Text: HSB00004 Text: HSB00006 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 523B.1, subsection 3, Code 1999, is 1 2 amended to read as follows: 1 3 3. a. "Business opportunity" means a contract or 1 4 agreement, between a seller and purchaser, express or implied, 1 5 orally or in writing, at an initial investment exceeding five 1 6 hundred dollars, where the parties agree that the seller or a 1 7 person recommended by the seller is to provide to the 1 8 purchaser any products, equipment, supplies, materials, or 1 9 services for the purpose of enabling the purchaser to start a 1 10 business, and the seller represents, directly or indirectly, 1 11 orally or in writing, any of the following: 1 12a.(1) The seller or a person recommended by the seller 1 13 will provide locations or assist the purchaser in finding 1 14 locations for the use or operation of vending machines, racks, 1 15 display cases, or other similar devices, on premises which are 1 16 not owned or leased by the purchaser or seller. 1 17b.(2) The seller or a person recommended by the seller 1 18 will provide or assist the purchaser in finding outlets or 1 19 accounts for the purchaser's products or services. 1 20c.(3) The seller or a person specified by the seller will 1 21 purchase any or all products made, produced, fabricated, 1 22 grown, bred, or modified by the purchaser. 1 23d.(4) The purchaser will derive income from the business 1 24 which exceeds the price paid to the seller. 1 25e.(5) The seller will refund all or part of the price 1 26 paid to the seller, or repurchase any of the products, 1 27 equipment, or supplies provided by the seller or a person 1 28 recommended by the seller, if the purchaser is dissatisfied 1 29 with the business. 1 30f.(6) The seller will provide a marketing plan. 1 31 b. "Business opportunity" does not include any of the 1 32 following: 1 33 (1) An offer or sale of an ongoing business operated by 1 34 the seller which is to be sold in its entirety. 1 35 (2) An offer or sale of a business opportunity to an 2 1 ongoing business where the seller will provide products, 2 2 equipment, supplies, or services which are substantially 2 3 similar to the products, equipment, supplies, or services sold 2 4 by the purchaser in connection with the purchaser's ongoing 2 5 business. 2 6 (3) An offer or sale of a business opportunity which 2 7 involves a marketing plan made in conjunction with the 2 8 licensing of a federally registered trademark or federally 2 9 registered service mark provided that the seller has a minimum 2 10 net worth of one million dollars as determined on the basis of 2 11 the seller's most recent audited financial statement prepared 2 12 within thirteen months of the first offer in this state. Net 2 13 worth may be determined on a consolidated basis if the seller 2 14 is at least eighty percent owned by one person and that person 2 15 expressly guarantees the obligations of the seller with regard 2 16 to the offer or sale of a business opportunity claimed to be 2 17 excluded under this subparagraph. 2 18 (4) An offer or sale of a business opportunity by an 2 19 executor, administrator, sheriff, receiver, trustee in 2 20 bankruptcy, guardian, or conservator, or a judicial offer or 2 21 sale of a business opportunity. 2 22 (5) The renewal or extension of a business opportunity 2 23 contract or agreement entered into under this chapter or prior 2 24 to July 1, 1981. 2 25 Sec. 2. Section 523B.3, subsection 1, paragraphs b, c, d, 2 26 and g, Code 1999, are amended by striking the paragraphs. 2 27 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. This Act, 2 28 being deemed of immediate importance, takes effect upon 2 29 enactment and is retroactively applicable to July 1, 1998. 2 30 EXPLANATION 2 31 This bill excludes certain business transactions from the 2 32 definition of business opportunity under the business 2 33 opportunity law in Code chapter 523B. These transactions 2 34 include the following: 2 35 1. The offer or sale of an ongoing business operated by 3 1 the seller. 3 2 2. The offer or sale of a business opportunity to an 3 3 ongoing business where the seller provides a line of goods or 3 4 services to the purchaser. 3 5 3. The offer or sale of a business opportunity which 3 6 involves a marketing plan made in conjunction with the 3 7 licensing of a federally registered trademark or federally 3 8 registered service mark provided that the seller has a minimum 3 9 net worth of one million dollars. 3 10 4. The offer or sale of a business opportunity by an 3 11 executor, administrator, sheriff, receiver, trustee in 3 12 bankruptcy, guardian, or conservator, or a judicial offer or 3 13 sale of a business opportunity. 3 14 5. The renewal or extension of a business opportunity 3 15 contract or agreement entered into under Code chapter 523B or 3 16 prior to July 1, 1981. 3 17 A business transaction which qualifies for exclusion from 3 18 the definition is not subject to the extension registration 3 19 requirements and procedures provided in Code chapter 523B. 3 20 The bill takes effect upon enactment and applies 3 21 retroactively to July 1, 1998. 3 22 LSB 1411HC 78 3 23 tm/jw/5
Text: HSB00004 Text: HSB00006 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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