House Study Bill 133 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON YOUNG) A BILL FOR An Act relating to administrative fees charged by motor vehicle 1 dealers, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2362YC (1) 91 th/ns

H.F. _____ Section 1. Section 322.19A, subsections 1, 2, and 3, Code 1 2025, are amended to read as follows: 2 1. For purposes of this section , “documentary fee” 3 “administrative fee” means a fee that may be charged to 4 a customer by a motor vehicle dealer for the preparation 5 of documents related to an application for motor vehicle 6 registration and an application for issuance of a certificate 7 of title, and the performance of other related performing 8 services for , related to the sale of a motor vehicle, on behalf 9 of the customer. “Documentary fee” “Administrative fee” does 10 not include any costs or fees charged to a motor vehicle dealer 11 or a dealer’s customer by a third party. 12 2. A motor vehicle dealer may charge a documentary an 13 administrative fee not to exceed one hundred eighty dollars for 14 each motor vehicle sold in a transaction. 15 3. A motor vehicle dealer who charges a documentary an 16 administrative fee to a customer shall include the fee in the 17 price of the motor vehicle. The dealer shall disclose the full 18 amount of the fee in any price of a motor vehicle advertised 19 by the dealer and when making or accepting an offer to sell 20 a motor vehicle. The dealer shall provide the following 21 notice to the customer, which notice shall be clearly and 22 conspicuously disclosed in any motor vehicle purchase agreement 23 with the customer: 24 DOCUMENTARY ADMINISTRATIVE FEE. A DOCUMENTARY AN 25 ADMINISTRATIVE FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY AN 26 ADMINISTRATIVE FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED 27 TO A BUYER CUSTOMER FOR THE PREPARATION OF DOCUMENTS AND THE 28 PERFORMANCE OF RELATED PERFORMING SERVICES , RELATED TO THE SALE 29 OF A MOTOR VEHICLE, ON BEHALF OF THE CUSTOMER . THE MAXIMUM 30 AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS DETERMINED 31 BY IOWA CODE SECTION 322.19A . THIS NOTICE IS REQUIRED BY LAW. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 2362YC (1) 91 th/ns 1/ 2

H.F. _____ Under current law, a motor vehicle dealer (dealer) is 1 authorized to charge a documentary fee not to exceed $180 for 2 each motor vehicle sold in a transaction. A “documentary fee” 3 is a fee charged to a customer by a dealer for the preparation 4 of documents related to an application for motor vehicle 5 registration and an application for issuance of a certificate 6 of title, and the performance of other related services for 7 the customer, but does not include any costs or fees charged 8 to a dealer or a dealer’s customer by a third party. A dealer 9 who charges a documentary fee is required to include the fee 10 in the price of the motor vehicle, in advertisements for the 11 vehicle, and when making or accepting an offer for the vehicle. 12 A dealer is required to clearly and conspicuously disclose 13 a specific notice of the fee in any motor vehicle purchase 14 agreement with a customer. 15 This bill authorizes a dealer to charge an administrative 16 fee, rather than a documentary fee, to a customer for 17 performing services, related to the sale of a motor vehicle, on 18 behalf of the customer. The bill strikes the maximum amount a 19 dealer is authorized to charge for such a fee. The bill makes 20 conforming changes to the required notice. 21 A person who violates Code section 322.19A commits unlawful 22 practice under Code section 714.16. Several types of remedies 23 are available if a court finds that a person has committed an 24 unlawful practice, including injunctive relief, disgorgement of 25 moneys or property, and a civil penalty not to exceed $40,000 26 per violation. 27 -2- LSB 2362YC (1) 91 th/ns 2/ 2