SF 2228 – Electronic motor vehicle registration and dealer licenses
HF 2437 – Annual Department of Transportation policy bill
FLOOR ACTION:
SF 2228 received unanimous approval in the Senate on March 2. It was amended and unanimously approved by the House on March 28.
This bill is a consumer-friendly initiative that increases efficiencies by requiring the Department of Transportation to implement electronic processing of motor vehicle registration and titling by July 1, 2018. If the program is not in place by then, vehicle owners may get their title and registration through their county treasurer or the treasurer in a contiguous county.
Code section 322.4 requires an applicant for a motor vehicle dealer’s license to furnish a surety bond. The bill increases the required amount from $50,000 to $75,000.
A motor vehicle dealer may charge up to $180 to prepare title and registration documents. The maximum fee drops to $155 when electronic titling and registration is implemented. This “documentary fee” is part of the price of a vehicle and must be disclosed in advertising, price negotiations and purchase agreements. Failure to comply is a violation of the Consumer Fraud Act (Iowa Code 714.16).
The House amendment adds language from SF 2247 (unanimously approved in the Senate on February 24), which protects consumers, levels the playing field for legitimate dealers and aids law enforcement by addressing proper licensing for auto dealers and wholesalers. The language does three things:
- Adds advertising to the definition of “engaged in the business” as the term relates to motor vehicle manufacturers, distributors, wholesalers and dealers in Code chapter 322.
- Prohibits a licensed motor vehicle dealer or wholesaler from allowing anyone else to use their license to sell cars. This provision does not, however, require separate licensing of a dealer’s employed salespeople. About 1,500 people in Iowa could be classified as being in the business without having a license. They may work off another dealer’s license or simply operate as a dealer without a license.
- Anyone convicted of three or more violations within a three-year period will be prohibited for five years from being an owner, salesperson, employee, officer of a corporation, or representative of a licensed motor vehicle dealer.
Under current law, a violation of Iowa Code chapter 322 is a simple misdemeanor punishable by a fine of $250 to $1,500 or up to 30 days in jail.
[4/6: 50-0]
HF 2437 is the Department of Transportation’s annual policy bill. It is identical to SF 2248, which passed the Senate on March 9, but died in the House.
DIVISION I creates a new category of vehicle called an autocyle. The bill:
- Defines autocycles as having two front wheels and one rear wheel, a steering wheel, one or more permanent seats that are not straddled, and foot pedals that control the brakes, acceleration and clutch.
- Establishes a motor vehicle category for autocycles in the Iowa Code.
- Under Iowa law, Autocycles:
- Must be registered and display one license plate.
- Must operate with two front headlamps.
- Must be operated under a class C driver’s license.
- Must adhere to lighting equipment requirements.
- Must adhere to brake requirements for motor vehicles.
- Must adhere to safety belt and child restraint requirements for motor vehicles.
- Must be permitted to transport packages in the vehicle.
DIVISION II simplifies the process for out-of-state salvage vehicles to be titled in Iowa. The bill allows a repaired vehicle to obtain an Iowa title indicating it was previously titled as salvage in another state by surrendering the out-of-state salvage title and salvage theft exam certificate. Current law requires repaired vehicles with salvage title from another state to apply for and be issued an Iowa salvage title before applying for and being issued an Iowa title indicating prior salvage.
This division increases to $50 the fee for a salvage theft exam and makes it due when the exam is scheduled. Under current law, a $30 fee for a salvage theft exam is due upon completion of the exam. The increase in fee is necessary to ensure appropriate compensation to keep people in the business of conducting the exams.
DIVISION IV puts Iowa on equal footing with 37 other states by allowing vehicles of excessive size and weight to have a weight of 46,000 pounds on a single tandem axle of the truck tractor and 46,000 pounds on a single tandem axle of the trailer, as long as each axle of each tandem group has at least four tires. Current law limits the weight to 20,000 pounds per axle, or 40,000 pounds per tandem axle.
DIVISION V makes registration fees for aerial applicators fairer by prohibiting them from receiving a registration refund. Currently, nonresident owners of aerial applicators are prohibited from receiving a refund, but some are getting around the system by becoming Iowa residents for short periods of time and receiving a refund when they leave the state. This allows them to operate more cheaply than legitimate Iowans who are aerial applicators.
[4/6: 48-2 (Johnson, Segebart “no”)]