Senate File 2355 - Reprinted SENATE FILE 2355 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 3220) (As Amended and Passed by the Senate April 21, 2014 ) A BILL FOR An Act relating to matters under the purview of the department 1 of transportation, establishing a fee, and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2355 (2) 85 dea/nh/jh
S.F. 2355 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- SF 2355 (2) 85 dea/nh/jh 1/ 15
S.F. 2355 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- SF 2355 (2) 85 dea/nh/jh 2/ 15
S.F. 2355 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- SF 2355 (2) 85 dea/nh/jh 3/ 15
S.F. 2355 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- SF 2355 (2) 85 dea/nh/jh 4/ 15
S.F. 2355 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 MISCELLANEOUS PROVISIONS 22 Sec. 11. Section 321.50, subsection 5, Code 2014, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . d. For purposes of this subsection, a 25 security interest noted on an Iowa certificate of title and 26 appearing in the statewide computer system and the county’s 27 records shall be presumed to be discharged upon presentation of 28 a valid certificate of title subsequently issued by a foreign 29 jurisdiction on which the security interest is no longer noted. 30 Sec. 12. Section 321.176A, subsection 1, Code 2014, is 31 amended to read as follows: 32 1. A farmer or a person working for a farmer while operating 33 a commercial motor vehicle controlled by the farmer within one 34 hundred fifty air miles of the farmer’s farm to transport the 35 -5- SF 2355 (2) 85 dea/nh/jh 5/ 15
S.F. 2355 farmer’s own agricultural products, farm machinery, or farm 1 supplies to or from the farm covered farm vehicle as defined 2 in the federal Moving Ahead for Progress in the 21st Century 3 Act, Pub. L. No. 112-141, §32934 . The exemption provided in 4 this subsection shall apply to farmers who assist each other 5 through an exchange of services and shall include operation of 6 a commercial motor vehicle between the farms of the farmers who 7 are exchanging services. 8 Sec. 13. Section 321.187, Code 2014, is amended to read as 9 follows: 10 321.187 Examiners. 11 1. The department shall examine applicants for driver’s 12 licenses. Examiners of the department shall wear an 13 identifying badge and uniform provided by the department. 14 2. The department may by rule designate community colleges 15 established under chapter 260C and other third-party testers to 16 administer the driving skills test required for a commercial 17 driver’s license , provided that all of the following occur: 18 a. The driving skills test is the same as that which would 19 otherwise be administered by the state. 20 b. The examiner third-party tester contractually agrees to 21 comply with the requirements of 49 C.F.R. §383.75 as adopted by 22 rule by the department. 23 c. Any third-party skills test examiner used by the 24 third-party tester shall meet the requirements of 49 C.F.R. 25 §383.75 and 49 C.F.R. §384.228, as adopted by rule by the 26 department. The department shall adopt rules requiring that a 27 third-party tester, other than a community college established 28 under chapter 260C, shall be an Iowa-based motor carrier, or 29 its subsidiary, that has its principal office within this state 30 and operates a permanent commercial driver training facility 31 in this state. The rules may also provide that a third-party 32 tester conduct a number of skills test examinations above the 33 number required under 49 C.F.R. §383.75 in order to remain 34 qualified as a third-party tester under this section. 35 -6- SF 2355 (2) 85 dea/nh/jh 6/ 15
S.F. 2355 3. As used in this section, “third-party tester” and 1 “third-party skills test examiner” mean as defined in 49 C.F.R. 2 §383.5. 3 Sec. 14. Section 321.194, subsection 2, Code 2014, is 4 amended to read as follows: 5 2. Suspension and revocation. A driver’s license issued 6 under this section is subject to suspension or revocation 7 for the same reasons and in the same manner as suspension or 8 revocation of any other driver’s license. The department may 9 also suspend a driver’s license issued under this section upon 10 receiving satisfactory evidence that the licensee has violated 11 the restrictions of the license or has been involved in one 12 or more accidents chargeable to the licensee. The department 13 may suspend a driver’s license issued under this section 14 upon receiving a record of the licensee’s conviction for one 15 violation. The department shall revoke the license upon 16 receiving a record of conviction for two or more violations 17 of a law of this state or a city ordinance regulating the 18 operation of motor vehicles on highways other than parking 19 violations as defined in section 321.210 . After a person 20 licensed under this section receives two or more convictions 21 which require revocation of the person’s license under this 22 section , the department shall not grant an application for a 23 new driver’s license until the expiration of one year thirty 24 days . 25 Sec. 15. Section 321.257, subsection 2, paragraphs g and h, 26 Code 2014, are amended to read as follows: 27 g. A “don’t walk” or “steady upraised hand” light is a 28 pedestrian signal which means that pedestrian traffic facing 29 the illuminated pedestrian signal shall not start to cross 30 the roadway in the direction of the pedestrian signal, and 31 pedestrian traffic in the crossing shall proceed to a safety 32 zone. 33 h. A “walk” or “walking person” light is a pedestrian signal 34 which means that pedestrian traffic facing the illuminated 35 -7- SF 2355 (2) 85 dea/nh/jh 7/ 15
S.F. 2355 pedestrian signal may proceed to cross the roadway in the 1 direction of the pedestrian signal and shall be given the 2 right-of-way by drivers of all vehicles. 3 Sec. 16. Section 321.257, subsection 2, Code 2014, is 4 amended by adding the following new paragraphs: 5 NEW PARAGRAPH . 0g. A “flashing yellow arrow” light shown 6 alone or with another official traffic-control signal means 7 vehicular traffic may cautiously enter the intersection 8 and proceed only in the direction indicated by the arrow. 9 Vehicular traffic shall yield the right-of-way to other 10 vehicles and pedestrians lawfully within the intersection and 11 any vehicle on the opposing approach which is approaching so 12 closely as to constitute an immediate hazard during the time 13 the driver is moving within the intersection. 14 NEW PARAGRAPH . 0h. A “flashing upraised hand” or “upraised 15 hand with countdown” light is a pedestrian signal which means 16 that pedestrian traffic facing the illuminated pedestrian 17 signal shall not start to cross the roadway in the direction of 18 the pedestrian signal, and pedestrian traffic in the crossing 19 shall proceed to a safety zone. The “upraised hand with 20 countdown” light is a pedestrian signal that also provides the 21 time remaining for the pedestrian to complete the crossing. 22 Sec. 17. Section 321.258, Code 2014, is amended to read as 23 follows: 24 321.258 Arrangement of lights on official traffic-control 25 signals. 26 1. Colored lights placed on a vertical official 27 traffic-control signal face shall be arranged from the top to 28 the bottom in the following order when used: 29 a. Circular red , circular . 30 b. Steady and/or flashing left-turn red arrow. 31 c. Steady and/or flashing right-turn red arrow. 32 d. Circular yellow , circular . 33 e. Circular green , straight through yellow arrow, straight 34 through . 35 -8- SF 2355 (2) 85 dea/nh/jh 8/ 15
S.F. 2355 f. Straight-through green arrow , left turn . 1 g. Steady left-turn yellow arrow , left turn . 2 h. Flashing left-turn yellow arrow. 3 i. Left-turn green arrow , right turn . 4 j. Steady right-turn yellow arrow , and right turn . 5 k. Flashing right-turn yellow arrow. 6 l. Right-turn green arrow. 7 2. Colored lights placed on a horizontal official 8 traffic-control signal face shall be arranged from the left to 9 the right in the following order when used: 10 a. Circular red , circular . 11 b. Steady and/or flashing left-turn red arrow. 12 c. Steady and/or flashing right-turn red arrow. 13 d. Circular yellow , left turn . 14 e. Steady left-turn yellow arrow , left turn . 15 f. Flashing left-turn yellow arrow. 16 g. Left-turn green arrow , circular . 17 h. Circular green , straight through yellow . 18 i. Straight-through green arrow , straight through green . 19 j. Steady right-turn yellow arrow , right turn . 20 k. Flashing right-turn yellow arrow , and right turn . 21 l. Right-turn green arrow. 22 Sec. 18. Section 321A.17, subsection 4, Code 2014, is 23 amended to read as follows: 24 4. An individual applying for a driver’s license following a 25 period of suspension or revocation pursuant to a dispositional 26 order issued under section 232.52, subsection 2 , paragraph 27 “a” , or under section 321.180B , section 321.210, subsection 28 1 , paragraph “a” , subparagraph (4), or section 321.210A , 29 321.213A , 321.213B , 321.216B , or 321.513 , following a period 30 of suspension or revocation under section 321.178 or 321.194 , 31 or following a period of revocation pursuant to a court order 32 issued under section 901.5, subsection 10 , or under section 33 321J.2A , is not required to maintain proof of financial 34 responsibility under this section . 35 -9- SF 2355 (2) 85 dea/nh/jh 9/ 15
S.F. 2355 Sec. 19. NEW SECTION . 328.13 Commercial air service 1 retention and expansion committee. 2 A commercial air service retention and expansion committee 3 is established within the aviation office of the department. 4 The membership of the committee shall consist of the director 5 or the director’s designee; the managers of each airport in 6 Iowa with commercial air service; two members of the senate, 7 one appointed by the majority leader of the senate and one 8 appointed by the minority leader of the senate; and two members 9 of the house of representatives, one appointed by the speaker 10 of the house and one appointed by the minority leader of the 11 house. Legislative members are eligible for per diem and 12 expenses as provided in section 2.10, for each day of service. 13 The committee shall, on or before December 31, 2014, develop a 14 plan for the retention and expansion of passenger air service 15 in Iowa. The committee shall meet as the committee deems 16 necessary to assess progress in implementing the plan and, if 17 necessary, to update the plan. 18 Sec. 20. Section 328.24, unnumbered paragraph 1, Code 2014, 19 is amended to read as follows: 20 If, during the year for which an aircraft, except 21 nonresident aircraft used for the application of herbicides 22 and pesticides, was registered and the required fee paid , the 23 aircraft is destroyed by fire or accident or junked, and its 24 identity as an aircraft entirely eliminated, or it the aircraft 25 is removed and continuously used beyond the boundaries of the 26 state, then the owner in whose name it was registered at the 27 time of destruction, dismantling, or removal from the state 28 shall return the certificate of registration to the department 29 within ten thirty days and make affidavit of the destruction, 30 dismantling, or removal and make claim for the refund. The 31 refund shall be paid from the general fund of the state. 32 Sec. 21. 2012 Iowa Acts, chapter 1129, section 4, is amended 33 to read as follows: 34 SEC. 4. ROAD USE TAX FUND EFFICIENCY MEASURES 35 -10- SF 2355 (2) 85 dea/nh/jh 10/ 15
S.F. 2355 —— QUARTERLY ANNUAL REPORTS. The department of transportation 1 shall submit quarterly reports a report annually on or before 2 December 31 in an electronic format to the co-chairpersons 3 of the joint appropriations subcommittee on transportation, 4 infrastructure, and capitals, the chairpersons of the senate 5 and house standing committees on transportation, the department 6 of management, and the legislative services agency regarding 7 the implementation of efficiency measures identified in the 8 “Road Use Tax Fund Efficiency Report”, January 2012. The 9 reports shall provide details of activities undertaken in 10 the previous quarter year relating to one-time and long-term 11 program efficiencies and partnership efficiencies. Issues to 12 be covered in the reports shall include but are not limited 13 to savings realized from the implementation of particular 14 efficiency measures; updates concerning measures that have 15 not been implemented; efforts involving cities, counties, 16 other jurisdictions, or stakeholder interest groups; any 17 new efficiency measures identified or undertaken; and 18 identification of any legislative action that may be required 19 to achieve efficiencies. The first report shall be submitted 20 by October 1, 2012. 21 Sec. 22. INTERSECTION REPORT. By October 1, 2014, the 22 county engineer of each county shall provide a report to 23 the department of transportation identifying all locations 24 in the county where two different roads or highways having 25 speed limits of 55 miles per hour or greater intersect but 26 are not controlled by an official traffic-control signal 27 or by official traffic-control devices that direct traffic 28 approaching from every direction to stop or yield before 29 entering the intersection. On or before December 31, 2014, the 30 department shall file a report with the legislative services 31 agency detailing the number and locations of the intersections 32 identified in the county engineers’ reports. 33 Sec. 23. FUTURE REPEAL. The section of this division of 34 this Act amending section 321.187 is repealed five years after 35 -11- SF 2355 (2) 85 dea/nh/jh 11/ 15
S.F. 2355 the effective date of this division of this Act. 1 Sec. 24. PRIOR REVOCATIONS. 2 1. The department of transportation shall end the period of 3 revocation for any person whose driver’s license was revoked 4 under section 321.194, subsection 2, Code 2014, for having two 5 or more convictions if the revocation became effective on or 6 after July 1, 2013, and, as of the effective date of this Act, 7 the revocation has been effective for at least 30 days. 8 2. The department shall apply the provisions of section 9 321A.17, subsection 4, as amended by this Act, to end any 10 ongoing duty to maintain proof of financial responsibility 11 imposed under section 321A.17, Code 2014, arising from a 12 revocation under section 321.178, Code 2014, or section 13 321.194, Code 2014, that occurred prior to the effective date 14 of this Act. 15 Sec. 25. EFFECTIVE UPON ENACTMENT. The following provision 16 of this division of this Act, being deemed of immediate 17 importance, takes effect upon enactment: 18 1. The section of this division of this Act amending section 19 321.187. 20 DIVISION III 21 MOTOR VEHICLE DEALERS 22 Sec. 26. Section 321.48, Code 2014, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 2A. Notwithstanding subsections 1 and 2, 25 requirements in those subsections for obtaining title to a 26 vehicle or acknowledging assignment and warranty of title do 27 not apply to a dealer who sells a motor vehicle to a purchaser 28 in a consignment transaction authorized under section 322.7B. 29 Sec. 27. Section 321.57, subsection 1, Code 2014, is amended 30 to read as follows: 31 1. A dealer owning any vehicle of a type otherwise 32 required to be registered under this chapter may operate or 33 move the vehicle upon the highways solely for purposes of 34 transporting, testing, demonstrating, or selling the vehicle 35 -12- SF 2355 (2) 85 dea/nh/jh 12/ 15
S.F. 2355 without registering the vehicle, upon condition that the 1 vehicle display in the manner prescribed in sections 321.37 2 and 321.38 a special plate issued to the owner as provided in 3 sections 321.58 through 321.62 . A dealer may operate or move 4 upon the highways a vehicle owned by the dealer for either 5 private or business purposes , including hauling a load or 6 towing a trailer, without registering it if the vehicle is in 7 the dealer’s inventory and is continuously offered for sale at 8 retail, and there is displayed on it a special plate issued to 9 the dealer as provided in sections 321.58 through 321.62 . A 10 dealer may operate or move upon the highways an unregistered 11 vehicle owned by a lessor licensed pursuant to chapter 321F 12 solely for the purpose of delivering the vehicle to the owner 13 or transporting the vehicle to or from an auction if there is 14 displayed on the vehicle a special plate issued to the dealer 15 as provided in sections 321.58 through 321.62 . 16 Sec. 28. Section 321.60, Code 2014, is amended to read as 17 follows: 18 321.60 Issuance of special plates. 19 The department shall also issue special plates as applied 20 for, which shall display the general distinguishing number 21 assigned to the applicant. Each plate so issued shall 22 also contain a number or symbol identifying the plate and 23 distinguishing it from every other plate bearing the same 24 general distinguishing number. The fee for each special plate 25 is forty dollars for a two-year period or part thereof. The 26 fee for a special plate used on a vehicle that is hauling a 27 load or towing a trailer is seven hundred fifty dollars for a 28 two-year period or part thereof. 29 Sec. 29. Section 321.69A, subsection 1, paragraph a, 30 subparagraph (2), Code 2014, is amended to read as follows: 31 (2) The actual cost of any labor or parts charged to or 32 performed by the dealer for any such repairs, adjustments, or 33 parts does not exceed four percent of the dealer’s adjusted 34 cost manufacturer’s suggested retail price . 35 -13- SF 2355 (2) 85 dea/nh/jh 13/ 15
S.F. 2355 Sec. 30. Section 321.69A, subsections 2 and 3, Code 2014, 1 are amended to read as follows: 2 2. A person licensed as a new motor vehicle dealer pursuant 3 to chapter 322 shall disclose in writing, at or before the 4 time of sale or lease, to the buyer or lessee of a new motor 5 vehicle that the vehicle has been subject to any repairs of 6 damage to or adjustments on or replacements of parts with new 7 parts if the actual cost of any labor or parts charged to or 8 performed by the dealer for any such repairs, adjustments, 9 or parts exceeds four percent of the dealer’s adjusted cost 10 manufacturer’s suggested retail price . The written disclosure 11 shall include the signature of the buyer or lessee and be in 12 a form and in a format approved by the attorney general by 13 rule. A dealer shall retain a copy of each written disclosure 14 issued pursuant to this section for five years from the date 15 of issuance. 16 3. As used in this section , “dealer’s adjusted cost” 17 “manufacturer’s suggested retail price” means the amount paid by 18 the dealer to the manufacturer or other source for the vehicle, 19 including any freight charges, but excluding any sum paid by 20 the manufacturer to the dealer as a holdback or other monetary 21 incentive relating to the vehicle required to be disclosed by a 22 dealer pursuant to 15 U.S.C. §1232(f)(4) . 23 Sec. 31. Section 321.105A, subsection 2, paragraph c, 24 subparagraph (14), Code 2014, is amended to read as follows: 25 (14) Vehicles purchased by a licensed motor vehicle dealer 26 for resale or primarily for use by the dealer’s customers while 27 the customers’ vehicles are being serviced or repaired by the 28 dealer . 29 Sec. 32. NEW SECTION . 322.7B Consignment sales of motor 30 trucks. 31 A licensed motor vehicle dealer may sell a used motor truck 32 on a consignment basis if all of the following conditions 33 apply: 34 1. The dealer is licensed to sell used motor vehicles. 35 -14- SF 2355 (2) 85 dea/nh/jh 14/ 15
S.F. 2355 2. The motor truck offered for sale has a gross vehicle 1 weight rating of twenty-six thousand one or more pounds. 2 3. The dealer prominently displays the words “consignment 3 vehicle” on the motor truck and indicates clearly in the sales 4 documentation that the motor truck is a consignment vehicle. 5 The dealer shall put customers on notice that the dealer does 6 not have title to the vehicle and does not warranty the title. 7 4. The purchaser certifies to the dealer that the person is 8 either a corporation, limited liability company, or partnership 9 or a person who files a schedule C or schedule F form for 10 federal income tax purposes, and that the motor truck is being 11 purchased for business purposes, and not for personal use. 12 5. The dealer assumes no liability for damages resulting 13 from a customer’s test drive of the motor truck, and the 14 consignor maintains financial liability coverage as required 15 under section 321.20B or 325A.6, as appropriate, for the motor 16 truck throughout the term of the consignment. 17 Sec. 33. Section 322.9, subsection 2, paragraphs a, b, and 18 c, Code 2014, are amended to read as follows: 19 a. Failing upon the sale or transfer of a vehicle , except 20 upon the sale of a vehicle under section 322.7B, to deliver to 21 the purchaser or transferee of the vehicle sold or transferred, 22 a manufacturer’s or importer’s certificate, or a certificate of 23 title duly assigned, as provided in chapter 321 . 24 b. Failing upon the purchasing or otherwise acquiring of a 25 vehicle , except a vehicle acquired on consignment under section 26 322.7B, to obtain a manufacturer’s or importer’s certificate, 27 or a certificate of title duly assigned as provided in chapter 28 321 . 29 c. Failing upon the purchasing or otherwise acquiring of a 30 vehicle , except a vehicle acquired on consignment under section 31 322.7B, to obtain a new certificate of title to such vehicle 32 when and where required in chapter 321 . 33 -15- SF 2355 (2) 85 dea/nh/jh 15/ 15