House
File
493
-
Introduced
HOUSE
FILE
493
BY
ANDREWS
A
BILL
FOR
An
Act
relating
to
optional
equipment
and
subscription
service
1
fees
included
with
the
sale
of
motor
vehicles
by
licensed
2
motor
vehicle
dealers,
and
making
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2402YH
(2)
90
th/ns
H.F.
493
Section
1.
Section
322.3,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
6A.
A
person
who
is
engaged
in
the
3
business
of
selling
motor
vehicles
at
retail
shall
not
make
4
or
enter
into
a
contract
containing
an
optional
equipment
or
5
subscription
service
fee
unless
the
cost
of
the
additional
fee
6
is
included
with
the
advertised
sales
price
of
the
vehicle.
7
A
contract
containing
an
optional
equipment
or
subscription
8
service
fee
must
include
all
of
the
following:
9
a.
A
detailed
description
of
the
optional
equipment
10
installed
in
the
vehicle.
11
b.
The
cost
of
the
optional
equipment
and
any
associated
12
subscription
fee,
including
but
not
limited
to
the
monthly
cost
13
necessary
to
use
the
optional
equipment.
14
c.
Contact
information
of
the
manufacturer
of
the
optional
15
equipment,
including
a
telephone
number
and
email
address,
that
16
directs
the
buyer
to
a
customer
service
representative
who
can
17
assist
with
the
termination
of
the
subscription
service.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
prohibits
a
person
who
is
engaged
in
the
business
22
of
selling
motor
vehicles
at
retail
from
making
or
entering
23
into
a
contract
that
has
an
optional
equipment
or
subscription
24
service
fee
unless
the
cost
of
the
additional
fee
is
included
25
with
the
advertised
sales
price
of
the
vehicle.
A
contract
26
that
has
an
optional
equipment
or
subscription
service
fee
27
must
include
a
detailed
description
of
the
optional
equipment
28
installed
in
the
vehicle,
a
breakdown
of
the
cost
of
the
29
optional
equipment
and
any
associated
subscription
fee,
30
including
but
not
limited
to
the
monthly
cost
necessary
to
31
use
the
optional
equipment,
and
contact
information
of
the
32
manufacturer
of
the
optional
equipment,
including
a
telephone
33
number
and
email
address,
that
directs
the
buyer
to
a
customer
34
service
representative
who
can
assist
with
the
termination
of
35
-1-
LSB
2402YH
(2)
90
th/ns
1/
2
H.F.
493
the
subscription
service.
1
By
operation
of
law,
the
department
of
transportation
(DOT)
2
may
revoke
or
suspend
the
motor
vehicle
dealer
license
granted
3
to
a
person
if,
after
notice
and
hearing
by
the
department
of
4
inspections
and
appeals,
the
DOT
finds
that
the
person
has,
5
among
other
things,
not
complied
with
Code
chapter
322
or
6
any
rules
or
regulations
adopted
by
the
DOT,
including
the
7
provisions
of
the
bill.
In
addition,
a
person
who
violates
8
any
provisions
of
Code
chapter
322
for
which
a
penalty
is
9
not
specifically
provided
is
guilty
of
a
simple
misdemeanor
10
punishable
by
a
fine
of
not
less
than
$250
nor
more
than
$1,500
11
or
by
imprisonment
not
to
exceed
30
days.
If
the
violation
12
involves
a
retail
installment
contract,
the
person
is
subject
13
to
the
applicable
penalties
under
Code
chapter
537
(consumer
14
credit
code).
15
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LSB
2402YH
(2)
90
th/ns
2/
2