with the schedule of compensation provided to the dealer 30 pursuant to this section, if the warranty services for which 31 compensation is claimed are performed by the dealer in a timely 32 and competent manner as required in this section. 33 e. Intentionally misrepresent in any way to consumers that 34 warranties with respect to the manufacture, performance, or 35 -29- LSB 1301XC (9) 88 ns/rh 29/ 47
S.F. _____ design of towable recreational vehicles are made by the dealer 1 as warrantor or co-warrantor. 2 f. Require the warrantor’s dealers to make warranties to a 3 consumer that are in any manner related to the manufacture of a 4 towable recreational vehicle. 5 9. A dealer shall not do any of the following: 6 a. Fail to perform predelivery inspection functions, as 7 specified by the warrantor, in a competent and timely manner. 8 b. Fail to perform warranty services, as authorized by the 9 warrantor, in a competent and timely manner on any transient 10 consumer’s towable recreational vehicle of a line-make sold or 11 serviced by the dealer. 12 c. Fail to accurately document the time spent completing 13 each repair, the total number of repair attempts conducted on a 14 single towable recreational vehicle, and the number of repair 15 attempts for the same repair conducted on a single towable 16 recreational vehicle. 17 d. Fail to notify the warrantor within ten days of a second 18 repair attempt on a towable recreational vehicle which impairs 19 the use, value, or safety of the vehicle. 20 e. Fail to maintain written records, including a consumer’s 21 written or electronic verification or signature, regarding the 22 amount of time a towable recreational vehicle is stored for the 23 consumer’s convenience during a repair. 24 f. Make fraudulent warranty claims or misrepresent the terms 25 of any warranty. 26 Sec. 32. NEW SECTION . 322C.19 Indemnification —— warrantor 27 and dealer. 28 1. a. Notwithstanding the terms of a manufacturer-dealer 29 agreement, a warrantor shall indemnify and hold harmless the 30 warrantor’s dealer against any loss or damage, to the extent 31 the loss or damage is caused by willful misconduct of the 32 warrantor. 33 b. A warrantor shall not deny a dealer indemnification 34 for failure to discover, disclose, or remedy a defect in the 35 -30- LSB 1301XC (9) 88 ns/rh 30/ 47
S.F. _____ design or manufacture of a new towable recreational vehicle. A 1 warrantor may deny a dealer indemnification if the dealer fails 2 to remedy a known and announced defect in accordance with the 3 written instructions of the warrantor for whom the dealer is 4 obligated to perform warranty services. 5 c. A warrantor shall provide to the dealer a copy of any 6 pending lawsuit in which allegations are made against the 7 warrantor of willful misconduct. The warrantor shall provide 8 the copy to the dealer within ten days after receiving notice 9 of the lawsuit. 10 2. a. Notwithstanding the terms of a manufacturer-dealer 11 agreement, a dealer shall indemnify and hold harmless the 12 dealer’s warrantor against any loss or damage, to the extent 13 that the loss or damage is caused by willful misconduct of the 14 dealer. 15 b. A dealer shall provide to the warrantor a copy of any 16 pending lawsuit in which allegations are made against the 17 dealer of willful misconduct. The dealer shall provide the 18 copy to the warrantor within ten days after receiving notice 19 of the lawsuit. 20 3. Notwithstanding any provision of law to the contrary, 21 this section continues to apply after a new towable 22 recreational vehicle is titled. 23 Sec. 33. NEW SECTION . 322C.20 Inspection and rejection by 24 dealer. 25 1. Whenever a new towable recreational vehicle is damaged 26 prior to transit or is damaged in transit to a dealer and 27 the carrier or means of transportation has been selected by 28 the manufacturer or distributor, the dealer shall notify the 29 manufacturer or distributor of the damage within the time frame 30 specified in the manufacturer-dealer agreement and shall do 31 either of the following: 32 a. Request from the manufacturer or distributor 33 authorization to replace the components, parts, or accessories 34 damaged, or otherwise repair the vehicle to make it ready for 35 -31- LSB 1301XC (9) 88 ns/rh 31/ 47
S.F. _____ sale at retail. 1 b. Reject the vehicle within the time frame set forth in the 2 manufacturer-dealer agreement pursuant to subsection 4. 3 2. If the manufacturer or distributor refuses to authorize 4 repair of the new towable recreational vehicle within ten days 5 after receipt of a dealer’s notification, or if the dealer 6 rejects the new towable recreational vehicle because of damage 7 to the vehicle, ownership of the vehicle shall revert to the 8 manufacturer or distributor. 9 3. The dealer shall exercise due care when in custody of a 10 damaged new towable recreational vehicle, but the dealer shall 11 have no other obligations, financial or otherwise, with respect 12 to the vehicle following rejection in accordance with the 13 manufacturer-dealer agreement pursuant to subsection 4. 14 4. The time frame for inspection and rejection of a damaged 15 new towable recreational vehicle by a dealer shall be specified 16 in the manufacturer-dealer agreement, but shall not be less 17 than two business days after the physical delivery of the 18 vehicle to the dealer. 19 Sec. 34. NEW SECTION . 322C.21 Civil action —— mediation. 20 1. A dealer, manufacturer, distributor, or warrantor 21 injured by another party’s violation of this chapter may bring 22 a civil action in district court to recover actual damages 23 resulting from the violation. The court shall award reasonable 24 attorney fees and costs to the prevailing party in such an 25 action. Venue for a civil action authorized by this section 26 shall be exclusively in the county in which the dealer’s 27 business is located. In an action involving more than one 28 dealer, venue may be in any county in which any dealer that is a 29 party to the action is located. 30 2. a. Prior to bringing a civil action under this section, 31 the party alleging a violation of this chapter shall serve a 32 written demand for mediation upon the alleged offending party. 33 b. The demand for mediation shall be served upon the alleged 34 offending party via certified mail at the address stated in 35 -32- LSB 1301XC (9) 88 ns/rh 32/ 47
S.F. _____ the manufacturer-dealer agreement between the parties, if 1 applicable. 2 c. The demand for mediation shall contain a statement of the 3 dispute or violation alleged and the relief sought by the party 4 serving the demand. 5 d. Within twenty days after service of a demand for 6 mediation, the parties shall mutually select an independent 7 certified mediator and shall meet with the mediator for 8 the purpose of attempting to resolve the dispute or alleged 9 violation. The meeting place for the mediation shall be 10 in this state at a location selected by the mediator. The 11 mediator may extend the date before which the parties are 12 required to have the meeting for good cause shown by either 13 party or upon a stipulation by both parties. 14 e. The service of a demand for mediation under this section 15 shall toll the period during which a party is required to 16 file any complaint, petition, protest, or other action under 17 this chapter until representatives of both parties have met 18 with the mutually agreed-upon mediator for the purpose of 19 attempting to resolve the dispute or alleged violation. If a 20 complaint, petition, protest, or other action has been filed 21 before the mediation meeting, the court shall enter an order 22 suspending any proceeding or action relating to such complaint, 23 petition, protest, or other action until the mediation meeting 24 has occurred and may, upon written stipulation by all parties 25 to the proceeding or action that the parties wish to continue 26 mediation under this section, enter an order suspending 27 the proceeding or action for any period the court considers 28 appropriate. 29 f. Each party to the mediation shall pay its own costs for 30 attorney fees. The costs of the mediation services shall be 31 equally allocated among each party. 32 3. In addition to the remedies provided in this section, and 33 notwithstanding the existence of any additional remedy at law, 34 a manufacturer, distributor, warrantor, or dealer may petition 35 -33- LSB 1301XC (9) 88 ns/rh 33/ 47
S.F. _____ the district court, upon a hearing and for cause shown, for a 1 temporary or permanent injunction, or both, restraining any 2 person from acting as a dealer without being properly licensed, 3 from violating or continuing to violate any of the provisions 4 of this chapter, or from failing or refusing to comply with the 5 requirements of this chapter. Such injunction shall be issued 6 without bond. A single act in violation of this chapter shall 7 be considered sufficient cause to authorize the issuance of an 8 injunction pursuant to this subsection. 9 Sec. 35. Section 435.23, subsection 1, Code 2019, is amended 10 to read as follows: 11 1. The manufacturer’s and retailer’s inventory of mobile 12 homes, manufactured homes, or modular homes not in use as a 13 place of human habitation shall be exempt from the annual tax. 14 All travel trailers towable recreational vehicles shall be 15 exempt from this tax. The homes and travel trailers towable 16 recreational vehicles in the inventory of manufacturers and 17 retailers shall be exempt from personal property tax. 18 Sec. 36. APPLICABILITY. This Act applies to 19 manufacturer-dealer agreements pertaining to the sale 20 of new towable recreational vehicles entered into or renewed on 21 or after January 1, 2020. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to towable recreational vehicles (TRVs). 26 The bill defines “towable recreational vehicle” to mean a 27 vehicle designed to be towed by a motor vehicle owned by 28 a consumer and to provide temporary living quarters for 29 recreational, camping, or travel use, that complies with all 30 applicable federal regulations, and that is certified by the 31 vehicle’s manufacturer as in compliance with the national fire 32 protection association standard on recreational vehicles or 33 the American national standard for park model recreational 34 vehicles, as applicable. The term includes a travel trailer, 35 -34- LSB 1301XC (9) 88 ns/rh 34/ 47
S.F. _____ toy-hauler travel trailer, fifth-wheel travel trailer, 1 toy-hauler fifth-wheel travel trailer, folding camping trailer, 2 truck camper, and park model recreational vehicle. 3 CODE CHAPTER 321. The bill strikes the terms “travel 4 trailer” and “fifth-wheel travel trailer” from Code chapter 5 321 (motor vehicles and law of the road) and inserts “towable 6 recreational vehicle” in place of those terms. For purposes 7 of Code chapter 321, the bill requires a TRV to be customarily 8 or ordinarily used for vacation or recreational purposes and 9 not used as a place of permanent habitation. If a TRV is used 10 as a place of human habitation for more than 180 consecutive 11 days in one location, it must be classified as a manufactured 12 or mobile home. A 90-day limitation exists under current law 13 in the definition of “travel trailer” struck by the bill. For 14 purposes of registration or brake requirements under Code 15 chapter 321, “towable recreational vehicle” does not include a 16 truck camper. 17 The bill makes corresponding changes to Code sections 18 321.34 (registration plates), 321.45 (title transfer), 321.123 19 (trailer registration fee), 321.176A (persons exempt from 20 commercial driver’s license requirements), 321.284A (open 21 containers in motor vehicles), 321.430 (brake requirements), 22 321.454 (vehicle width), and 321.457 (vehicle length). 23 CODE CHAPTER 322C. The bill defines or redefines various 24 terms for purposes of Code chapter 322C (travel trailer 25 dealers, manufacturers, and distributors), including 26 “community”, “factory campaign”, “family member”, “fifth-wheel 27 travel trailer”, “folding camping trailer”, “line-make”, 28 “manufacturer”, “manufacturer-dealer agreement”, “park model 29 recreational vehicle”, “proprietary part”, “supplier”, “towable 30 recreational vehicle”, “towable recreational vehicle dealer”, 31 “toy-hauler fifth-wheel travel trailer”, “toy-hauler travel 32 trailer”, “transient consumer”, “travel trailer”, “truck 33 camper”, and “warrantor”. 34 The bill defines “fifth-wheel travel trailer” as a vehicle 35 -35- LSB 1301XC (9) 88 ns/rh 35/ 47
S.F. _____ with an overall length of 45 feet or less, which is the same 1 limitation present under current law in the definition of the 2 term under Code chapter 321 stricken by the bill. The bill 3 defines “travel trailer” as a vehicle with an overall length 4 of 40 feet or less, which is less than the 45-foot limitation 5 present under current law in the definition of the term under 6 Code chapter 321 stricken by the bill. Travel trailers were 7 limited to 40 feet in length prior to 2015, when the general 8 assembly increased the limitation to 45 feet. 9 The bill makes corresponding changes from the use of the term 10 “travel trailer” in Code chapter 322C to the use of the term 11 ”towable recreational vehicle”. 12 Under current law, a manufacturer or distributor is 13 prohibited from refusing to renew a contract for a term of less 14 than five years. The bill changes the term to 12 months. 15 The bill strikes a provision in Code section 322C.4 that 16 exempts persons licensed under Code chapter 322 (motor vehicle 17 manufacturers, distributors, wholesalers, and dealers) from the 18 requirement to obtain a $25,000 surety bond as a prerequisite 19 to the issuance of a TRV dealer’s license. 20 APPLICABILITY TO AGREEMENTS. The bill provides that if a TRV 21 dealer also sells and services motorized recreational vehicles 22 or other motor vehicles, the provisions of Code chapter 322C 23 relating to manufacturer-dealer agreements apply only to such 24 agreements, or those provisions of such agreements, applicable 25 to TRVs. 26 AGREEMENT REQUIRED —— COMMUNITY. The bill prohibits a 27 manufacturer or distributor from selling a new TRV in this 28 state to or through a TRV dealer without first entering into 29 a manufacturer-dealer agreement with the dealer that has been 30 signed by both parties. The bill also prohibits a dealer 31 from selling a new TRV in this state without first entering 32 into a manufacturer-dealer agreement with a manufacturer or 33 distributor that has been signed by both parties. 34 The bill requires a manufacturer-dealer agreement to 35 -36- LSB 1301XC (9) 88 ns/rh 36/ 47
S.F. _____ designate a community exclusively assigned to a dealer by the 1 manufacturer or distributor, and prohibits the manufacturer or 2 distributor from changing the community or from contracting 3 with another dealer for the sale of the same line-make of 4 TRV in the community for the duration of the agreement. The 5 community designated in a manufacturer-dealer agreement may be 6 reviewed or changed with the consent of both parties not less 7 than 12 months after execution of the agreement. 8 TERMINATION, CANCELLATION, OR NONRENEWAL BY MANUFACTURER OR 9 DISTRIBUTOR. The bill authorizes a manufacturer or distributor 10 to terminate, cancel, or fail to renew a manufacturer-dealer 11 agreement with or without good cause. If the manufacturer or 12 distributor terminates, cancels, or fails to renew an agreement 13 without good cause, the manufacturer or distributor is required 14 to comply with the repurchase requirements set forth in the 15 bill. 16 The manufacturer or distributor has the burden of proof to 17 demonstrate good cause. The bill sets forth certain factors to 18 consider in determining whether good cause exists. 19 The bill requires a manufacturer or distributor to provide 20 to a dealer written notice of termination, cancellation, or 21 nonrenewal of a manufacturer-dealer agreement for good cause 22 at least 90 days prior to terminating, canceling, or failing 23 to renew the manufacturer-dealer agreement. The notice must 24 state all of the reasons for the termination, cancellation, or 25 nonrenewal and that if, within 30 days following receipt of the 26 notice, the dealer provides to the manufacturer or distributor 27 a written notice of intent to cure all claimed deficiencies, 28 the dealer will then have 90 days following receipt of the 29 notice to cure the deficiencies. If the deficiencies are cured 30 within 90 days, the manufacturer’s or distributor’s notice is 31 voided. If the dealer fails to provide the notice of intent 32 to cure the deficiencies within 30 days, or fails to cure the 33 deficiencies within 90 days, the termination, cancellation, or 34 nonrenewal takes effect as provided in the original notice. 35 -37- LSB 1301XC (9) 88 ns/rh 37/ 47
S.F. _____ The bill specifies that the notice period for termination, 1 cancellation, or nonrenewal of a manufacturer-dealer agreement 2 for good cause may be reduced to 30 days if certain grounds 3 exist as set forth in the bill. 4 The manufacturer or distributor is not required to provide 5 the notice if the dealer is insolvent, or has filed for 6 bankruptcy, receivership, or assignment for the benefit of 7 creditors. 8 TERMINATION, CANCELLATION, OR NONRENEWAL BY DEALER. The 9 bill allows a dealer to terminate, cancel, or fail to renew 10 a manufacturer-dealer agreement with or without good cause. 11 If the dealer terminates, cancels, or fails to renew a 12 manufacturer-dealer agreement with good cause, the manufacturer 13 or distributor must comply with the repurchase requirements set 14 forth in the bill. 15 The dealer has the burden of proof to demonstrate good 16 cause for terminating, canceling, or failing to renew a 17 manufacturer-dealer agreement. The bill sets forth certain 18 factors to consider in determining whether good cause exists. 19 The bill requires a dealer to provide to a manufacturer 20 or distributor written notice of termination, cancellation, 21 or nonrenewal of a manufacturer-dealer agreement at least 22 30 days prior to terminating, canceling, or failing to 23 renew the manufacturer-dealer agreement. If a termination 24 or cancellation is for good cause, the notice must state 25 all of the reasons for the termination or cancellation and 26 that if, within 30 days following receipt of the notice, 27 the manufacturer or distributor provides to the dealer a 28 written notice of intent to cure all claimed deficiencies, 29 the manufacturer or distributor shall then have 90 days 30 following receipt of the notice to cure the deficiencies. 31 If the deficiencies are cured within 90 days, the dealer’s 32 notice is voided. If the manufacturer or distributor fails to 33 provide the notice of intent to cure the deficiencies within 34 30 days, or fails to cure the deficiencies within 90 days, the 35 -38- LSB 1301XC (9) 88 ns/rh 38/ 47
S.F. _____ termination or cancellation takes effect as provided in the 1 original notice. 2 REPURCHASE OR SALE OF INVENTORY. If a manufacturer-dealer 3 agreement is terminated, canceled, or not renewed by the 4 manufacturer or distributor without good cause, or by a 5 dealer with good cause and, in the case of termination or 6 cancellation, the manufacturer or distributor fails to provide 7 notice or cure the deficiencies claimed by the dealer, the bill 8 requires the manufacturer or distributor to, at the dealer’s 9 option and within 45 days after termination, cancellation, or 10 nonrenewal, repurchase certain items. 11 The repurchase includes all new, untitled TRVs that the 12 dealer acquired from the manufacturer or distributor within 12 13 months prior to the effective date of the notice that have not 14 been used other than for demonstration purposes, and that have 15 not been altered or damaged, at 100 percent of the net invoice 16 cost, including transportation, less applicable rebates and 17 discounts to the dealer. 18 The repurchase also includes all undamaged proprietary parts 19 for any line-make subject to the termination, cancellation, 20 or nonrenewal that was sold to the dealer for resale within 21 12 months prior to the effective date of the termination, 22 cancellation, or nonrenewal of the manufacturer-dealer 23 agreement, if accompanied by the original invoice, at 105 24 percent of the original net price paid to the manufacturer or 25 distributor. 26 The repurchase further includes all properly functioning 27 diagnostic equipment, special tools, current signage, or 28 other equipment and machinery that was purchased by the 29 dealer upon the request of the manufacturer or distributor for 30 any line-make subject to the termination, cancellation, or 31 nonrenewal within five years prior to the effective date of the 32 termination, cancellation, or nonrenewal that can no longer be 33 used in the normal course of the dealer’s ongoing business. 34 The bill does not specify an amount at which such equipment, 35 -39- LSB 1301XC (9) 88 ns/rh 39/ 47
S.F. _____ tools, or machinery must be repurchased. 1 The bill provides that TRVs not repurchased or required to 2 be repurchased that are in the dealer’s inventory may continue 3 to be sold by the dealer until the TRVs are no longer in the 4 dealer’s inventory. 5 TRANSFER OF OWNERSHIP. If a TRV dealer makes or intends to 6 make a change in ownership of a dealership, the dealer must 7 provide to a manufacturer or distributor that is a party to a 8 manufacturer-dealer agreement with the dealer written notice of 9 the proposed change at least 15 business days before the change 10 becomes effective. 11 In the absence of a breach by the dealer of the 12 manufacturer-dealer agreement or a violation of Code chapter 13 322C, the bill prohibits the manufacturer or distributor from 14 objecting to the proposed change in ownership unless the 15 objection is to the prospective transferee for previously 16 being a party to a manufacturer-dealer agreement with the 17 manufacturer or distributor and the agreement was terminated, 18 canceled, or not renewed by the manufacturer or distributor 19 for good cause; being convicted of a felony or any crime of 20 fraud, deceit, or moral turpitude; lacking any license required 21 by law; failing to have an active line of credit sufficient 22 to purchase the manufacturer’s or distributor’s products; or 23 being insolvent within the previous 10 years, or filing for 24 bankruptcy, receivership, or assignment for the benefit of 25 creditors within the previous 10 years. 26 If a manufacturer or distributor objects to a proposed 27 change in ownership of a dealership, the manufacturer or 28 distributor must provide written notice of the reasons for the 29 objection to the dealer within 15 business days after receipt 30 of the dealer’s notification and supporting documentation about 31 the proposed change. The manufacturer or distributor has the 32 burden of proof to demonstrate that the objection complies 33 with the requirements of the bill. If the manufacturer or 34 distributor does not provide the dealer with timely notice of 35 -40- LSB 1301XC (9) 88 ns/rh 40/ 47
S.F. _____ the objection, the dealer’s proposed change in ownership of the 1 dealership is deemed approved. 2 The bill requires a manufacturer or distributor to provide 3 to a dealer the opportunity to designate, in writing, a 4 family member as a successor to ownership of a dealership 5 in the event of the death, incapacity, or retirement of the 6 dealer. If a dealer desires to designate a family member as a 7 successor to ownership of a dealership, the dealer must provide 8 to the manufacturer or distributor that is a party to the 9 manufacturer-dealer agreement with the dealer written notice 10 of the proposed designation, or modification of a previous 11 designation, at least 15 business days before the designation 12 or proposed modification of a designation becomes effective. 13 In the absence of a breach by the dealer of the 14 manufacturer-dealer agreement or a violation of Code chapter 15 322C, the bill prohibits the manufacturer or distributor from 16 objecting to the designation or proposed modification of a 17 designation unless the objection is to the designated successor 18 for any of the reasons stated above for objecting to a proposed 19 change in ownership. 20 If a manufacturer or distributor objects to a succession 21 plan, the manufacturer or distributor must provide written 22 notice of the reasons for the objection to the dealer within 23 15 business days after receipt of the dealer’s notification 24 about the proposed designation or proposed modification 25 of a designation. The manufacturer or distributor has the 26 burden of proof to demonstrate that the objection complies 27 with the requirements of the bill. If the manufacturer or 28 distributor does not provide the dealer with timely notice of 29 the objection, the dealer’s proposed succession plan is deemed 30 approved. 31 The bill requires a manufacturer or distributor to allow 32 the succession of ownership of a dealership to a designated 33 family member when a dealer is deceased, incapacitated, 34 or has retired, unless the manufacturer or distributor has 35 -41- LSB 1301XC (9) 88 ns/rh 41/ 47
S.F. _____ provided to the dealer written notice of the manufacturer’s 1 or distributor’s objections to the succession within 15 days 2 after receipt of notice of the succession. However, the bill 3 prohibits a family member of a dealer from succeeding to 4 ownership of a dealership if the succession involves, without 5 the manufacturer’s or distributor’s consent, a relocation of 6 the dealership or alteration of the terms and conditions of the 7 manufacturer-dealer agreement. 8 WARRANTY OBLIGATIONS. The bill requires a warrantor to 9 specify in writing to each dealer what obligations the dealer 10 has, if any, for preparation and delivery of, and warranty 11 services on, the warrantor’s products; compensate the dealer 12 for warranty services the warrantor requires the dealer to 13 perform; and provide the dealer with a schedule of compensation 14 and time allowances for the performance of warranty services. 15 Time allowances for the performance of warranty services, 16 including diagnostic services, must be reasonable for the 17 service to be performed. In determining what constitutes 18 reasonable compensation, the bill specifies that the principle 19 factors to be given consideration must be the actual wage rates 20 being paid by the dealer and the actual retail wage rates being 21 charged by other dealers in the community in which the dealer 22 is doing business. The bill prohibits the compensation of a 23 dealer for warranty services from being less than the lowest 24 actual retail wage rates charged by the dealer for similar 25 nonwarranty services, as long as the actual retail wage rates 26 are reasonable. 27 The bill requires a warrantor to reimburse a dealer for 28 any warranty part, accessory, or complete component at actual 29 wholesale cost to the dealer plus a minimum of a 30 percent 30 handling charge, not to exceed $150, and plus the cost, if any, 31 to the dealer to return such part, component, or accessory to 32 the warrantor. 33 The bill authorizes a warrantor to conduct a warranty audit 34 of a dealer’s records within 12 months after the payment 35 -42- LSB 1301XC (9) 88 ns/rh 42/ 47
S.F. _____ of a warranty claim. The bill prohibits a warrantor from 1 denying a dealer’s claim for warranty compensation except for 2 good cause, including performance of nonwarranty repairs, 3 material noncompliance with the warrantor’s published policies 4 and procedures, lack of material documentation, fraud, or 5 misrepresentation. 6 The bill requires a dealer to submit claims for compensation 7 for the performance of warranty services to the warrantor 8 within 45 days after completion of the warranty services. 9 A dealer must immediately notify a warrantor in writing if 10 the dealer is unable to perform warranty services, including 11 diagnostic services, within 10 days of receipt of a written 12 complaint from a consumer. 13 A warrantor must deny a claim submitted by a dealer for 14 compensation for the performance of warranty services, in 15 writing, within 30 days after submission of the claim in the 16 manner and form prescribed by the warrantor. A claim not 17 specifically denied is deemed approved and must be paid within 18 60 days of submission of the claim. 19 The bill prohibits a warrantor from failing to perform any 20 of the warrantor’s obligations with respect to its warranted 21 products; failing to include, in written notices of a factory 22 campaign to TRV owners and dealers, the expected date by which 23 necessary parts and equipment will be available to dealers to 24 perform the factory campaign work; failing to compensate the 25 warrantor’s dealers for authorized repairs performed by the 26 dealer on merchandise damaged in manufacture or in transit to 27 the dealer; failing to compensate the warrantor’s dealers in 28 accordance with the schedule of compensation provided to the 29 dealer, if the warranty services for which compensation is 30 claimed are performed by the dealer in a timely and competent 31 manner; intentionally misrepresenting to consumers that 32 warranties with respect to the manufacture, performance, 33 or design of TRVs are made by the dealer as warrantor or 34 co-warrantor; or requiring the warrantor’s dealers to make 35 -43- LSB 1301XC (9) 88 ns/rh 43/ 47
S.F. _____ warranties to a consumer that are in any manner related to the 1 manufacture of a TRV. 2 The bill prohibits a dealer from failing to perform 3 predelivery inspection functions, as specified by the 4 warrantor, in a competent and timely manner; failing to 5 perform warranty services, as authorized by the warrantor, 6 in a competent and timely manner on any transient consumer’s 7 TRV of a line-make sold or serviced by the dealer; failing to 8 accurately document the time spent completing each repair, the 9 total number of repair attempts conducted on a single TRV, and 10 the number of repair attempts for the same repair conducted on 11 a single TRV; failing to notify the warrantor within 10 days of 12 a second repair attempt on a TRV which impairs the use, value, 13 or safety of the TRV; failing to maintain written records, 14 including a consumer’s written or electronic verification or 15 signature, regarding the amount of time a TRV is stored for the 16 consumer’s convenience during a repair; or making fraudulent 17 warranty claims or misrepresenting the terms of any warranty. 18 INDEMNIFICATION. The bill requires a warrantor to indemnify 19 and hold harmless the warrantor’s dealer against any loss or 20 damage, to the extent the loss or damage is caused by willful 21 misconduct of the warrantor. A warrantor is prohibited from 22 denying a dealer indemnification for failure to discover, 23 disclose, or remedy a defect in the design or manufacture 24 of a new TRV. However, a warrantor may deny a dealer 25 indemnification if the dealer fails to remedy a known and 26 announced defect in accordance with the written instructions 27 of the warrantor for whom the dealer is obligated to perform 28 warranty services. The bill requires a warrantor to provide to 29 the dealer a copy of any pending lawsuit in which allegations 30 are made against the warrantor of willful misconduct. The 31 warrantor must provide the copy to the dealer within 10 days 32 after receiving notice of the lawsuit. 33 The bill requires a dealer to indemnify and hold harmless the 34 dealer’s warrantor against any loss or damage, to the extent 35 -44- LSB 1301XC (9) 88 ns/rh 44/ 47
S.F. _____ that the loss or damage is caused by willful misconduct of 1 the dealer. A dealer must provide to the warrantor a copy of 2 any pending lawsuit in which allegations are made against the 3 dealer of willful misconduct. The dealer must provide the copy 4 to the warrantor within 10 days after receiving notice of the 5 lawsuit. 6 INSPECTION AND REJECTION BY DEALER. Whenever a new TRV is 7 damaged prior to transit or is damaged in transit to a dealer 8 and the carrier or means of transportation has been selected 9 by the manufacturer or distributor, the dealer is required to 10 notify the manufacturer or distributor of the damage within the 11 time frame specified in the manufacturer-dealer agreement and 12 shall do either request from the manufacturer or distributor 13 authorization to replace the components, parts, or accessories 14 damaged, or otherwise repair the vehicle, or reject the vehicle 15 within the time frame set forth in the manufacturer-dealer 16 agreement. 17 If the manufacturer or distributor refuses to authorize 18 repair of the new TRV within 10 days after receipt of a 19 dealer’s notification, or if the dealer rejects the new TRV 20 because of damage, ownership of the TRV will revert to the 21 manufacturer or distributor. 22 The bill requires the dealer to exercise due care when in 23 custody of a new, damaged TRV, but the bill specifies that the 24 dealer has no other obligations, financial or otherwise, with 25 respect to the TRV following rejection in accordance with the 26 manufacturer-dealer agreement. 27 The bill requires the time frame for inspection and 28 rejection of a damaged new TRV by a dealer to be specified in 29 the manufacturer-dealer agreement, but provides that it shall 30 not be less than two business days after the physical delivery 31 of the TRV to the dealer. 32 CIVIL ACTION AND MEDIATION. The bill authorizes a dealer, 33 manufacturer, distributor, or warrantor injured by another 34 party’s violation of Code chapter 322C to bring a civil action 35 -45- LSB 1301XC (9) 88 ns/rh 45/ 47
S.F. _____ in district court to recover actual damages resulting from the 1 violation. The court must award reasonable attorney fees and 2 costs to the prevailing party in such an action. Venue for 3 such a civil action must be exclusively in the county in which 4 the dealer’s business is located. In an action involving more 5 than one dealer, venue may be in any county in which any dealer 6 that is a party to the action is located. 7 Prior to bringing such a civil action, the party alleging a 8 violation must serve a written demand for mediation upon the 9 alleged offending party. The demand for mediation must be 10 served upon the alleged offending party via certified mail at 11 the address stated in the manufacturer-dealer agreement between 12 the parties, if applicable. The demand for mediation must 13 contain a statement of the dispute or violation alleged and the 14 relief sought by the party serving the demand. 15 Within 20 days after service of a demand for mediation, the 16 bill requires the parties to mutually select an independent 17 certified mediator and meet with the mediator for the purpose 18 of attempting to resolve the dispute or alleged violation. The 19 meeting place for the mediation must be in Iowa at a location 20 selected by the mediator. The mediator may extend the date 21 before which the parties are required to have the meeting for 22 good cause shown by either party or upon a stipulation by both 23 parties. 24 The service of a demand for mediation tolls the period 25 during which a party is required to file any complaint, 26 petition, protest, or other action under Code chapter 322C 27 until representatives of both parties have met with the 28 mutually agreed-upon mediator for the purpose of attempting 29 to resolve the dispute or alleged violation. If a complaint, 30 petition, protest, or other action has been filed before the 31 mediation meeting, the court must enter an order suspending 32 any proceeding or action relating to such complaint, petition, 33 protest, or other action until the mediation meeting has 34 occurred and may, upon written stipulation by all parties to 35 -46- LSB 1301XC (9) 88 ns/rh 46/ 47
S.F. _____ the proceeding or action that the parties wish to continue 1 mediation, enter an order suspending the proceeding or action 2 for any period the court considers appropriate. 3 Each party to the mediation shall pay its own costs for 4 attorney fees and the costs of the mediation services shall be 5 equally allocated among each party. 6 The bill authorizes a manufacturer, distributor, warrantor, 7 or dealer to petition the district court, upon a hearing and 8 for cause shown, for a temporary or permanent injunction, or 9 both, restraining any person from acting as a dealer without 10 being properly licensed, from violating or continuing to 11 violate any of the provisions of Code chapter 322C, or from 12 failing or refusing to comply with the requirements of Code 13 chapter 322C. Such injunction must be issued without bond. 14 The bill specifies that a single act must be considered 15 sufficient cause to authorize the issuance of an injunction. 16 TAX EXEMPTION. The bill makes a corresponding change to 17 Code section 435.23 exempting TRVs from the property tax on 18 manufactured or mobile homes. 19 APPLICABILITY. The bill applies to manufacturer-dealer 20 agreements pertaining to the sale of new TRVs entered into or 21 renewed on or after January 1, 2020. 22 -47- LSB 1301XC (9) 88 ns/rh 47/ 47