HF 829 (LSB 1798HZ (2) 89)

HOUSE FILE 829

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 393)
(SUCCESSOR TO HSB 86)

(COMPANION TO SF 444 BY COMMITTEE ON TRANSPORTATION)

A BILL FOR

An Act relating to motor vehicles, including the surrender or transfer of registration plates and cards to a county treasurer, documentary fees charged by motor vehicle dealers, and motor vehicle franchise obligations. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.26, subsection 2, Code 2021, is amended to read as follows:
   2.  The county treasurer may adjust the renewal or expiration date of vehicles registered in the county when deemed necessary to equalize the number of vehicles registered in each twelve-month period or for the administrative efficiency of the county treasurer’s office. The adjustment shall be accomplished by delivery of a written notice to the vehicle owner of the adjustment and allowance of a credit for the remaining months of the unused portion of the annual registration fee, rounded to the nearest whole dollar, which amount shall be deducted from the annual registration fee due at the time of registration. Upon receipt of the notification the owner shall, within thirty days, surrender the registration card and registration plates to the a county treasurer of the county where the vehicle is registered, except that the registration plates shall not be surrendered if validation stickers or other emblems are used to designate the month and year of expiration of registration. Upon payment of the annual registration fee, less the credit allowed for the remaining months of the unused portion of the annual registration fee, the county treasurer of the county where the vehicle is registered shall issue a new registration card and registration plates, validation stickers, or emblems which indicate the month and year of expiration of registration.
    Sec. 2.  Section 321.34, subsection 1, Code 2021, is amended to read as follows:
   1.  Plates issued.  The county treasurer upon receiving application, accompanied by proper fee, for registration of a vehicle shall issue to the owner one registration plate for a motorcycle, motorized bicycle, autocycle, truck tractor, trailer, or semitrailer and two registration plates for every other motor vehicle. The registration plates, including special registration plates, shall be assigned to the owner of a vehicle. When the owner of a registered vehicle transfers or assigns ownership of the vehicle to another person, the owner shall remove the registration plates from the vehicle. The owner shall forward the plates to the a county treasurer where the vehicle is registered or the owner may have the plates assigned to another vehicle within thirty days after transfer, upon payment of the fees required by law. The owner shall immediately affix registration plates retained by the owner to another vehicle owned or acquired by the owner, providing the owner complies with section 321.46. The department shall adopt rules providing for the assignment of registration plates to the transferee of a vehicle for which a credit is allowed under section 321.46, subsection 6.
    Sec. 3.  Section 321.47, subsection 3, Code 2021, is amended to read as follows:
   3.  Whenever ownership of a vehicle is transferred under the provisions of this section, the registration plates shall be removed and forwarded to the a county treasurer, of the county where the vehicle is registered or to the department if the vehicle is owned by a nonresident. Upon transfer the vehicle shall not be operated upon the highways of this state until the person entitled to possession of the vehicle applies for and obtains registration for the vehicle.
    Sec. 4.  Section 322.19A, subsection 3, Code 2021, is amended by striking the subsection.
    Sec. 5.  Section 322A.5, subsection 2, Code 2021, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The franchiser shall provide to the franchisee a list of time allowances for the performance of warranty services. Time allowances for the performance of warranty services, including diagnostic services, shall be reasonable and adequate for the services to be performed. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill allows a person who receives a written notice of an adjustment of the renewal or expiration of the person’s motor vehicle registration to surrender their registration card and registration plates to a county treasurer of any county in the state rather than the county treasurer of the county where the vehicle is registered. The bill further allows the registration plates of a motor vehicle on which ownership is transferred or assigned to another person pursuant to Code section 321.34(1) or transferred by operation of law pursuant to Code section 321.47(1) to be removed and forwarded to any county treasurer in the state rather than to the county treasurer of the county where the vehicle is registered. The bill does not modify Code section 321.134, which allows an owner of a motor vehicle who surrenders the registration plates of a vehicle prior to the plates becoming delinquent to the county treasurer of the county where the vehicle is registered to register the vehicle any time thereafter without penalty.
   Under current law, a motor vehicle dealer may charge a documentary fee to a customer for the preparation of documents related to an application for motor vehicle registration and an application for issuance of a certificate of title, and the performance of other related services for the customer, which must not exceed $180 for each motor vehicle sold in a transaction. The bill strikes the requirement that the maximum documentary fee be reduced by $25 after the department of transportation has implemented a program to allow for electronic applications, titling, registering, and funds transfers for vehicles subject to registration.
   Under the bill, a motor vehicle franchiser must provide a franchisee a list of time allowances for the performance of warranty services, which must be reasonable and adequate for the services to be performed.