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Senate Study Bill 1140 - IntroducedA Bill ForAn Act 1relating to dealers and lienholders of motor vehicles
2and travel trailers, and providing penalties.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.30, subsection 1, Code 2017, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. n. If the applicant has not paid a
4delinquent registration fee charged to the applicant pursuant
5to section 321.48A.
6 Sec. 2. Section 321.40, Code 2017, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5A. The county treasurer shall refuse to
9renew the registration of a vehicle registered to the applicant
10if the applicant has not paid a delinquent registration fee
11charged to the applicant pursuant to section 321.48A.
12 Sec. 3. NEW SECTION. 321.48A Dealers — delinquent
13registration fees.
14Notwithstanding section 321.46, subsection 4, or any other
15provision of law to the contrary, if a dealer licensed pursuant
16to chapter 322 acquires a motor vehicle at a wholesale auction
17for the purpose of resale, and the annual registration fee
18for the vehicle was delinquent at the time the vehicle was
19acquired by the dealer, the dealer may register the vehicle and
20be issued a certificate of title for the vehicle upon proper
21application as provided in this chapter without paying the
22delinquent registration fee or any penalty on the delinquent
23registration fee. The delinquent registration fee and any
24penalty on the delinquent registration fee shall be charged to
25the registered owner of the vehicle at the time the fee became
26delinquent, and shall be collected from such owner by a county
27treasurer at the time the owner applies for registration,
28registration renewal, or issuance of a certificate of title for
29another vehicle.
30 Sec. 4. Section 321.89, subsection 3, paragraph a, Code
312017, is amended to read as follows:
32a. A police authority or private entity that takes into
33custody an abandoned vehicle shall notify, within twenty five
34 days, by certified mail, the last known registered owner of
35the vehicle, all lienholders of record, and any other known
-1-1claimant to the vehicle or to personal property found in the
2vehicle, addressed to the parties’ last known addresses of
3record, that the abandoned vehicle has been taken into custody.
4Notice shall be deemed given when mailed. The notice shall
5describe the year, make, model, and vehicle identification
6number of the vehicle, describe the personal property found
7in the vehicle, set forth the location of the facility where
8the vehicle is being held, and inform the persons receiving
9the notice of their right to reclaim the vehicle and personal
10property within ten days after the effective date of the
11notice upon payment of all towing, preservation, and storage
12charges resulting from placing the vehicle in custody and
13upon payment of the costs of notice required pursuant to this
14subsection. The notice shall also state that the failure of
15the owner, lienholders, or claimants to exercise their right
16to reclaim the vehicle or personal property within the time
17provided shall be deemed a waiver by the owner, lienholders,
18and claimants of all right, title, claim, and interest in the
19vehicle or personal property and that failure to reclaim the
20vehicle or personal property is deemed consent to the sale of
21the vehicle at a public auction or disposal of the vehicle to a
22demolisher and to disposal of the personal property by sale or
23destruction. If the abandoned vehicle was taken into custody
24by a private entity without a police authority’s initiative,
25the notice shall state that the private entity may claim a
26garagekeeper’s lien as described in section 321.90, subsection
271, and may proceed to sell or dispose of the vehicle. If the
28abandoned vehicle was taken into custody by a police authority
29or by a private entity hired by a police authority, the notice
30shall state that any person claiming rightful possession of
31the vehicle or personal property who disputes the planned
32disposition of the vehicle or property by the police authority
33or private entity or of the assessment of fees and charges
34provided by this section may ask for an evidentiary hearing
35before the police authority to contest those matters. If the
-2-1persons receiving notice do not ask for a hearing or exercise
2their right to reclaim the vehicle or personal property within
3the ten-day reclaiming period, the owner, lienholders, or
4claimants shall no longer have any right, title, claim, or
5interest in or to the vehicle or the personal property. A
6court in any case in law or equity shall not recognize any
7right, title, claim, or interest of the owner, lienholders,
8or claimants after the expiration of the ten-day reclaiming
9period.
10 Sec. 5. Section 322.5, subsection 2, paragraph a, Code 2017,
11is amended to read as follows:
12a. In addition to selling motor vehicles at the motor
13vehicle dealer’s principal place of business and at car lots, a
14motor vehicle dealer may do any of the following:
15(1) Display new motor vehicles at fairs, vehicle shows,
16and vehicle exhibitions, upon application for and receipt of a
17temporary permit issued by the department.
18(2) Display, offer for sale, and negotiate sales of new
19 motor vehicles at fair events, as defined in chapter 174, the
20state fair, as discussed in chapter 173, vehicle shows, and
21vehicle exhibitions, upon application for and receipt of a
22temporary permit issued by the department. Such activities
23may only be conducted at a fair event, the state fair, a
24vehicle show, or a vehicle exhibition, if the fair event,
25state fair, vehicle show, or vehicle exhibition is held in
26the motor vehicle dealer’s community, as defined in section
27322A.1, for the vehicles that are displayed and offered for
28sale. A sale of a motor vehicle by a motor vehicle dealer
29shall not be completed and an agreement for the sale of a motor
30vehicle shall not be signed at a fair event, the state fair, a
31vehicle show, or a vehicle exhibition. All such sales shall
32be consummated at the motor vehicle dealer’s principal place
33of business.
34 Sec. 6. NEW SECTION. 322.37 Record retention.
351. A motor vehicle dealer licensed under this chapter shall
-3-1retain paper or electronic records of all purchases or sales of
2motor vehicles made by the dealer. The records shall contain
3all of the following:
4a. Each motor vehicle’s make, model, model year, vehicle
5identification number, and odometer reading at the time of
6purchase or sale.
7b. The name and address of the seller or purchaser.
8c. The seller’s or purchaser’s driver’s license or
9nonoperator’s identification card number, or if the seller or
10purchaser is licensed to buy or sell motor vehicles in this
11state, the number of such a license.
122. The records shall be retained at a facility or office
13of the motor vehicle dealer located within this state for
14five years after the purchase or sale of the vehicle, and
15the location’s address and the contact information for the
16designated agent responsible for the records shall be provided
17to the department.
183. The department shall have access to a motor vehicle
19dealer’s records within a reasonable period of time of a
20request by the department to review the motor vehicle dealer’s
21records.
22 Sec. 7. Section 322C.11, Code 2017, is amended to read as
23follows:
24322C.11 Penalties.
25A person violating a provision of section 322C.3 or 322C.7
26is guilty of a serious misdemeanor. A person violating a
27provision of section 322C.13 is guilty of a simple misdemeanor
28punishable by a fine of not less than two hundred fifty
29dollars nor more than one thousand five hundred dollars or by
30imprisonment not to exceed thirty days.
31 Sec. 8. NEW SECTION. 322C.13 Record retention.
321. A travel trailer dealer licensed under this chapter shall
33retain paper or electronic records of all purchases or sales of
34travel trailers made by the dealer. The records shall contain
35all of the following:
-4- 1a. Each travel trailer’s make, model, model year, and
2vehicle identification number.
3b. The name and address of the seller or purchaser.
4c. The seller’s or purchaser’s driver’s license or
5nonoperator’s identification card number, or if the seller or
6purchaser is licensed to buy or sell travel trailers in this
7state, the number of such a license.
82. The records shall be retained at a facility or office
9of the travel trailer dealer located within this state for
10five years after the purchase or sale of the travel trailer,
11and the location’s address and the contact information for the
12designated agent responsible for the records shall be provided
13to the department.
143. The department shall have access to a travel trailer
15dealer’s records within a reasonable period of time of a
16request by the department to review the travel trailer dealer’s
17records.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill provides that a licensed motor vehicle dealer who
22has acquired a vehicle at a wholesale auction for the purpose
23of resale, and the annual registration fee for the vehicle
24was delinquent at the time the vehicle was acquired by the
25dealer, is permitted to register the vehicle and be issued a
26certificate of title for the vehicle upon proper application
27without paying the delinquent registration fee or any penalty
28on the delinquent registration fee. The bill requires the
29delinquent registration fee and any penalty on the delinquent
30registration fee to be charged to the registered owner of
31the vehicle at the time the fee became delinquent, and to be
32collected from such owner by a county treasurer at the time
33the owner applies for registration, registration renewal,
34or issuance of a certificate of title for another vehicle.
35The bill provides that any application for registration,
-5-1registration renewal, or issuance of a certificate of title
2for another vehicle by the owner must be refused if the owner
3has not paid a delinquent registration fee charged to the
4owner under the bill. However, the bill does not authorize
5the department of transportation (DOT) to suspend or revoke a
6current registration of the owner under Code section 321.101.
7The bill decreases the period of time within which a
8police authority or private entity that takes into custody an
9abandoned vehicle is required to notify by certified mail the
10last known registered owner of the vehicle, all lienholders
11of record, and any other known claimant to the vehicle or to
12personal property found in the vehicle from 20 days to five
13days.
14Under current law, licensed motor vehicle dealers are
15permitted to display, offer for sale, and negotiate sales
16of new motor vehicles at fairs, vehicle shows, and vehicle
17exhibitions. The bill permits licensed motor vehicle dealers
18to display, offer for sale, and negotiate sales of all motor
19vehicles at fairs, vehicle shows, and vehicle exhibitions.
20The bill requires licensed motor vehicle dealers to retain
21paper or electronic records of all purchases or sales of
22motor vehicles made by the dealer. The bill requires the
23records to contain each vehicle’s make, model, model year,
24vehicle identification number, and odometer reading at the
25time of purchase or sale; the name and address of the seller
26or purchaser; and the seller’s or purchaser’s driver’s license
27or nonoperator’s identification card number, or if the seller
28or purchaser is licensed to buy or sell motor vehicles in
29this state, the number of such a license. The bill further
30requires the records to be retained at a facility or office of
31the motor vehicle dealer located within this state for five
32years after the purchase or sale of the vehicle, and requires
33the location’s address and the contact information for the
34designated agent responsible for the records to be provided to
35the DOT. The bill permits the DOT to have access to a dealer’s
-6-1records within a reasonable period of time of a request by the
2DOT to review the dealer’s records. The bill applies similar
3record retention requirements to licensed travel trailer
4dealers. Under Code section 322.14 and as provided by the
5bill, a violation of these provisions is a simple misdemeanor
6punishable by a fine of not less than $250 nor more than $1,500
7or by imprisonment not to exceed 30 days.
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2and travel trailers, and providing penalties.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.30, subsection 1, Code 2017, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. n. If the applicant has not paid a
4delinquent registration fee charged to the applicant pursuant
5to section 321.48A.
6 Sec. 2. Section 321.40, Code 2017, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5A. The county treasurer shall refuse to
9renew the registration of a vehicle registered to the applicant
10if the applicant has not paid a delinquent registration fee
11charged to the applicant pursuant to section 321.48A.
12 Sec. 3. NEW SECTION. 321.48A Dealers — delinquent
13registration fees.
14Notwithstanding section 321.46, subsection 4, or any other
15provision of law to the contrary, if a dealer licensed pursuant
16to chapter 322 acquires a motor vehicle at a wholesale auction
17for the purpose of resale, and the annual registration fee
18for the vehicle was delinquent at the time the vehicle was
19acquired by the dealer, the dealer may register the vehicle and
20be issued a certificate of title for the vehicle upon proper
21application as provided in this chapter without paying the
22delinquent registration fee or any penalty on the delinquent
23registration fee. The delinquent registration fee and any
24penalty on the delinquent registration fee shall be charged to
25the registered owner of the vehicle at the time the fee became
26delinquent, and shall be collected from such owner by a county
27treasurer at the time the owner applies for registration,
28registration renewal, or issuance of a certificate of title for
29another vehicle.
30 Sec. 4. Section 321.89, subsection 3, paragraph a, Code
312017, is amended to read as follows:
32a. A police authority or private entity that takes into
33custody an abandoned vehicle shall notify, within twenty five
34 days, by certified mail, the last known registered owner of
35the vehicle, all lienholders of record, and any other known
-1-1claimant to the vehicle or to personal property found in the
2vehicle, addressed to the parties’ last known addresses of
3record, that the abandoned vehicle has been taken into custody.
4Notice shall be deemed given when mailed. The notice shall
5describe the year, make, model, and vehicle identification
6number of the vehicle, describe the personal property found
7in the vehicle, set forth the location of the facility where
8the vehicle is being held, and inform the persons receiving
9the notice of their right to reclaim the vehicle and personal
10property within ten days after the effective date of the
11notice upon payment of all towing, preservation, and storage
12charges resulting from placing the vehicle in custody and
13upon payment of the costs of notice required pursuant to this
14subsection. The notice shall also state that the failure of
15the owner, lienholders, or claimants to exercise their right
16to reclaim the vehicle or personal property within the time
17provided shall be deemed a waiver by the owner, lienholders,
18and claimants of all right, title, claim, and interest in the
19vehicle or personal property and that failure to reclaim the
20vehicle or personal property is deemed consent to the sale of
21the vehicle at a public auction or disposal of the vehicle to a
22demolisher and to disposal of the personal property by sale or
23destruction. If the abandoned vehicle was taken into custody
24by a private entity without a police authority’s initiative,
25the notice shall state that the private entity may claim a
26garagekeeper’s lien as described in section 321.90, subsection
271, and may proceed to sell or dispose of the vehicle. If the
28abandoned vehicle was taken into custody by a police authority
29or by a private entity hired by a police authority, the notice
30shall state that any person claiming rightful possession of
31the vehicle or personal property who disputes the planned
32disposition of the vehicle or property by the police authority
33or private entity or of the assessment of fees and charges
34provided by this section may ask for an evidentiary hearing
35before the police authority to contest those matters. If the
-2-1persons receiving notice do not ask for a hearing or exercise
2their right to reclaim the vehicle or personal property within
3the ten-day reclaiming period, the owner, lienholders, or
4claimants shall no longer have any right, title, claim, or
5interest in or to the vehicle or the personal property. A
6court in any case in law or equity shall not recognize any
7right, title, claim, or interest of the owner, lienholders,
8or claimants after the expiration of the ten-day reclaiming
9period.
10 Sec. 5. Section 322.5, subsection 2, paragraph a, Code 2017,
11is amended to read as follows:
12a. In addition to selling motor vehicles at the motor
13vehicle dealer’s principal place of business and at car lots, a
14motor vehicle dealer may do any of the following:
15(1) Display new motor vehicles at fairs, vehicle shows,
16and vehicle exhibitions, upon application for and receipt of a
17temporary permit issued by the department.
18(2) Display, offer for sale, and negotiate sales of new
19 motor vehicles at fair events, as defined in chapter 174, the
20state fair, as discussed in chapter 173, vehicle shows, and
21vehicle exhibitions, upon application for and receipt of a
22temporary permit issued by the department. Such activities
23may only be conducted at a fair event, the state fair, a
24vehicle show, or a vehicle exhibition, if the fair event,
25state fair, vehicle show, or vehicle exhibition is held in
26the motor vehicle dealer’s community, as defined in section
27322A.1, for the vehicles that are displayed and offered for
28sale. A sale of a motor vehicle by a motor vehicle dealer
29shall not be completed and an agreement for the sale of a motor
30vehicle shall not be signed at a fair event, the state fair, a
31vehicle show, or a vehicle exhibition. All such sales shall
32be consummated at the motor vehicle dealer’s principal place
33of business.
34 Sec. 6. NEW SECTION. 322.37 Record retention.
351. A motor vehicle dealer licensed under this chapter shall
-3-1retain paper or electronic records of all purchases or sales of
2motor vehicles made by the dealer. The records shall contain
3all of the following:
4a. Each motor vehicle’s make, model, model year, vehicle
5identification number, and odometer reading at the time of
6purchase or sale.
7b. The name and address of the seller or purchaser.
8c. The seller’s or purchaser’s driver’s license or
9nonoperator’s identification card number, or if the seller or
10purchaser is licensed to buy or sell motor vehicles in this
11state, the number of such a license.
122. The records shall be retained at a facility or office
13of the motor vehicle dealer located within this state for
14five years after the purchase or sale of the vehicle, and
15the location’s address and the contact information for the
16designated agent responsible for the records shall be provided
17to the department.
183. The department shall have access to a motor vehicle
19dealer’s records within a reasonable period of time of a
20request by the department to review the motor vehicle dealer’s
21records.
22 Sec. 7. Section 322C.11, Code 2017, is amended to read as
23follows:
24322C.11 Penalties.
25A person violating a provision of section 322C.3 or 322C.7
26is guilty of a serious misdemeanor. A person violating a
27provision of section 322C.13 is guilty of a simple misdemeanor
28punishable by a fine of not less than two hundred fifty
29dollars nor more than one thousand five hundred dollars or by
30imprisonment not to exceed thirty days.
31 Sec. 8. NEW SECTION. 322C.13 Record retention.
321. A travel trailer dealer licensed under this chapter shall
33retain paper or electronic records of all purchases or sales of
34travel trailers made by the dealer. The records shall contain
35all of the following:
-4- 1a. Each travel trailer’s make, model, model year, and
2vehicle identification number.
3b. The name and address of the seller or purchaser.
4c. The seller’s or purchaser’s driver’s license or
5nonoperator’s identification card number, or if the seller or
6purchaser is licensed to buy or sell travel trailers in this
7state, the number of such a license.
82. The records shall be retained at a facility or office
9of the travel trailer dealer located within this state for
10five years after the purchase or sale of the travel trailer,
11and the location’s address and the contact information for the
12designated agent responsible for the records shall be provided
13to the department.
143. The department shall have access to a travel trailer
15dealer’s records within a reasonable period of time of a
16request by the department to review the travel trailer dealer’s
17records.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill provides that a licensed motor vehicle dealer who
22has acquired a vehicle at a wholesale auction for the purpose
23of resale, and the annual registration fee for the vehicle
24was delinquent at the time the vehicle was acquired by the
25dealer, is permitted to register the vehicle and be issued a
26certificate of title for the vehicle upon proper application
27without paying the delinquent registration fee or any penalty
28on the delinquent registration fee. The bill requires the
29delinquent registration fee and any penalty on the delinquent
30registration fee to be charged to the registered owner of
31the vehicle at the time the fee became delinquent, and to be
32collected from such owner by a county treasurer at the time
33the owner applies for registration, registration renewal,
34or issuance of a certificate of title for another vehicle.
35The bill provides that any application for registration,
-5-1registration renewal, or issuance of a certificate of title
2for another vehicle by the owner must be refused if the owner
3has not paid a delinquent registration fee charged to the
4owner under the bill. However, the bill does not authorize
5the department of transportation (DOT) to suspend or revoke a
6current registration of the owner under Code section 321.101.
7The bill decreases the period of time within which a
8police authority or private entity that takes into custody an
9abandoned vehicle is required to notify by certified mail the
10last known registered owner of the vehicle, all lienholders
11of record, and any other known claimant to the vehicle or to
12personal property found in the vehicle from 20 days to five
13days.
14Under current law, licensed motor vehicle dealers are
15permitted to display, offer for sale, and negotiate sales
16of new motor vehicles at fairs, vehicle shows, and vehicle
17exhibitions. The bill permits licensed motor vehicle dealers
18to display, offer for sale, and negotiate sales of all motor
19vehicles at fairs, vehicle shows, and vehicle exhibitions.
20The bill requires licensed motor vehicle dealers to retain
21paper or electronic records of all purchases or sales of
22motor vehicles made by the dealer. The bill requires the
23records to contain each vehicle’s make, model, model year,
24vehicle identification number, and odometer reading at the
25time of purchase or sale; the name and address of the seller
26or purchaser; and the seller’s or purchaser’s driver’s license
27or nonoperator’s identification card number, or if the seller
28or purchaser is licensed to buy or sell motor vehicles in
29this state, the number of such a license. The bill further
30requires the records to be retained at a facility or office of
31the motor vehicle dealer located within this state for five
32years after the purchase or sale of the vehicle, and requires
33the location’s address and the contact information for the
34designated agent responsible for the records to be provided to
35the DOT. The bill permits the DOT to have access to a dealer’s
-6-1records within a reasonable period of time of a request by the
2DOT to review the dealer’s records. The bill applies similar
3record retention requirements to licensed travel trailer
4dealers. Under Code section 322.14 and as provided by the
5bill, a violation of these provisions is a simple misdemeanor
6punishable by a fine of not less than $250 nor more than $1,500
7or by imprisonment not to exceed 30 days.
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