Text: HSB00526 Text: HSB00528 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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 atits place of1 22business as shown on its registration statementthe 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 3a.(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 8b.(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 12c.(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 19d.(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 23e.(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 32f.(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 14.b. "Door-to-door sale", irrespective of the place or 3 2 manner of sale, also meansathe following: 3 3 (1) A sale of funeral services or funeral merchandise 3 4 regulated under chapter 523A, irrespective of the place or3 5manner 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
© 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