S.F. 2408 Section 1. Section 321.45, subsection 2, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. For purposes of this subsection, a motor 3 vehicle dealer licensed under chapter 322 shall be deemed to 4 have acquired and to possess the right, title, claim, and 5 interest in a vehicle if the vehicle’s certificate of title is 6 issued or properly assigned to an entity with direct ownership 7 or control over the dealer. 8 Sec. 2. Section 321.63, Code 2026, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 3. A dealer shall do all of the following: 11 a. Store all records at a place of business of the dealer 12 or at a place of business within the United States of an entity 13 that has direct ownership or control over the dealer. 14 b. Provide electronic records to the department within 15 twenty-four hours after receiving a request. 16 c. Provide physical records to the department within a 17 reasonable time considering postal delivery. 18 Sec. 3. Section 322.3, subsection 12, paragraphs a and c, 19 Code 2026, are amended to read as follows: 20 a. The dealer or an entity with direct ownership or control 21 over the dealer shall possess, at the time of the sale, the 22 certificate of title to any motor vehicle offered for remote 23 sale by the dealer . The certificate of title may be in an 24 electronic format that is created, stored, or transferred only 25 through a secure electronic system approved by the department 26 and shall not be in a portable document format, a scanned copy, 27 evidenced by an electronic mail message, or in another format 28 created by the dealer. 29 c. The dealer shall not sign a proposed purchase agreement 30 until the dealer receives an executed purchase agreement from 31 the buyer. A signed purchase agreement must be delivered to 32 the dealer’s place of business , as listed on the dealer’s 33 license . 34 Sec. 4. Section 322.3, subsection 12, Code 2026, is amended 35 -1- LSB 5648SV (2) 91 th/ns 1/ 4

S.F. 2408 by adding the following new paragraphs: 1 NEW PARAGRAPH . f. The dealer shall disclose to a buyer all 2 of the following regarding the vehicle offered for sale: 3 (1) That the vehicle is not located in this state, if 4 applicable. 5 (2) That the certificate of title is in an electronic 6 format, if applicable. 7 (3) The estimated delivery date of the vehicle. 8 NEW PARAGRAPH . g. If requested, the dealer shall produce 9 proof, including in an electronic format, to the department 10 that the dealer has the certificate of title for a vehicle 11 offered for sale. The dealer shall also retain records showing 12 where a vehicle is stored, the status of the vehicle’s title, 13 and documents relating to the remote sale of a vehicle. The 14 dealer shall store and provide records in accordance with 15 section 321.63, subsection 3. 16 NEW PARAGRAPH . h. Pursuant to section 554D.108 and 17 consistent with 49 C.F.R. pt. 580 and the federal Electronic 18 Signatures in Global and National Commerce Act, 15 U.S.C. §7001 19 et seq., an electronic signature captured and applied to an 20 image of a physical certificate of title that was originally 21 printed by a secure printing process as defined in 49 C.F.R. 22 §580.3, which complies with all applicable requirements under 23 49 C.F.R. pt. 580, shall be accepted for purposes of odometer 24 disclosure. A dealer using an electronic signature on a 25 digital image of a physical title shall mark the original 26 title as “void” or “surrendered” and submit an application 27 for certificate of title and registration electronically via 28 an authorized service provider pursuant to section 321.20, 29 subsection 2. 30 NEW PARAGRAPH . i. A remote sale of a motor vehicle is not 31 a door-to-door sale as defined in section 555A.1, and is not 32 subject to chapter 555A. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5648SV (2) 91 th/ns 2/ 4

S.F. 2408 the explanation’s substance by the members of the general assembly. 1 Under current law, a retail seller licensed under Code 2 chapter 322 (motor vehicle manufacturers, distributors, 3 wholesalers, and dealers) is authorized to sell, offer, barter, 4 negotiate, exchange, and communicate regarding the sale of a 5 motor vehicle via mail, either electronically or by courier, 6 and to deliver a vehicle to the residence of the buyer or 7 another agreed-to location (remote sale). This bill relates to 8 motor vehicle dealers, including rights to certain vehicles, 9 records storage requirements, and remote sales. 10 Under current law, a person does not acquire any right, 11 title, claim, or interest in or to any vehicle subject to 12 registration except by virtue of a certificate of title or 13 manufacturer’s or importer’s certificate for such vehicle, with 14 certain exceptions. The bill provides that a licensed motor 15 vehicle dealer is deemed to have acquired and to possess the 16 right, title, claim, and interest in a vehicle if the vehicle’s 17 certificate of title is issued or properly assigned to an 18 entity with direct ownership or control over the dealer. 19 Under current law, if a dealer has more than one established 20 place of business, the dealer may designate one such location 21 in this state for purposes of keeping all the dealer’s books 22 and records, regardless of the line-make of motor vehicles to 23 which such books and records pertain, by submitting a written 24 certification to the department of transportation (DOT) in a 25 manner approved by the DOT. The bill requires a dealer to 26 store all records at a place of business of the dealer or at 27 a place of business within the United States of an entity 28 that has direct ownership or control over the dealer, provide 29 electronic records to the DOT within 24 hours after receiving 30 a request, and provide physical records to the DOT within a 31 reasonable time considering postal delivery. 32 The bill expands the requirement for a dealer to possess 33 the certificate of title to any motor vehicle offered for 34 remote sale by authorizing an entity with direct ownership or 35 -3- LSB 5648SV (2) 91 th/ns 3/ 4

S.F. 2408 control over a dealer to possess the title at the time of the 1 sale. Under the bill, the certificate of title may be in an 2 electronic format as described in the bill. 3 The bill strikes a provision prohibiting a dealer, during a 4 remote sale, from signing a proposed purchase agreement until 5 the dealer receives an executed purchase agreement from a 6 buyer. 7 The bill requires a dealer engaging in a remote sale to 8 disclose to a prospective buyer certain facts about the 9 location, title status, and delivery date of a vehicle. A 10 dealer is required to produce proof that the dealer has 11 the certificate of title for a vehicle offered for sale if 12 requested by the DOT. The dealer is required to retain records 13 showing where a vehicle is stored, the status of the vehicle’s 14 title, and documents relating to the remote sale of the 15 vehicle, in accordance with the bill. 16 For purposes of remote sales, the bill requires an 17 electronic signature captured and applied to an image of a 18 physical certificate of title that was originally printed by 19 a secure printing process in compliance with all applicable 20 requirements under federal regulations to be accepted for 21 purposes of odometer disclosure. A dealer using an electronic 22 signature on a digital image of a physical title is required 23 to mark the original title as “void” or “surrendered” and 24 submit an application for certificate of title and registration 25 electronically in accordance with current law. 26 The bill specifies that a remote sale of a motor vehicle is 27 not a “door-to-door sale” and is not subject to Code chapter 28 555A (door-to-door sales). 29 Under current law and the bill, remote sales are subject 30 to Code chapter 554D (electronic transactions —— computer 31 agreements). 32 -4- LSB 5648SV (2) 91 th/ns 4/ 4