Senate File 2337 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON TRANSPORTATION

                                       (SUCCESSOR TO SSB 3234)


    Passed Senate,  Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act establishing prelicensing and continuing education
  2    requirements for used motor vehicle dealers.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5751SV 81
  5 dea/je/5

PAG LIN



  1  1    Section 1.  Section 322.4, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  8A.  If the applicant is applying for a
  1  4 used motor vehicle dealer license, certification that the
  1  5 applicant has met the educational requirements for licensure
  1  6 under section 322.7A.  The certification may be transmitted to
  1  7 the department by the education provider in electronic format.
  1  8    Sec. 2.  Section 322.7, subsection 4, Code 2005, is amended
  1  9 to read as follows:
  1 10    4.  The motor vehicle dealer license provided for in this
  1 11 chapter shall be renewed upon application in the form and
  1 12 content prescribed by the department and upon payment of the
  1 13 required fee.  A used motor vehicle dealer license shall not
  1 14 be renewed for an applicant who is subject to continuing
  1 15 education requirements until the licensee certifies completion
  1 16 of the educational requirements for license renewal under
  1 17 section 322.7A.  The certification may be transmitted to the
  1 18 department by the education provider in electronic format.  A
  1 19 licensee shall have the month of expiration and the month
  1 20 after the month of expiration to renew the license.  A person
  1 21 who fails to renew a license by the end of this time period
  1 22 and desires to hold a license shall file a new license
  1 23 application and pay the required fee.
  1 24    Sec. 3.  NEW SECTION.  322.7A  USED MOTOR VEHICLE DEALER
  1 25 EDUCATION PROGRAM.
  1 26    1.  An applicant for a license as a used motor vehicle
  1 27 dealer shall complete a minimum of eight hours of prelicensing
  1 28 education program courses pursuant to this section prior to
  1 29 submitting an application to the department.
  1 30    2.  A person seeking renewal of a used motor vehicle dealer
  1 31 license shall complete a minimum of five hours of continuing
  1 32 education program courses over a two=year period pursuant to
  1 33 this section prior to submitting an application for license
  1 34 renewal.  However, an applicant for renewal of a used motor
  1 35 vehicle dealer license who has met the prelicensing education
  2  1 requirement under subsection 1 within the preceding twelve
  2  2 months is exempt from the continuing education requirement for
  2  3 license renewal.
  2  4    3.  To meet the requirements of this section, at least one
  2  5 individual who is associated with the used motor vehicle
  2  6 dealer as an owner, principal, corporate officer, director, or
  2  7 member or partner of a limited liability company or limited
  2  8 liability partnership shall complete the education program
  2  9 courses.
  2 10    4.  The Iowa independent auto dealers association, in
  2 11 consultation with the state department of transportation, the
  2 12 department of education, the attorney general, and the Iowa
  2 13 association of community college trustees, shall develop the
  2 14 prelicensing and continuing education course curricula for the
  2 15 used motor vehicle dealer education program, which shall
  2 16 include but not be limited to examination of federal and state
  2 17 laws applicable to the motor vehicle industry and federal,
  2 18 state, and local regulations pertaining to used motor vehicle
  2 19 dealers.  The education program courses shall be provided by
  2 20 community colleges as defined in section 260C.2.  A community
  2 21 college may charge an applicant a reasonable fee of not more
  2 22 than two hundred dollars for the prelicensing education course
  2 23 and not more than one hundred fifty dollars for the continuing
  2 24 education course.
  2 25    5.  The provisions of this section apply to all used motor
  2 26 vehicle dealers, including but not limited to individuals,
  2 27 corporations, and partnerships, except for the following:
  2 28    a.  Motor vehicle rental companies having a national
  2 29 franchise.
  2 30    b.  National motor vehicle auction companies.
  2 31    c.  Wholesale dealer=only auction companies.
  2 32    d.  Used car dealerships owned by a franchise motor vehicle
  2 33 dealer.
  2 34    e.  Banks, credit unions, and savings and loan
  2 35 associations.
  3  1    6.  Each community college providing used motor vehicle
  3  2 dealer education program courses shall transmit a report on
  3  3 the program annually by December 31 to the director of
  3  4 transportation, the director of the department of education,
  3  5 the attorney general, and the president of the Iowa
  3  6 association of community college trustees.
  3  7    Sec. 4.  USED MOTOR VEHICLE DEALER EDUCATION PROGRAM ==
  3  8 NOTICE.  The state department of transportation shall provide
  3  9 reasonable notice to current used motor vehicle dealer
  3 10 licensees of the need to meet continuing education
  3 11 requirements as a condition for future license renewal.
  3 12 SF 2337
  3 13 dea:nh/cc/26