S.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 to any motor vehicle offered for remote 24 sale. The certificate of title may be in an electronic format 25 that is created, stored, and transferred only through a secure 26 electronic system approved by the department. 27 c. The dealer shall not sign a proposed purchase agreement 28 until the dealer receives an executed purchase agreement from 29 the buyer. A signed purchase agreement must be delivered to 30 the dealer’s place of business that is listed on the dealer’s 31 license . 32 Sec. 5. Section 322.3, subsection 12, Code 2026, is amended 33 by adding the following new paragraphs: 34 NEW PARAGRAPH . f. A person who purchases a motor vehicle 35 -1- LSB 5648XC (5) 91 th/ns 1/ 4

S.F. _____ via a remote sale shall acquire right to, claim to, and 1 interest in the motor vehicle at the time of delivery. The 2 seller must otherwise deliver the certificate of title pursuant 3 to section 321.45, but may do so within thirty days after 4 delivery of the motor vehicle. 5 NEW PARAGRAPH . g. The dealer shall disclose to a 6 prospective buyer all of the following regarding the vehicle 7 offered for sale: 8 (1) That the vehicle is not located in this state, if 9 applicable. 10 (2) Whether the dealer has a certificate of title to the 11 vehicle, including whether the certificate of title is in 12 an electronic format, if applicable, or whether the dealer 13 does not have the certificate of title to the vehicle, if 14 applicable. 15 (3) The estimated delivery date of the vehicle. 16 NEW PARAGRAPH . h. The dealer shall produce proof the 17 dealer has the certificate of title for a vehicle offered for 18 sale within twenty-four hours if requested by the department. 19 The dealer shall also retain records showing where a vehicle 20 is stored, the status of the vehicle’s title, and documents 21 relating to the remote sale of the vehicle. 22 NEW PARAGRAPH . i. A remote sale of a motor vehicle is not 23 a door-to-door sale as defined in section 555A.1, and is not 24 subject to chapter 555A. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 Under current law, a retail seller licensed under Code 29 chapter 322 (motor vehicle manufacturers, distributors, 30 wholesalers, and dealers) is authorized to sell, offer, barter, 31 negotiate, exchange, and communicate regarding the sale of a 32 motor vehicle via mail, either electronically or by courier, 33 and to deliver a vehicle to the residence of the buyer or 34 another agreed-to location (remote sale). Motor vehicles sold 35 -2- LSB 5648XC (5) 91 th/ns 2/ 4

S.F. _____ in a remote sale must be located at the place of business as 1 listed on the seller’s license. This bill strikes the phrase 2 “as listed on the license”. The bill does not amend the 3 requirement to list on a license application the location of 4 each place of business within Iowa to be used by the applicant 5 for the conduct of the applicant’s business (Code section 6 322.4(1)(c)) or the requirement to list on the license the 7 seller’s principal place of business and location therein of 8 each place wherein the licensee is licensed to carry on such 9 business (Code section 322.7(1)(b)). 10 The bill authorizes a dealer to possess a vehicle’s 11 certificate of title in an electronic format, as described in 12 the bill, when a motor vehicle is offered for remote sale. 13 The bill strikes a provision prohibiting a dealer, during 14 a remote sale, from signing a proposed purchase agreement 15 until the dealer receives an executed purchase agreement from 16 a buyer. The bill specifies that a signed purchase agreement 17 must be delivered to the dealer’s place of business that is 18 listed on the dealer’s license. 19 Under current law, upon the transfer of any registered 20 vehicle, the seller must, unless otherwise provided, endorse 21 an assignment and warranty of title upon the certificate of 22 title for such vehicle with a statement of all liens and 23 encumbrances thereon. A person is prohibited from selling 24 or otherwise disposing of a vehicle subject to registration 25 without delivering to the purchaser or transferee thereof a 26 certificate of title, with certain exceptions. In addition, 27 a person does not acquire any right, title, claim, or 28 interest in or to any vehicle subject to registration from the 29 owner thereof except by virtue of a certificate of title or 30 manufacturer’s or importer’s certificate for such vehicle, with 31 certain exceptions. The bill provides an exception for remote 32 sales, and specifies that a person acquires right to, claim 33 to, and interest in the motor vehicle at the time of delivery. 34 The seller must otherwise deliver the certificate of title 35 -3- LSB 5648XC (5) 91 th/ns 3/ 4

S.F. _____ pursuant to current law not more than 30 days after delivery 1 of the motor vehicle. Pursuant to current law, a person has 30 2 days after purchasing a vehicle to apply for and obtain a new 3 certificate of title. 4 The bill requires a dealer engaging in a remote sale to 5 disclose certain facts about the location and title status of a 6 vehicle and the expected delivery date to a prospective buyer. 7 A dealer is required to produce proof that the dealer has the 8 certificate of title for a vehicle offered for sale within 24 9 hours if requested by the department of transportation. The 10 dealer is required to retain records showing where a vehicle 11 is stored, the status of the vehicle’s title, and documents 12 relating to the remote sale of the vehicle. 13 The bill specifies that a remote sale of a motor vehicle is 14 not a “door-to-door sale” and is not subject to Code chapter 15 555A (door-to-door sales). 16 Under current law and the bill, remote sales are subject 17 to Code chapter 554D (electronic transactions —— computer 18 agreements). 19 -4- LSB 5648XC (5) 91 th/ns 4/ 4