Senate
File
2228
-
Reprinted
SENATE
FILE
2228
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
3078)
(As
Amended
and
Passed
by
the
Senate
March
2,
2016
)
A
BILL
FOR
An
Act
relating
to
the
activities
of
motor
vehicle
dealers,
1
including
the
electronic
submission
of
applications
for
2
motor
vehicle
registration
and
issuance
of
certificates
of
3
title,
the
furnishing
of
surety
bonds,
and
the
assessment
of
4
documentary
fees,
and
making
a
penalty
applicable.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2228
Section
1.
Section
321.20,
subsections
2
and
3,
Code
2016,
1
are
amended
to
read
as
follows:
2
2.
Notwithstanding
contrary
provisions
of
this
chapter
3
or
chapter
326
regarding
titling
and
registration
by
means
4
other
than
electronic
means,
the
department
may
shall,
by
5
January
1,
2018,
develop
and
implement
a
program
to
allow
for
6
electronic
applications,
titling,
registering,
and
electronic
7
funds
transfer
transfers
for
vehicles
subject
to
registration
8
in
order
to
improve
the
efficiency
and
timeliness
of
the
9
processes
and
to
reduce
costs
for
all
parties
involved.
The
10
program
shall
also
provide
for
the
electronic
submission
of
any
11
statement
required
by
this
section,
except
where
prohibited
by
12
federal
law.
13
3.
The
department
shall
adopt
rules
on
the
method
for
14
providing
signatures
for
applications
and
statements
required
15
by
this
section
that
are
made
by
electronic
means.
16
Sec.
2.
Section
321.20,
Code
2016,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
4.
Notwithstanding
this
section
or
any
19
other
provision
of
law
to
the
contrary,
if
the
program
required
20
by
subsection
2
is
not
implemented
by
January
1,
2018,
an
owner
21
of
a
vehicle
subject
to
registration
may
apply
to
the
county
22
treasurer
of
a
county
contiguous
to
the
county
designated
for
23
the
owner
under
subsection
1
for
registration
and
issuance
of
24
a
certificate
of
title.
25
Sec.
3.
Section
322.4,
subsection
1,
paragraph
g,
Code
2016,
26
is
amended
to
read
as
follows:
27
g.
Before
the
issuance
of
a
motor
vehicle
dealer’s
license
28
to
a
dealer
engaged
in
the
sale
of
vehicles
for
which
a
29
certificate
of
title
is
required
under
chapter
321
,
or
the
30
issuance
of
a
temporary
permit
under
section
322.5,
subsection
31
6
,
paragraph
“b”
,
the
applicant
shall
furnish
a
surety
bond
32
executed
by
the
applicant
as
principal
and
executed
by
a
33
corporate
surety
company,
licensed
and
qualified
to
do
business
34
within
this
state,
which
bond
shall
run
to
the
state
of
Iowa,
35
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be
in
the
amount
of
fifty
seventy-five
thousand
dollars
and
1
be
conditioned
upon
the
faithful
compliance
by
the
applicant
2
as
a
dealer
with
all
of
the
statutes
of
this
state
regulating
3
or
applicable
to
the
business
of
a
dealer
in
motor
vehicles,
4
and
indemnifying
any
person
who
buys
a
motor
vehicle
from
the
5
dealer
from
any
loss
or
damage
occasioned
by
the
failure
of
the
6
dealer
to
comply
with
any
of
the
provisions
of
chapter
321
and
7
this
chapter
,
including
but
not
limited
to
the
furnishing
of
8
a
proper
and
valid
certificate
of
title
to
the
motor
vehicle
9
involved
in
a
transaction.
The
bond
shall
also
indemnify
any
10
motor
vehicle
purchaser
from
any
loss
or
damage
caused
by
the
11
failure
of
the
dealer
to
comply
with
the
odometer
requirements
12
in
section
321.71
,
regardless
of
whether
the
motor
vehicle
was
13
purchased
directly
from
the
dealer.
The
bond
shall
be
filed
14
with
the
department
prior
to
the
issuance
of
a
license
or
15
permit.
The
aggregate
liability
of
the
surety,
however,
shall
16
not
exceed
the
amount
of
the
bond.
17
Sec.
4.
NEW
SECTION
.
322.19A
Documentary
fee.
18
1.
For
purposes
of
this
section,
“documentary
fee”
means
a
19
fee
that
may
be
charged
to
a
customer
by
a
motor
vehicle
dealer
20
for
the
preparation
of
documents
related
to
an
application
for
21
motor
vehicle
registration
and
an
application
for
issuance
of
22
a
certificate
of
title,
and
the
performance
of
other
related
23
services
for
the
customer.
“Documentary
fee”
does
not
include
24
any
costs
or
fees
charged
to
a
motor
vehicle
dealer
or
a
25
dealer’s
customer
by
a
third
party.
26
2.
A
motor
vehicle
dealer
may
charge
a
documentary
fee
not
27
to
exceed
one
hundred
eighty
dollars
for
each
motor
vehicle
28
sold
in
a
transaction.
29
3.
After
the
department
has
implemented
a
statewide
30
program
pursuant
to
section
321.20,
subsection
2,
the
maximum
31
documentary
fee
permitted
by
subsection
2
shall
be
reduced
by
32
twenty-five
dollars.
33
4.
A
motor
vehicle
dealer
who
charges
a
documentary
fee
34
to
a
customer
shall
include
the
fee
in
the
price
of
the
motor
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vehicle.
The
dealer
shall
disclose
the
full
amount
of
the
fee
1
in
any
price
of
a
motor
vehicle
advertised
by
the
dealer
and
2
when
making
or
accepting
an
offer
to
sell
a
motor
vehicle.
The
3
dealer
shall
provide
the
following
notice
to
the
customer,
4
which
notice
shall
be
included
in
any
retail
installment
5
contract
with
the
customer:
6
DOCUMENTARY
FEE.
A
DOCUMENTARY
FEE
IS
NOT
AN
OFFICIAL
FEE.
7
A
DOCUMENTARY
FEE
IS
NOT
REQUIRED
BY
LAW,
BUT
MAY
BE
CHARGED
TO
8
A
BUYER
FOR
THE
PREPARATION
OF
DOCUMENTS
AND
THE
PERFORMANCE
OF
9
RELATED
SERVICES.
THE
MAXIMUM
AMOUNT
THAT
MAY
BE
CHARGED
FOR
10
A
DOCUMENTARY
FEE
IS
DETERMINED
BY
IOWA
CODE
SECTION
322.19A.
11
THIS
NOTICE
IS
REQUIRED
BY
LAW.
12
5.
A
violation
of
this
section
is
an
unlawful
practice
under
13
section
714.16.
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