Senate
Study
Bill
3132
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
CHAPMAN)
A
BILL
FOR
An
Act
allowing
certain
final-stage
motor
vehicle
manufacturers
1
to
be
licensed
as
motor
vehicle
dealers.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5789XC
(3)
87
ns/rh
S.F.
_____
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
manufacturer
engaged
in
the
business
of
performing
16
manufacturing
operations
on
incomplete
motor
vehicles
in
order
17
to
produce
completed
motor
vehicles.
18
NEW
SUBSECTION
.
11A.
“Incomplete
motor
vehicle”
means
an
19
assemblage
of
parts
including
but
not
limited
to
a
power
train,
20
steering
system,
suspension
system,
braking
system,
and
chassis
21
structure
including
a
frame,
that
is
assembled
in
order
to
22
become
part
of
a
completed
motor
vehicle
but
that
requires
23
further
manufacturing
operations
to
become
a
completed
motor
24
vehicle.
25
NEW
SUBSECTION
.
14A.
“Multi-stage
manufactured
vehicle”
26
means
a
motor
vehicle
built
in
two
or
more
stages
in
which
27
an
incomplete
motor
vehicle,
built
by
one
manufacturer,
is
28
completed
by
another
manufacturer
who
adds
cargo
carrying
29
components
or
other
components
to
the
vehicle.
30
Sec.
3.
Section
322.2,
subsection
12,
Code
2018,
is
amended
31
to
read
as
follows:
32
12.
“Manufacturer”
means
any
person
engaged
in
the
business
33
of
fabricating
or
assembling
motor
vehicles.
“Manufacturer”
34
does
not
include
a
person
who
converts,
modifies,
or
alters
a
35
-1-
LSB
5789XC
(3)
87
ns/rh
1/
3
S.F.
_____
completed
motor
vehicle
manufactured
by
another
person
or
a
1
person
who
assembles
a
glider
kit
vehicle
as
defined
in
section
2
321.1
.
“Manufacturer”
includes
a
person
who
uses
a
completed
3
motor
vehicle
manufactured
by
another
person
to
construct
4
a
class
“B”
motor
home
as
defined
in
section
321.124
or
a
5
motorsports
recreational
vehicle
as
defined
in
section
321.1
.
6
“Manufacturer”
also
includes
a
final-stage
manufacturer.
7
Sec.
4.
Section
322.3,
subsection
14,
Code
2018,
is
amended
8
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
f.
A
final-stage
manufacturer
from
being
10
licensed
as
a
motor
vehicle
dealer
only
of
incomplete
motor
11
vehicles
manufactured
by
that
final-stage
manufacturer.
12
This
paragraph
applies
only
if
the
final-stage
manufacturer
13
manufactures
multi-stage
manufactured
vehicles.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
provides
that
“manufacturer”
under
Code
sections
18
321.1
and
322.2
includes
a
final-stage
manufacturer.
The
19
bill
further
provides
that
“final-stage
manufacturer”
20
means
a
manufacturer
engaged
in
the
business
of
performing
21
manufacturing
operations
on
incomplete
motor
vehicles
in
22
order
to
produce
completed
motor
vehicles.
“Incomplete
motor
23
vehicle”
means
an
assemblage
of
parts
including
but
not
limited
24
to
a
power
train,
steering
system,
suspension
system,
braking
25
system,
and
chassis
structure
including
a
frame,
that
is
26
assembled
in
order
to
become
part
of
a
completed
motor
vehicle
27
but
that
requires
further
manufacturing
operations
to
become
a
28
completed
motor
vehicle.
29
Under
current
law,
Code
section
322.3(14)
prohibits
a
motor
30
vehicle
manufacturer
or
importer
from
directly
or
indirectly
31
being
licensed
as,
owning
an
interest
in,
operating,
or
32
controlling
a
motor
vehicle
dealer,
with
certain
exceptions.
33
The
bill
adds
to
the
list
of
exceptions
a
provision
allowing
34
a
final-stage
manufacturer
to
be
licensed
as
a
motor
vehicle
35
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5789XC
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87
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2/
3
S.F.
_____
dealer
only
of
incomplete
motor
vehicles
manufactured
by
that
1
final-stage
manufacturer.
The
exception
applies
only
if
the
2
final-stage
manufacturer
manufactures
multi-stage
manufactured
3
vehicles.
“Multi-stage
manufactured
vehicle”
means
a
motor
4
vehicle
built
in
two
or
more
stages
in
which
an
incomplete
5
motor
vehicle,
built
by
one
manufacturer,
is
completed
by
6
another
manufacturer
who
adds
cargo
carrying
components
or
7
other
components
to
the
vehicle.
8
-3-
LSB
5789XC
(3)
87
ns/rh
3/
3