This bill amends Iowa Code Section 322.19A to replace the term "documentary fee" with "administrative fee," which can be charged by motor vehicle dealers for performing services related to the sale of a motor vehicle on behalf of the customer. The bill removes the previous cap of $180 on the fee that dealers could charge, allowing for greater flexibility in pricing. Additionally, it updates the required notice that dealers must provide to customers regarding the administrative fee, ensuring that it is clearly and conspicuously disclosed in any purchase agreement.

Furthermore, the bill establishes that any violations of the amended section will be considered an unlawful practice under Iowa Code section 714.16, which carries various remedies, including injunctive relief and civil penalties of up to $40,000 per violation. This change aims to enhance transparency in the fees charged by motor vehicle dealers while also providing a framework for accountability in case of non-compliance.