HF 2213 (LSB 6214YH (1) 90)

HOUSE FILE 2213

BY  ANDREWS

A BILL FOR

An Act relating to optional equipment and subscription service fees included with the sale of motor vehicles by licensed motor vehicle dealers, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 322.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  A person who is engaged in the business of selling motor vehicles at retail shall not make or enter into a contract containing an optional equipment or subscription service fee unless the cost of the additional fee is included with the advertised sales price of the vehicle. A contract containing an optional equipment or subscription service fee must include all of the following:
   a.  A detailed description of the optional equipment installed in the vehicle.
   b.  The cost of the optional equipment and any associated subscription fee, including but not limited to the monthly cost necessary to use the optional equipment.
   c.  Contact information of the manufacturer of the optional equipment, including a telephone number and email address, that directs the buyer to a customer service representative who can assist with the termination of the subscription service.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill prohibits a person who is engaged in the business of selling motor vehicles at retail from making or entering into a contract that has an optional equipment or subscription service fee unless the cost of the additional fee is included with the advertised sales price of the vehicle. A contract that has an optional equipment or subscription service fee must include a detailed description of the optional equipment installed in the vehicle, a breakdown of the cost of the optional equipment and any associated subscription fee, including but not limited to the monthly cost necessary to use the optional equipment, and contact information of the manufacturer of the optional equipment, including a telephone number and email address, that directs the buyer to a customer service representative who can assist with the termination of the subscription service.
   By operation of law, the department of transportation (DOT) may revoke or suspend the motor vehicle dealer license granted to a person if, after notice and hearing by the department of inspections, appeals, and licensing, the DOT finds that the person has, among other things, not complied with Code chapter 322 or any rules or regulations adopted by the DOT, including the provisions of the bill. In addition, a person who violates any provisions of Code chapter 322 for which a penalty is not specifically provided is guilty of a simple misdemeanor punishable by a fine of not less than $250 nor more than $1,500 or by imprisonment not to exceed 30 days. If the violation involves a retail installment contract, the person is subject to the applicable penalties under Code chapter 537 (consumer credit code).