House File 592 - Reprinted HOUSE FILE 592 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 168) (As Amended and Passed by the House March 16, 2023 ) A BILL FOR An Act relating to licensed vehicle dealers, including vehicles 1 for resale subject to a security interest and remote sales 2 of motor vehicles. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 592 (2) 90 th/ns/md

H.F. 592 Section 1. Section 321.50, subsection 5, paragraph a, Code 1 2023, is amended to read as follows: 2 a. When Except as provided in section 321.48, subsection 3 1, paragraph “b” , when a security interest is discharged, the 4 holder shall note a cancellation of the security interest 5 on the face of the certificate of title over the holder’s 6 signature or may note the cancellation of the security interest 7 on a separate, notarized release form or letter. The holder 8 shall deliver the certificate of title and the form or letter, 9 if applicable, to the county treasurer where the title was 10 issued. In the case of a security interest that has been 11 delivered by electronic means, the holder shall notify the 12 department or the county treasurer, in a manner prescribed 13 by the department, of the release of the security interest. 14 The county treasurer shall immediately note the cancellation 15 of the security interest on the face of the certificate of 16 title, if applicable, and in the county records system. The 17 county treasurer shall on the same day deliver the certificate 18 of title, if applicable, and the separate, notarized release 19 form or letter, if applicable, to the then first secured party 20 or, if there is no such person, to the person as directed by 21 the owner, in writing, on a form prescribed by the department 22 or, if there is no person designated, then to the owner. The 23 cancellation of the security interest shall be noted on the 24 certificate of title by the county treasurer without charge. 25 The holder of a security interest discharged by payment who 26 fails to release the security interest within fifteen days 27 after being requested in writing to do so shall forfeit to the 28 person making the payment the sum of twenty-five dollars. 29 Sec. 2. Section 321.50, Code 2023, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 5A. Notwithstanding subsection 5, when 32 an application for registration and issuance of a certificate 33 of title is made by the means described in section 321.20, 34 subsection 2, and the application includes a certificate of 35 -1- HF 592 (2) 90 th/ns/md 1/ 3

H.F. 592 title upon which a security interest has been discharged by the 1 secured party and the cancellation of the security interest is 2 noted by the secured party on the certificate of title above 3 the secured party’s signature, the county treasurer shall 4 not require any other notation of the cancellation of the 5 security interest on the face of the certificate of title, and, 6 if applicable, the county treasurer shall notify the county 7 treasurer of the county where the certificate of title was 8 issued that the security interest has been released as of the 9 specified date and shall update such release on the applicable 10 program or computer system. A dealer licensed under chapter 11 322 or chapter 322C is authorized to sell such a vehicle 12 pursuant to section 321.48, subsection 1, paragraph “b” . 13 Sec. 3. Section 322.2, Code 2023, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 20A. “Remote sale” means a sale of a 16 motor vehicle conducted via mail, either electronically or 17 by courier, including any offering, bartering, negotiating, 18 exchanging, and other communication regarding the sale of the 19 vehicle. “Remote sale” includes the delivery of the vehicle to 20 the residence of the buyer or another agreed-to location, if 21 requested by the buyer. 22 Sec. 4. Section 322.3, subsection 11, Code 2023, is amended 23 to read as follows: 24 11. A person who is engaged in the business of selling motor 25 vehicles at retail shall not sell, offer for sale, display, 26 represent, or advertise that the person intends to sell motor 27 vehicles from a location other than the person’s place of 28 business, except as provided in subsection 11A or section 29 322.5 . 30 Sec. 5. Section 322.3, Code 2023, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 11A. A retail seller licensed under this 33 chapter may engage in remote sales of motor vehicles located 34 at a place of business of the retail seller, as listed on the 35 -2- HF 592 (2) 90 th/ns/md 2/ 3

H.F. 592 license, under all of the following conditions: 1 a. The dealer shall possess, at the time of the sale, the 2 certificate of title to any motor vehicle offered for remote 3 sale. 4 b. The dealer may transmit a proposed purchase agreement 5 from the dealer to the prospective buyer if such agreement is 6 the result of negotiation between the parties. The dealer 7 shall not negotiate and shall not deliver a proposed purchase 8 agreement to a buyer in person at a location other than the 9 dealer’s place of business. 10 c. The dealer shall not sign a proposed purchase agreement 11 until the dealer receives an executed purchase agreement from 12 the buyer. A signed purchase agreement must be delivered to 13 the dealer’s place of business. 14 d. The dealer shall not deliver a motor vehicle to a buyer 15 away from the dealer’s place of business until the buyer’s 16 purchase of the motor vehicle is completed. 17 e. Remote sales are subject to chapter 554D. 18 -3- HF 592 (2) 90 th/ns/md 3/ 3