Senate File 504 - Introduced SENATE FILE 504 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SSB 1181) (COMPANION TO LSB 2196HV BY COMMITTEE ON TRANSPORTATION) A BILL FOR An Act relating to certain place-of-business requirements for 1 licensed motor vehicle dealers who conduct sales via the 2 internet and deliver vehicles to buyers. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2196SV (1) 90 th/ns

S.F. 504 Section 1. Section 322.3, subsection 11, Code 2023, is 1 amended to read as follows: 2 11. A person who is engaged in the business of selling 3 motor vehicles at retail shall not sell, offer for sale, 4 display, represent, or advertise that the person intends to 5 sell motor vehicles from a location other than the person’s 6 place of business, except as provided in this subsection or 7 as authorized under a temporary permit as provided in section 8 322.5 . A motor vehicle dealer licensed under this chapter may 9 sell, offer for sale, negotiate sales of, display, represent, 10 or advertise that the dealer intends to sell motor vehicles 11 via the internet, and deliver vehicles sold by the dealer to a 12 buyer at the buyer’s residence or other suitable location if 13 the delivery is requested by the buyer. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Under current law, a person who is engaged in the business 18 of selling motor vehicles at retail must have a dealer license 19 issued by the department of transportation (DOT). To obtain 20 a license, a dealer must have a designated location wherein 21 proper and adequate facilities are required to be maintained 22 for displaying, reconditioning, and repairing either new or 23 used cars (place of business), unless the person sells motor 24 vehicles at retail solely for the purpose of disposing of 25 vehicles acquired or repossessed through the exercise of 26 powers or rights given as security for loans or purchase money 27 obligations. A person is prohibited from selling, offering 28 for sale, displaying, representing, or advertising that the 29 person intends to sell motor vehicles from a location other 30 than the person’s place of business, unless the person receives 31 a temporary permit that authorizes limited business at fairs, 32 vehicle shows, and vehicle exhibitions as provided in Code 33 section 322.5. However, all such sales must be consummated at 34 the dealer’s principal place of business. 35 -1- LSB 2196SV (1) 90 th/ns 1/ 2

S.F. 504 This bill authorizes licensed motor vehicle dealers to sell, 1 offer for sale, negotiate sales of, display, represent, or 2 advertise that the dealer intends to sell motor vehicles via 3 the internet, and deliver vehicles sold by the dealer to a 4 buyer at the buyer’s residence or other suitable location if 5 the delivery is requested by the buyer. 6 The bill does not amend the requirements under current law 7 that a dealer have a place of business for purposes of the 8 license application, license issuance and fees, and information 9 contained on the license. 10 -2- LSB 2196SV (1) 90 th/ns 2/ 2