SSB 1181 (LSB 2196XC (1) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON KLIMESH)

A BILL FOR

An Act relating to certain place-of-business requirements for licensed motor vehicle dealers who conduct sales via the internet and deliver vehicles to buyers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 322.3, subsection 11, Code 2023, is amended to read as follows:
   11.  A person who is engaged in the business of selling motor vehicles at retail shall not sell, offer for sale, display, represent, or advertise that the person intends to sell motor vehicles from a location other than the person’s place of business, except as provided in this subsection or as authorized under a temporary permit as provided in section 322.5.  A motor vehicle dealer licensed under this chapter may sell, offer for sale, negotiate sales of, display, represent, or advertise that the dealer intends to sell motor vehicles via the internet, and deliver vehicles sold by the dealer to a buyer at the buyer’s residence or other suitable location if the delivery is requested by the buyer.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, a person who is engaged in the business of selling motor vehicles at retail must have a dealer license issued by the department of transportation (DOT). To obtain a license, a dealer must have a designated location wherein proper and adequate facilities are required to be maintained for displaying, reconditioning, and repairing either new or used cars (place of business), unless the person sells motor vehicles at retail solely for the purpose of disposing of vehicles acquired or repossessed through the exercise of powers or rights given as security for loans or purchase money obligations. A person is prohibited from selling, offering for sale, displaying, representing, or advertising that the person intends to sell motor vehicles from a location other than the person’s place of business, unless the person receives a temporary permit that authorizes limited business at fairs, vehicle shows, and vehicle exhibitions as provided in Code section 322.5. However, all such sales must be consummated at the dealer’s principal place of business. 
   This bill authorizes licensed motor vehicle dealers to sell, offer for sale, negotiate sales of, display, represent, or advertise that the dealer intends to sell motor vehicles via the internet, and deliver vehicles sold by the dealer to a buyer at the buyer’s residence or other suitable location if the delivery is requested by the buyer.
   The bill does not amend the requirements under current law that a dealer have a place of business for purposes of the license application, license issuance and fees, and information contained on the license.