H.F. 2361 DIVISION I 1 HIGHWAYS 2 Section 1. Section 306.3, unnumbered paragraph 1, Code 3 2014, is amended to read as follows: 4 As used in this chapter or in any chapter of the Code 5 relating to highways , except as otherwise specified : 6 Sec. 2. Section 306C.1, subsection 2, Code 2014, is amended 7 to read as follows: 8 2. “Interstate highway” includes “interstate road” and 9 “interstate system” and means any highway of the primary 10 national highway system at any time officially designated as a 11 part of the national system of interstate and defense highways 12 by the department and approved by the appropriate authority of 13 the federal government. 14 Sec. 3. Section 306C.1, Code 2014, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. “National highway system” means the 17 network designated by the federal highway administration in 18 consultation with the state department of transportation, which 19 consists of interconnected urban and rural principal arterials 20 and highways that serve major population centers, ports, 21 airports, public transportation facilities, other intermodal 22 transportation facilities, and other major travel destinations; 23 meet national defense requirements; and serve interstate and 24 interregional travel. 25 Sec. 4. Section 306C.2, unnumbered paragraph 1, Code 2014, 26 is amended to read as follows: 27 A person shall not establish, operate, or maintain a 28 junkyard, any portion of which is within one thousand feet of 29 the nearest edge of the right-of-way of any interstate highway 30 on the national highway system , except: 31 Sec. 5. Section 306C.3, Code 2014, is amended to read as 32 follows: 33 306C.3 Junkyards lawfully in existence. 34 1. Any junkyard located outside a zoned or unzoned 35 -1- HF 2361 (4) 85 dea/nh/md 1/ 32

H.F. 2361 industrial area lawfully in existence on July 1, 1972, 1 which is within one thousand feet of the nearest edge of 2 the right-of-way and visible from the main-traveled portion 3 of any highway on the interstate system shall be screened, 4 if feasible, by the department, or by the owner under rules 5 and direction of the department, at locations on the highway 6 right-of-way or in areas acquired for such purposes outside 7 the right-of-way in order to obscure the junkyard from the 8 main-traveled way of such highways. 9 2. Any junkyard located outside a zoned or unzoned 10 industrial area lawfully in existence on July 1, 2014, which 11 is within one thousand feet of the nearest edge of the 12 right-of-way and visible from the main-traveled portion of 13 any noninterstate highway which is on the national highway 14 system shall be screened, if feasible, by the department, or 15 by the owner under rules and direction of the department, at 16 locations on the highway right-of-way or in areas acquired for 17 such purposes outside the right-of-way in order to obscure the 18 junkyard from the main-traveled way of such highways. 19 Sec. 6. Section 306C.10, subsections 1, 2, 10, 13, and 20, 20 Code 2014, are amended to read as follows: 21 1. “Adjacent area” means an area which is contiguous to 22 and within six hundred sixty feet of the nearest edge of the 23 right-of-way of any interstate, freeway primary, or primary 24 highway. 25 2. “Advertising device” includes any outdoor sign, display, 26 device, figure, painting, drawing, message, placard, poster, 27 billboard, or any other device designed, intended, or used to 28 advertise or give information in the nature of advertising, and 29 having the capacity of being visible from the traveled portion 30 of any interstate or primary highway. 31 10. “Interstate highway” includes “interstate road” and 32 “interstate system” and means any highway of the primary 33 national highway system at any time officially designated as a 34 part of the national system of interstate and defense highways 35 -2- HF 2361 (4) 85 dea/nh/md 2/ 32

H.F. 2361 by the department and approved by the appropriate authority of 1 the federal government. 2 13. “Primary highways” includes the entire primary system as 3 officially designated, or as may hereafter be so designated, 4 by the department means all highways on the national highway 5 system and all highways on the federal-aid primary system as it 6 existed on June 1, 1991 . 7 20. “Unzoned commercial or industrial area” means those areas 8 not zoned by state or local law, regulation, or ordinance, 9 which are occupied by one or more commercial or industrial 10 activities, and the land along the interstate highways and 11 primary highways for a distance of seven hundred fifty feet 12 immediately adjacent to the activities. All measurements 13 shall be from the outer edge of the regularly used buildings, 14 parking lots, storage, or processing areas of the activities 15 and shall be parallel to the edge of pavement of the highway. 16 Measurements shall not be from the property line of the 17 activities unless that property line coincides with the limits 18 of the activities. Unzoned commercial or industrial areas 19 shall not include land on the opposite side of the highway from 20 the commercial or industrial activities. 21 Sec. 7. Section 306C.10, Code 2014, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 12A. “National highway system” means the 24 network designated by the federal highway administration in 25 consultation with the state department of transportation, which 26 consists of interconnected urban and rural principal arterials 27 and highways that serve major population centers, ports, 28 airports, public transportation facilities, other intermodal 29 transportation facilities, and other major travel destinations; 30 meet national defense requirements; and serve interstate and 31 interregional travel. 32 Sec. 8. Section 306C.12, Code 2014, is amended to read as 33 follows: 34 306C.12 None visible from highway. 35 -3- HF 2361 (4) 85 dea/nh/md 3/ 32

H.F. 2361 An advertising device shall not be constructed or 1 reconstructed beyond the adjacent area in unincorporated areas 2 of the state if it is visible from the main-traveled way of 3 any interstate or primary highway except for advertising 4 devices permitted in section 306C.11, subsections 1 and 2 . 5 Any advertising device permitted beyond an adjacent area in 6 unincorporated areas of the state shall be subject to the 7 applicable permit provisions of section 306C.18 . 8 Sec. 9. Section 306C.13, subsections 2, 3, 4, and 5, Code 9 2014, are amended to read as follows: 10 2. Advertising devices located within the adjacent 11 area of nonfreeway primary highways shall not be erected or 12 maintained closer to another advertising device facing in the 13 same direction than one hundred feet if inside the corporate 14 limits of a municipality. No advertising device, other than 15 as excepted or permitted by subsections subsection 4, 5, or 6 16 of this section , shall be located within the triangular area 17 formed by the line connecting two points each fifty feet back 18 from the point where the street right-of-way lines of the 19 main-traveled way and the intersecting street meet, or would 20 meet, if extended. 21 3. Advertising devices located within the adjacent area of 22 nonfreeway primary highways shall not be erected or maintained 23 closer to another advertising device facing in the same 24 direction than three hundred feet if outside the corporate 25 limits of a municipality. No advertising device, other than 26 those excepted or permitted by subsections subsection 4, 5, or 27 6 of this section , shall be located within the triangular area 28 formed by a line connecting two points each one hundred feet 29 back from the point where the street right-of-way lines of the 30 main-traveled way and the intersecting street meet, or would 31 meet, if extended. 32 4. The distance spacing measurements fixed by subsections 2 33 and 3 of this section shall not apply to advertising devices 34 which are separated by a building in such a manner that only 35 -4- HF 2361 (4) 85 dea/nh/md 4/ 32

H.F. 2361 one advertising device located within the minimum spacing 1 distance is visible from a highway at any one time. 2 5. Within a triangular area, as defined by subsections 2 3 and 3 of this section , occupied by a building or structure, no 4 advertising device shall be erected or maintained closer to the 5 intersection than the building or structure itself, except that 6 a wall advertising device may be attached to said building or 7 structure not to protrude more than twelve inches. 8 Sec. 10. Section 306C.13, subsection 8, paragraph g, Code 9 2014, is amended to read as follows: 10 g. The standards contained in this section pertaining to 11 size, lighting, and spacing shall not apply to advertising 12 devices erected or maintained within six hundred sixty feet 13 of the right-of-way of those portions of the interstate 14 highway system exempted from control under chapter 306B by 15 authority of section 306B.2, subsection 4 , nor to advertising 16 devices erected and maintained within adjacent areas along 17 noninterstate primary highways within zoned and unzoned 18 commercial and industrial areas, unless said advertising 19 devices were erected subsequent to July 1, 1972. 20 DIVISION II 21 TRANSPORTATION DEPARTMENT AND COMMISSION 22 DEPARTMENT OF TRANSPORTATION 23 Sec. 11. Section 307.8, Code 2014, is amended to read as 24 follows: 25 307.8 Expenses. 26 Members of the commission, the The director , and other 27 employees of the department shall be allowed their actual and 28 necessary expenses incurred in the performance of their duties. 29 All expenses and salaries shall be paid from appropriations 30 for such purposes , and the department shall be subject to the 31 budget requirements of chapter 8 . 32 Sec. 12. Section 307.12, subsection 1, paragraphs g and p, 33 Code 2014, are amended to read as follows: 34 g. Appoint the deputy director of transportation and the 35 -5- HF 2361 (4) 85 dea/nh/md 5/ 32

H.F. 2361 administrators of within the department. 1 p. Administer chapter 327J Apply for, accept, and expend 2 federal, state, or private funds for the improvement of 3 transportation . 4 Sec. 13. Section 307.12, subsection 1, Code 2014, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . q. Coordinate the transportation research 7 activities within the department. 8 Sec. 14. Section 307.12, subsection 2, Code 2014, is amended 9 to read as follows: 10 2. If in the interest of the state, the director may allow 11 a subsistence expense to an employee under the supervision of 12 the department’s administrator responsible for highways highway 13 programs and activities for continuous stay in one location 14 while on duty away from established headquarters and place of 15 domicile for a period not to exceed forty-five days; and may 16 allow automobile expenses in accordance with section 8A.363 , 17 for moving an employee and the employee’s family from place of 18 present domicile to new domicile, and actual transportation 19 expense for moving of household goods. The household goods for 20 which transportation expense is allowed shall not include pets 21 or animals. 22 Sec. 15. Section 307.21, subsection 1, unnumbered paragraph 23 1, Code 2014, is amended to read as follows: 24 The department’s administrator of administrative services 25 responsible for the operations and finances of the department 26 shall: 27 Sec. 16. Section 307.21, subsection 7, Code 2014, is amended 28 to read as follows: 29 7. The administrator of administrative services may 30 purchase items from the department of administrative services 31 and may cooperate with the director of the department of 32 administrative services by providing purchasing services for 33 the department of administrative services. 34 Sec. 17. Section 307.22, Code 2014, is amended to read as 35 -6- HF 2361 (4) 85 dea/nh/md 6/ 32

H.F. 2361 follows: 1 307.22 Planning and research programming activities . 2 1. The department’s administrator of responsible for 3 transportation planning and research infrastructure program 4 development shall: 5 a. Assist the director in planning all modes of 6 transportation in order to develop an integrated transportation 7 system providing adequate transportation services for all 8 citizens of the state. 9 b. Develop and maintain transportation statistical data for 10 the department. 11 c. Assist the director in establishing, analyzing, and 12 evaluating alternative transportation policies for the state. 13 d. Coordinate planning and research duties and 14 responsibilities with the planning functions carried on by 15 other administrators of the department. 16 e. (1) Annually report by July 1 of each year, for both 17 secondary and farm-to-market systems, the miles of earth, 18 granular, and paved surface roads; the daily vehicle miles 19 of travel; and the lineal feet of bridge deck under the 20 jurisdiction of each county’s secondary road department, as 21 of the preceding January 1, taking into account roads whose 22 jurisdiction has been transferred from the department to a 23 county or from a county to the department during the previous 24 year. The annual report shall include those roads transferred 25 to a county pursuant to section 306.8A . 26 (2) Miles of secondary and farm-to-market roads shall not 27 include those miles of farm-to-market extensions within cities 28 under five hundred population that are placed under county 29 secondary road jurisdiction pursuant to section 306.4 . 30 (3) The annual report of updated road and bridge data of 31 both the secondary and farm-to-market roads shall be submitted 32 to the Iowa county engineers association service bureau. 33 f. Advise and assist the director in the study and 34 development of highway transport economics to assure 35 -7- HF 2361 (4) 85 dea/nh/md 7/ 32

H.F. 2361 availability and productivity of highway transport services. 1 f. g. Perform such other planning functions as may be 2 assigned by the director. 3 2. The functions of planning and research infrastructure 4 program development do not include the detailed design 5 of highways or other modal transportation facilities, but 6 are restricted to the needs of this state for multimodal 7 transportation systems. 8 Sec. 18. Section 307.24, Code 2014, is amended to read as 9 follows: 10 307.24 Administration of highways highway programs and 11 activities . 12 The department’s administrator of highways is responsible 13 for the planning, design, construction, and maintenance of 14 highway programs and activities shall plan, design, construct, 15 and maintain the state primary highways and shall administer 16 chapters 306 to through 306C, chapters 309 through 314, 17 chapters 316 through 318, and chapter 320 and perform other 18 duties as assigned by the director. The administration of 19 highways department shall be : 20 1. Be organized to provide administration assistance for 21 urban systems , for and secondary roads, and provide other 22 categories of administration assistance as necessary. 23 2. Devise and adopt standard plans of highway construction 24 and furnish the same to the counties and provide information 25 to the counties on the maintenance practices and policies of 26 the department. 27 3. Order the removal or alteration of any lights or 28 light-reflecting devices, whether on public or private 29 property, other than railroad signals or crossing lights, 30 located adjacent to a primary road and within three hundred 31 feet of a railroad crossing at grade, which in any way 32 interfere with the vision of or may be confusing to a person 33 operating a motor vehicle on such primary road in observing 34 the approach of trains or in observing signs erected for the 35 -8- HF 2361 (4) 85 dea/nh/md 8/ 32

H.F. 2361 purpose of giving warning of such railroad crossing. 1 4. Order the removal or alteration of any lights or 2 light-reflecting devices, whether on public or private 3 property, located adjacent to a primary road and within 4 three hundred feet of an intersection with another primary 5 road, which in any way interfere with the vision of or may be 6 confusing to a person operating a motor vehicle on such primary 7 road in observing the approach of other vehicles or signs 8 erected for the purpose of giving warning of such intersection. 9 5. Construct, reconstruct, improve, and maintain state 10 institutional roads and state park roads which are part of the 11 state park, state institution, and other state land road system 12 as defined in section 306.3, and bridges on such roads, roads 13 located on the state fairgrounds as described in chapter 173, 14 and the roads and bridges located on community college property 15 as described in chapter 260C, upon the request of the state 16 board, department, or commission which has jurisdiction over 17 such roads. Such construction, reconstruction, improvement, 18 or maintenance shall be done in such manner as may be agreed 19 upon by the state transportation commission and the state 20 board, department, or commission which has jurisdiction. The 21 commission may contract with any county or municipality for 22 the construction, reconstruction, improvement, or maintenance 23 of such roads and bridges. Any state park road which is an 24 extension of either a primary or secondary highway which both 25 enters and exits from a state park at separate points shall 26 be constructed, reconstructed, improved, and maintained as 27 provided in section 306.4. Funds allocated from the road 28 use tax fund for the purposes of this subsection shall be 29 apportioned in the following manner and amounts: 30 a. For department of natural resources facility roads, 31 forty-five and one-half percent. 32 b. For department of human services facility roads, six and 33 one-half percent. 34 c. For department of corrections facility roads, five and 35 -9- HF 2361 (4) 85 dea/nh/md 9/ 32

H.F. 2361 one-half percent. 1 d. For national guard facility roads, four percent. 2 e. For state board of regents facility roads, thirty 3 percent. 4 f. For state fair board facility roads, two percent. 5 g. For department of administrative services facility roads, 6 one-half percent. 7 h. For department of education facility roads, six percent. 8 Sec. 19. Section 307.26, Code 2014, is amended to read as 9 follows: 10 307.26 Rail and water Administration of modal programs and 11 activities . 12 The department’s administrator responsible for rail and 13 water modal programs and activities shall: 14 1. Advise and assist the director in conducting research 15 on the basic railroad problems and identify the present 16 capability of the existing railroads in order to determine 17 the present obligation of the railroads to provide acceptable 18 levels of public service. Advise and assist the director 19 in the development of aeronautics including but not limited 20 to the location of air terminals, accessibility of air 21 terminals by other modes of public transportation, protective 22 zoning provisions considering safety factors, noise, and air 23 pollution, facilities for private and commercial aircraft, 24 air freight facilities, and such other physical and technical 25 aspects as may be necessary to meet present and future needs. 26 2. Advise and assist the director in the study of local 27 and regional transportation of goods and people including 28 intracity and intercity bus systems, dial-a-bus facilities, 29 rural and urban bus and taxi systems, the collection of data 30 from these systems, a feasibility study of increased government 31 subsidy assistance and determination of the allocation of such 32 subsidies to each mass transportation system, and such other 33 physical and technical aspects as may be necessary to meet 34 present and future needs, and apply for, accept, and expend 35 -10- HF 2361 (4) 85 dea/nh/md 10/ 32

H.F. 2361 federal, state, or private funds for the improvement of mass 1 transit. 2 2. 3. Advise and assist the director in the development 3 of rail transportation systems and programs for expansion of 4 improving passenger and freight services. 5 3. 4. Advise and assist the director in developing programs 6 in anticipation of railroad abandonment, including: 7 a. Development and evaluation of programs which will 8 encourage improvement of rail freight and the upgrading of rail 9 lines in order to improve freight service. 10 b. Development of alternative modes of transportation to 11 areas and communities which lose rail service. 12 c. b. Advise Advising the director when it may appear in 13 the best interest of the state to assume the role of advocate 14 in railroad abandonments and railroad rate schedules. 15 4. 5. Develop and maintain a federal-state relationship 16 of programs relating to railroad safety enforcement, track 17 standards, rail equipment, operating rules , and transportation 18 of hazardous materials. 19 6. Make surveys, plans, and estimates of cost for safety 20 enhancement at railroad crossings on highways, and confer 21 with local and railroad officials with reference to safety 22 enhancement projects. 23 5. 7. Advise and assist the director in the conduct of 24 research on railroad-highway grade crossings and encourage 25 and develop a safety program in order to reduce injuries or 26 fatalities including , but not limited to , the following: 27 a. The implementation of a program of constructing rumble 28 strips at grade crossings on selected hard surface roads. 29 b. a. The establishment of standards for warning devices 30 for particularly hazardous crossings or for classes of 31 crossings on highways, which standards are shall be designed 32 to reduce injuries, fatalities , and property damage. Such 33 standards shall regulate the use of warning devices and 34 signs , which shall be in addition to the requirements of 35 -11- HF 2361 (4) 85 dea/nh/md 11/ 32

H.F. 2361 section 327G.2 . Implementation of such standards shall be 1 the responsibility of the government agency , or department , 2 or political subdivision having jurisdiction and control of 3 the highway and such implementation shall be deemed adequate 4 for the purposes of railroad grade crossing protection. The 5 department, or the political subdivision having jurisdiction, 6 may direct the installation of temporary protection while 7 awaiting installation of permanent protection. A railroad 8 crossing shall not be found to be particularly hazardous for 9 any purpose unless the department has determined it to be 10 particularly hazardous. 11 c. b. The development and adoption of classifications of 12 crossings on public highways based upon their characteristics, 13 conditions, and hazards, and standards for warning devices, 14 signals, and signs of each crossing classification. The 15 department shall recommend a schedule for implementation 16 of the standards to the government agency, department, or 17 political subdivision having jurisdiction of the highway and 18 shall provide an annual report to the general assembly on the 19 development and adoption of classifications and standards under 20 this paragraph and their implementation, including information 21 about financing installation of warning devices, signals, and 22 signs. The department shall not be liable for the development 23 or adoption of the classifications or standards. A government 24 agency, department, or political subdivision shall not be 25 liable for failure to implement the standards. A crossing 26 warning or improvement installed or maintained pursuant to 27 standards adopted by the department under this paragraph “b” 28 shall be deemed an adequate and appropriate warning for the 29 crossing. 30 6. Apply for, accept, and expend federal, state or private 31 funds for the improvement of rail transportation. 32 7. 8. Advise and assist the director on studies for to 33 assure availability, efficiency, and productivity of freight 34 and passenger services and to promote the coordination of 35 -12- HF 2361 (4) 85 dea/nh/md 12/ 32

H.F. 2361 railway service with that of other between all transportation 1 modes. 2 8. 9. Advise and assist the director with studies of 3 regulatory changes deemed necessary to effectuate economical 4 and efficient railroad service. 5 9. 10. Advise and assist the director regarding agreements 6 with railroad corporations for the restoration, conservation , 7 or improvement of railroad as defined in section 327D.2, 8 subsection 3 , on such terms, conditions, rates, rentals, or 9 subsidy levels as may be in the best interest of the state. 10 The commission may enter into contracts and agreements which 11 are binding only to the extent that appropriations have been 12 or may subsequently be made by the legislature to effectuate 13 the purposes of this subsection . 14 10. 11. Administer chapters 324A, 327C through 327H , 327J, 15 328, 329, and 330 . 16 12. Administer programs and activities in chapter 17 306D relating to scenic routes, chapter 307C relating to 18 the Missouri river barge compact, chapter 308 relating 19 to the Mississippi river parkway, chapter 308A relating 20 to recreational bikeways, and chapter 315 relating to the 21 revitalize Iowa’s sound economy fund. 22 11. 13. Perform such other duties and responsibilities as 23 may be assigned by the director and the commission . 24 12. Advise and assist in the establishment and development 25 of railroad districts upon request. 26 13. Conduct innovative experimental programs relating to 27 rail transportation problems within the state. 28 14. Enter the role of “applicant” pursuant to the Railroad 29 Revitalization and Regulatory Reform Act of 1976, Pub. L. No. 30 94-210, and take such actions as are necessary to accomplish 31 this role. 32 15. Identify those segments of railroad trackage which, if 33 improved, may provide increased transportation services for 34 the citizens of this state. The department shall develop and 35 -13- HF 2361 (4) 85 dea/nh/md 13/ 32

H.F. 2361 implement programs to encourage the improvement of rail freight 1 services on such railroad trackage. 2 16. 14. Promote river transportation and coordinate river 3 programs with other transportation modes. 4 17. 15. Advise and assist the director in the development 5 of river transportation and port facilities in the state. 6 Sec. 20. Section 307.27, Code 2014, is amended to read as 7 follows: 8 307.27 Motor vehicles , motor carriers, and drivers . 9 The department’s administrator responsible for the 10 enforcement and regulation of motor carriers, registration of 11 motor vehicles , and the licensing of drivers shall: 12 1. Administer and supervise the registration of motor 13 vehicles and the licensing of drivers pursuant to chapter 321 . 14 2. Administer and supervise the licensing of motor vehicle 15 manufacturers, distributors , and dealers pursuant to chapter 16 322 . 17 3. Administer the inspection of motor vehicles pursuant to 18 chapter 321 . 19 4. Administer motor vehicle registration reciprocity 20 pursuant to chapter 326 . 21 5. Administer the provisions of chapters 321A , 321E , 321F , 22 and 321J relating to motor vehicle financial responsibility, 23 the implied consent law, the movement of vehicles of excessive 24 size and weight , and the leasing and renting of vehicles. 25 6. Administer the regulation of motor vehicle franchisers 26 pursuant to chapter 322A . 27 7. Administer the regulation of motor carriers pursuant to 28 chapter chapters 325A , 326, and 327B . 29 8. Administer the registration of interstate authority 30 of motor carriers pursuant to chapter 327B as provided in 49 31 U.S.C. § 14504a and United States department of transportation 32 regulations. 33 9. Administer chapter 321C relating to interstate drivers 34 license compacts; chapter 321D relating to vehicle equipment 35 -14- HF 2361 (4) 85 dea/nh/md 14/ 32

H.F. 2361 compacts; chapter 321H relating to vehicle recyclers; chapter 1 321L relating to parking for persons with disabilities; chapter 2 321M relating to county issuance of driver’s licenses; and 3 chapter 322C relating to travel trailer dealers, manufacturers, 4 and distributors. 5 Sec. 21. Section 307.45, Code 2014, is amended to read as 6 follows: 7 307.45 State-owned lands —— assessment. 8 1. Cities and counties may assess the cost of a public 9 improvement against the state when the improvement benefits 10 property owned by the state and under the jurisdiction 11 and control of the department’s administrator of highways 12 department . The director shall pay from the primary road fund 13 the portion of the cost of the improvement which would be 14 legally assessable against the land if privately owned. 15 2. Assessments against property under the jurisdiction of 16 the department’s administrator of highways department shall be 17 made in the same manner as those made against private property, 18 except that the city or county making the assessment shall 19 cause a copy of the public notice of hearing to be mailed to the 20 director by certified mail. 21 3. Assessments against property owned by the state and 22 not under the jurisdiction and control of the department’s 23 administrator of highways department shall be made in the same 24 manner as those made against private property , and payment 25 shall be subject to authorization by the executive council. 26 There is appropriated from moneys in the general fund not 27 otherwise appropriated an amount necessary to pay the expense 28 authorized by the executive council. 29 Sec. 22. Section 307.47, subsections 1 and 3, Code 2014, are 30 amended to read as follows: 31 1. The highway materials and equipment revolving fund 32 is created from moneys appropriated out of the primary road 33 fund. From this fund shall be paid all costs for materials 34 and supplies, inventoried stock supplies, maintenance and 35 -15- HF 2361 (4) 85 dea/nh/md 15/ 32

H.F. 2361 operational costs of equipment, and equipment replacements 1 incurred in the operation of centralized purchasing under the 2 supervision of the department’s administrator of highways 3 administrator responsible for highway programs and activities . 4 Direct salaries and expenses properly chargeable to direct 5 salaries shall be paid from the fund. For each month , the 6 director administrator responsible for the operations and 7 finances of the department shall render a statement to each 8 highway unit under the supervision of the administrator 9 of highways for the actual cost of materials and supplies, 10 operational and maintenance costs of equipment, and equipment 11 depreciation used. The expense shall be paid by the 12 administrator of highways responsible for the operations 13 and finances of the department in the same manner as other 14 interdepartmental billings are paid , and when the expense is 15 paid by the administrator of highways, the sum paid shall be 16 credited to the highway materials and equipment revolving fund. 17 3. When the highway units under the supervision of 18 the administrator of highways share equipment with other 19 administrative units of the department, the director shall 20 prorate the costs of the equipment among the administrative 21 units using the equipment. 22 Sec. 23. REPEAL. Sections 307.3, 307.4, 307.5, 307.6, 23 307.7, 307.9, 307.10, 307.25, 307.35, and 307.43, Code 2014, 24 are repealed. 25 STATE TRANSPORTATION COMMISSION 26 Sec. 24. NEW SECTION . 307A.1A Transportation commission. 27 1. There is created a state transportation commission which 28 shall consist of seven members, not more than four of whom 29 shall be from the same political party. The governor shall 30 appoint the members of the commission for a term of four years 31 beginning and ending as provided by section 69.19, subject to 32 confirmation by the senate. 33 2. The commission shall meet in May of each year for the 34 purpose of electing one of its members as chairperson. 35 -16- HF 2361 (4) 85 dea/nh/md 16/ 32

H.F. 2361 Sec. 25. Section 307A.2, Code 2014, is amended to read as 1 follows: 2 307A.2 Duties. 3 Said The commission shall: 4 1. Devise and adopt standard plans of highway construction 5 and furnish the same to the counties and provide information 6 to the counties on the maintenance practices and policies of 7 the department. Develop, coordinate, and annually update a 8 comprehensive transportation policy and plan for the state. 9 2. Furnish information and instruction to, answer inquiries 10 of, and advise with, highway officers on matters of highway 11 construction and maintenance and the reasonable cost thereof. 12 Promote the coordinated and efficient use of all available 13 modes of transportation for the benefit of the state and 14 its citizens including but not limited to the designation 15 and development of multimodal public transfer facilities if 16 carriers or other private businesses fail to develop such 17 facilities. 18 3. Reserved. 19 4. Make surveys, plans, and estimates of cost, for the 20 elimination of danger at railroad crossings on highways, and 21 confer with local and railroad officials with reference to 22 elimination of the danger. 23 5. Assist the board of supervisors and the department 24 general counsel in the defense of suits wherein infringement of 25 patents, relative to highway construction, is alleged. 26 6. Make surveys for the improvement of highways upon or 27 adjacent to state property when requested by the board or 28 department in control of said lands. 29 7. Record all important operations of said commission and, 30 at the time provided by law, report the same to the governor. 31 8. Incur no expense to the state by sending out road 32 lecturers. 33 9. Order the removal or alteration of any lights or 34 light-reflecting devices, whether on public or private 35 -17- HF 2361 (4) 85 dea/nh/md 17/ 32

H.F. 2361 property, other than railroad signals or crossing lights, 1 located adjacent to a primary road and within three hundred 2 feet of a railroad crossing at grade, which in any way 3 interfere with the vision of or may be confusing to a person 4 operating a motor vehicle on such highway in observing the 5 approach of trains or in observing signs erected for the 6 purpose of giving warning of such railroad crossing. 7 10. Order the removal or alteration of any lights or 8 light-reflecting devices, whether on public or private 9 property, located adjacent to a primary road and within 10 three hundred feet of an intersection with another primary 11 road, which in any way interfere with the vision of or may be 12 confusing to a person operating a motor vehicle on such highway 13 in observing the approach of other vehicles or signs erected 14 for the purpose of giving warning of such intersection. 15 11. Construct, reconstruct, improve, and maintain state 16 institutional roads and state park roads, which are part of 17 the state park, state institution, and other state land road 18 system as defined in section 306.3 , and bridges on such roads, 19 roads located on state fairgrounds as defined in chapter 173 , 20 and the roads and bridges located on community college property 21 as defined in chapter 260C , upon the request of the state 22 board, department, or commission which has jurisdiction over 23 such roads. This shall be done in such manner as may be agreed 24 upon by the state transportation commission and the state 25 board, department, or commission which has jurisdiction. The 26 commission may contract with any county or municipality for 27 the construction, reconstruction, improvement, or maintenance 28 of such roads and bridges. Any state park road which is an 29 extension of either a primary or secondary highway which both 30 enters and exits from a state park at separate points shall 31 be constructed, reconstructed, improved, and maintained as 32 provided in section 306.4 . Funds allocated from the road 33 use tax fund for the purposes of this subsection shall be 34 apportioned in the following manner and amounts: 35 -18- HF 2361 (4) 85 dea/nh/md 18/ 32

H.F. 2361 a. For department of natural resources facility roads, 1 forty-five and one-half percent. 2 b. For department of human services facility roads, six and 3 one-half percent. 4 c. For department of corrections facility roads, five and 5 one-half percent. 6 d. For national guard facility roads, four percent. 7 e. For state board of regents facility roads, thirty 8 percent. 9 f. For state fair board facility roads, two percent. 10 g. For department of administrative services facility roads, 11 one-half percent. 12 h. For department of education facility roads, six percent. 13 12. 3. Prepare, adopt, and cause to be published a 14 long-range program for the primary road system, in conjunction 15 with the state transportation plan adopted by the commission. 16 Such program shall be prepared for a period of at least five 17 years and shall be revised, brought up-to-date, and republished 18 at least once every year in order to have a continuing 19 five-year program. The program shall include, insofar as such 20 estimates can be made, an estimate of the money expected to 21 become available during the period covered by the program and 22 a statement of the construction, maintenance, and other work 23 planned to be performed during such period. The commission 24 shall conduct periodic reinspections of the primary roads in 25 order to revise, from time to time, its estimates of future 26 needs to conform to the physical and service conditions 27 of the primary roads. The commission shall annually cause 28 to be published a sufficiency rating report showing the 29 relative conditions of the primary roads. Before the last 30 day of December of each year, the commission shall adopt and 31 cause to be published from its long-range program , a plan of 32 improvements to be accomplished during the next calendar year. 33 However, in years when the federal government is reauthorizing 34 federal highway funding, the commission shall not be required 35 -19- HF 2361 (4) 85 dea/nh/md 19/ 32

H.F. 2361 to adopt and publish the annual plan of improvements to be 1 accomplished until at least ninety days from the enactment 2 of the new federal funding formula. This annual program 3 shall list definite projects in order of urgency and shall 4 include a reasonable year’s work with the funds estimated to 5 be available. The annual program shall be final and followed 6 by the commission in the next year except that deviations may 7 be made in case of disaster or other unforeseen emergencies 8 or difficulties. The relative urgency of the proposed 9 improvements shall be determined by a consideration of the 10 physical condition, safety, and service characteristics of the 11 various primary roads. 12 13. 4. The criteria used by the commission for allocating 13 funds as a result of any long-range planning process shall be 14 adopted in accordance with the provisions of chapter 17A . The 15 commission shall adopt such rules and regulations in accordance 16 with the provisions of chapter 17A as it may deem necessary to 17 transact its business and for the administration and exercise 18 of its powers and duties. 19 14. 5. Identify, within the primary road system, a network 20 of commercial and industrial highways in accordance with 21 section 313.2A . The improvement of this network shall be 22 considered in the development of the long-range program and 23 plan of improvements under this section . 24 6. Approve all rules prior to their adoption by the director 25 pursuant to section 307.12, subsection 1, paragraph “j” . 26 Sec. 26. NEW SECTION . 307A.3 Conflict of interest. 27 A person shall not serve as a member of the commission who 28 has an interest in a contract or job of work or material or the 29 profits thereof or service to be performed for the department. 30 Any member of the commission who accepts employment with or 31 acquires any stock, bonds, or other interest in any company 32 or corporation doing business with the department shall be 33 disqualified from remaining a member of the commission. 34 Sec. 27. NEW SECTION . 307A.4 Vacancies on commission. 35 -20- HF 2361 (4) 85 dea/nh/md 20/ 32

H.F. 2361 1. Any vacancy in the membership of the commission shall be 1 filled in the same manner as regular appointments are made for 2 the unexpired portion of the regular term. 3 2. In the event the governor fails to make an appointment 4 to fill a vacancy or fails to submit the appointment to the 5 senate for confirmation as required by section 2.32, the senate 6 may make the appointment prior to adjournment of the general 7 assembly. 8 Sec. 28. NEW SECTION . 307A.5 Compensation —— commission 9 members. 10 Each member of the commission shall be compensated as 11 provided in section 7E.6. 12 Sec. 29. NEW SECTION . 307A.6 Commission meetings. 13 The commission shall meet at the call of the chairperson or 14 when any four members of the commission file a written request 15 with the chairperson for a meeting. Written notice of the 16 time and place of each meeting shall be given to each member 17 of the commission. A majority of the commission members shall 18 constitute a quorum. 19 Sec. 30. NEW SECTION . 307A.7 Expenses. 20 Members of the commission shall be allowed their actual and 21 necessary expenses incurred in the performance of their duties. 22 All expenses and salaries shall be paid from appropriations for 23 such purposes. 24 Sec. 31. NEW SECTION . 307A.8 Removal from office. 25 Any member of the commission may be removed for any of 26 the causes and in the manner provided in chapter 66 and such 27 removal shall not be in lieu of any other punishment that may 28 be prescribed by the laws of this state. 29 CONFORMING AMENDMENTS 30 Sec. 32. Section 173.16, unnumbered paragraph 1, Code 2014, 31 is amended to read as follows: 32 All expenses incurred in maintaining the state fairgrounds 33 and in conducting the annual fair on it the state fairgrounds , 34 including the compensation and expenses of the officers, 35 -21- HF 2361 (4) 85 dea/nh/md 21/ 32

H.F. 2361 members, and employees of the board, shall be recorded by the 1 secretary and paid from the state fair receipts, unless a 2 specific appropriation has been provided for that purpose. The 3 board may request special capital improvement appropriations 4 from the state and may request emergency funding from the 5 executive council for natural disasters. The board may request 6 that the department of transportation provide maintenance in 7 accordance with section 307A.2 307.24 , subsection 11 5 . 8 Sec. 33. Section 312.2, subsection 2, unnumbered paragraph 9 1, Code 2014, is amended to read as follows: 10 The treasurer of state shall before making the allotments 11 in subsection 1 credit annually to the highway grade crossing 12 safety fund the sum of seven hundred thousand dollars, credit 13 annually from the road use tax fund the sum of nine hundred 14 thousand dollars to the highway railroad grade crossing surface 15 repair fund, credit monthly to the primary road fund the 16 dollars yielded from an allotment of sixty-five hundredths of 17 one percent of all road use tax funds for the express purpose 18 of carrying out subsection 11 of section 307A.2 , section 19 313.4, subsection 2 , section 307.24, subsection 5, and section 20 307.45 , and credit annually to the primary road fund the sum of 21 five hundred thousand dollars to be used for paying expenses 22 incurred by the state department of transportation other than 23 expenses incurred for extensions of primary roads in cities. 24 All unobligated funds provided by this subsection , except those 25 funds credited to the highway grade crossing safety fund, shall 26 at the end of each year revert to the road use tax fund. Funds 27 in the highway grade crossing safety fund shall not revert to 28 the road use tax fund except to the extent they exceed five 29 hundred thousand dollars at the end of any biennium. The cost 30 of each highway railroad grade crossing repair project shall be 31 allocated in the following manner: 32 Sec. 34. Section 312.4, subsection 5, Code 2014, is amended 33 to read as follows: 34 5. The amount of the road use tax fund which has been 35 -22- HF 2361 (4) 85 dea/nh/md 22/ 32

H.F. 2361 credited to carry out the provisions of section 307A.2, 1 subsection 11 , section 313.4, subsection 2 , section 307.24, 2 subsection 5, and section 307.45 . 3 Sec. 35. Section 313.4, subsection 2, Code 2014, is amended 4 to read as follows: 5 2. Such fund is also appropriated and shall be used for the 6 construction, reconstruction, improvement , and maintenance of 7 state institutional roads and state park roads and bridges on 8 such roads and roads and bridges on community college property 9 as provided in section 307A.2 307.24 , subsection 11 5 , for 10 restoration of secondary roads used as primary road detours and 11 for compensation of counties for such use, for restoration of 12 municipal streets so used and for compensation of cities for 13 such use, and for the payments required in section 307.45 . 14 DIVISION III 15 MISCELLANEOUS PROVISIONS 16 Sec. 36. Section 321.50, subsection 5, Code 2014, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . d. For purposes of this subsection, a 19 security interest noted on an Iowa certificate of title and 20 appearing in the statewide computer system and the county’s 21 records shall be presumed to be discharged upon presentation of 22 a valid certificate of title subsequently issued by a foreign 23 jurisdiction on which the security interest is no longer noted. 24 Sec. 37. Section 321.176A, subsection 1, Code 2014, is 25 amended to read as follows: 26 1. A farmer or a person working for a farmer while operating 27 a commercial motor vehicle controlled by the farmer within one 28 hundred fifty air miles of the farmer’s farm to transport the 29 farmer’s own agricultural products, farm machinery, or farm 30 supplies to or from the farm covered farm vehicle as defined 31 in the federal Moving Ahead for Progress in the 21st Century 32 Act, Pub. L. No. 112-141, §32934 . The exemption provided in 33 this subsection shall apply to farmers who assist each other 34 through an exchange of services and shall include operation of 35 -23- HF 2361 (4) 85 dea/nh/md 23/ 32

H.F. 2361 a commercial motor vehicle between the farms of the farmers who 1 are exchanging services. 2 Sec. 38. Section 321.187, Code 2014, is amended to read as 3 follows: 4 321.187 Examiners. 5 1. The department shall examine applicants for driver’s 6 licenses. Examiners of the department shall wear an 7 identifying badge and uniform provided by the department. 8 2. The department may by rule designate community colleges 9 established under chapter 260C and other third-party testers to 10 administer the driving skills test required for a commercial 11 driver’s license , provided that all of the following occur: 12 a. The driving skills test is the same as that which would 13 otherwise be administered by the state. 14 b. The examiner third-party tester contractually agrees to 15 comply with the requirements of 49 C.F.R. §383.75 as adopted by 16 rule by the department. 17 c. Any third-party skills test examiner used by the 18 third-party tester shall meet the requirements of 49 C.F.R. 19 §383.75 and 49 C.F.R. §384.228, as adopted by rule by the 20 department. The department shall adopt rules requiring that a 21 third-party tester, other than a community college established 22 under chapter 260C, shall be an Iowa-based motor carrier or 23 its subsidiary that has its principal office within this state 24 and operates a permanent commercial driver training facility 25 in this state. The rules may also provide that a third-party 26 tester conduct a number of skills test examinations above the 27 number required under 49 C.F.R. §383.75 in order to remain 28 qualified as a third-party tester under this section. 29 3. As used in this section, “third-party tester” and 30 “third-party skills test examiner” mean as defined in 49 C.F.R. 31 §383.5. 32 Sec. 39. Section 321.257, subsection 2, paragraphs g and h, 33 Code 2014, are amended to read as follows: 34 g. A “don’t walk” or “steady upraised hand” light is a 35 -24- HF 2361 (4) 85 dea/nh/md 24/ 32

H.F. 2361 pedestrian signal which means that pedestrian traffic facing 1 the illuminated pedestrian signal shall not start to cross 2 the roadway in the direction of the pedestrian signal, and 3 pedestrian traffic in the crossing shall proceed to a safety 4 zone. 5 h. A “walk” or “walking person” light is a pedestrian signal 6 which means that pedestrian traffic facing the illuminated 7 pedestrian signal may proceed to cross the roadway in the 8 direction of the pedestrian signal and shall be given the 9 right-of-way by drivers of all vehicles. 10 Sec. 40. Section 321.257, subsection 2, Code 2014, is 11 amended by adding the following new paragraphs: 12 NEW PARAGRAPH . 0g. A “flashing yellow arrow” light shown 13 alone or with another official traffic-control signal means 14 vehicular traffic may cautiously enter the intersection 15 and proceed only in the direction indicated by the arrow. 16 Vehicular traffic shall yield the right-of-way to other 17 vehicles and pedestrians lawfully within the intersection and 18 any vehicle on the opposing approach which is approaching so 19 closely as to constitute an immediate hazard during the time 20 the driver is moving within the intersection. 21 NEW PARAGRAPH . 0h. A “flashing upraised hand” or “upraised 22 hand with countdown” light is a pedestrian signal which means 23 that pedestrian traffic facing the illuminated pedestrian 24 signal shall not start to cross the roadway in the direction of 25 the pedestrian signal, and pedestrian traffic in the crossing 26 shall proceed to a safety zone. The “upraised hand with 27 countdown” light is a pedestrian signal that also provides the 28 time remaining for the pedestrian to complete the crossing. 29 Sec. 41. Section 321.258, Code 2014, is amended to read as 30 follows: 31 321.258 Arrangement of lights on official traffic-control 32 signals. 33 1. Colored lights placed on a vertical official 34 traffic-control signal face shall be arranged from the top to 35 -25- HF 2361 (4) 85 dea/nh/md 25/ 32

H.F. 2361 the bottom in the following order when used: 1 a. Circular red , circular . 2 b. Steady and/or flashing left-turn red arrow. 3 c. Steady and/or flashing right-turn red arrow. 4 d. Circular yellow , circular . 5 e. Circular green , straight through yellow arrow, straight 6 through . 7 f. Straight-through green arrow , left turn . 8 g. Steady left-turn yellow arrow , left turn . 9 h. Flashing left-turn yellow arrow. 10 i. Left-turn green arrow , right turn . 11 j. Steady right-turn yellow arrow , and right turn . 12 k. Flashing right-turn yellow arrow. 13 l. Right-turn green arrow. 14 2. Colored lights placed on a horizontal official 15 traffic-control signal face shall be arranged from the left to 16 the right in the following order when used: 17 a. Circular red , circular . 18 b. Steady and/or flashing left-turn red arrow. 19 c. Steady and/or flashing right-turn red arrow. 20 d. Circular yellow , left turn . 21 e. Steady left-turn yellow arrow , left turn . 22 f. Flashing left-turn yellow arrow. 23 g. Left-turn green arrow , circular . 24 h. Circular green , straight through yellow . 25 i. Straight-through green arrow , straight through green . 26 j. Steady right-turn yellow arrow , right turn . 27 k. Flashing right-turn yellow arrow , and right turn . 28 l. Right-turn green arrow. 29 Sec. 42. Section 328.24, unnumbered paragraph 1, Code 2014, 30 is amended to read as follows: 31 If, during the year for which an aircraft, except 32 nonresident aircraft used for the application of herbicides 33 and pesticides, was registered and the required fee paid , the 34 aircraft is destroyed by fire or accident or junked, and its 35 -26- HF 2361 (4) 85 dea/nh/md 26/ 32

H.F. 2361 identity as an aircraft entirely eliminated, or it the aircraft 1 is removed and continuously used beyond the boundaries of the 2 state, then the owner in whose name it was registered at the 3 time of destruction, dismantling, or removal from the state 4 shall return the certificate of registration to the department 5 within ten thirty days and make affidavit of the destruction, 6 dismantling, or removal and make claim for the refund. The 7 refund shall be paid from the general fund of the state. 8 Sec. 43. 2012 Iowa Acts, chapter 1129, section 4, is amended 9 to read as follows: 10 SEC. 4. ROAD USE TAX FUND EFFICIENCY MEASURES 11 —— QUARTERLY ANNUAL REPORTS. The department of transportation 12 shall submit quarterly reports a report annually on or before 13 December 31 in an electronic format to the co-chairpersons 14 of the joint appropriations subcommittee on transportation, 15 infrastructure, and capitals, the chairpersons of the senate 16 and house standing committees on transportation, the department 17 of management, and the legislative services agency regarding 18 the implementation of efficiency measures identified in the 19 “Road Use Tax Fund Efficiency Report”, January 2012. The 20 reports shall provide details of activities undertaken in 21 the previous quarter year relating to one-time and long-term 22 program efficiencies and partnership efficiencies. Issues to 23 be covered in the reports shall include but are not limited 24 to savings realized from the implementation of particular 25 efficiency measures; updates concerning measures that have 26 not been implemented; efforts involving cities, counties, 27 other jurisdictions, or stakeholder interest groups; any 28 new efficiency measures identified or undertaken; and 29 identification of any legislative action that may be required 30 to achieve efficiencies. The first report shall be submitted 31 by October 1, 2012. 32 Sec. 44. SCHOOL BUS SAFETY VIOLATIONS —— DRIVER IMPROVEMENT 33 PROGRAM OPTION FOR FIRST OFFENSE. Notwithstanding 2012 Iowa 34 Acts, chapter 1015, section 5, subsection 2, by July 1, 2014, 35 -27- HF 2361 (4) 85 dea/nh/md 27/ 32

H.F. 2361 the department of transportation shall initiate rulemaking by 1 amending 761 IAC 615.43 to include a person who is convicted 2 for a first violation of section 321.372, subsection 3, among 3 the persons who may be required, in lieu of driver’s license 4 suspension, to attend and successfully complete, at the 5 person’s own expense, a driver improvement program approved 6 by the department, subject to all other provisions of 761 IAC 7 615.43. 8 Sec. 45. EFFECTIVE UPON ENACTMENT. The following provision 9 of this division of this Act, being deemed of immediate 10 importance, takes effect upon enactment: 11 1. The section of this Act relating to school bus safety 12 violations —— driver improvement program option for first 13 offense. 14 Sec. 46. INTERSECTION REPORT. By October 1, 2014, the 15 county engineer of each county shall provide a report to 16 the department of transportation identifying all locations 17 in the county where two different roads or highways having 18 speed limits of 55 miles per hour or greater intersect but 19 are not controlled by an official traffic-control signal 20 or by official traffic-control devices that direct traffic 21 approaching from every direction to stop or yield before 22 entering the intersection. On or before December 31, 2014, the 23 department shall file a report with the legislative services 24 agency detailing the number and locations of the intersections 25 identified in the county engineers’ reports. 26 DIVISION IV 27 MOTOR VEHICLE DEALERS 28 Sec. 47. Section 321.48, Code 2014, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 2A. Notwithstanding subsections 1 and 2, 31 requirements in those subsections for obtaining title to a 32 vehicle or acknowledging assignment and warranty of title do 33 not apply to a dealer who sells a motor vehicle to a purchaser 34 in a consignment transaction authorized under section 322.7B. 35 -28- HF 2361 (4) 85 dea/nh/md 28/ 32

H.F. 2361 Sec. 48. Section 321.57, subsection 1, Code 2014, is amended 1 to read as follows: 2 1. A dealer owning any vehicle of a type otherwise 3 required to be registered under this chapter may operate or 4 move the vehicle upon the highways solely for purposes of 5 transporting, testing, demonstrating, or selling the vehicle 6 without registering the vehicle, upon condition that the 7 vehicle display in the manner prescribed in sections 321.37 8 and 321.38 a special plate issued to the owner as provided in 9 sections 321.58 through 321.62 . A dealer may operate or move 10 upon the highways a vehicle owned by the dealer for either 11 private or business purposes , including hauling a load or 12 towing a trailer, without registering it if the vehicle is in 13 the dealer’s inventory and is continuously offered for sale at 14 retail, and there is displayed on it a special plate issued to 15 the dealer as provided in sections 321.58 through 321.62 . A 16 dealer may operate or move upon the highways an unregistered 17 vehicle owned by a lessor licensed pursuant to chapter 321F 18 solely for the purpose of delivering the vehicle to the owner 19 or transporting the vehicle to or from an auction if there is 20 displayed on the vehicle a special plate issued to the dealer 21 as provided in sections 321.58 through 321.62 . 22 Sec. 49. Section 321.60, Code 2014, is amended to read as 23 follows: 24 321.60 Issuance of special plates. 25 The department shall also issue special plates as applied 26 for, which shall display the general distinguishing number 27 assigned to the applicant. Each plate so issued shall 28 also contain a number or symbol identifying the plate and 29 distinguishing it from every other plate bearing the same 30 general distinguishing number. The fee for each special plate 31 is forty dollars for a two-year period or part thereof. The 32 fee for a special plate used on a vehicle that is hauling a 33 load or towing a trailer is seven hundred fifty dollars for a 34 two-year period or part thereof. 35 -29- HF 2361 (4) 85 dea/nh/md 29/ 32

H.F. 2361 Sec. 50. Section 321.69A, subsection 1, paragraph a, 1 subparagraph (2), Code 2014, is amended to read as follows: 2 (2) The actual cost of any labor or parts charged to or 3 performed by the dealer for any such repairs, adjustments, or 4 parts does not exceed four percent of the dealer’s adjusted 5 cost manufacturer’s suggested retail price . 6 Sec. 51. Section 321.69A, subsections 2 and 3, Code 2014, 7 are amended to read as follows: 8 2. A person licensed as a new motor vehicle dealer pursuant 9 to chapter 322 shall disclose in writing, at or before the 10 time of sale or lease, to the buyer or lessee of a new motor 11 vehicle that the vehicle has been subject to any repairs of 12 damage to or adjustments on or replacements of parts with new 13 parts if the actual cost of any labor or parts charged to or 14 performed by the dealer for any such repairs, adjustments, 15 or parts exceeds four percent of the dealer’s adjusted cost 16 manufacturer’s suggested retail price . The written disclosure 17 shall include the signature of the buyer or lessee and be in 18 a form and in a format approved by the attorney general by 19 rule. A dealer shall retain a copy of each written disclosure 20 issued pursuant to this section for five years from the date 21 of issuance. 22 3. As used in this section , “dealer’s adjusted cost” 23 “manufacturer’s suggested retail price” means the amount paid by 24 the dealer to the manufacturer or other source for the vehicle, 25 including any freight charges, but excluding any sum paid by 26 the manufacturer to the dealer as a holdback or other monetary 27 incentive relating to the vehicle required to be disclosed by a 28 dealer pursuant to 15 U.S.C. §1232(f)(4) . 29 Sec. 52. Section 321.105A, subsection 2, paragraph c, 30 subparagraph (14), Code 2014, is amended to read as follows: 31 (14) Vehicles purchased by a licensed motor vehicle dealer 32 for resale or primarily for use by the dealer’s customers while 33 the customers’ vehicles are being serviced or repaired by the 34 dealer . 35 -30- HF 2361 (4) 85 dea/nh/md 30/ 32

H.F. 2361 Sec. 53. NEW SECTION . 322.7B Consignment sales of motor 1 trucks. 2 A licensed motor vehicle dealer may sell a used motor truck 3 on a consignment basis if all of the following conditions 4 apply: 5 1. The dealer is licensed to sell used motor vehicles. 6 2. The motor truck offered for sale has a gross vehicle 7 weight rating of twenty-six thousand one or more pounds. 8 3. The dealer prominently displays the words “consignment 9 vehicle” on the motor truck and indicates clearly in the sales 10 documentation that the motor truck is a consignment vehicle. 11 The dealer shall put customers on notice that the dealer does 12 not have title to the vehicle and does not warranty the title. 13 4. The purchaser certifies to the dealer that the person is 14 either a corporation, limited liability company, or partnership 15 or a person who files a schedule C or schedule F form for 16 federal income tax purposes, and that the motor truck is being 17 purchased for business purposes, and not for personal use. 18 5. The dealer assumes no liability for damages resulting 19 from a customer’s test drive of the motor truck, and the 20 consignor maintains financial liability coverage as required 21 under section 321.20B or 325A.6, as appropriate, for the motor 22 truck throughout the term of the consignment. 23 Sec. 54. Section 322.9, subsection 2, paragraphs a, b, and 24 c, Code 2014, are amended to read as follows: 25 a. Failing upon the sale or transfer of a vehicle , except 26 upon the sale of a vehicle under section 322.7B, to deliver to 27 the purchaser or transferee of the vehicle sold or transferred, 28 a manufacturer’s or importer’s certificate, or a certificate of 29 title duly assigned, as provided in chapter 321 . 30 b. Failing upon the purchasing or otherwise acquiring of a 31 vehicle , except a vehicle acquired on consignment under section 32 322.7B, to obtain a manufacturer’s or importer’s certificate, 33 or a certificate of title duly assigned as provided in chapter 34 321 . 35 -31- HF 2361 (4) 85 dea/nh/md 31/ 32