Remote Notarization & Witnessing

Governor Reynolds temporarily suspended the personal appearance requirement if the notarial act complies with the requirements of section 6 of 2019 Iowa Acts chapter 44 and any guidance issued by the Iowa Secretary of State regarding approved communication technology. Reynolds also temporarily suspended the requirement that a witness be physically present, provided that the person can see or hear the acts by electronic means, such as video conference, Skype, FaceTime, Zoom, or other means, regardless of whether it is recorded.

Under current Iowa law, manufacturers may not reject warranty claims if they are made within 60 days of completion. If your warranty clerk is working from home, make sure to establish processes for doing those submissions remotely.

Although the state of Iowa has waived the requirement to apply for title and registration within 30 days, bankruptcy laws have not been suspended. Dealerships continue to have an obligation to funding sources to perfect liens in a timely manner.

In order to preserve the lien and avoid a chargeback from the lender, dealerships must continue to submit title and registration paperwork and payments within 30 days of delivery of the vehicle.

Although county treasurer offices are closed to the public, dealerships can send title and registration paperwork in by mail. County treasurers will be noting the date of postmark as the date of receipt. Submitting title and registration paperwork by US mail is the safest way to ensure the date of delivery is correctly noted on the title.

Iowa Workforce Development has put together a COVID-19 resource page that addresses frequently asked questions for Iowa employers and employees, including unemployment insurance questions.

The Centers for Disease Control has put together guidance for businesses remaining open during the COVID-19 pandemic. Suggestions include implementing staggered shifts, increasing physical space between employees and customers, and increasing the percentage of outdoor air that circulates in your building.

The Families First Coronavirus Response Act passed by congress mandates that employers with fewer than 500 employees provide up to 80 hours of paid sick leave for certain employees who are affected by the COVID-19 virus. It also expands partial paid leave for employees.

NADA is seeking clarity from the federal government on the ambiguity of this law and will be sending guidance to dealers on this issue. To see the latest from NADA, visit the NADA Coronavirus Resource website.

LMC Insurance & Risk Management, an IADA preferred provider, put together an issue brief on the issue that dealerships may find helpful.

The IRS announced last week that employers will receive 100% reimbursement for paid leave pursuant to the Families First Coronavirus Response Act. Health insurance costs are also included in the credit. According to the IRS, reimbursement will be quick and easy to obtain, and an immediate dollar-for-dollar tax offset against payroll taxes will be provided. If a refund is owed, the IRS will send the refund as quickly as possible.

The Department of Homeland Security has issued guidance that includes automotive repair and maintenance facilities on the list of the nation's essential critical infrastructure workforce.

Additionally, Governor Reynolds has emphasized that she prefers to not close any business that can safely be open in compliance with CDC guidelines. Some states that have had shutdowns are permitting limited sales by telephone, appointment, or remote processes.

While social distancing is only recommended and not required, best practice is to encourage sales by appointment and pushing as much as possible to telephone and remote processes.

It continues to be problematic to conduct any part of a sales transaction in your customer's home. Dealerships that choose to conduct any part of the sale away from the licensed dealership location need to be familiar with the provisions of the Door-to-Door Sales Act, which includes a three-day right to unwind the deal.

If you trigger the Door-to-Door Sales Act, the deal can be unwound at the customer's option until three days after the delivery of the right to return notice.

Engaging in this sales method opens dealerships up to the risk that forgetting to deliver the notice will allow a customer to return the vehicle to the dealership and demand a full refund, regardless of how much time has passed.

IADA has already begun the discussions and process to request a suspension of the licensure rules implicated in offsite sales in the event the COVID-19 crisis has a long-term duration.

Small businesses impacted by the pandemic can apply for low-interest support loans through the Small Business Administration Disaster Loan program.

To apply go to disasterloan.sba.gov/ela.

IADA is continuing to operate, but doors are locked to the public and most employees are working remotely. Dealerships that order packages for pick up from the IADA warehouse will receive their orders curbside. The best way to reach an IADA employee during this time is by email or by calling their direct phone number. A staff directory is located on IADA's website.