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VETOES .

satisfactory evidence that the franchise has been extended. The
Administration immediately shall notify the licensee of the
suspension.

(E) EXCEPT FOR A PERSON WHO IS DEALING IN NEW VEHICLES
UNDER A TEMPORARY FINANCING ARRANGEMENT, THE ADMINISTRATION MAY
NOT ISSUE A LICENSE TO DEAL IN NEW VEHICLES TO A PERSON WHO IS
ACTING FOR A PARTNERSHIP OR CORPORATION THAT IS OWNED OR
CONTROLLED BY OR UNDER COMMON CONTROL WITH A MANUFACTURER OR
DISTRIBUTOR.

(E) NOTWITHSTANDING SUBSECTIONS (A) AND (F) OF THIS
SECTION, A MANUFACTURER OR DISTRIBUTOR MAY BE LICENSED AS A
DEALER ONLY IF THE MANUFACTURER OR DISTRIBUTOR;

(1) OPERATES TEMPORARILY A DEALERSHIP THAT:

(I) WAS PREVIOUSLY OWNED BY A FRANCHISED
DEALER; AND

(II) IS FOR SALE TO ANY QUALIFIED PERSON AT A
REASONABLE PRICE; OR

(2) OPERATES A DEALERSHIP IN A BONA FIDE RELATIONSHIP
IN WHICH AN INDEPENDENT PERSON;

(I) HAS MADE A SIGNIFICANT INVESTMENT, SUBJECT
TO LOSS, IN THE DEALERSHIP; AND

(II) CAN REASONABLY EXPECT TO ACQUIRE FULL
OWNERSHIP OF THE DEALERSHIP UNDER REASONABLE TERMS AND
CONDITIONS.

(F)  A MANUFACTURER OR DISTRIBUTOR, OR A PERSON WHO IS
ACTING FOR A PARTNERSHIP OR CORPORATION THAT IS OWNED OR
CONTROLLED BY OR UNDER COMMON CONTROL WITH A MANUFACTURER OR
DISTRIBUTOR, MAY NOT SELL A NEW VEHICLE TO A RETAIL BUYER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act may not
be construed to apply to any dealership operated by a
manufacturer or distributor under Title 15, Subtitle 3 of the
Transportation Article on January 1, 1986.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

The Honorable Benjamin L. Cardin
Speaker of the House of Delegates
State House

May 27, 1986