Text: HF00209 Text: HF00211 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 21a.(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 26b.(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 29c.(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 32d.(4) The purchaser will derive income from the business 1 33 which exceeds the price paid to the seller. 1 34e.(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 4f.(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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