S.F. 195 Section 1. Section 321.105A, subsection 2, paragraph c, 1 Code 2011, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (31) Vehicles subject to registration 3 which are held for sale by a motor vehicle dealership in 4 this state under a franchise agreement with a motor vehicle 5 manufacturer and are transferred to another motor vehicle 6 dealership owned by the same person, persons, or entity, or 7 by a different entity that shares substantially the same 8 ownership interest, when the original dealership closes due to 9 the manufacturer’s discontinuance of the motor vehicle brand 10 and disposition of motor vehicles remaining in the dealership’s 11 inventory is the responsibility of the franchisee. 12 Sec. 2. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 13 APPLICABILITY. This Act, being deemed of immediate importance, 14 takes effect upon enactment and applies retroactively to 15 December 1, 2010, for vehicles transferred on or after that 16 date. 17 EXPLANATION 18 Under current law, a fee for new registration in the amount 19 of 5 percent of the purchase price of a vehicle is required 20 each time ownership of a vehicle is transferred. This bill 21 provides an exemption from payment of that fee by the owner of 22 a motor vehicle dealership that, upon the close of business, 23 transfers the dealership’s remaining vehicles to another 24 dealership owned by the same person, persons, or entity, or by 25 a different entity that shares substantially the same ownership 26 interest. The exemption applies only when the closing of the 27 original dealership is due to the manufacturer’s discontinuance 28 of the vehicle brand and the franchisee is responsible 29 for disposition of vehicles remaining in the dealership’s 30 inventory. 31 The bill is effective upon enactment and applies 32 retroactively to December 1, 2010, for vehicles transferred on 33 or after that date. 34 -1- LSB 2109SS (4) 84 dea/nh 1/ 1