S.F. 2262 Section 1. Section 321.1, subsection 37, Code 2018, is 1 amended to read as follows: 2 37. “Manufacturer” means every person engaged in the 3 business of fabricating or assembling vehicles of a type 4 required to be registered. “Manufacturer” does not include 5 a person who converts, modifies, or alters a completed 6 motor vehicle manufactured by another person or a person who 7 assembles a glider kit vehicle. “Manufacturer” includes a 8 person who uses a completed motor vehicle manufactured by 9 another person to construct a class “B” motor home as defined 10 in section 321.124 . “Manufacturer” also includes a final-stage 11 manufacturer as defined in section 322.2. 12 Sec. 2. Section 322.2, Code 2018, is amended by adding the 13 following new subsections: 14 NEW SUBSECTION . 10A. “Final-stage manufacturer” means 15 a person who performs such manufacturing operations on an 16 incomplete motor vehicle that it becomes a completed motor 17 vehicle. 18 NEW SUBSECTION . 11A. “Incomplete motor vehicle” means 19 an assemblage consisting, at a minimum, of frame and chassis 20 structure, power train, steering system, suspension system, 21 and braking system to the extent that those systems are to 22 be part of a completed motor vehicle, that requires further 23 manufacturing operations, other than the addition of readily 24 attachable components, such as mirrors or tire and rim 25 assemblies, or minor finishing operations such as painting, to 26 become a completed motor vehicle. 27 NEW SUBSECTION . 11B. “Incomplete motor vehicle manufacturer” 28 means a person who manufactures an incomplete motor vehicle 29 by assembling components none of which, taken separately, 30 constitute a completed motor vehicle. 31 NEW SUBSECTION . 14A. “Multi-stage manufactured vehicle” 32 means a motor vehicle built in two or more stages in which 33 an incomplete motor vehicle, built by one manufacturer, is 34 completed by another manufacturer who adds cargo carrying 35 -1- LSB 5789SV (2) 87 ns/rh 1/ 5

S.F. 2262 components or other components to the vehicle. 1 Sec. 3. Section 322.2, subsection 12, Code 2018, is amended 2 to read as follows: 3 12. “Manufacturer” means any person engaged in the business 4 of fabricating or assembling motor vehicles. “Manufacturer” 5 does not include a person who converts, modifies, or alters a 6 completed motor vehicle manufactured by another person or a 7 person who assembles a glider kit vehicle as defined in section 8 321.1 . “Manufacturer” includes a person who uses a completed 9 motor vehicle manufactured by another person to construct 10 a class “B” motor home as defined in section 321.124 or a 11 motorsports recreational vehicle as defined in section 321.1 . 12 “Manufacturer” also includes a final-stage manufacturer. 13 Sec. 4. Section 322.3, subsection 1, Code 2018, is amended 14 to read as follows: 15 1. A person shall not engage in this state in the 16 business of selling at retail new motor vehicles of any 17 make or represent or advertise that the person is engaged or 18 intends to engage in such business in this state unless the 19 person is authorized to do so by a contract in writing with 20 the manufacturer or distributor of such make of new motor 21 vehicles and unless the department has licensed the person 22 as a motor vehicle dealer in this state in motor vehicles of 23 such make and has issued to the person a license in writing as 24 provided in this chapter . Notwithstanding the prohibitions 25 in this subsection, a final-stage manufacturer of multi-stage 26 manufactured vehicles that holds a used motor vehicle 27 dealer license issued pursuant to this chapter may assign an 28 incomplete motor vehicle’s manufacturer’s statement of origin 29 to a retail buyer for purposes of issuance of a certificate of 30 title by a county treasurer as a new motor vehicle with the 31 same make as the incomplete motor vehicle without holding a new 32 motor vehicle dealer license and without paying any associated 33 motor vehicle registration fees. A licensed dealer in new 34 motor vehicles may also assign an incomplete motor vehicle’s 35 -2- LSB 5789SV (2) 87 ns/rh 2/ 5

S.F. 2262 manufacturer’s statement of origin in the same manner as 1 provided in this subsection. 2 Sec. 5. Section 322.3, subsection 14, Code 2018, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . f. A final-stage manufacturer of multi-stage 5 manufactured vehicles from being licensed as a used motor 6 vehicle dealer or from assigning an incomplete motor vehicle’s 7 manufacturer’s statement of origin to a retail buyer for 8 purposes of issuance of a certificate of title by a county 9 treasurer as a new motor vehicle with the same make as the 10 incomplete motor vehicle without holding a new motor vehicle 11 dealer license and without paying any associated motor vehicle 12 registration fees. This paragraph shall not be construed 13 to authorize a manufacturer or incomplete motor vehicle 14 manufacturer to directly sell at retail incomplete or completed 15 motor vehicles to a retail buyer except as provided in this 16 subsection. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill provides that “manufacturer” under Code sections 21 321.1 and 322.2 includes a final-stage manufacturer. The 22 bill defines “final-stage manufacturer” to mean a person who 23 performs such manufacturing operations on an incomplete motor 24 vehicle that it becomes a completed motor vehicle. “Incomplete 25 motor vehicle” means an assemblage consisting, at a minimum, 26 of frame and chassis structure, power train, steering system, 27 suspension system, and braking system to the extent that those 28 systems are to be part of a completed motor vehicle, that 29 requires further manufacturing operations, other than the 30 addition of readily attachable components, such as mirrors or 31 tire and rim assemblies, or minor finishing operations such as 32 painting, to become a completed motor vehicle. 33 Under current law, Code section 322.3(1) prohibits a person 34 from engaging in the business of selling at retail new motor 35 -3- LSB 5789SV (2) 87 ns/rh 3/ 5

S.F. 2262 vehicles of any make, or from representing or advertising that 1 the person is engaged or intends to engage in such business, 2 unless the person is authorized to do so by a contract in 3 writing with the manufacturer or distributor of such make of 4 new motor vehicles and unless the department of transportation 5 has licensed the person as a motor vehicle dealer in motor 6 vehicles of such make and has issued to the person a license 7 in writing as provided in Code chapter 322. The bill provides 8 that notwithstanding these prohibitions, a final-stage 9 manufacturer of multi-stage manufactured vehicles that holds 10 a used motor vehicle dealer license may assign an incomplete 11 motor vehicle’s manufacturer’s statement of origin to a retail 12 buyer for purposes of issuance of a certificate of title by 13 a county treasurer as a new motor vehicle with the same make 14 as the incomplete motor vehicle without holding a new motor 15 vehicle dealer license and without paying any associated 16 motor vehicle registration fees. The bill provides that a 17 “multi-stage manufactured vehicle” means a motor vehicle built 18 in two or more stages in which an incomplete motor vehicle, 19 built by one manufacturer, is completed by another manufacturer 20 who adds cargo carrying components or other components to the 21 vehicle. The bill also provides a licensed dealer in new 22 motor vehicles may also assign an incomplete motor vehicle’s 23 manufacturer’s statement of origin in the same manner. 24 Under current law, Code section 322.3(14) prohibits a motor 25 vehicle manufacturer or importer from directly or indirectly 26 being licensed as, owning an interest in, operating, or 27 controlling a motor vehicle dealer, with certain exceptions. 28 The bill adds to the list of exceptions a provision allowing a 29 final-stage manufacturer of multi-stage manufactured vehicles 30 to be licensed as a used motor vehicle dealer and to assign an 31 incomplete motor vehicle’s manufacturer’s statement of origin 32 to a retail buyer for purposes of issuance of a certificate of 33 title by a county treasurer as a new motor vehicle with the 34 same make as the incomplete motor vehicle without holding a new 35 -4- LSB 5789SV (2) 87 ns/rh 4/ 5

S.F. 2262 motor vehicle dealer license and without paying any associated 1 motor vehicle registration fees. The bill provides that the 2 exception shall not be construed to authorize a manufacturer 3 or incomplete motor vehicle manufacturer to directly sell at 4 retail incomplete or completed motor vehicles to a retail 5 buyer except as provided in Code section 322.3(14). The bill 6 provides that an “incomplete motor vehicle manufacturer” 7 means a person who manufactures an incomplete motor vehicle 8 by assembling components none of which, taken separately, 9 constitute a completed motor vehicle. 10 -5- LSB 5789SV (2) 87 ns/rh 5/ 5