Text: HF02357 Text: HF02359 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 523G.3, subsection 2, Code 1999, is 1 2 amended by striking the subsection. 1 3 Sec. 2. Section 523G.3, Code 1999, is amended by adding the 1 4 following new subsections: 1 5 NEW SUBSECTION. 6A. "Fund" means the invention developer 1 6 administration and enforcement fund created pursuant to 1 7 section 523G.3C. 1 8 NEW SUBSECTION. 10. "Office" means the secretary of 1 9 state's office as provided in chapter 9. 1 10 Sec. 3. NEW SECTION. 523G.3A ADMINISTRATION AND 1 11 RULEMAKING. 1 12 The office shall administer this chapter and may adopt 1 13 rules pursuant to chapter 17A as necessary to carry out the 1 14 administration. 1 15 Sec. 4. NEW SECTION. 523G.3B REQUIREMENTS FOR 1 16 REGISTRATION. 1 17 1. The following are requirements for registration under 1 18 this chapter: 1 19 a. An invention developer shall file a registration 1 20 statement with the office not later than May 1 of each year. 1 21 The registration statement shall contain all of the following 1 22 information: 1 23 (1) The name and address of the invention developer. 1 24 (2) The name and address of each owner, officer, or other 1 25 official of the invention developer's business. However, if 1 26 the invention developer is a corporation, the registration 1 27 statement shall contain the names and addresses of the chief 1 28 executive officer and the members of the board of directors. 1 29 (3) A description of the invention development services 1 30 offered. 1 31 (4) A copy of each form of contract used by the invention 1 32 developer. 1 33 (5) A copy of the invention developer's most recent 1 34 financial statement, including balance sheets and related 1 35 statements of income of the invention developer, prepared in 2 1 accordance with generally accepted accounting principles, 2 2 audited by a certified public accountant, and dated not more 2 3 than twelve months prior to the date of the application. 2 4 (6) The total number of customers who have contracted with 2 5 the invention developer in this state during the invention 2 6 developer's preceding fiscal year. 2 7 (7) The invention developer's gross income from the 2 8 invention development business in this state during the 2 9 invention developer's preceding fiscal year. 2 10 (8) The number of customers who have received from the 2 11 invention developer's services an amount of money in excess of 2 12 the amount of money paid by those customers to the invention 2 13 developer pursuant to a contract. The amount received by a 2 14 customer reported on the statement shall only include income 2 15 earned from the successful development, promotion, licensing, 2 16 publishing, exhibiting, or marketing of the customer's 2 17 invention pursuant to the contract executed between the 2 18 invention developer and the customer. 2 19 b. The invention developer shall submit an annual 2 20 registration fee accompanying the registration statement to 2 21 the office in the amount of two hundred fifty dollars. The 2 22 fee shall be deposited into the invention developers 2 23 administration and enforcement fund as provided in section 2 24 523G.3C. 2 25 c. The invention developer shall submit a copy of evidence 2 26 of financial responsibility as required by section 523G.6 2 27 accompanying the registration statement. 2 28 2. The office shall issue a certificate of compliance to 2 29 an invention developer who has complied with the registration 2 30 requirements of this section. 2 31 Sec. 5. NEW SECTION. 523G.3C INVENTION DEVELOPERS 2 32 ADMINISTRATION AND ENFORCEMENT FUND. 2 33 1. An invention developers administration and enforcement 2 34 fund is created in the state treasury under the control of the 2 35 office. The fund is composed of registration fees collected 3 1 by the office pursuant to section 523G.3B, and moneys 3 2 appropriated by the general assembly or available to and 3 3 obtained or accepted by the office from the United States or 3 4 private sources for placement in the fund. 3 5 2. Moneys in the fund are subject to an annual audit by 3 6 the auditor of state. The fund is subject to warrants written 3 7 by the director of revenue and finance, drawn upon the written 3 8 requisition of the secretary of state or a person designated 3 9 by the secretary of state. 3 10 3. Moneys in the fund are appropriated to the office and 3 11 shall be used exclusively for purposes necessary in order to 3 12 administer and enforce the provisions of this chapter as 3 13 determined by the office. 3 14 4. The office shall not in any manner directly or 3 15 indirectly pledge the credit of the state. 3 16 5. Section 8.33 shall not apply to moneys in the fund. 3 17 Notwithstanding section 12C.7, moneys earned as income, 3 18 including as interest, from the fund shall remain in the fund 3 19 until expended as provided in this section. 3 20 Sec. 6. Section 523G.4, subsection 2, Code Supplement 3 21 1999, is amended by adding the following new paragraph: 3 22 NEW PARAGRAPH. d. A copy of a current registration 3 23 certificate issued pursuant to section 523G.3B. 3 24 Sec. 7. Section 523G.6, subsections 1 and 2, Code 1999, 3 25 are amended to read as follows: 3 26 1. An invention developer shall maintain as security 3 27 evidence of financial responsibility as approved by the 3 28commissioneroffice. The security shall be either a bond or 3 29 cash deposit in an amount which is equal to the greater of 3 30 either ten percent of the invention developer's gross income 3 31 from the invention development business in this state during 3 32 the invention developer's preceding fiscal year, or twenty- 3 33 five thousand dollars. Thecommissioneroffice shall approve 3 34 the security before the invention developer renders or offers 3 35 to render invention development services in this state. The 4 1 invention developer shall have ninety days beginning on the 4 2 first day of the invention developer's new fiscal year to 4 3 change the security as necessary to conform to the 4 4 requirements of this subsection. 4 5 2. A surety who issues a bond must be approved by the 4 6commissioneroffice. A copy of the bond shall be filed in a 4 7 manner and according to procedures approved by the 4 8commissioneroffice. A cash deposit shall be filed with the 4 9 treasurer of state in a manner and according to procedures 4 10 approved by the treasurer of state in consultation with the 4 11commissioneroffice. The treasurer of state shall not refund 4 12 a deposit until sixty days following either the date that the 4 13 invention developer has ceased doing business in the state or 4 14 a bond has been filed with thecommissioneroffice in 4 15 compliance with this section. 4 16 Sec. 8. Section 523G.9, subsection 7, Code 1999, is 4 17 amended to read as follows: 4 18 7. A violation of this chapter or a rule adopted by the 4 19commissioneroffice pursuant to this chapter is a violation of 4 20 section 714.16. The remedies and penalties provided by 4 21 section 714.16, including but not limited to provisions 4 22 relating to injunctive relief and penalties, apply to 4 23 violations of this chapter. 4 24 Sec. 9. ADMINISTRATION AND ENFORCEMENT. The division of 4 25 insurance and the secretary of state shall cooperate in order 4 26 to efficiently transfer authority to administer and enforce 4 27 this chapter by January 1, 2001. The secretary of state's 4 28 office shall adopt rules necessary and to be effective by 4 29 January 1, 2001, in order to administer and enforce this 4 30 chapter. 4 31 Sec. 10. DIRECTIONS TO IOWA CODE EDITOR. The Iowa Code 4 32 editor shall, unless impracticable, transfer chapter 523G, as 4 33 amended by this Act, to a new chapter within title I, subtitle 4 34 4, of the Code. 4 35 Sec. 11. 1992 Iowa Acts, chapter 1114, section 13, is 5 1 repealed. 5 2 Sec. 12. EFFECTIVE DATES. 5 3 1. Except as provided in subsection 2, this Act takes 5 4 effect January 1, 2001. 5 5 2. Sections 10 and 11 of this Act, being deemed of 5 6 immediate importance, take effect upon enactment. 5 7 EXPLANATION 5 8 In 1992 the general assembly enacted S.F. 2189 (1992 Iowa 5 9 Acts, ch. 1114), the "Invention Development Services Act", 5 10 which provides for the protection of inventors from persons 5 11 who offer to develop inventions. The provisions are codified 5 12 in Code chapter 523G under the administration of the insurance 5 13 commissioner. The original bill provided that several 5 14 provisions relating to evidence of financial responsibility, 5 15 enforcement and penalty provisions, and powers provided to the 5 16 commissioner to administer and enforce the provisions are 5 17 contingent upon an appropriation of moneys and the allocation 5 18 of full-time equivalent positions. In 1998, the general 5 19 assembly enacted H.F. 2271 (1998 Iowa Acts, ch. 1119, } 6) 5 20 which repealed Code provisions which provided for registration 5 21 requirements and administrative and enforcement authority to 5 22 the commissioner. 5 23 This bill provides that the secretary of state's office 5 24 rather than the commissioner of insurance is responsible for 5 25 administering the provisions of the chapter. 5 26 The bill reinstates language repealed in 1998 that 5 27 prescribes the power and duties of the insurance commissioner 5 28 under Code chapter 523G (changed under the bill to the 5 29 secretary of state's office), and provides for registration 5 30 requirements. The bill places the provisions in a different 5 31 place in the Code chapter and makes stylistic changes in order 5 32 to better conform with bill drafting practices. 5 33 The bill reinstates provisions requiring an invention 5 34 developer to register (under the bill with the secretary of 5 35 state's office). The bill requires the same information in 6 1 the registration application, the same $250 annual 6 2 registration fee, and the same evidence of financial 6 3 responsibility as was contained in Code section 523G.10 prior 6 4 to its repeal. The bill refers to these items as registration 6 5 requirements and renumbers the provisions in a manner 6 6 consistent with Code style. 6 7 The bill provides a new section that requires that the $250 6 8 registration fee must be deposited in a special fund under the 6 9 control of the office referred to as the invention developers 6 10 administration and enforcement fund. The bill provides for 6 11 the management of the fund consistent with other funds 6 12 established in the Code. Moneys in the fund are appropriated 6 13 to the secretary of state's office and must be used 6 14 exclusively to administer the provisions of this chapter. 6 15 The bill requires the insurance commissioner and the 6 16 secretary of state to cooperate in order to efficiently 6 17 transfer authority to administer and enforce the chapter as 6 18 amended by the bill by January 1, 2001. The bill requires 6 19 the secretary of state's office to adopt rules necessary in 6 20 order to administer and enforce the chapter by January 1, 6 21 2001. The bill repeals a section in 1992 legislation 6 22 providing that certain provisions relating to evidence of 6 23 financial responsibility, registration requirements, and 6 24 enforcement authority is implemented upon an appropriation and 6 25 allocation of full-time equivalent positions. 6 26 Generally, the bill takes effect on January 1, 2001, except 6 27 for the provision concerning actions taken relating to the 6 28 transition of administration and enforcement from the 6 29 insurance division to the secretary of state. That provision 6 30 takes effect upon enactment. 6 31 LSB 5427HV 78 6 32 da/gg/8.1
Text: HF02357 Text: HF02359 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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