Iowa 2025-2026 Regular Session

Iowa House Bill HF54

Introduced
1/14/25  

Caption

A bill for an act authorizing manufacturers of battery electric motor vehicles to be licensed as motor vehicle dealers.

Impact

If enacted, HF54 would significantly modify the licensing requirements outlined in Section 322.3 of the Iowa Code. By allowing battery electric vehicle manufacturers to directly engage in sales, the bill aims to foster a more favorable environment for electric vehicle adoption. This is particularly relevant in light of increasing consumer interest in sustainable transportation options. The change could lead to greater competition within the automotive market and possibly lower vehicle prices for consumers, as manufacturers could incentivize purchases without the need for third-party dealers.

Summary

House File 54 aims to amend existing regulations on motor vehicle dealers by allowing manufacturers of battery electric motor vehicles to be licensed as motor vehicle dealers. Currently, a motor vehicle manufacturer or importer is generally prohibited from being licensed to operate as or control a motor vehicle dealer. This bill proposes an exception for manufacturers of battery electric motor vehicles, permitting them to sell only the vehicles they produce. This could potentially streamline the sales process for these manufacturers and promote the sale of electric vehicles in the state. As the automotive industry shifts towards greener technology, this bill recognizes and adapts to the changing market dynamics.

Contention

One notable point of contention surrounding HF54 is the balance between supporting emerging technologies and ensuring fair market practices. Opponents may argue that by allowing manufacturers to bypass traditional dealership models, this bill could undermine small, independent dealers who rely on used vehicle sales. Critics may also express concerns related to consumer protections and warranty services that are typically managed through licensed dealerships. Therefore, while the bill promotes electric vehicle sales, there may be apprehensions regarding the long-term implications for the broader automotive retail landscape.

Companion Bills

No companion bills found.

Previously Filed As

IA HF2213

A bill for an act relating to optional equipment and subscription service fees included with the sale of motor vehicles by licensed motor vehicle dealers, and making penalties applicable.

IA HF493

A bill for an act relating to optional equipment and subscription service fees included with the sale of motor vehicles by licensed motor vehicle dealers, and making penalties applicable.

IA HF592

A bill for an act relating to licensed vehicle dealers, including vehicles for resale subject to a security interest and remote sales of motor vehicles. (Formerly HSB 168.) Effective date: 07/01/2023.

IA HSB168

A bill for an act relating to certain place-of-business requirements for licensed motor vehicle dealers who conduct sales via the internet and deliver vehicles to buyers.(See HF 592.)

IA SSB1181

A bill for an act relating to certain place-of-business requirements for licensed motor vehicle dealers who conduct sales via the internet and deliver vehicles to buyers.(See SF 504.)

IA SF504

A bill for an act relating to certain place-of-business requirements for licensed motor vehicle dealers who conduct sales via the internet and deliver vehicles to buyers.(Formerly SSB 1181.)

IA HF674

A bill for an act relating to vehicles, including by providing for registration and titling of motor vehicles by any county treasurer, by modifying related fees and the amount of fees retained by county treasurers, and the definitions of terms for purposes of motor vehicle franchisers, and including effective date provisions. (Formerly HF 344, HF 55.) Effective date: 07/01/2024, 01/01/2025.

IA SSB3087

A bill for an act requiring a vehicle history report prior to the sale of certain motor vehicles by a dealer, and making penalties applicable.

IA HF405

A bill for an act relating to motor vehicle window tint, and making penalties applicable.

IA HSB553

A bill for an act providing an alternative to filing a bond as a condition of registering and titling certain motor vehicles.(See HF 2316.)

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