House File 493 - Introduced HOUSE FILE 493 BY ANDREWS A BILL FOR An Act relating to optional equipment and subscription service 1 fees included with the sale of motor vehicles by licensed 2 motor vehicle dealers, and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2402YH (2) 90 th/ns
H.F. 493 Section 1. Section 322.3, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. A person who is engaged in the 3 business of selling motor vehicles at retail shall not make 4 or enter into a contract containing an optional equipment or 5 subscription service fee unless the cost of the additional fee 6 is included with the advertised sales price of the vehicle. 7 A contract containing an optional equipment or subscription 8 service fee must include all of the following: 9 a. A detailed description of the optional equipment 10 installed in the vehicle. 11 b. The cost of the optional equipment and any associated 12 subscription fee, including but not limited to the monthly cost 13 necessary to use the optional equipment. 14 c. Contact information of the manufacturer of the optional 15 equipment, including a telephone number and email address, that 16 directs the buyer to a customer service representative who can 17 assist with the termination of the subscription service. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanations substance by the members of the general assembly. 21 This bill prohibits a person who is engaged in the business 22 of selling motor vehicles at retail from making or entering 23 into a contract that has an optional equipment or subscription 24 service fee unless the cost of the additional fee is included 25 with the advertised sales price of the vehicle. A contract 26 that has an optional equipment or subscription service fee 27 must include a detailed description of the optional equipment 28 installed in the vehicle, a breakdown of the cost of the 29 optional equipment and any associated subscription fee, 30 including but not limited to the monthly cost necessary to 31 use the optional equipment, and contact information of the 32 manufacturer of the optional equipment, including a telephone 33 number and email address, that directs the buyer to a customer 34 service representative who can assist with the termination of 35 -1- LSB 2402YH (2) 90 th/ns 1/ 2
H.F. 493 the subscription service. 1 By operation of law, the department of transportation (DOT) 2 may revoke or suspend the motor vehicle dealer license granted 3 to a person if, after notice and hearing by the department of 4 inspections and appeals, the DOT finds that the person has, 5 among other things, not complied with Code chapter 322 or 6 any rules or regulations adopted by the DOT, including the 7 provisions of the bill. In addition, a person who violates 8 any provisions of Code chapter 322 for which a penalty is 9 not specifically provided is guilty of a simple misdemeanor 10 punishable by a fine of not less than $250 nor more than $1,500 11 or by imprisonment not to exceed 30 days. If the violation 12 involves a retail installment contract, the person is subject 13 to the applicable penalties under Code chapter 537 (consumer 14 credit code). 15 -2- LSB 2402YH (2) 90 th/ns 2/ 2