House Study Bill 86 - IntroducedA Bill ForAn Act 1relating to motor vehicles, including the surrender
2or transfer of registration plates and cards to a county
3treasurer, documentary fees charged by motor vehicle
4dealers, and motor vehicle franchise obligations.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 321.26, subsection 2, Code 2021, is
2amended to read as follows:
   32.  The county treasurer may adjust the renewal or
4expiration date of vehicles registered in the county when
5deemed necessary to equalize the number of vehicles registered
6in each twelve-month period or for the administrative
7efficiency of the county treasurer’s office. The adjustment
8shall be accomplished by delivery of a written notice to the
9vehicle owner of the adjustment and allowance of a credit
10for the remaining months of the unused portion of the annual
11registration fee, rounded to the nearest whole dollar, which
12amount shall be deducted from the annual registration fee due
13at the time of registration. Upon receipt of the notification
14the owner shall, within thirty days, surrender the registration
15card and registration plates to the a county treasurer of
16the county where the vehicle is registered
, except that the
17registration plates shall not be surrendered if validation
18stickers or other emblems are used to designate the month and
19year of expiration of registration. Upon payment of the annual
20registration fee, less the credit allowed for the remaining
21months of the unused portion of the annual registration
22fee, the county treasurer of the county where the vehicle is
23registered
shall issue a new registration card and registration
24plates, validation stickers, or emblems which indicate the
25month and year of expiration of registration.
26   Sec. 2.  Section 321.34, subsection 1, Code 2021, is amended
27to read as follows:
   281.  Plates issued.  The county treasurer upon receiving
29application, accompanied by proper fee, for registration of a
30vehicle shall issue to the owner one registration plate for
31a motorcycle, motorized bicycle, autocycle, truck tractor,
32trailer, or semitrailer and two registration plates for every
33other motor vehicle. The registration plates, including
34special registration plates, shall be assigned to the owner of
35a vehicle. When the owner of a registered vehicle transfers or
-1-1assigns ownership of the vehicle to another person, the owner
2shall remove the registration plates from the vehicle. The
3owner shall forward the plates to the a county treasurer where
4the vehicle is registered
or the owner may have the plates
5assigned to another vehicle within thirty days after transfer,
6upon payment of the fees required by law. The owner shall
7immediately affix registration plates retained by the owner to
8another vehicle owned or acquired by the owner, providing the
9owner complies with section 321.46. The department shall adopt
10rules providing for the assignment of registration plates to
11the transferee of a vehicle for which a credit is allowed under
12section 321.46, subsection 6.
13   Sec. 3.  Section 321.47, subsection 3, Code 2021, is amended
14to read as follows:
   153.  Whenever ownership of a vehicle is transferred under the
16provisions of this section, the registration plates shall be
17removed and forwarded to the a county treasurer, of the county
18where the vehicle is registered
or to the department if the
19vehicle is owned by a nonresident. Upon transfer the vehicle
20shall not be operated upon the highways of this state until the
21person entitled to possession of the vehicle applies for and
22obtains registration for the vehicle.
23   Sec. 4.  Section 322.19A, subsection 3, Code 2021, is amended
24by striking the subsection.
25   Sec. 5.  Section 322A.5, subsection 2, Code 2021, is amended
26by adding the following new paragraph:
27   NEW PARAGRAPH.  c.  The franchiser shall provide to the
28franchisee a list of time allowances for the performance of
29warranty services. Time allowances for the performance of
30warranty services, including diagnostic services, shall be
31reasonable and adequate for the services to be performed.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35This bill allows a person who receives a written notice of
-2-1an adjustment of the renewal or expiration of the person’s
2motor vehicle registration to surrender their registration card
3and registration plates to a county treasurer of any county
4in the state rather than the county treasurer of the county
5where the vehicle is registered. The bill further allows the
6registration plates of a motor vehicle on which ownership is
7transferred or assigned to another person pursuant to Code
8section 321.34(1) or transferred by operation of law pursuant
9to Code section 321.47(1) to be removed and forwarded to
10any county treasurer in the state rather than to the county
11treasurer of the county where the vehicle is registered. The
12bill does not modify Code section 321.134, which allows an
13owner of a motor vehicle who surrenders the registration plates
14of a vehicle prior to the plates becoming delinquent to the
15county treasurer of the county where the vehicle is registered
16to register the vehicle any time thereafter without penalty.
   17Under current law, a motor vehicle dealer may charge a
18documentary fee to a customer for the preparation of documents
19related to an application for motor vehicle registration and
20an application for issuance of a certificate of title, and
21the performance of other related services for the customer,
22which must not exceed $180 for each motor vehicle sold in
23a transaction. The bill strikes the requirement that the
24maximum documentary fee be reduced by $25 after the department
25of transportation has implemented a program to allow for
26electronic applications, titling, registering, and funds
27transfers for vehicles subject to registration.
   28Under the bill, a motor vehicle franchiser must provide a
29franchisee a list of time allowances for the performance of
30warranty services, which must be reasonable and adequate for
31the services to be performed.
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