Print
Senate File 2082 - IntroducedA Bill ForAn Act 1relating to temporary permits for displaying, offering
2for sale, and negotiating sales of new motor vehicles at
3fair events, the state fair, vehicle shows, and vehicle
4exhibitions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.5, subsection 2, paragraph a,
2subparagraph (2), Code 2018, is amended to read as follows:
3(2) Display, offer for sale, and negotiate sales of new
4motor vehicles at fair events, as defined in chapter 174, the
5state fair, as discussed in chapter 173, vehicle shows, and
6vehicle exhibitions, upon application for and receipt of a
7temporary permit issued by the department. Such activities
8may only be conducted at a fair event, the state fair, a
9vehicle show, or a vehicle exhibition, if the fair event,
10state fair, vehicle show, or vehicle exhibition is held in
11the motor vehicle dealer’s community, as defined in section
12322A.1, for the vehicles that are displayed and offered for
13sale. The department shall not issue a temporary permit under
14this subparagraph unless the applicant is a motor vehicle
15dealer with its principal place of business in this state and,
16if the applicant is a corporation, limited liability company,
17limited liability partnership, or other entity, the applicant
18is incorporated or formed in this state. A sale of a motor
19vehicle by a motor vehicle dealer shall not be completed and an
20agreement for the sale of a motor vehicle shall not be signed
21at a fair event, the state fair, a vehicle show, or a vehicle
22exhibition. All such sales shall be consummated at the motor
23vehicle dealer’s principal place of business.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27Under current law, motor vehicle dealers are allowed to
28display, offer for sale, and negotiate sales of new motor
29vehicles at fair events, the state fair, vehicle shows, and
30vehicle exhibitions, upon application for and receipt of a
31temporary permit issued by the department of transportation
32(DOT). However, such activities may only be conducted if the
33fair event, state fair, vehicle show, or vehicle exhibition is
34held in the motor vehicle dealer’s community. In addition, a
35sale of a motor vehicle by a motor vehicle dealer is prohibited
-1-1from being completed at a fair event, the state fair, a vehicle
2show, or a vehicle exhibition, and all such sales must be
3consummated at the motor vehicle dealer’s principal place of
4business.
5This bill strikes the requirement that such activities may
6only be conducted if the fair event, state fair, vehicle show,
7or vehicle exhibition is held in the motor vehicle dealer’s
8community. In addition, the bill provides that a temporary
9permit allowing such activities shall not be issued by the
10DOT unless the applicant is a motor vehicle dealer with its
11principal place of business in this state and, if the applicant
12is a corporation, limited liability company, limited liability
13partnership, or other entity, the applicant is incorporated or
14formed in this state.
-2-ns/rh
2for sale, and negotiating sales of new motor vehicles at
3fair events, the state fair, vehicle shows, and vehicle
4exhibitions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 322.5, subsection 2, paragraph a,
2subparagraph (2), Code 2018, is amended to read as follows:
3(2) Display, offer for sale, and negotiate sales of new
4motor vehicles at fair events, as defined in chapter 174, the
5state fair, as discussed in chapter 173, vehicle shows, and
6vehicle exhibitions, upon application for and receipt of a
7temporary permit issued by the department. Such activities
8may only be conducted at a fair event, the state fair, a
9vehicle show, or a vehicle exhibition, if the fair event,
10state fair, vehicle show, or vehicle exhibition is held in
11the motor vehicle dealer’s community, as defined in section
12322A.1, for the vehicles that are displayed and offered for
13sale. The department shall not issue a temporary permit under
14this subparagraph unless the applicant is a motor vehicle
15dealer with its principal place of business in this state and,
16if the applicant is a corporation, limited liability company,
17limited liability partnership, or other entity, the applicant
18is incorporated or formed in this state. A sale of a motor
19vehicle by a motor vehicle dealer shall not be completed and an
20agreement for the sale of a motor vehicle shall not be signed
21at a fair event, the state fair, a vehicle show, or a vehicle
22exhibition. All such sales shall be consummated at the motor
23vehicle dealer’s principal place of business.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27Under current law, motor vehicle dealers are allowed to
28display, offer for sale, and negotiate sales of new motor
29vehicles at fair events, the state fair, vehicle shows, and
30vehicle exhibitions, upon application for and receipt of a
31temporary permit issued by the department of transportation
32(DOT). However, such activities may only be conducted if the
33fair event, state fair, vehicle show, or vehicle exhibition is
34held in the motor vehicle dealer’s community. In addition, a
35sale of a motor vehicle by a motor vehicle dealer is prohibited
-1-1from being completed at a fair event, the state fair, a vehicle
2show, or a vehicle exhibition, and all such sales must be
3consummated at the motor vehicle dealer’s principal place of
4business.
5This bill strikes the requirement that such activities may
6only be conducted if the fair event, state fair, vehicle show,
7or vehicle exhibition is held in the motor vehicle dealer’s
8community. In addition, the bill provides that a temporary
9permit allowing such activities shall not be issued by the
10DOT unless the applicant is a motor vehicle dealer with its
11principal place of business in this state and, if the applicant
12is a corporation, limited liability company, limited liability
13partnership, or other entity, the applicant is incorporated or
14formed in this state.
-2-ns/rh