HF 2485: A bill for an act relating to motor vehicle dealers, including rights to certain vehicles, records storage requirements, and remote sales of motor vehicles. - Iowa

Enrolled with Governor's Action → Reprinted · 7 edits

MODERATE

This bill updates Iowa's motor vehicle dealer laws to regulate remote vehicle sales, ensuring dealers have legal title before selling online and must store records with the dealer or their owner. It clarifies that remote sales are not considered 'door-to-door' sales, exempting them from specific consumer protection rules. The bill also establishes strict rules for electronic titles and signatures, requiring secure systems and specific disclosures to buyers.

Scope change

The bill expands the scope of regulation to explicitly include remote sales of motor vehicles, which were previously not clearly defined under existing door-to-door sales laws.

REQUIREMENT

Dealers are now deemed to possess the right to sell a vehicle if the title is held by an entity with direct ownership or control over the dealer.

Dealers must store all records at their business location or at a location controlled by an owner of the dealer.

Dealers must provide electronic records to the state department within 24 hours of a request.

Dealers must disclose to buyers if the vehicle is not in Iowa, if the title is electronic, and the estimated delivery date.

Dealers must possess the certificate of title at the time of a remote sale, with strict rules against using scanned copies or unapproved electronic formats.

Electronic signatures on digital images of physical titles are now accepted for odometer disclosures if created via a secure printing process.

DEFINITION

Remote sales of motor vehicles are explicitly defined as not being 'door-to-door' sales, exempting them from certain consumer protection statutes.

Enrolled → Enrolled with Governor's Action · 8 edits · Apr 30, 2026

MODERATE

This bill updates Iowa laws to regulate how motor vehicle dealers handle remote sales and store records. It clarifies that dealers are legally considered to own vehicles owned by their parent companies, mandates specific record-keeping locations, and establishes strict rules for electronic titles and signatures. The changes aim to protect consumers in online car purchases by ensuring dealers have clear title rights and follow secure digital processes.

Scope change

The bill expands the scope of regulation to explicitly include remote vehicle sales and clarifies the applicability of existing record-keeping laws to dealers with corporate ownership structures.

ELIGIBILITY

Dealers licensed under chapter 322 are now deemed to possess the right and title to vehicles owned by entities with direct ownership or control over the dealer.

REQUIREMENT

Dealers must store records at their business location or at a location within the United States owned or controlled by their parent entity.

Dealers must provide electronic records to the Department within 24 hours of a request and physical records within a reasonable time.

Electronic certificates of title must be stored in secure systems and cannot be portable documents, scanned copies, or emails; they must be in a specific secure format.

Dealers must disclose to buyers if the vehicle is out-of-state, if the title is electronic, and the estimated delivery date.

Dealers must produce proof of title ownership upon request and retain records showing vehicle storage locations and title status.

Electronic signatures on digital images of physical titles are now accepted if created via a secure printing process, provided the original title is marked as void or surrendered.

SCOPE

Remote sales of motor vehicles are explicitly excluded from being classified as 'door-to-door' sales, exempting them from certain consumer protection chapters.

Signed Enrolled Bill (PDF) → Enrolled · 2 edits · Apr 30, 2026

MINOR

The bill text was cleaned up to remove formatting errors, stray characters, and inconsistent spacing from the governor's signature page. The substantive legal content regarding motor vehicle dealer regulations, record-keeping, and remote sales remains identical to the previous version.

TECHNICAL

Removed the governor's signature page, including the date, handwritten-style text, and decorative graphics that were present in the previous version.

Corrected formatting inconsistencies, such as fixing the spelling of 'Governor' and removing stray symbols and broken lines throughout the document.

Introduced → Signed Enrolled Bill (PDF) · 6 edits · Apr 30, 2026

MODERATE

This bill establishes a legal framework for Iowa motor vehicle dealers to conduct remote sales by defining ownership rights, record-keeping duties, and disclosure requirements. It clarifies that dealers are deemed to own vehicles if the title is held by a parent entity, mandates electronic record storage, and requires specific disclosures about vehicle location and delivery dates to buyers.

Scope change

The bill expands the applicability of Iowa's motor vehicle dealer laws to include remote sales transactions, which were previously not explicitly covered under the 'door-to-door sales' restrictions.

DEFINITION

Added a legal definition stating that a dealer is deemed to possess the right, title, and interest in a vehicle if the certificate of title is issued to an entity with direct ownership or control over the dealer.

REQUIREMENT

Mandated that dealers store all records at their place of business or at a location within the United States owned by a controlling entity.

Required dealers to provide electronic records to the Department of Transportation within 24 hours of a request and physical records within a reasonable time.

Added new disclosure obligations for remote sales, including informing buyers if the vehicle is not located in Iowa and providing an estimated delivery date.

Clarified that remote sales are not considered 'door-to-door sales' and are therefore exempt from specific consumer protection laws governing those sales.

Authorized the acceptance of electronic signatures on digital images of physical titles, provided they meet specific federal security standards.

A bill for an act relating to motor vehicle dealers, including rights to certain vehicles, records storage requirements, and remote sales of motor vehicles.

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