Senate File 444 - Introduced SENATE FILE 444 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SSB 1206) (COMPANION TO HF 393 BY COMMITTEE ON TRANSPORTATION) A BILL FOR An Act relating to motor vehicles, including the surrender 1 or transfer of registration plates and cards to a county 2 treasurer, documentary fees charged by motor vehicle 3 dealers, and motor vehicle franchise obligations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1798SV (1) 89 th/ns

S.F. 444 Section 1. Section 321.26, subsection 2, Code 2021, is 1 amended to read as follows: 2 2. The county treasurer may adjust the renewal or 3 expiration date of vehicles registered in the county when 4 deemed necessary to equalize the number of vehicles registered 5 in each twelve-month period or for the administrative 6 efficiency of the county treasurer’s office. The adjustment 7 shall be accomplished by delivery of a written notice to the 8 vehicle owner of the adjustment and allowance of a credit 9 for the remaining months of the unused portion of the annual 10 registration fee, rounded to the nearest whole dollar, which 11 amount shall be deducted from the annual registration fee due 12 at the time of registration. Upon receipt of the notification 13 the owner shall, within thirty days, surrender the registration 14 card and registration plates to the a county treasurer of 15 the county where the vehicle is registered , except that the 16 registration plates shall not be surrendered if validation 17 stickers or other emblems are used to designate the month and 18 year of expiration of registration. Upon payment of the annual 19 registration fee, less the credit allowed for the remaining 20 months of the unused portion of the annual registration 21 fee, the county treasurer of the county where the vehicle is 22 registered shall issue a new registration card and registration 23 plates, validation stickers, or emblems which indicate the 24 month and year of expiration of registration. 25 Sec. 2. Section 321.34, subsection 1, Code 2021, is amended 26 to read as follows: 27 1. Plates issued. The county treasurer upon receiving 28 application, accompanied by proper fee, for registration of a 29 vehicle shall issue to the owner one registration plate for 30 a motorcycle, motorized bicycle, autocycle, truck tractor, 31 trailer, or semitrailer and two registration plates for every 32 other motor vehicle. The registration plates, including 33 special registration plates, shall be assigned to the owner of 34 a vehicle. When the owner of a registered vehicle transfers or 35 -1- LSB 1798SV (1) 89 th/ns 1/ 3

S.F. 444 assigns ownership of the vehicle to another person, the owner 1 shall remove the registration plates from the vehicle. The 2 owner shall forward the plates to the a county treasurer where 3 the vehicle is registered or the owner may have the plates 4 assigned to another vehicle within thirty days after transfer, 5 upon payment of the fees required by law. The owner shall 6 immediately affix registration plates retained by the owner to 7 another vehicle owned or acquired by the owner, providing the 8 owner complies with section 321.46 . The department shall adopt 9 rules providing for the assignment of registration plates to 10 the transferee of a vehicle for which a credit is allowed under 11 section 321.46, subsection 6 . 12 Sec. 3. Section 321.47, subsection 3, Code 2021, is amended 13 to read as follows: 14 3. Whenever ownership of a vehicle is transferred under the 15 provisions of this section , the registration plates shall be 16 removed and forwarded to the a county treasurer , of the county 17 where the vehicle is registered or to the department if the 18 vehicle is owned by a nonresident. Upon transfer the vehicle 19 shall not be operated upon the highways of this state until the 20 person entitled to possession of the vehicle applies for and 21 obtains registration for the vehicle. 22 Sec. 4. Section 322.19A, subsection 3, Code 2021, is amended 23 by striking the subsection. 24 Sec. 5. Section 322A.5, subsection 2, Code 2021, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . c. The franchiser shall provide to the 27 franchisee a list of time allowances for the performance of 28 warranty services. Time allowances for the performance of 29 warranty services, including diagnostic services, shall be 30 reasonable and adequate for the services to be performed. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill allows a person who receives a written notice of 35 -2- LSB 1798SV (1) 89 th/ns 2/ 3

S.F. 444 an adjustment of the renewal or expiration of the person’s 1 motor vehicle registration to surrender their registration card 2 and registration plates to a county treasurer of any county 3 in the state rather than the county treasurer of the county 4 where the vehicle is registered. The bill further allows the 5 registration plates of a motor vehicle on which ownership is 6 transferred or assigned to another person pursuant to Code 7 section 321.34(1) or transferred by operation of law pursuant 8 to Code section 321.47(1) to be removed and forwarded to 9 any county treasurer in the state rather than to the county 10 treasurer of the county where the vehicle is registered. The 11 bill does not modify Code section 321.134, which allows an 12 owner of a motor vehicle who surrenders the registration plates 13 of a vehicle prior to the plates becoming delinquent to the 14 county treasurer of the county where the vehicle is registered 15 to register the vehicle any time thereafter without penalty. 16 Under current law, a motor vehicle dealer may charge a 17 documentary fee to a customer for the preparation of documents 18 related to an application for motor vehicle registration and 19 an application for issuance of a certificate of title, and 20 the performance of other related services for the customer, 21 which must not exceed $180 for each motor vehicle sold in 22 a transaction. The bill strikes the requirement that the 23 maximum documentary fee be reduced by $25 after the department 24 of transportation has implemented a program to allow for 25 electronic applications, titling, registering, and funds 26 transfers for vehicles subject to registration. 27 Under the bill, a motor vehicle franchiser must provide a 28 franchisee a list of time allowances for the performance of 29 warranty services, which must be reasonable and adequate for 30 the services to be performed. 31 -3- LSB 1798SV (1) 89 th/ns 3/ 3