Text: HSB00526                          Text: HSB00528
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 527

Bill Text

PAG LIN
  1  1    Section 1.  Section 552.14, subsection 2, paragraph a, Code
  1  2 1999, is amended by striking the paragraph.
  1  3    Sec. 2.  Section 552.16, subsection 2, Code 1999, is
  1  4 amended to read as follows:
  1  5    2.  If the physical exercise club does not fully open for
  1  6 business before the two hundred eleventh day after the date it
  1  7 enters into the first physical exercise club contract or if
  1  8 the club does not remain fully open for thirty days, the
  1  9 buyers whose payments are held in escrow under this section
  1 10 shall receive a full refund, including the buyer's pro rata
  1 11 share of any interest earned thereon, from the escrow agent.
  1 12 Refunds pursuant to this section shall be made not later than
  1 13 the two hundred forty-first day after the date the first
  1 14 physical exercise club contract was signed.  If the escrow
  1 15 agent fails to make a full refund as provided for in this
  1 16 section, the attorney general shall hold a hearing and
  1 17 determine whether the physical exercise club has fully opened
  1 18 and has remained open for thirty days, and if not, determine
  1 19 those persons who, as buyers, are entitled to a refund and, if
  1 20 appropriate, distribute the escrow proceeds.  Notice shall be
  1 21 provided to the physical exercise club at its place of
  1 22 business as shown on its registration statement the address
  1 23 specified in the contract pursuant to section 552.4 and to all
  1 24 buyers who have funds in the escrow account.  All hearings
  1 25 held under this section shall be held in accordance with
  1 26 chapter 17A.
  1 27    Sec. 3.  Section 555A.1, subsection 3 and 4, Code 1999, are
  1 28 amended to read as follows:
  1 29    3.  a.  "Door-to-door sale" means a sale, lease, or rental
  1 30 of consumer goods or services with a purchase price of twenty-
  1 31 five dollars or more, whether under single or multiple
  1 32 contracts, in which the seller or the seller's representative
  1 33 personally solicits the sale, including those in response to
  1 34 or following an invitation by the buyer, and the buyer's
  1 35 agreement or offer to purchase is made at a place other than
  2  1 the place of business of the seller.  Door-to-door sale does
  2  2 not include a transaction:
  2  3    a. (1)  Made pursuant to prior negotiations in the course
  2  4 of a visit by the buyer to a retail business establishment
  2  5 having a fixed permanent location where the goods are
  2  6 exhibited or the services are offered for sale on a continuing
  2  7 basis.
  2  8    b. (2)  In which the consumer is accorded the right of
  2  9 rescission by the provisions of the Consumer Credit Protection
  2 10 Act, 15 U.S.C. } 1635, or rules issued pursuant to this
  2 11 chapter.
  2 12    c. (3)  In which the buyer has initiated the contact and
  2 13 the goods or services are needed to meet a bona fide immediate
  2 14 personal emergency of the buyer, and the buyer furnishes the
  2 15 seller with a separate dated and signed personal statement in
  2 16 the buyer's handwriting describing the situation requiring
  2 17 immediate remedy and expressly acknowledging and waiving the
  2 18 right to cancel the sale within three business days.
  2 19    d. (4)  Conducted and consummated entirely by mail or
  2 20 telephone; and without any other contact between the buyer and
  2 21 the seller or its representative prior to delivery of the
  2 22 goods or performance of the services.
  2 23    e. (5)  In which the buyer has initiated the contact and
  2 24 specifically requested the seller to visit the buyer's home
  2 25 for the purpose of repairing or performing maintenance upon
  2 26 the buyer's personal property.  If in the course of such a
  2 27 visit, the seller sells the buyer the right to receive
  2 28 additional services or goods other than replacement parts
  2 29 necessarily used in performing the maintenance or in making
  2 30 the repairs, the sale of those additional goods or services
  2 31 would not fall within this exclusion.
  2 32    f. (6)  Pertaining to the sale or rental of real property,
  2 33 to the sale of insurance and prepaid health service plans, or
  2 34 to the sale of securities or commodities by a broker-dealer
  2 35 registered with the securities and exchange commission.
  3  1    4. b.  "Door-to-door sale", irrespective of the place or
  3  2 manner of sale, also means a the following:
  3  3    (1)  A sale of funeral services or funeral merchandise
  3  4 regulated under chapter 523A, irrespective of the place or
  3  5 manner of sale.
  3  6    (2)  A sale of a social referral service or an ancillary
  3  7 service.  For purposes of this subparagraph, "social referral
  3  8 service" means a service for a fee providing matching or
  3  9 introduction of individuals for the purpose of dating,
  3 10 matrimony, or general social contact not otherwise prohibited
  3 11 by law, and "ancillary service" means goods or services
  3 12 directly or indirectly related to or to be provided in
  3 13 connection with a social referral service.
  3 14    Sec. 4.  Section 552.15, Code 1999, is repealed.  
  3 15                           EXPLANATION
  3 16    This bill amends provisions relating to the protection of
  3 17 consumers who enter into certain contractual agreements and to
  3 18 the registration responsibilities of certain persons offering
  3 19 such contractual agreements to consumers.
  3 20    The bill eliminates the requirement that physical exercise
  3 21 clubs register with the office of attorney general's consumer
  3 22 protection division.
  3 23    The bill also includes the sale of social referral services
  3 24 or ancillary services under provisions of Code chapter 555A,
  3 25 relating to door-to-door sales.  The bill provides that
  3 26 "social referral service" means a service for a fee providing
  3 27 matching or introduction of individuals for the purpose of
  3 28 dating, matrimony, or general social contact not otherwise
  3 29 prohibited by law, and that "ancillary service" means goods or
  3 30 services directly or indirectly related to or to be provided
  3 31 in connection with a social referral service.  A person who
  3 32 violates Code chapter 555A as it relates to the sale of social
  3 33 referral services or ancillary services is guilty of a simple
  3 34 misdemeanor, and is also subject to the remedies provided
  3 35 under Code section 714.16, relating to consumer frauds.  
  4  1 LSB 5289DP 78
  4  2 mj/cls/14
     

Text: HSB00526                          Text: HSB00528
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2000 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Fri Jan 14 13:35:30 CST 2000
URL: /DOCS/GA/78GA/Legislation/HSB/00500/HSB00527/000114.html
jhf