Bill seeks to better regulate used car sales

DES MOINES – Iowa lawmakers are eyeing a crack down on so-called “backyard boutiques.”

That's what the Iowa Independent Automobile Dealers Association calls used cars that are parked on public or private property and offered for sale by people who are skirting state laws requiring anyone who sells more than six vehicles in a 12-month period to have a dealer's license.

A Senate subcommittee approved a measure Wednesday that would give cities and counties more authority in enforcing parking restrictions aimed at curbing vehicles advertised for sale from being parked at highly visible locations.

James Piazza Jr., a lobbyist representing the auto dealers association, said such ad-hoc used car sales by individuals who are not bona fide dealers have been a problem in Iowa and nationwide, but the situation has worsened during the economic downturn such that the auto-sales industry is fighting back against unauthorized sales practices.

“It creates an unfair playing field,” Piazza said. He added that the measure is not intended to target a single sale by a vehicle's owner.

Senate Study Bill 1138 would bar a person from parking a motor vehicle on a street or highway, a public parking lot or other public or private property for “the principal purpose and intent” of displaying the vehicle for sale, hire or rental except when in compliance with local regulations or with permission from the property owner.

Such vehicles would not be considered abandoned, but cities and counties could adopt ordinances with enforcement provisions that could include issuing citations, assessing fines, and towing them at a property owner's request for impoundment. A process also could be established for selling or disposing of an impounded vehicle and any personal property found inside if no claim is made by a vehicle's owner and a local jurisdiction or its authorized agent would not be liable for any damage caused by the removal or storage of a vehicle cited for violating the authorized sale provision.

The proposed legislation would not bar people from parking their own vehicles or other personal property they are trying to sell on property that they lease or own or on other public or private property with the owner's permission. Vehicle owners could place a for-sale sign on a vehicle that is parked on a public street immediately adjacent to their property under the proposed legislation.

“This gives local authorities more power when there's a known problem,” Piazza said.

The bill now goes to the Senate Transportation Committee for consideration.