House Study Bill 656 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON JONES) A BILL FOR An Act relating to remote sales of motor vehicles. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5648YC (4) 91 th/ns

H.F. _____ Section 1. Section 321.45, subsection 2, paragraph a, Code 1 2026, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (7) A person who purchases a vehicle via 3 a remote sale in accordance with section 322.3, subsection 12. 4 Sec. 2. Section 321.67, subsection 1, Code 2026, is amended 5 to read as follows: 6 1. No person, except Except as provided in sections 321.23 7 and 321.45 , section 321.52, subsection 2 , paragraph “b” , and 8 section 321.52, subsection 4 , paragraph “a” , and section 322.3, 9 subsection 12, a person shall not sell or otherwise dispose 10 of a registered vehicle or a vehicle subject to registration 11 without delivering to the purchaser or transferee thereof a 12 certificate of title with such assignment thereon as may be 13 necessary to show title in the purchaser. 14 Sec. 3. Section 322.3, subsection 12, unnumbered paragraph 15 1, Code 2026, is amended to read as follows: 16 A retail seller licensed under this chapter may engage in 17 remote sales of motor vehicles located at a place of business 18 of the retail seller , as listed on the license, under all of 19 the following conditions: 20 Sec. 4. Section 322.3, subsection 12, paragraphs a and c, 21 Code 2026, are amended to read as follows: 22 a. The dealer shall possess, at the time of the sale, the 23 certificate of title , or an electronic copy thereof, to any 24 motor vehicle offered for remote sale. 25 c. The dealer shall not sign a proposed purchase agreement 26 until the dealer receives an executed purchase agreement from 27 the buyer. A signed purchase agreement must be delivered to 28 the dealer’s place of business. 29 Sec. 5. Section 322.3, subsection 12, Code 2026, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . f. A person who purchases a motor vehicle 32 via a remote sale shall acquire right to, claim to, and 33 interest in the motor vehicle at the time of delivery. The 34 seller must otherwise deliver the certificate of title pursuant 35 -1- LSB 5648YC (4) 91 th/ns 1/ 3

H.F. _____ to section 321.45, but may do so within thirty days after 1 delivery of the motor vehicle. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 Under current law, a retail seller licensed under Code 6 chapter 322 (motor vehicle manufacturers, distributors, 7 wholesalers, and dealers) is authorized to sell, offer, barter, 8 negotiate, exchange, and communicate regarding the sale of a 9 motor vehicle via mail, either electronically or by courier, 10 and to deliver a vehicle to the residence of the buyer or 11 another agreed-to location (remote sale). Motor vehicles sold 12 in a remote sale must be located at the place of business as 13 listed on the seller’s license. This bill strikes the phrase 14 “as listed on the license”. The bill does not amend the 15 requirement to list on a license application the location of 16 each place of business within Iowa to be used by the applicant 17 for the conduct of the applicant’s business (Code section 18 322.4(1)(c)) or the requirement to list on the license the 19 seller’s principal place of business and location therein of 20 each place wherein the licensee is licensed to carry on such 21 business (Code section 322.7(1)(b)). 22 The bill authorizes a dealer to possess an electronic copy 23 of a vehicle’s certificate of title when a motor vehicle is 24 offered for remote sale. 25 The bill strikes a provision prohibiting a dealer, during a 26 remote sale, from signing a proposed purchase agreement until 27 the dealer receives an executed purchase agreement from a 28 buyer. 29 Under current law, upon the transfer of any registered 30 vehicle, the seller must, unless otherwise provided, endorse 31 an assignment and warranty of title upon the certificate of 32 title for such vehicle with a statement of all liens and 33 encumbrances thereon. A person is prohibited from selling 34 or otherwise disposing of a vehicle subject to registration 35 -2- LSB 5648YC (4) 91 th/ns 2/ 3

H.F. _____ without delivering to the purchaser or transferee thereof a 1 certificate of title, with certain exceptions. In addition, 2 a person does not acquire any right, title, claim, or 3 interest in or to any vehicle subject to registration from the 4 owner thereof except by virtue of a certificate of title or 5 manufacturer’s or importer’s certificate for such vehicle, with 6 certain exceptions. The bill provides an exception for remote 7 sales, and specifies that a person acquires right to, claim 8 to, and interest in the motor vehicle at the time of delivery. 9 The seller must otherwise deliver the certificate of title 10 pursuant to current law not more than 30 days after delivery 11 of the motor vehicle. Pursuant to current law, a person has 30 12 days after purchasing a vehicle to apply for and obtain a new 13 certificate of title. 14 -3- LSB 5648YC (4) 91 th/ns 3/ 3