Bill Text: IA SF435 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to towable recreational vehicles, travel trailers, and fifth-wheel travel trailers, making penalties applicable, and including applicability provisions. (Formerly SSB 1180.) Effective 7-1-19.
Spectrum: Committee Bill
Status: (Passed) 2019-05-02 - Signed by Governor. S.J. 1196. [SF435 Detail]
Download: Iowa-2019-SF435-Enrolled.html
Senate
File
435
-
Enrolled
Senate
File
435
AN
ACT
RELATING
TO
TOWABLE
RECREATIONAL
VEHICLES,
TRAVEL
TRAILERS,
AND
FIFTH-WHEEL
TRAVEL
TRAILERS,
MAKING
PENALTIES
APPLICABLE,
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
321.1,
subsection
36C,
paragraph
b,
Code
2019,
is
amended
to
read
as
follows:
b.
“Travel
trailer”
means
a
vehicle
without
motive
power
used,
manufactured,
or
constructed
to
permit
its
use
as
a
conveyance
upon
the
public
streets
and
highways
and
designed
to
permit
its
use
as
a
place
of
human
habitation
by
one
or
more
persons.
The
vehicle
may
be
up
to
eight
feet
six
inches
in
width
and
its
overall
length
shall
not
exceed
forty-five
feet.
The
vehicle
shall
be
customarily
or
ordinarily
used
for
vacation
or
recreational
purposes
and
not
used
as
a
place
of
permanent
habitation.
If
the
vehicle
is
used
in
this
state
as
a
place
of
human
habitation
for
more
than
ninety
one
Senate
File
435,
p.
2
hundred
eighty
consecutive
days
in
one
location
it
shall
be
classed
as
a
manufactured
or
mobile
home
regardless
of
the
size
limitations
provided
in
this
paragraph.
Sec.
2.
Section
322C.2,
Code
2019,
is
amended
to
read
as
follows:
322C.2
Definitions.
As
used
in
this
chapter
unless
the
context
otherwise
requires:
1.
To
sell
“at
retail”
means
to
sell
a
travel
trailer
towable
recreational
vehicle
to
a
person
who
will
devote
it
to
a
consumer
use.
2.
“Community”
means
a
towable
recreational
vehicle
dealer’s
area
of
responsibility
as
stipulated
in
the
manufacturer-dealer
agreement.
2.
3.
“Department”
means
the
state
department
of
transportation.
3.
4.
“Distributor”
means
a
person
who
sells
or
distributes
travel
trailers
towable
recreational
vehicles
to
travel
trailer
towable
recreational
vehicle
dealers
either
directly
or
through
a
representative
employed
by
a
distributor.
5.
“Factory
campaign”
means
an
effort
by
or
on
behalf
of
a
warrantor
to
contact
towable
recreational
vehicle
dealers
or
owners
to
address
an
equipment
or
part
issue.
6.
“Family
member”
means
a
spouse,
child,
grandchild,
parent,
sibling,
niece,
or
nephew,
or
the
spouse
of
a
child,
grandchild,
parent,
sibling,
niece,
or
nephew.
4.
7.
“Fifth-wheel
travel
trailer”
means
a
type
of
travel
trailer
which
is
towed
by
a
motor
vehicle
by
a
connecting
device
known
as
a
fifth
wheel.
When
used
in
this
chapter
,
“travel
trailer”
includes
a
fifth-wheel
travel
trailer
vehicle
mounted
on
wheels
that
has
an
overall
length
of
forty-five
feet
or
less,
is
designed
to
provide
temporary
living
quarters
for
recreational,
camping,
or
travel
use,
is
of
such
a
size
and
weight
as
to
not
require
a
permit
under
chapter
321E
when
moved
on
a
highway,
and
is
designed
to
be
towed
by
a
motor
vehicle
equipped
with
a
towing
mechanism
located
above
or
forward
of
the
motor
vehicle’s
rear
axle
.
“Fifth-wheel
travel
trailer”
includes
a
toy-hauler
fifth-wheel
travel
trailer.
8.
“Folding
camping
trailer”
means
a
vehicle
mounted
on
Senate
File
435,
p.
3
wheels
and
constructed
with
collapsible
side
walls
designed
to
be
folded
when
towed
by
a
motor
vehicle
and
unfolded
to
provide
temporary
living
quarters
for
recreational,
camping,
or
travel
use.
9.
“Line-make”
means
a
specific
series
of
towable
recreational
vehicles
meeting
all
of
the
following
criteria:
a.
The
vehicles
are
identified
by
a
common
series
trade
name
or
trademark.
b.
The
vehicles
are
targeted
at
a
particular
market
segment,
as
determined
by
the
vehicles’
decoration,
features,
equipment,
size,
weight,
and
price
range.
c.
The
vehicles
have
lengths
and
interior
floor
plans
distinguishable
from
other
towable
recreational
vehicles
with
substantially
similar
decoration,
features,
equipment,
weight,
and
price.
d.
The
vehicles
belong
to
a
single,
distinct
classification
of
a
towable
recreational
vehicle
product
type
having
a
substantial
degree
of
commonality
in
the
construction
of
the
chassis,
frame,
and
body.
e.
A
manufacturer-dealer
agreement
authorizes
a
dealer
to
sell
the
vehicles.
5.
10.
“Manufacturer”
means
a
person
engaged
in
the
business
of
fabricating
or
assembling
travel
trailers
of
a
type
required
to
be
registered
manufacture
of
towable
recreational
vehicles
.
11.
“Manufacturer-dealer
agreement”
means
a
written
agreement
or
contract
entered
into
between
a
manufacturer
or
distributor
and
a
towable
recreational
vehicle
dealer
that
specifies
the
rights
and
responsibilities
of
the
parties
and
authorizes
the
dealer
to
sell
and
service
new
towable
recreational
vehicles.
6.
12.
“New
travel
trailer”
towable
recreational
vehicle”
means
a
travel
trailer
towable
recreational
vehicle
that
has
not
been
sold
at
retail.
13.
“Park
model
recreational
vehicle”
means
a
vehicle
meeting
all
of
the
following
criteria:
a.
The
vehicle
is
designed
to
provide,
and
marketed
as
providing,
temporary
living
quarters
for
recreational,
camping,
travel,
or
seasonal
use.
Senate
File
435,
p.
4
b.
The
vehicle
is
not
permanently
affixed
to
real
property
for
use
as
a
permanent
dwelling.
c.
The
vehicle
is
built
on
a
single
chassis
mounted
on
wheels
with
a
gross
trailer
area
not
exceeding
four
hundred
square
feet
in
the
vehicle’s
set-up
mode.
d.
The
vehicle
is
certified
by
the
manufacturer
as
in
compliance
with
the
American
national
standard
for
park
model
recreational
vehicles,
commonly
cited
as
“ANSI
A
119.5”.
7.
14.
“Person”
includes
any
individual,
partnership,
corporation,
association,
fiduciary
,
or
other
legal
entity
engaged
in
business,
other
than
a
unit
or
agency
of
government
or
governmental
subdivision.
8.
15.
“Place
of
business”
means
a
designated
location
where
facilities
are
maintained
for
displaying,
reconditioning
,
and
repairing
either
new
or
used
travel
trailers
towable
recreational
vehicles
.
16.
“Proprietary
part”
means
any
part
manufactured
by
or
for,
and
sold
exclusively
by,
a
manufacturer.
9.
17.
“Sell”
includes
barter,
exchange
,
and
other
methods
of
dealing.
18.
“Supplier”
means
a
person
engaged
in
the
manufacture
of
towable
recreational
vehicle
parts,
accessories,
or
components.
19.
“Towable
recreational
vehicle”
means
a
vehicle
designed
to
be
towed
by
a
motor
vehicle
owned
by
a
consumer
and
to
provide
temporary
living
quarters
for
recreational,
camping,
or
travel
use,
that
complies
with
all
applicable
federal
regulations,
and
that
is
certified
by
the
vehicle’s
manufacturer
as
in
compliance
with
the
national
fire
protection
association
standard
on
recreational
vehicles,
commonly
cited
as
“NFPA
1192”,
or
the
American
national
standard
for
park
model
recreational
vehicles,
commonly
cited
as
“ANSI
A
119.5”,
as
applicable.
“Towable
recreational
vehicle”
includes
a
travel
trailer,
toy-hauler
travel
trailer,
fifth-wheel
travel
trailer,
toy-hauler
fifth-wheel
travel
trailer,
folding
camping
trailer,
truck
camper,
and
park
model
recreational
vehicle.
For
purposes
of
registration
and
titling
under
chapter
321,
a
towable
recreational
vehicle
shall
be
considered
a
travel
trailer
or
fifth-wheel
travel
trailer,
as
those
terms
are
defined
in
section
321.1,
as
applicable.
Senate
File
435,
p.
5
20.
“Towable
recreational
vehicle
dealer”
or
“dealer”
means
a
person
required
to
be
licensed
under
this
chapter
authorized
to
sell
and
service
towable
recreational
vehicles.
21.
“Toy-hauler
fifth-wheel
travel
trailer”
means
a
fifth-wheel
travel
trailer
equipped
with
a
back
wall
capable
of
being
lowered
to
form
a
ramp
for
loading
and
unloading
a
specialized
rear
compartment
that
can
then
be
resecured
for
travel.
22.
“Toy-hauler
travel
trailer”
means
a
travel
trailer
equipped
with
a
back
wall
capable
of
being
lowered
to
form
a
ramp
for
loading
and
unloading
a
specialized
rear
compartment
that
can
then
be
resecured
for
travel.
23.
“Transient
consumer”
means
a
consumer
who
is
temporarily
traveling
through
a
towable
recreational
vehicle
dealer’s
community.
10.
24.
“Travel
trailer”
means
a
vehicle
without
motive
power
used
or
so
manufactured
or
constructed
as
to
permit
its
being
used
as
a
conveyance
upon
the
public
streets
and
highways
and
designed
to
permit
the
vehicle
to
be
used
as
a
place
of
human
habitation
by
one
or
more
persons.
The
vehicle
may
be
up
to
eight
feet
six
inches
in
width
and
its
overall
length
shall
not
exceed
forty-five
feet
mounted
on
wheels
that
has
a
width
of
eight
feet
six
inches
or
less
and
an
overall
length
of
forty-five
feet
or
less,
is
designed
to
provide
temporary
living
quarters
for
recreational,
camping,
or
travel
use,
and
is
of
such
a
size
and
weight
as
to
not
require
a
permit
under
chapter
321E
when
towed
by
a
motor
vehicle
on
a
highway
.
“Travel
trailer”
includes
a
toy-hauler
travel
trailer.
“Travel
trailer”
does
not
include
a
vehicle
that
is
so
designed
as
to
permit
it
to
be
towed
exclusively
by
a
motorcycle.
25.
“Truck
camper”
means
a
vehicle
designed
to
be
placed
in
the
bed
of
a
pickup
truck
to
provide
temporary
living
quarters
for
recreational,
camping,
or
travel
use.
11.
26.
“Used
travel
trailer”
towable
recreational
vehicle”
means
a
travel
trailer
towable
recreational
vehicle
which
has
been
sold
at
retail
and
previously
registered
in
this
or
any
other
state.
27.
“Warrantor”
means
a
person,
including
a
manufacturer,
distributor,
or
supplier,
that
provides
a
written
warranty
Senate
File
435,
p.
6
to
a
consumer
in
connection
with
a
new
towable
recreational
vehicle
or
any
part,
accessory,
or
component
of
a
new
towable
recreational
vehicle.
“Warrantor”
does
not
include
a
dealer,
distributor,
supplier,
or
other
person
that
is
not
owned
or
controlled
by
a
manufacturer
that
provides
a
service
contract,
mechanical
or
other
insurance,
or
an
extended
warranty
sold
for
separate
consideration
to
a
consumer.
Sec.
3.
Section
322C.3,
Code
2019,
is
amended
to
read
as
follows:
322C.3
Prohibited
acts
——
exception.
1.
A
person
shall
not
engage
in
this
state
in
the
business
of
selling
at
retail
new
travel
trailers
towable
recreational
vehicles
of
any
make
line-make
,
or
represent
or
advertise
that
the
person
is
engaged
in
or
intends
to
engage
in
such
business
in
this
state,
unless
the
person
is
authorized
by
a
contract
in
writing
manufacturer-dealer
agreement
between
that
person
and
the
manufacturer
or
distributor
of
that
make
line-make
of
new
travel
trailers
towable
recreational
vehicles
to
sell
the
trailers
vehicles
in
this
state,
and
unless
the
department
has
issued
to
the
person
a
license
as
a
travel
trailer
towable
recreational
vehicle
dealer
for
the
same
make
line-make
of
travel
trailer
towable
recreational
vehicle
which
the
dealer
is
authorized
to
sell
under
the
manufacturer-dealer
agreement
.
2.
A
person,
other
than
a
licensed
travel
trailer
dealer
in
new
travel
trailers
towable
recreational
vehicles
,
shall
not
engage
in
the
business
of
selling
at
retail
used
travel
trailers
towable
recreational
vehicles
or
represent
or
advertise
that
the
person
is
engaged
in
or
intends
to
engage
in
such
business
in
this
state
unless
the
department
has
issued
to
the
person
a
license
as
a
used
travel
trailer
towable
recreational
vehicle
dealer.
3.
A
person
is
not
required
to
obtain
a
license
as
a
travel
trailer
dealer
if
the
person
is
disposing
of
a
travel
trailer
towable
recreational
vehicle
acquired
or
repossessed,
so
long
as
the
person
is
exercising
a
power
or
right
granted
by
a
lien,
title-retention
instrument,
or
security
agreement
given
as
security
for
a
loan
or
a
purchase
money
obligation.
4.
A
travel
trailer
dealer
shall
not
enter
into
a
contract,
agreement,
or
understanding,
expressed
or
implied,
with
a
Senate
File
435,
p.
7
manufacturer
or
distributor
that
the
dealer
will
sell,
assign,
or
transfer
an
agreement
or
contract
arising
from
the
retail
installment
sale
of
a
travel
trailer
towable
recreational
vehicle
only
to
a
designated
person
or
class
of
persons.
Any
such
condition,
agreement
,
or
understanding
between
a
manufacturer
or
distributor
and
a
travel
trailer
dealer
is
against
the
public
policy
of
this
state
and
is
unlawful
and
void.
5.
A
manufacturer
or
distributor
of
travel
trailers
towable
recreational
vehicles
or
an
agent
or
representative
of
the
manufacturer
or
distributor,
shall
not
refuse
to
renew
a
contract
manufacturer-dealer
agreement
for
a
term
of
less
than
five
years
twelve
months
,
and
shall
not
terminate
or
threaten
to
terminate
a
contract,
agreement
,
or
understanding
for
the
sale
of
new
travel
trailers
towable
recreational
vehicles
to
a
travel
trailer
dealer
in
this
state
without
just,
reasonable
,
and
lawful
cause
or
because
the
travel
trailer
dealer
failed
to
sell,
assign
,
or
transfer
a
contract
or
agreement
arising
from
the
retail
sale
of
a
travel
trailer
towable
recreational
vehicle
to
only
a
person
or
a
class
of
persons
designated
by
the
manufacturer
or
distributor.
6.
A
travel
trailer
dealer
shall
not
make
and
enter
into
a
security
agreement
or
other
contract
unless
the
agreement
or
contract
meets
the
following
requirements:
a.
The
security
agreement
or
contract
is
in
writing,
is
signed
by
both
the
buyer
and
the
seller
and
is
complete
as
to
all
essential
provisions
prior
to
the
signing
of
the
agreement
or
contract
by
the
buyer
except
that,
if
delivery
of
the
travel
trailer
towable
recreational
vehicle
is
not
made
at
the
time
of
the
execution
of
the
agreement
or
contract,
the
identifying
numbers
of
the
travel
trailer
towable
recreational
vehicle
or
similar
information
and
the
due
date
of
the
first
installment
may
be
inserted
in
the
agreement
or
contract
after
its
execution.
b.
The
agreement
or
contract
complies
with
the
Iowa
consumer
credit
code,
chapter
537
,
where
applicable.
7.
A
manufacturer
or
distributor
of
travel
trailers
towable
recreational
vehicles
or
an
agent
or
representative
of
a
manufacturer
or
distributor
shall
not
coerce
or
attempt
to
Senate
File
435,
p.
8
coerce
a
travel
trailer
dealer
to
accept
delivery
of
a
travel
trailer
towable
recreational
vehicle,
or
travel
trailer
parts
or
accessories
thereof
,
or
any
other
commodity
which
has
not
been
ordered
by
the
dealer.
8.
Except
as
provided
under
subsection
9
of
this
section
,
a
person
licensed
under
section
322C.4
shall
not,
either
directly
or
through
an
agent,
salesperson
,
or
employee,
engage
or
represent
or
advertise
that
the
person
is
engaged
in
or
intends
to
engage
in
this
state
,
in
the
business
of
buying
or
selling
new
or
used
travel
trailers
towable
recreational
vehicles
on
Sunday.
9.
A
travel
trailer
dealer
may
display
new
travel
trailers
towable
recreational
vehicles
at
fairs,
shows,
and
exhibitions
on
any
day
of
the
week
as
provided
in
this
subsection
.
Travel
trailer
dealers
Dealers
,
in
addition
to
selling
travel
trailers
towable
recreational
vehicles
at
their
principal
place
of
business
and
lots,
may,
upon
receipt
of
a
temporary
permit
approved
by
the
department,
display
and
offer
new
travel
trailers
towable
recreational
vehicles
for
sale
and
negotiate
sales
of
new
travel
trailers
towable
recreational
vehicles
at
fairs,
shows,
and
exhibitions.
Application
for
temporary
permits
shall
be
made
upon
forms
provided
by
the
department
and
shall
be
accompanied
by
a
ten
dollar
permit
fee.
Temporary
permits
shall
be
issued
for
a
period
not
to
exceed
fourteen
days.
The
department
may
issue
multiple
consecutive
temporary
permits.
10.
A
person
who
has
been
convicted
of
a
fraudulent
practice,
has
been
convicted
of
three
or
more
violations
of
section
321.92,
subsection
2
,
or
section
321.99
,
or
has
been
convicted
of
any
other
indictable
offense
in
connection
with
selling
or
other
activity
relating
to
vehicles,
in
this
state
or
any
other
state,
shall
not
for
a
period
of
five
years
from
the
date
of
conviction
be
an
owner,
salesperson,
employee,
officer
of
a
corporation,
or
representative
of
a
licensed
travel
trailer
towable
recreational
vehicle
dealer
or
represent
themselves
as
an
owner,
salesperson,
employee,
officer
of
a
corporation,
or
representative
of
a
licensed
travel
trailer
towable
recreational
vehicle
dealer.
Sec.
4.
Section
322C.4,
Code
2019,
is
amended
to
read
as
Senate
File
435,
p.
9
follows:
322C.4
Dealer’s
license
application
and
fees.
1.
Upon
application
and
payment
of
a
fee,
a
person
may
be
licensed
as
a
travel
trailer
towable
recreational
vehicle
dealer.
The
license
fee
is
seventy
dollars
for
a
two-year
period
or
part
thereof.
The
person
shall
pay
an
additional
fee
of
twenty
dollars
for
a
two-year
period
or
part
thereof
for
each
travel
trailer
towable
recreational
vehicle
lot
in
addition
to
the
principal
place
of
business
unless
the
lot
is
adjacent
to
the
principal
place
of
business.
For
purposes
of
this
subsection
,
“adjacent”
means
that
the
principal
place
of
business
and
each
additional
lot
are
adjoining
parcels
of
property.
The
applicant
shall
file
in
the
office
of
the
department
a
verified
application
for
license
as
a
travel
trailer
dealer
in
the
form
the
department
prescribes,
which
shall
include
the
following:
a.
The
name
of
the
applicant
and
the
applicant’s
principal
place
of
business.
b.
The
name
of
the
applicant’s
business
and
whether
the
applicant
is
an
individual,
partnership,
corporation
,
or
other
legal
entity.
(1)
If
the
applicant
is
a
partnership
,
the
name
under
which
the
partnership
intends
to
engage
in
business
and
the
name
and
post
office
address
of
each
partner.
(2)
If
the
applicant
is
a
corporation,
the
state
of
incorporation
and
the
name
and
post
office
address
of
each
officer
and
director.
c.
The
make
line-make
or
makes
line-makes
of
new
travel
trailers
towable
recreational
vehicles
,
if
any,
which
the
applicant
will
offer
for
sale
at
retail
in
this
state.
d.
The
location
of
each
place
of
business
within
this
state
to
be
used
by
the
applicant
for
the
conduct
of
the
business.
e.
If
the
applicant
is
a
party
to
a
contract,
agreement
including
a
manufacturer-dealer
agreement
,
or
understanding
with
a
manufacturer
or
distributor
of
travel
trailers
towable
recreational
vehicles
or
is
about
to
become
a
party
to
a
contract,
agreement,
or
understanding,
the
applicant
shall
state
the
name
of
each
manufacturer
and
distributor
and
the
make
line-make
or
makes
line-makes
of
new
travel
trailers
Senate
File
435,
p.
10
towable
recreational
vehicles
,
if
any,
which
are
the
subject
matter
of
the
contract,
agreement,
or
understanding.
f.
Other
information
concerning
the
business
of
the
applicant
the
department
reasonably
requires
for
administration
of
this
chapter
.
2.
The
license
shall
be
granted
or
refused
within
thirty
days
after
application.
A
license
is
valid
for
a
two-year
period
and
expires,
unless
revoked
or
suspended
by
the
department,
on
December
31
of
even-numbered
years.
A
licensee
shall
have
the
month
of
expiration
and
the
month
after
the
month
of
expiration
to
renew
the
license.
A
person
who
fails
to
renew
a
license
by
the
end
of
this
time
period
and
desires
to
hold
a
license
shall
file
a
new
license
application
and
pay
the
required
fee.
A
separate
license
shall
be
obtained
for
each
county
in
which
an
applicant
does
business
as
a
travel
trailer
dealer.
3.
A
licensee
shall
file
with
the
department
a
supplemental
statement
when
there
is
a
change
in
an
item
of
information
required
under
paragraphs
“a”
to
“e”
of
subsection
1
,
paragraphs
“a”
through
“e”
,
within
fifteen
days
after
the
change.
Upon
filing
a
supplemental
statement,
the
licensee
shall
surrender
its
license
to
the
department
together
with
a
thirty-five-dollar
fee.
The
department
shall
issue
a
new
license
modified
to
reflect
the
changes
on
the
supplemental
statement.
4.
Before
the
issuance
of
a
travel
trailer
dealer’s
license,
the
applicant
shall
furnish
a
surety
bond
executed
by
the
applicant
as
principal
and
executed
by
a
corporate
surety
company
,
licensed
and
qualified
to
do
business
within
this
state,
which
bond
shall
run
to
the
state
of
Iowa,
be
in
the
amount
of
twenty-five
thousand
dollars
,
and
be
conditioned
upon
the
faithful
compliance
by
the
applicant
as
a
dealer
with
all
statutes
of
this
state
regulating
or
applicable
to
a
travel
trailer
dealer,
and
shall
indemnify
any
person
dealing
or
transacting
business
with
the
dealer
from
loss
or
damage
caused
by
the
failure
of
the
dealer
to
comply
with
the
provisions
of
chapter
321
and
this
chapter
,
including
the
furnishing
of
a
proper
and
valid
certificate
of
title
to
a
travel
trailer,
and
that
the
towable
recreational
vehicle.
The
bond
shall
be
Senate
File
435,
p.
11
filed
with
the
department
prior
to
the
issuance
of
the
license.
A
person
licensed
under
chapter
322
,
with
the
same
name
and
location
or
locations,
is
not
subject
to
the
provisions
of
this
subsection
.
Sec.
5.
Section
322C.6,
subsections
2
and
7,
Code
2019,
are
amended
to
read
as
follows:
2.
Made
a
material
misrepresentation
to
the
department
in
connection
with
an
application
for
a
license,
certificate
of
title
,
or
registration
of
a
travel
trailer
towable
recreational
vehicle
or
other
vehicle.
7.
Knowingly
made
misleading,
deceptive,
untrue
,
or
fraudulent
representations
in
the
business
as
a
distributor
of
travel
trailers
towable
recreational
vehicles
or
engaged
in
unethical
conduct
or
practice
harmful
or
detrimental
to
the
public.
Sec.
6.
Section
322C.7,
Code
2019,
is
amended
to
read
as
follows:
322C.7
Manufacturer’s
or
distributor’s
license.
A
manufacturer
or
distributor
of
travel
trailers
towable
recreational
vehicles
shall
not
engage
in
business
in
this
state
without
a
license
pursuant
to
this
chapter
.
Sec.
7.
NEW
SECTION
.
322C.8
Applicability
to
agreements.
If
a
towable
recreational
vehicle
dealer
also
sells
and
services
motorized
recreational
vehicles
or
other
motor
vehicles,
the
provisions
of
this
chapter
relating
to
manufacturer-dealer
agreements
apply
only
to
such
agreements,
or
those
provisions
of
such
agreements,
applicable
to
towable
recreational
vehicles.
Sec.
8.
Section
322C.9,
Code
2019,
is
amended
to
read
as
follows:
322C.9
License
application
and
fees.
Upon
application
and
payment
of
a
seventy
dollar
fee
for
a
two-year
period
or
part
thereof,
a
person
may
be
licensed
as
a
manufacturer
or
distributor
of
travel
trailers
towable
recreational
vehicles
.
The
application
shall
be
in
the
form
and
shall
contain
information
as
the
department
prescribes.
The
license
shall
be
granted
or
refused
within
thirty
days
after
application.
The
license
expires,
unless
sooner
revoked
or
suspended
by
the
department,
on
December
31
of
even-numbered
Senate
File
435,
p.
12
years.
A
licensee
shall
have
the
month
of
expiration
and
the
month
after
the
month
of
expiration
to
renew
the
license.
A
person
who
fails
to
renew
a
license
by
the
end
of
this
time
period
and
desires
to
hold
a
license
shall
file
a
new
license
application
and
pay
the
required
fee.
Sec.
9.
Section
322C.12,
Code
2019,
is
amended
to
read
as
follows:
322C.12
Semitrailer
or
travel
trailer
towable
recreational
vehicle
retail
installment
contract
——
finance
charges.
1.
A
retail
installment
contract
or
agreement
for
the
sale
of
a
semitrailer
or
travel
trailer
towable
recreational
vehicle
may
include
a
finance
charge
not
in
excess
of
the
following
rates:
a.
Class
1.
Any
new
semitrailer
or
travel
trailer
towable
recreational
vehicle
designated
by
the
manufacturer
by
a
year
model
not
earlier
than
the
year
in
which
the
sale
is
made,
an
amount
equivalent
to
one
and
three-fourths
percent
per
month
simple
interest
on
the
declining
balance
of
the
amount
financed.
b.
Class
2.
Any
new
semitrailer
or
travel
trailer
towable
recreational
vehicle
not
in
class
1
and
any
used
semitrailer
designated
by
the
manufacturer
by
a
year
model
of
the
same
or
not
more
than
two
years
prior
to
the
year
in
which
the
sale
is
made,
an
amount
equivalent
to
two
percent
per
month
simple
interest
on
the
declining
balance
of
the
amount
financed.
c.
Class
3.
Any
used
semitrailer
or
travel
trailer
towable
recreational
vehicle
not
in
class
2
and
designated
by
the
manufacturer
by
a
year
model
more
than
two
years
prior
to
the
year
in
which
the
sale
is
made,
an
amount
equivalent
to
two
and
one-fourth
percent
per
month
simple
interest
on
the
declining
balance
of
the
amount
financed.
2.
Amount
financed
shall
be
“Amount
financed”
means
the
same
as
defined
in
section
537.1301
.
3.
The
limitations
contained
in
this
section
do
not
apply
in
a
transaction
referred
to
in
section
535.2,
subsection
2
.
With
respect
to
a
consumer
credit
sale,
as
defined
in
section
537.1301
,
the
limitations
contained
in
this
section
supersede
conflicting
provisions
of
chapter
537,
article
2,
part
2
.
Sec.
10.
NEW
SECTION
.
322C.13
Manufacturer-dealer
agreement
Senate
File
435,
p.
13
required
——
community.
1.
A
manufacturer
or
distributor
shall
not
sell
a
new
towable
recreational
vehicle
in
this
state
to
or
through
a
towable
recreational
vehicle
dealer
without
first
entering
into
a
manufacturer-dealer
agreement
with
the
dealer
that
has
been
signed
by
both
parties.
A
dealer
shall
not
sell
a
new
towable
recreational
vehicle
in
this
state
without
first
entering
into
a
manufacturer-dealer
agreement
with
a
manufacturer
or
distributor
that
has
been
signed
by
both
parties.
2.
Except
as
provided
in
subsection
3,
a
manufacturer-dealer
agreement
shall
designate
the
community
exclusively
assigned
to
a
dealer
by
the
manufacturer
or
distributor,
and
the
manufacturer
or
distributor
shall
not
change
the
community
or
contract
with
another
dealer
for
the
sale
of
the
same
line-make
of
towable
recreational
vehicle
in
the
community
for
the
duration
of
the
agreement.
3.
The
community
designated
in
a
manufacturer-dealer
agreement
may
be
reviewed
or
changed
with
the
consent
of
both
parties
not
less
than
twelve
months
after
execution
of
the
agreement.
Sec.
11.
NEW
SECTION
.
322C.14
Manufacturer-dealer
agreement
——
termination,
cancellation,
nonrenewal,
or
alteration
by
manufacturer
or
distributor.
1.
Notwithstanding
section
322C.3,
subsection
5,
a
manufacturer
or
distributor
may,
either
directly
or
through
any
authorized
officer,
agent,
or
employee,
terminate,
cancel,
or
fail
to
renew
a
manufacturer-dealer
agreement
with
or
without
good
cause.
If
the
manufacturer
or
distributor
terminates,
cancels,
or
fails
to
renew
a
manufacturer-dealer
agreement
without
good
cause,
the
manufacturer
or
distributor
shall
comply
with
the
repurchase
requirements
set
forth
in
section
322C.16.
2.
A
manufacturer
or
distributor
shall
have
the
burden
of
proof
to
demonstrate
good
cause
for
terminating,
canceling,
or
failing
to
renew
a
manufacturer-dealer
agreement.
For
purposes
of
determining
whether
good
cause
exists
for
the
manufacturer’s
or
distributor’s
termination,
cancellation,
or
failure
to
renew
a
manufacturer-dealer
agreement,
any
of
the
following
factors
may
be
considered:
Senate
File
435,
p.
14
a.
The
extent
of
the
dealer’s
presence
in
the
community.
b.
The
nature
and
extent
of
the
dealer’s
investment
in
the
dealer’s
business.
c.
The
adequacy
of
the
dealer’s
service
facilities,
equipment,
parts,
supplies,
and
personnel.
d.
The
effect
that
the
proposed
termination,
cancellation,
or
nonrenewal
of
the
manufacturer-dealer
agreement
would
have
on
the
community.
e.
The
extent
and
quality
of
the
dealer’s
service
under
the
warranties
of
the
towable
recreational
vehicles
sold
by
the
dealer.
f.
The
dealer’s
failure
to
follow
procedures
or
standards
related
to
the
overall
operation
of
the
dealership
that
were
agreed
to
by
the
dealer.
g.
The
dealer’s
performance
under
the
terms
of
the
manufacturer-dealer
agreement.
3.
a.
Except
as
otherwise
provided
in
this
subsection
or
subsection
4,
a
manufacturer
or
distributor
shall
provide
to
a
dealer
written
notice
of
termination,
cancellation,
or
nonrenewal
of
a
manufacturer-dealer
agreement
for
good
cause
at
least
ninety
days
prior
to
terminating,
canceling,
or
failing
to
renew
the
manufacturer-dealer
agreement.
b.
(1)
The
notice
shall
state
all
of
the
reasons
for
the
termination,
cancellation,
or
nonrenewal
and
shall
further
state
that
if,
within
thirty
days
following
receipt
of
the
notice,
the
dealer
provides
to
the
manufacturer
or
distributor
a
written
notice
of
intent
to
cure
all
claimed
deficiencies,
the
dealer
shall
then
have
ninety
days
following
receipt
of
the
notice
to
cure
the
deficiencies.
(2)
If
the
deficiencies
are
cured
within
ninety
days,
the
manufacturer’s
or
distributor’s
notice
is
voided.
If
the
dealer
fails
to
provide
the
notice
of
intent
to
cure
the
deficiencies
within
thirty
days,
or
fails
to
cure
the
deficiencies
within
ninety
days,
the
termination,
cancellation,
or
nonrenewal
takes
effect
as
provided
in
the
original
notice.
If
the
dealer
has
possession
of
new
and
untitled
inventory,
the
inventory
may
be
sold
pursuant
to
section
322C.16.
c.
The
notice
period
for
termination,
cancellation,
or
nonrenewal
of
a
manufacturer-dealer
agreement
for
good
cause
Senate
File
435,
p.
15
may
be
reduced
to
thirty
days
if
the
grounds
for
termination,
cancellation,
or
nonrenewal
are
due
to
any
of
the
following
factors:
(1)
The
dealer
or
one
of
the
dealer’s
owners
has
been
convicted
of,
or
has
entered
a
plea
of
guilty
or
nolo
contendere
to,
a
felony.
(2)
The
dealer
has
abandoned
or
closed
the
dealer’s
business
operations
for
ten
consecutive
business
days.
This
subparagraph
does
not
apply
if
the
closing
is
due
to
a
normal
seasonal
closing
and
the
dealer
notifies
the
manufacturer
or
distributor
of
the
planned
closing,
an
act
of
God,
a
strike,
a
labor
difficulty,
or
any
other
cause
over
which
the
dealer
has
no
control.
(3)
The
dealer
has
made
a
significant
misrepresentation
that
materially
affects
the
business
relationship
of
the
manufacturer
or
distributor
and
the
dealer.
(4)
The
dealer’s
license
has
been
suspended,
revoked,
denied,
or
has
not
been
renewed
by
the
department.
(5)
The
dealer
has
committed
a
material
violation
of
this
chapter
which
is
not
cured
within
thirty
days
after
receipt
of
written
notice
of
the
violation.
4.
Subsection
3
does
not
apply
if
the
manufacturer
or
distributor
terminates,
cancels,
or
fails
to
renew
the
manufacturer-dealer
agreement
because
the
dealer
is
insolvent,
or
has
filed
for
bankruptcy,
receivership,
or
assignment
for
the
benefit
of
creditors.
Sec.
12.
NEW
SECTION
.
322C.15
Manufacturer-dealer
agreement
——
termination,
cancellation,
nonrenewal,
or
alteration
by
dealer.
1.
A
dealer
may
terminate,
cancel,
or
fail
to
renew
a
manufacturer-dealer
agreement
with
or
without
good
cause.
If
the
dealer
terminates,
cancels,
or
fails
to
renew
a
manufacturer-dealer
agreement
with
good
cause,
the
manufacturer
or
distributor
shall
comply
with
the
repurchase
requirements
set
forth
in
section
322C.16.
2.
The
dealer
shall
have
the
burden
of
proof
to
demonstrate
good
cause
for
terminating,
canceling,
or
failing
to
renew
a
manufacturer-dealer
agreement.
For
purposes
of
determining
whether
good
cause
exists
for
the
dealer’s
termination,
Senate
File
435,
p.
16
cancellation,
or
failure
to
renew
a
manufacturer-dealer
agreement,
any
of
the
following
factors
shall
be
deemed
to
be
good
cause:
a.
The
manufacturer
or
distributor
has
been
convicted
of,
or
has
entered
a
plea
of
guilty
or
nolo
contendere
to,
a
felony.
b.
The
manufacturer’s
or
distributor’s
business
operations
have
been
abandoned
or
caused
the
dealer’s
business
operations
to
close
for
ten
consecutive
business
days.
This
subparagraph
does
not
apply
if
the
closing
is
due
to
a
normal
seasonal
closing
and
the
manufacturer
or
distributor
notifies
the
dealer
of
the
planned
closing,
an
act
of
God,
a
strike,
a
labor
difficulty,
or
any
other
cause
over
which
the
manufacturer
or
distributor
has
no
control.
c.
The
manufacturer
or
distributor
has
made
a
significant
misrepresentation
that
materially
affects
the
business
relationship
of
the
manufacturer
or
distributor
and
the
dealer.
d.
The
manufacturer
or
distributor
has
committed
a
material
violation
of
this
chapter
which
is
not
cured
within
thirty
days
after
receipt
of
written
notice
of
the
violation.
e.
The
manufacturer
or
distributor
is
insolvent,
or
has
filed
for
bankruptcy,
receivership,
or
assignment
for
the
benefit
of
creditors.
3.
a.
A
dealer
shall
provide
to
a
manufacturer
or
distributor
written
notice
of
termination,
cancellation,
or
nonrenewal
of
a
manufacturer-dealer
agreement
at
least
thirty
days
prior
to
terminating,
canceling,
or
failing
to
renew
the
manufacturer-dealer
agreement.
b.
(1)
If
a
termination
or
cancellation
is
for
good
cause,
the
notice
shall
state
all
of
the
reasons
for
the
termination
or
cancellation
and
shall
further
state
that
if,
within
thirty
days
following
receipt
of
the
notice,
the
manufacturer
or
distributor
provides
to
the
dealer
a
written
notice
of
intent
to
cure
all
claimed
deficiencies,
the
manufacturer
or
distributor
shall
then
have
ninety
days
following
receipt
of
the
notice
to
cure
the
deficiencies.
(2)
If
the
deficiencies
are
cured
within
ninety
days,
the
dealer’s
notice
is
voided.
If
the
manufacturer
or
distributor
fails
to
provide
the
notice
of
intent
to
cure
the
deficiencies
within
thirty
days,
or
fails
to
cure
the
deficiencies
within
Senate
File
435,
p.
17
ninety
days,
the
termination
or
cancellation
takes
effect
as
provided
in
the
original
notice.
Sec.
13.
NEW
SECTION
.
322C.16
Repurchase
or
sale
of
inventory.
1.
If
a
manufacturer-dealer
agreement
is
terminated,
canceled,
or
not
renewed
by
the
manufacturer
or
distributor
without
good
cause,
or
by
a
dealer
with
good
cause
and,
in
the
case
of
termination
or
cancellation,
the
manufacturer
or
distributor
fails
to
provide
notice
or
cure
the
deficiencies
claimed
by
the
dealer,
the
manufacturer
or
distributor
shall,
at
the
dealer’s
option
and
within
forty-five
days
after
termination,
cancellation,
or
nonrenewal,
repurchase
all
of
the
following:
a.
All
new,
untitled
towable
recreational
vehicles
that
the
dealer
acquired
from
the
manufacturer
or
distributor
within
twelve
months
prior
to
the
effective
date
of
the
notice
of
termination,
cancellation,
or
nonrenewal
of
the
manufacturer-dealer
agreement
that
have
not
been
used
other
than
for
demonstration
purposes,
and
that
have
not
been
altered
or
damaged,
at
one
hundred
percent
of
the
net
invoice
cost,
including
transportation,
less
applicable
rebates
and
discounts
to
the
dealer.
If
any
of
the
towable
recreational
vehicles
repurchased
pursuant
to
this
paragraph
are
damaged,
but
do
not
require
a
disclosure
under
section
321.69A,
the
amount
due
to
the
dealer
shall
be
reduced
by
the
cost
to
repair
the
vehicle.
Damage
incurred
by
a
vehicle
prior
to
delivery
to
the
dealer
that
was
disclosed
at
the
time
of
delivery
shall
not
disqualify
repurchase
pursuant
to
this
paragraph.
b.
All
undamaged
proprietary
parts
for
any
line-make
subject
to
the
termination,
cancellation,
or
nonrenewal
that
was
sold
to
the
dealer
for
resale
within
twelve
months
prior
to
the
effective
date
of
the
termination,
cancellation,
or
nonrenewal
of
the
manufacturer-dealer
agreement,
if
accompanied
by
the
original
invoice,
at
one
hundred
five
percent
of
the
original
net
price
paid
to
the
manufacturer
or
distributor.
c.
All
properly
functioning
diagnostic
equipment,
special
tools,
current
signage,
or
other
equipment
and
machinery
that
was
purchased
by
the
dealer
upon
the
request
of
the
manufacturer
or
distributor
for
any
line-make
subject
to
the
Senate
File
435,
p.
18
termination,
cancellation,
or
nonrenewal
within
five
years
prior
to
the
effective
date
of
the
termination,
cancellation,
or
nonrenewal
of
the
manufacturer-dealer
agreement
that
can
no
longer
be
used
in
the
normal
course
of
the
dealer’s
ongoing
business.
2.
If
towable
recreational
vehicles
of
a
particular
line-make
subject
to
a
terminated,
canceled,
or
nonrenewed
manufacturer-dealer
agreement
are
not
repurchased
or
required
to
be
repurchased
pursuant
to
the
agreement,
the
dealer
may
continue
to
sell
such
vehicles
existing
in
the
dealer’s
inventory
until
the
vehicles
are
no
longer
in
the
dealer’s
inventory.
Sec.
14.
NEW
SECTION
.
322C.17
Transfer
of
ownership
——
family
succession
——
objection.
1.
a.
If
a
towable
recreational
vehicle
dealer
makes
or
intends
to
make
a
change
in
ownership
of
a
dealership
by
sale
of
the
business
assets,
a
stock
transfer,
or
in
another
manner,
the
dealer
shall
provide
to
a
manufacturer
or
distributor
that
is
a
party
to
a
manufacturer-dealer
agreement
with
the
dealer
written
notice
of
the
proposed
change
at
least
fifteen
business
days
before
the
change
becomes
effective.
The
notice
shall
include
all
supporting
documentation
that
may
be
reasonably
required
by
the
manufacturer
or
distributor
to
determine
whether
to
make
an
objection
to
the
change.
b.
In
the
absence
of
a
breach
by
the
dealer
of
the
manufacturer-dealer
agreement
or
a
violation
of
this
chapter,
the
manufacturer
or
distributor
shall
not
object
to
the
proposed
change
in
ownership
unless
the
objection
is
to
the
prospective
transferee
for
any
of
the
following
reasons:
(1)
The
transferee
has
previously
been
a
party
to
a
manufacturer-dealer
agreement
with
the
manufacturer
or
distributor
and
the
agreement
was
terminated,
canceled,
or
not
renewed
by
the
manufacturer
or
distributor
for
good
cause.
(2)
The
transferee
has
been
convicted
of
a
felony
or
any
crime
of
fraud,
deceit,
or
moral
turpitude.
(3)
The
transferee
lacks
any
license
required
by
law.
(4)
The
transferee
does
not
have
an
active
line
of
credit
sufficient
to
purchase
the
manufacturer’s
or
distributor’s
products.
Senate
File
435,
p.
19
(5)
The
transferee
is
insolvent
or
has
been
within
the
previous
ten
years,
or
has
filed
for
bankruptcy,
receivership,
or
assignment
for
the
benefit
of
creditors
within
the
previous
ten
years.
c.
If
a
manufacturer
or
distributor
objects
to
a
proposed
change
in
ownership
of
a
dealership,
the
manufacturer
or
distributor
shall
provide
written
notice
of
the
reasons
for
the
objection
to
the
dealer
within
fifteen
business
days
after
receipt
of
the
dealer’s
notification
and
supporting
documentation
about
the
proposed
change.
The
manufacturer
or
distributor
shall
have
the
burden
of
proof
to
demonstrate
that
the
objection
complies
with
the
requirements
of
this
subsection.
If
the
manufacturer
or
distributor
does
not
provide
the
dealer
with
timely
notice
of
the
objection,
the
dealer’s
proposed
change
in
ownership
of
the
dealership
shall
be
deemed
approved.
2.
a.
A
manufacturer
or
distributor
shall
provide
to
a
dealer
the
opportunity
to
designate,
in
writing,
a
family
member
as
a
successor
to
ownership
of
a
dealership
in
the
event
of
the
death,
incapacity,
or
retirement
of
the
dealer.
If
a
dealer
desires
to
designate
a
family
member
as
a
successor
to
ownership
of
a
dealership,
the
dealer
shall
provide
to
the
manufacturer
or
distributor
that
is
a
party
to
the
manufacturer-dealer
agreement
with
the
dealer
written
notice
of
the
proposed
designation,
or
modification
of
a
previous
designation,
at
least
fifteen
business
days
before
the
designation
or
proposed
modification
of
a
designation
becomes
effective.
The
notice
shall
include
all
supporting
documentation
as
may
be
reasonably
required
by
the
manufacturer
or
distributor
to
determine
whether
to
make
an
objection
to
the
succession
plan.
b.
In
the
absence
of
a
breach
by
the
dealer
of
the
manufacturer-dealer
agreement
or
a
violation
of
this
chapter,
the
manufacturer
or
distributor
shall
not
object
to
the
designation
or
proposed
modification
of
a
designation
unless
the
objection
is
to
the
designated
successor
for
any
of
the
following
reasons:
(1)
The
designated
successor
has
previously
been
a
party
to
a
manufacturer-dealer
agreement
with
the
manufacturer
or
Senate
File
435,
p.
20
distributor
and
the
agreement
was
terminated,
canceled,
or
not
renewed
by
the
manufacturer
or
distributor
for
good
cause.
(2)
The
designated
successor
has
been
convicted
of
a
felony
or
any
crime
of
fraud,
deceit,
or
moral
turpitude.
(3)
The
designated
successor
lacks
any
license
required
by
law
at
the
time
of
succession.
(4)
The
designated
successor
does
not
have
an
active
line
of
credit
sufficient
to
purchase
the
manufacturer’s
or
distributor’s
products
at
the
time
of
succession.
(5)
The
designated
successor
is
insolvent
or
has
been
within
the
previous
ten
years,
or
has
filed
for
bankruptcy,
receivership,
or
assignment
for
the
benefit
of
creditors
within
the
previous
ten
years.
c.
If
a
manufacturer
or
distributor
objects
to
a
succession
plan,
the
manufacturer
or
distributor
shall
provide
written
notice
of
the
reasons
for
the
objection
to
the
dealer
within
fifteen
business
days
after
receipt
of
the
dealer’s
notification
and
supporting
documentation
about
the
proposed
designation
or
proposed
modification
of
a
designation.
The
manufacturer
or
distributor
shall
have
the
burden
of
proof
to
demonstrate
that
the
objection
complies
with
the
requirements
of
this
subsection.
If
the
manufacturer
or
distributor
does
not
provide
the
dealer
with
timely
notice
of
the
objection,
the
dealer’s
proposed
succession
plan
shall
be
deemed
approved.
A
manufacturer
or
distributor
shall
allow
the
succession
of
ownership
of
a
dealership
to
a
designated
family
member
when
a
dealer
is
deceased,
incapacitated,
or
has
retired,
unless
the
manufacturer
or
distributor
has
provided
to
the
dealer
written
notice
of
the
manufacturer’s
or
distributor’s
objections
to
the
succession
within
fifteen
days
after
receipt
of
notice
of
the
succession.
However,
a
family
member
of
a
dealer
shall
not
succeed
to
ownership
of
a
dealership
if
the
succession
involves,
without
the
manufacturer’s
or
distributor’s
consent,
a
relocation
of
the
dealership
or
alteration
of
the
terms
and
conditions
of
the
manufacturer-dealer
agreement.
Sec.
15.
NEW
SECTION
.
322C.18
Warranty
obligations.
1.
A
warrantor
shall
do
all
of
the
following:
a.
Specify
in
writing
to
each
dealer
what
obligations
the
dealer
has,
if
any,
for
the
preparation
and
delivery
of,
and
Senate
File
435,
p.
21
warranty
services
on,
the
warrantor’s
products.
b.
Compensate
the
dealer
for
warranty
services
the
warrantor
requires
the
dealer
to
perform.
c.
Provide
the
dealer
with
a
schedule
of
compensation
and
time
allowances
for
the
performance
of
warranty
services.
The
schedule
of
compensation
shall
include
reasonable
compensation
for
warranty
services
performed
by
the
dealer,
including
diagnostic
services.
2.
a.
Time
allowances
for
the
performance
of
warranty
services,
including
diagnostic
services,
shall
be
reasonable
for
the
service
to
be
performed.
b.
In
determining
what
constitutes
reasonable
compensation
under
this
section,
the
principle
factors
to
be
given
consideration
shall
be
the
actual
wage
rates
being
paid
by
the
dealer
and
the
actual
retail
wage
rates
being
charged
by
other
dealers
in
the
community
in
which
the
dealer
is
doing
business.
The
compensation
of
a
dealer
for
warranty
services
shall
not
be
less
than
the
lowest
actual
retail
wage
rates
charged
by
the
dealer
for
similar
nonwarranty
services,
as
long
as
the
actual
retail
wage
rates
are
reasonable.
3.
A
warrantor
shall
reimburse
a
dealer
for
any
warranty
part,
accessory,
or
complete
component
at
actual
wholesale
cost
to
the
dealer
plus
a
minimum
of
a
thirty
percent
handling
charge,
not
to
exceed
one
hundred
fifty
dollars,
and
plus
the
cost,
if
any,
to
the
dealer
to
return
such
part,
component,
or
accessory
to
the
warrantor.
4.
A
warrantor
may
conduct
a
warranty
audit
of
a
dealer’s
records
within
twelve
months
after
the
payment
of
a
warranty
claim.
A
warrantor
shall
not
deny
a
dealer’s
claim
for
warranty
compensation
except
for
good
cause,
including
performance
of
nonwarranty
repairs,
material
noncompliance
with
the
warrantor’s
published
policies
and
procedures,
lack
of
material
documentation,
fraud,
or
misrepresentation.
5.
A
dealer
shall
submit
claims
for
compensation
for
the
performance
of
warranty
services
to
the
warrantor
within
forty-five
days
after
completion
of
the
warranty
services.
6.
A
dealer
shall
immediately
notify
a
warrantor
in
writing
if
the
dealer
is
unable
to
perform
warranty
services,
including
diagnostic
services,
within
ten
days
of
receipt
of
a
written
Senate
File
435,
p.
22
complaint
from
a
consumer.
7.
A
warrantor
shall
deny
a
claim
submitted
by
a
dealer
for
compensation
for
the
performance
of
warranty
services,
in
writing,
within
thirty
days
after
submission
of
the
claim
in
the
manner
and
form
prescribed
by
the
warrantor.
A
claim
not
specifically
denied
as
required
by
this
subsection
shall
be
deemed
approved
and
shall
be
paid
within
sixty
days
of
submission
of
the
claim.
8.
A
warrantor
shall
not
do
any
of
the
following:
a.
Fail
to
perform
any
of
the
warrantor’s
obligations
with
respect
to
its
warranted
products.
b.
Fail
to
include,
in
written
notices
of
a
factory
campaign
to
towable
recreational
vehicle
owners
and
dealers,
the
expected
date
by
which
necessary
parts
and
equipment,
including
tires
and
chassis
or
chassis
parts,
will
be
available
to
dealers
to
perform
the
factory
campaign
work.
The
warrantor
may
ship
parts
to
a
dealer
for
purposes
of
factory
campaign
work,
and,
if
such
parts
are
in
excess
of
the
dealer’s
requirements,
the
dealer
may
return
unused,
undamaged
parts
to
the
warrantor
for
credit
after
completion
of
the
factory
campaign.
c.
Fail
to
compensate
the
warrantor’s
dealers
for
authorized
repairs
performed
by
the
dealer
on
merchandise
damaged
in
manufacture
or
in
transit
to
the
dealer
by
a
carrier
designated
by
the
warrantor,
factory
branch,
distributor,
or
distributor
branch.
d.
Fail
to
compensate
the
warrantor’s
dealers
in
accordance
with
the
schedule
of
compensation
provided
to
the
dealer
pursuant
to
this
section,
if
the
warranty
services
for
which
compensation
is
claimed
are
performed
by
the
dealer
in
a
timely
and
competent
manner
as
required
in
this
section.
e.
Intentionally
misrepresent
in
any
way
to
consumers
that
warranties
with
respect
to
the
manufacture,
performance,
or
design
of
towable
recreational
vehicles
are
made
by
the
dealer
as
warrantor
or
co-warrantor.
f.
Require
the
warrantor’s
dealers
to
make
warranties
to
a
consumer
that
are
in
any
manner
related
to
the
manufacture
of
a
towable
recreational
vehicle.
9.
A
dealer
shall
not
do
any
of
the
following:
Senate
File
435,
p.
23
a.
Fail
to
perform
predelivery
inspection
functions,
as
specified
by
the
warrantor,
in
a
competent
and
timely
manner.
b.
Fail
to
perform
warranty
services,
as
authorized
by
the
warrantor,
in
a
competent
and
timely
manner
on
any
transient
consumer’s
towable
recreational
vehicle
of
a
line-make
sold
or
serviced
by
the
dealer.
c.
Fail
to
accurately
document
the
time
spent
completing
each
repair,
the
total
number
of
repair
attempts
conducted
on
a
single
towable
recreational
vehicle,
and
the
number
of
repair
attempts
for
the
same
repair
conducted
on
a
single
towable
recreational
vehicle.
d.
Fail
to
notify
the
warrantor
within
ten
days
of
a
second
repair
attempt
on
a
towable
recreational
vehicle
which
impairs
the
use,
value,
or
safety
of
the
vehicle.
e.
Fail
to
maintain
written
records,
including
a
consumer’s
written
or
electronic
verification
or
signature,
regarding
the
amount
of
time
a
towable
recreational
vehicle
is
stored
for
the
consumer’s
convenience
during
a
repair.
f.
Make
fraudulent
warranty
claims
or
misrepresent
the
terms
of
any
warranty.
Sec.
16.
NEW
SECTION
.
322C.19
Indemnification
——
warrantor
and
dealer.
1.
a.
Notwithstanding
the
terms
of
a
manufacturer-dealer
agreement,
a
warrantor
shall
indemnify
and
hold
harmless
the
warrantor’s
dealer
against
any
loss
or
damage,
to
the
extent
the
loss
or
damage
is
caused
by
willful
misconduct
of
the
warrantor.
b.
A
warrantor
shall
not
deny
a
dealer
indemnification
for
failure
to
discover,
disclose,
or
remedy
a
defect
in
the
design
or
manufacture
of
a
new
towable
recreational
vehicle.
A
warrantor
may
deny
a
dealer
indemnification
if
the
dealer
fails
to
remedy
a
known
and
announced
defect
in
accordance
with
the
written
instructions
of
the
warrantor
for
whom
the
dealer
is
obligated
to
perform
warranty
services.
c.
A
warrantor
shall
provide
to
the
dealer
a
copy
of
any
pending
lawsuit
in
which
allegations
are
made
against
the
warrantor
of
willful
misconduct.
The
warrantor
shall
provide
the
copy
to
the
dealer
within
ten
days
after
receiving
notice
of
the
lawsuit.
Senate
File
435,
p.
24
2.
a.
Notwithstanding
the
terms
of
a
manufacturer-dealer
agreement,
a
dealer
shall
indemnify
and
hold
harmless
the
dealer’s
warrantor
against
any
loss
or
damage,
to
the
extent
that
the
loss
or
damage
is
caused
by
willful
misconduct
of
the
dealer.
b.
A
dealer
shall
provide
to
the
warrantor
a
copy
of
any
pending
lawsuit
in
which
allegations
are
made
against
the
dealer
of
willful
misconduct.
The
dealer
shall
provide
the
copy
to
the
warrantor
within
ten
days
after
receiving
notice
of
the
lawsuit.
3.
Notwithstanding
any
provision
of
law
to
the
contrary,
this
section
continues
to
apply
after
a
new
towable
recreational
vehicle
is
titled.
Sec.
17.
NEW
SECTION
.
322C.20
Inspection
and
rejection
by
dealer.
1.
Whenever
a
new
towable
recreational
vehicle
is
damaged
prior
to
transit
or
is
damaged
in
transit
to
a
dealer
and
the
carrier
or
means
of
transportation
has
been
selected
by
the
manufacturer
or
distributor,
the
dealer
shall
notify
the
manufacturer
or
distributor
of
the
damage
within
the
time
frame
specified
in
the
manufacturer-dealer
agreement
and
shall
do
either
of
the
following:
a.
Request
from
the
manufacturer
or
distributor
authorization
to
replace
the
components,
parts,
or
accessories
damaged,
or
otherwise
repair
the
vehicle
to
make
it
ready
for
sale
at
retail.
b.
Reject
the
vehicle
within
the
time
frame
set
forth
in
the
manufacturer-dealer
agreement
pursuant
to
subsection
4.
2.
If
the
manufacturer
or
distributor
refuses
to
authorize
repair
of
the
new
towable
recreational
vehicle
within
ten
days
after
receipt
of
a
dealer’s
notification,
or
if
the
dealer
rejects
the
new
towable
recreational
vehicle
because
of
damage
to
the
vehicle,
ownership
of
the
vehicle
shall
revert
to
the
manufacturer
or
distributor.
3.
The
dealer
shall
exercise
due
care
when
in
custody
of
a
damaged
new
towable
recreational
vehicle,
but
the
dealer
shall
have
no
other
obligations,
financial
or
otherwise,
with
respect
to
the
vehicle
following
rejection
in
accordance
with
the
manufacturer-dealer
agreement
pursuant
to
subsection
4.
Senate
File
435,
p.
25
4.
The
time
frame
for
inspection
and
rejection
of
a
damaged
new
towable
recreational
vehicle
by
a
dealer
shall
be
specified
in
the
manufacturer-dealer
agreement,
but
shall
not
be
less
than
two
business
days
after
the
physical
delivery
of
the
vehicle
to
the
dealer.
Sec.
18.
NEW
SECTION
.
322C.21
Civil
action
——
mediation.
1.
A
dealer,
manufacturer,
distributor,
or
warrantor
injured
by
another
party’s
violation
of
this
chapter
may
bring
a
civil
action
in
district
court
to
recover
actual
damages
resulting
from
the
violation.
The
court
shall
award
reasonable
attorney
fees
and
costs
to
the
prevailing
party
in
such
an
action.
Venue
for
a
civil
action
authorized
by
this
section
shall
be
exclusively
in
the
county
in
which
the
dealer’s
business
is
located.
In
an
action
involving
more
than
one
dealer,
venue
may
be
in
any
county
in
which
any
dealer
that
is
a
party
to
the
action
is
located.
2.
a.
Prior
to
bringing
a
civil
action
under
this
section,
the
party
alleging
a
violation
of
this
chapter
shall
serve
a
written
demand
for
mediation
upon
the
alleged
offending
party.
b.
The
demand
for
mediation
shall
be
served
upon
the
alleged
offending
party
via
certified
mail
at
the
address
stated
in
the
manufacturer-dealer
agreement
between
the
parties,
if
applicable.
c.
The
demand
for
mediation
shall
contain
a
statement
of
the
dispute
or
violation
alleged
and
the
relief
sought
by
the
party
serving
the
demand.
d.
Within
twenty
days
after
service
of
a
demand
for
mediation,
the
parties
shall
mutually
select
an
independent
certified
mediator
and
shall
meet
with
the
mediator
for
the
purpose
of
attempting
to
resolve
the
dispute
or
alleged
violation.
The
meeting
place
for
the
mediation
shall
be
in
this
state
at
a
location
selected
by
the
mediator.
The
mediator
may
extend
the
date
before
which
the
parties
are
required
to
have
the
meeting
for
good
cause
shown
by
either
party
or
upon
a
stipulation
by
both
parties.
e.
The
service
of
a
demand
for
mediation
under
this
section
shall
toll
the
period
during
which
a
party
is
required
to
file
any
complaint,
petition,
protest,
or
other
action
under
this
chapter
until
representatives
of
both
parties
have
met
Senate
File
435,
p.
26
with
the
mutually
agreed-upon
mediator
for
the
purpose
of
attempting
to
resolve
the
dispute
or
alleged
violation.
If
a
complaint,
petition,
protest,
or
other
action
has
been
filed
before
the
mediation
meeting,
the
court
shall
enter
an
order
suspending
any
proceeding
or
action
relating
to
such
complaint,
petition,
protest,
or
other
action
until
the
mediation
meeting
has
occurred
and
may,
upon
written
stipulation
by
all
parties
to
the
proceeding
or
action
that
the
parties
wish
to
continue
mediation
under
this
section,
enter
an
order
suspending
the
proceeding
or
action
for
any
period
the
court
considers
appropriate.
f.
Each
party
to
the
mediation
shall
pay
its
own
costs
for
attorney
fees.
The
costs
of
the
mediation
services
shall
be
equally
allocated
among
each
party.
3.
In
addition
to
the
remedies
provided
in
this
section,
and
notwithstanding
the
existence
of
any
additional
remedy
at
law,
a
manufacturer,
distributor,
warrantor,
or
dealer
may
petition
the
district
court,
upon
a
hearing
and
for
cause
shown,
for
a
temporary
or
permanent
injunction,
or
both,
restraining
any
person
from
acting
as
a
dealer
without
being
properly
licensed,
from
violating
or
continuing
to
violate
any
of
the
provisions
of
this
chapter,
or
from
failing
or
refusing
to
comply
with
the
requirements
of
this
chapter.
Such
injunction
shall
be
issued
without
bond.
A
single
act
in
violation
of
this
chapter
shall
be
considered
sufficient
cause
to
authorize
the
issuance
of
an
injunction
pursuant
to
this
subsection.
Sec.
19.
Section
435.23,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
The
manufacturer’s
and
retailer’s
inventory
of
mobile
homes,
manufactured
homes,
or
modular
homes
not
in
use
as
a
place
of
human
habitation
shall
be
exempt
from
the
annual
tax.
All
travel
trailers
,
fifth-wheel
travel
trailers,
and
towable
recreational
vehicles
shall
be
exempt
from
this
tax.
The
homes
,
and
travel
trailers
,
fifth-wheel
travel
trailers,
and
towable
recreational
vehicles
in
the
inventory
of
manufacturers
and
retailers
shall
be
exempt
from
personal
property
tax.
Sec.
20.
APPLICABILITY.
This
Act
applies
to
manufacturer-dealer
agreements
pertaining
to
the
sale
of
new
towable
recreational
vehicles
entered
into
or
renewed
on
Senate
File
435,
p.
27
or
after
January
1,
2020.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
LINDA
UPMEYER
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
andis
known
as
Senate
File
435,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor