HSB 118 (LSB 1358YC (3) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT)

A BILL FOR

An Act authorizing manufacturers of battery electric motor vehicles to be licensed as motor vehicle dealers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 322.3, subsection 15, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  A manufacturer of battery electric motor vehicles, as defined in section 321.116, from being licensed as a motor vehicle dealer of only the battery electric motor vehicles manufactured by that manufacturer.
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 motor vehicle manufacturer or importer is prohibited from directly or indirectly being licensed as, owning an interest in, operating, or controlling a motor vehicle dealer. There are limited exceptions provided, including temporarily to facilitate transfer of the motor vehicle dealership to a new owner; for the purpose of enhancing opportunities for persons who lack the financial resources to purchase the dealership without such assistance; where the dealer’s primary business is renting motor vehicles; for dealers of motor homes manufactured by that manufacturer; for dealers of the line-make manufactured by that manufacturer under certain circumstances; and for final-stage manufacturers of multi-stage manufactured vehicles under certain circumstances.
   This bill provides an additional exception that authorizes a manufacturer of battery electric motor vehicles to be licensed as a motor vehicle dealer of only the battery electric motor vehicles manufactured by that manufacturer. For purposes of the bill, “battery electric motor vehicle” means a motor vehicle equipped with electrical drivetrain components and not equipped with an internal combustion engine, that is propelled exclusively by one or more electrical motors using electrical energy stored in a battery or other energy storage device that can be recharged by plugging into an electrical outlet or electric vehicle charging station.
   A person who engages in the business of selling motor vehicles and who was not issued a dealer license by the department of transportation (DOT) commits 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. Pursuant to administrative rules adopted by the DOT (761 IAC 425.3), a person who sells at retail more than six motor vehicles during a 12-month period is presumed to be engaged in the business of selling motor vehicles.