Text: SSB03011 Text: SSB03013 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 322.3, Code Supplement 1999, is amended 1 2 by adding the following new subsection: 1 3 NEW SUBSECTION. 14. A manufacturer, distributor, 1 4 wholesaler, or importer shall not directly or indirectly be 1 5 licensed as, own an interest in, operate, or control a motor 1 6 vehicle dealer. This subsection shall not prohibit any of the 1 7 following: 1 8 a. A manufacturer or importer from being licensed as a 1 9 motor vehicle dealer or owning an interest in, operating, or 1 10 controlling a motor vehicle dealership for a period not to 1 11 exceed one year to facilitate transfer of the motor vehicle 1 12 dealership to a new owner if both of the following apply: 1 13 (1) The prior owner transferred the motor vehicle 1 14 dealership to the manufacturer or importer. 1 15 (2) The motor vehicle dealership is continuously offered 1 16 for sale by the manufacturer or importer upon reasonable terms 1 17 and conditions. 1 18 b. A manufacturer or importer from temporarily owning an 1 19 interest in a motor vehicle dealership for the purpose of 1 20 enhancing opportunities for persons who lack the financial 1 21 resources to purchase the motor vehicle dealership without 1 22 such assistance. A manufacturer or importer may temporarily 1 23 own an interest in a motor vehicle dealership pursuant to this 1 24 paragraph only if the manufacturer or importer enters into a 1 25 contract with a person pursuant to whom all of the following 1 26 apply: 1 27 (1) The person operates the motor vehicle dealership. 1 28 (2) The person has made a significant financial investment 1 29 in the motor vehicle dealership and is subject to loss on such 1 30 investment. 1 31 (3) The person has an ownership interest in the motor 1 32 vehicle dealership. 1 33 (4) The person will acquire full ownership of the motor 1 34 vehicle dealership within a reasonable time under reasonable 1 35 conditions. 2 1 c. A manufacturer or importer from owning an interest in, 2 2 operating, or controlling a person whose primary business is 2 3 renting motor vehicles and who is licensed as a used motor 2 4 vehicle dealer. 2 5 d. A manufacturer of motor homes, as defined in section 2 6 321.1, or a manufacturer of school buses, as defined in 2 7 section 321.1, from owning an interest in, operating, or 2 8 controlling a motor vehicle dealer of the motor homes or 2 9 school buses manufactured by that manufacturer or from being 2 10 licensed as a motor vehicle dealer only of the motor homes or 2 11 school buses manufactured by that manufacturer. 2 12 e. A manufacturer from owning a minority interest in an 2 13 entity that owns and operates motor vehicle dealers, licensed 2 14 under this chapter or the laws of the jurisdiction in which 2 15 they are located, of the line-make manufactured by the 2 16 manufacturer if all of the motor vehicle dealers owned and 2 17 operated by the entity in this state are motor vehicle dealers 2 18 of only the line-make manufactured by the manufacturer and if, 2 19 on January 1, 2000, there was not less than one and not more 2 20 than three motor vehicle dealers of that line-make licensed 2 21 under this chapter. 2 22 EXPLANATION 2 23 This bill adds a new provision to Code section 322.3, 2 24 prohibiting certain acts relating to the sale of vehicles, 2 25 which prohibits a motor vehicle manufacturer, distributor, 2 26 wholesaler, or importer from directly or indirectly being 2 27 licensed as, owning an interest in, operating, or controlling 2 28 a motor vehicle dealer. The bill also provides several 2 29 exceptions to the prohibition. 2 30 The bill provides that, notwithstanding the new 2 31 prohibition, a manufacturer or importer may be licensed as a 2 32 motor vehicle dealer or own an interest in, operate, or 2 33 control a motor vehicle dealership for up to one year to 2 34 facilitate transfer of the dealership to a new owner if the 2 35 prior owner transferred the dealership to the manufacturer or 3 1 importer and the dealership is continuously offered for sale 3 2 upon reasonable terms and conditions. 3 3 The new prohibition does not prohibit a manufacturer or 3 4 importer from temporarily owning an interest in a motor 3 5 vehicle dealership to enhance opportunities for persons who 3 6 cannot financially purchase the motor vehicle dealership 3 7 without assistance. Such an arrangement must involve a 3 8 contract between the manufacturer or importer and the person 3 9 whereby the person is required to operate the dealership, has 3 10 made a significant financial investment in the dealership and 3 11 is subject to loss on such investment, has an ownership 3 12 interest in the dealership, and will acquire full ownership of 3 13 the dealership within a reasonable time under reasonable 3 14 conditions. 3 15 The bill provides that a manufacturer or importer may own 3 16 an interest in, operate, or control a person whose primary 3 17 business is renting motor vehicles and who is licensed as a 3 18 used motor vehicle dealer. A manufacturer of motor homes or 3 19 school buses may own an interest in, operate, or control a 3 20 motor vehicle dealer of the motor homes or school buses 3 21 manufactured by that manufacturer and may be licensed as a 3 22 motor vehicle dealer only of the motor homes or school buses 3 23 manufactured by that manufacturer. 3 24 Additionally, a manufacturer may own a minority interest in 3 25 an entity that owns and operates motor vehicle dealers of the 3 26 line-make manufactured by the manufacturer if all of the 3 27 dealers owned and operated by the entity in Iowa are dealers 3 28 of only the line-make manufactured by the manufacturer and if, 3 29 on January 1, 2000, there was not less than one and not more 3 30 than three dealers of that line-make licensed under Code 3 31 chapter 322. 3 32 Violations of the new prohibition are simple misdemeanors 3 33 punishable by a fine of not less than $250 nor more than 3 34 $1,500 or by imprisonment not to exceed 30 days. 3 35 LSB 5697SC 78 4 1 nh/cf/24
Text: SSB03011 Text: SSB03013 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Jan 26 03:35:31 CST 2000
URL: /DOCS/GA/78GA/Legislation/SSB/03000/SSB03012/000125.html
jhf