Read the full stored bill text
Senate
File
2408
-
Introduced
SENATE
FILE
2408
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
3126)
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
TLSB
5648SV
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S.F.
2408
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
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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
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
Under
current
law,
a
retail
seller
licensed
under
Code
2
chapter
322
(motor
vehicle
manufacturers,
distributors,
3
wholesalers,
and
dealers)
is
authorized
to
sell,
offer,
barter,
4
negotiate,
exchange,
and
communicate
regarding
the
sale
of
a
5
motor
vehicle
via
mail,
either
electronically
or
by
courier,
6
and
to
deliver
a
vehicle
to
the
residence
of
the
buyer
or
7
another
agreed-to
location
(remote
sale).
This
bill
relates
to
8
motor
vehicle
dealers,
including
rights
to
certain
vehicles,
9
records
storage
requirements,
and
remote
sales.
10
Under
current
law,
a
person
does
not
acquire
any
right,
11
title,
claim,
or
interest
in
or
to
any
vehicle
subject
to
12
registration
except
by
virtue
of
a
certificate
of
title
or
13
manufacturer’s
or
importer’s
certificate
for
such
vehicle,
with
14
certain
exceptions.
The
bill
provides
that
a
licensed
motor
15
vehicle
dealer
is
deemed
to
have
acquired
and
to
possess
the
16
right,
title,
claim,
and
interest
in
a
vehicle
if
the
vehicle’s
17
certificate
of
title
is
issued
or
properly
assigned
to
an
18
entity
with
direct
ownership
or
control
over
the
dealer.
19
Under
current
law,
if
a
dealer
has
more
than
one
established
20
place
of
business,
the
dealer
may
designate
one
such
location
21
in
this
state
for
purposes
of
keeping
all
the
dealer’s
books
22
and
records,
regardless
of
the
line-make
of
motor
vehicles
to
23
which
such
books
and
records
pertain,
by
submitting
a
written
24
certification
to
the
department
of
transportation
(DOT)
in
a
25
manner
approved
by
the
DOT.
The
bill
requires
a
dealer
to
26
store
all
records
at
a
place
of
business
of
the
dealer
or
at
27
a
place
of
business
within
the
United
States
of
an
entity
28
that
has
direct
ownership
or
control
over
the
dealer,
provide
29
electronic
records
to
the
DOT
within
24
hours
after
receiving
30
a
request,
and
provide
physical
records
to
the
DOT
within
a
31
reasonable
time
considering
postal
delivery.
32
The
bill
expands
the
requirement
for
a
dealer
to
possess
33
the
certificate
of
title
to
any
motor
vehicle
offered
for
34
remote
sale
by
authorizing
an
entity
with
direct
ownership
or
35
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control
over
a
dealer
to
possess
the
title
at
the
time
of
the
1
sale.
Under
the
bill,
the
certificate
of
title
may
be
in
an
2
electronic
format
as
described
in
the
bill.
3
The
bill
strikes
a
provision
prohibiting
a
dealer,
during
a
4
remote
sale,
from
signing
a
proposed
purchase
agreement
until
5
the
dealer
receives
an
executed
purchase
agreement
from
a
6
buyer.
7
The
bill
requires
a
dealer
engaging
in
a
remote
sale
to
8
disclose
to
a
prospective
buyer
certain
facts
about
the
9
location,
title
status,
and
delivery
date
of
a
vehicle.
A
10
dealer
is
required
to
produce
proof
that
the
dealer
has
11
the
certificate
of
title
for
a
vehicle
offered
for
sale
if
12
requested
by
the
DOT.
The
dealer
is
required
to
retain
records
13
showing
where
a
vehicle
is
stored,
the
status
of
the
vehicle’s
14
title,
and
documents
relating
to
the
remote
sale
of
the
15
vehicle,
in
accordance
with
the
bill.
16
For
purposes
of
remote
sales,
the
bill
requires
an
17
electronic
signature
captured
and
applied
to
an
image
of
a
18
physical
certificate
of
title
that
was
originally
printed
by
19
a
secure
printing
process
in
compliance
with
all
applicable
20
requirements
under
federal
regulations
to
be
accepted
for
21
purposes
of
odometer
disclosure.
A
dealer
using
an
electronic
22
signature
on
a
digital
image
of
a
physical
title
is
required
23
to
mark
the
original
title
as
“void”
or
“surrendered”
and
24
submit
an
application
for
certificate
of
title
and
registration
25
electronically
in
accordance
with
current
law.
26
The
bill
specifies
that
a
remote
sale
of
a
motor
vehicle
is
27
not
a
“door-to-door
sale”
and
is
not
subject
to
Code
chapter
28
555A
(door-to-door
sales).
29
Under
current
law
and
the
bill,
remote
sales
are
subject
30
to
Code
chapter
554D
(electronic
transactions
——
computer
31
agreements).
32
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