House File 2485 - Reprinted HOUSE FILE 2485 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 656) (As Amended and Passed by the House March 5, 2026 ) A BILL FOR An Act relating to motor vehicle dealers, including rights to 1 certain vehicles, records storage requirements, and remote 2 sales of motor vehicles. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2485 (3) 91 th/ns/md

H.F. 2485 Section 1. Section 321.45, subsection 2, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. For purposes of this subsection, a motor 3 vehicle dealer licensed under chapter 322 shall be deemed to 4 have acquired and to possess the right, title, claim, and 5 interest in a vehicle if the vehicle’s certificate of title is 6 issued or properly assigned to an entity with direct ownership 7 or control over the dealer. 8 Sec. 2. Section 321.63, Code 2026, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 3. A dealer shall do all of the following: 11 a. Store all records at a place of business of the dealer 12 or at a place of business within the United States of an entity 13 that has direct ownership or control over the dealer. 14 b. Provide electronic records to the department within 15 twenty-four hours after receiving a request. 16 c. Provide physical records to the department within a 17 reasonable time considering postal delivery. 18 Sec. 3. Section 322.3, subsection 12, paragraphs a and c, 19 Code 2026, are amended to read as follows: 20 a. The dealer or an entity with direct ownership or control 21 over the dealer shall possess, at the time of the sale, the 22 certificate of title to any motor vehicle offered for remote 23 sale by the dealer . The certificate of title may be in an 24 electronic format that is created, stored, or transferred only 25 through a secure electronic system approved by the department 26 and shall not be in a portable document format, a scanned copy, 27 evidenced by an electronic mail message, or in another format 28 created by the dealer. 29 c. The dealer shall not sign a proposed purchase agreement 30 until the dealer receives an executed purchase agreement from 31 the buyer. A signed purchase agreement must be delivered to 32 the dealer’s place of business , as listed on the dealer’s 33 license . 34 Sec. 4. Section 322.3, subsection 12, Code 2026, is amended 35 -1- HF 2485 (3) 91 th/ns/md 1/ 2

H.F. 2485 by adding the following new paragraphs: 1 NEW PARAGRAPH . f. The dealer shall disclose to a buyer all 2 of the following regarding the vehicle offered for sale: 3 (1) That the vehicle is not located in this state, if 4 applicable. 5 (2) That the certificate of title is in an electronic 6 format, if applicable. 7 (3) The estimated delivery date of the vehicle. 8 NEW PARAGRAPH . g. If requested, the dealer shall produce 9 proof, including in an electronic format, to the department 10 that the dealer has the certificate of title for a vehicle 11 offered for sale. The dealer shall also retain records showing 12 where a vehicle is stored, the status of the vehicle’s title, 13 and documents relating to the remote sale of a vehicle. The 14 dealer shall store and provide records in accordance with 15 section 321.63, subsection 3. 16 NEW PARAGRAPH . h. Pursuant to section 554D.108 and 17 consistent with 49 C.F.R. pt. 580 and the federal Electronic 18 Signatures in Global and National Commerce Act, 15 U.S.C. §7001 19 et seq., an electronic signature captured and applied to an 20 image of a physical certificate of title that was originally 21 printed by a secure printing process as defined in 49 C.F.R. 22 §580.3, which complies with all applicable requirements under 23 49 C.F.R. pt. 580, shall be accepted for purposes of odometer 24 disclosure. A dealer using an electronic signature on a 25 digital image of a physical title shall mark the original 26 title as “void” or “surrendered” and submit an application 27 for certificate of title and registration electronically via 28 an authorized service provider pursuant to section 321.20, 29 subsection 2. 30 NEW PARAGRAPH . i. A remote sale of a motor vehicle is not 31 a door-to-door sale as defined in section 555A.1, and is not 32 subject to chapter 555A. 33 -2- HF 2485 (3) 91 th/ns/md 2/ 2