Text: HF00209                           Text: HF00211
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House File 210

Partial Bill History

Bill Text

PAG LIN
  1  1                                              HOUSE FILE 210
  1  2  
  1  3                             AN ACT 
  1  4 RELATING TO THE EXCLUSION OF CERTAIN TRANSACTIONS UNDER THE 
  1  5    BUSINESS OPPORTUNITIES LAW AND PROVIDING EFFECTIVE AND
  1  6    RETROACTIVE APPLICABILITY DATES.  
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 523B.1, subsection 3, Code 1999, is
  1 11 amended to read as follows:
  1 12    3.  a.  "Business opportunity" means a contract or
  1 13 agreement, between a seller and purchaser, express or implied,
  1 14 orally or in writing, at an initial investment exceeding five
  1 15 hundred dollars, where the parties agree that the seller or a
  1 16 person recommended by the seller is to provide to the
  1 17 purchaser any products, equipment, supplies, materials, or
  1 18 services for the purpose of enabling the purchaser to start a
  1 19 business, and the seller represents, directly or indirectly,
  1 20 orally or in writing, any of the following:
  1 21    a. (1)  The seller or a person recommended by the seller
  1 22 will provide locations or assist the purchaser in finding
  1 23 locations for the use or operation of vending machines, racks,
  1 24 display cases, or other similar devices, on premises which are
  1 25 not owned or leased by the purchaser or seller.
  1 26    b. (2)  The seller or a person recommended by the seller
  1 27 will provide or assist the purchaser in finding outlets or
  1 28 accounts for the purchaser's products or services.
  1 29    c. (3)  The seller or a person specified by the seller will
  1 30 purchase any or all products made, produced, fabricated,
  1 31 grown, bred, or modified by the purchaser.
  1 32    d. (4)  The purchaser will derive income from the business
  1 33 which exceeds the price paid to the seller.
  1 34    e. (5)  The seller will refund all or part of the price
  1 35 paid to the seller, or repurchase any of the products,
  2  1 equipment, or supplies provided by the seller or a person
  2  2 recommended by the seller, if the purchaser is dissatisfied
  2  3 with the business.
  2  4    f. (6)  The seller will provide a marketing plan.
  2  5    b.  "Business opportunity" does not include any of the
  2  6 following:
  2  7    (1)  An offer or sale of an ongoing business operated by
  2  8 the seller which is to be sold in its entirety.
  2  9    (2)  An offer or sale of a business opportunity to an
  2 10 ongoing business where the seller will provide products,
  2 11 equipment, supplies, or services which are substantially
  2 12 similar to the products, equipment, supplies, or services sold
  2 13 by the purchaser in connection with the purchaser's ongoing
  2 14 business.
  2 15    (3)  An offer or sale of a business opportunity which
  2 16 involves a marketing plan made in conjunction with the
  2 17 licensing of a federally registered trademark or federally
  2 18 registered service mark provided that the seller has a minimum
  2 19 net worth of one million dollars as determined on the basis of
  2 20 the seller's most recent audited financial statement prepared
  2 21 within thirteen months of the first offer in this state.  Net
  2 22 worth may be determined on a consolidated basis if the seller
  2 23 is at least eighty percent owned by one person and that person
  2 24 expressly guarantees the obligations of the seller with regard
  2 25 to the offer or sale of a business opportunity claimed to be
  2 26 excluded under this subparagraph.
  2 27    (4)  An offer or sale of a business opportunity by an
  2 28 executor, administrator, sheriff, receiver, trustee in
  2 29 bankruptcy, guardian, or conservator, or a judicial offer or
  2 30 sale of a business opportunity.
  2 31    (5)  The renewal or extension of a business opportunity
  2 32 contract or agreement entered into under this chapter or prior
  2 33 to July 1, 1981.
  2 34    Sec. 2.  Section 523B.3, subsection 1, paragraphs b, c, d,
  2 35 and g, Code 1999, are amended by striking the paragraphs.
  3  1    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  3  2 being deemed of immediate importance, takes effect upon
  3  3 enactment and is retroactively applicable to July 1, 1998.  
  3  4 
  3  5 
  3  6                                                             
  3  7                               RON J. CORBETT
  3  8                               Speaker of the House
  3  9 
  3 10 
  3 11                                                             
  3 12                               MARY E. KRAMER
  3 13                               President of the Senate
  3 14 
  3 15    I hereby certify that this bill originated in the House and
  3 16 is known as House File 210, Seventy-eighth General Assembly.
  3 17 
  3 18 
  3 19                                                             
  3 20                               ELIZABETH ISAACSON
  3 21                               Chief Clerk of the House
  3 22 Approved                , 1999
  3 23 
  3 24 
  3 25                               
  3 26 THOMAS J. VILSACK
  3 27 Governor
     

Text: HF00209                           Text: HF00211
Text: HF00200 - HF00299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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