SF 2068 (LSB 5632XS (2) 87)

SENATE FILE 2068

BY  SINCLAIR

A BILL FOR

An Act relating to the sale of motorcycles by motorcycle manufacturers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 322.3, subsection 14, Code 2018, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  A manufacturer of motorcycles from owning an interest in, operating, or controlling a motor vehicle dealer only of the motorcycles manufactured by that manufacturer, or from being licensed as a motor vehicle dealer only of the motorcycles manufactured by that manufacturer. This paragraph applies only if the manufacturer and all motor vehicle dealers owned, operated, or controlled by the manufacturer collectively sell no more than one hundred fifty motorcycles manufactured by that manufacturer in this state in any one-year period.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, Code section 322.3(14) prohibits a motor vehicle manufacturer or importer from directly or indirectly being licensed as, owning an interest in, operating, or controlling a motor vehicle dealer, with certain exceptions. This bill adds to the list of exceptions a provision allowing a manufacturer of motorcycles to own an interest in, operate, or control a motor vehicle dealer only of the motorcycles manufactured by that manufacturer, and to be licensed as a motor vehicle dealer only of the motorcycles manufactured by that manufacturer. The exception applies only if the manufacturer and all motor vehicle dealers owned, operated, or controlled by the manufacturer collectively sell no more than 150 motorcycles manufactured by that manufacturer in this state in any one-year period.