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Senate File 2372

Partial Bill History

Bill Text

PAG LIN
  1  1                                            SENATE FILE 2372
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO CERTAIN PROVIDERS OF CONSUMER SERVICES BY
  1  5    ELIMINATING THE REGISTRATION REQUIREMENT FOR PHYSICAL
  1  6    EXERCISE CLUBS, MAKING SOCIAL REFERRAL SERVICE PROVIDERS
  1  7    SUBJECT TO PROVISIONS RELATING TO DOOR-TO-DOOR SALES, AND
  1  8    MAKING PENALTIES APPLICABLE.
  1  9 
  1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 11 
  1 12    Section 1.  Section 552.14, subsection 2, paragraph a, Code
  1 13 1999, is amended by striking the paragraph.
  1 14    Sec. 2.  Section 552.16, subsection 2, Code 1999, is
  1 15 amended to read as follows:
  1 16    2.  If the physical exercise club does not fully open for
  1 17 business before the two hundred eleventh day after the date it
  1 18 enters into the first physical exercise club contract or if
  1 19 the club does not remain fully open for thirty days, the
  1 20 buyers whose payments are held in escrow under this section
  1 21 shall receive a full refund, including the buyer's pro rata
  1 22 share of any interest earned thereon, from the escrow agent.
  1 23 Refunds pursuant to this section shall be made not later than
  1 24 the two hundred forty-first day after the date the first
  1 25 physical exercise club contract was signed.  If the escrow
  1 26 agent fails to make a full refund as provided for in this
  1 27 section, the attorney general shall hold a hearing and
  1 28 determine whether the physical exercise club has fully opened
  1 29 and has remained open for thirty days, and if not, determine
  1 30 those persons who, as buyers, are entitled to a refund and, if
  1 31 appropriate, distribute the escrow proceeds.  Notice shall be
  1 32 provided to the physical exercise club at its place of
  1 33 business as shown on its registration statement the address
  1 34 specified in the contract pursuant to section 552.4 and to all
  1 35 buyers who have funds in the escrow account.  All hearings
  2  1 held under this section shall be held in accordance with
  2  2 chapter 17A.
  2  3    Sec. 3.  Section 555A.1, subsections 3 and 4, Code 1999,
  2  4 are amended to read as follows:
  2  5    3.  a.  "Door-to-door sale" means a sale, lease, or rental
  2  6 of consumer goods or services with a purchase price of twenty-
  2  7 five dollars or more, whether under single or multiple
  2  8 contracts, in which the seller or the seller's representative
  2  9 personally solicits the sale, including those in response to
  2 10 or following an invitation by the buyer, and the buyer's
  2 11 agreement or offer to purchase is made at a place other than
  2 12 the place of business of the seller.  Door-to-door sale does
  2 13 not include a transaction:
  2 14    a. (1)  Made pursuant to prior negotiations in the course
  2 15 of a visit by the buyer to a retail business establishment
  2 16 having a fixed permanent location where the goods are
  2 17 exhibited or the services are offered for sale on a continuing
  2 18 basis.
  2 19    b. (2)  In which the consumer is accorded the right of
  2 20 rescission by the provisions of the Consumer Credit Protection
  2 21 Act, 15 U.S.C. } 1635, or rules issued pursuant to this
  2 22 chapter.
  2 23    c. (3)  In which the buyer has initiated the contact and
  2 24 the goods or services are needed to meet a bona fide immediate
  2 25 personal emergency of the buyer, and the buyer furnishes the
  2 26 seller with a separate dated and signed personal statement in
  2 27 the buyer's handwriting describing the situation requiring
  2 28 immediate remedy and expressly acknowledging and waiving the
  2 29 right to cancel the sale within three business days.
  2 30    d. (4)  Conducted and consummated entirely by mail or
  2 31 telephone; and without any other contact between the buyer and
  2 32 the seller or its representative prior to delivery of the
  2 33 goods or performance of the services.
  2 34    e. (5)  In which the buyer has initiated the contact and
  2 35 specifically requested the seller to visit the buyer's home
  3  1 for the purpose of repairing or performing maintenance upon
  3  2 the buyer's personal property.  If in the course of such a
  3  3 visit, the seller sells the buyer the right to receive
  3  4 additional services or goods other than replacement parts
  3  5 necessarily used in performing the maintenance or in making
  3  6 the repairs, the sale of those additional goods or services
  3  7 would not fall within this exclusion.
  3  8    f. (6)  Pertaining to the sale or rental of real property,
  3  9 to the sale of insurance and prepaid health service plans, or
  3 10 to the sale of securities or commodities by a broker-dealer
  3 11 registered with the securities and exchange commission.
  3 12    4. b.  "Door-to-door sale", irrespective of the place or
  3 13 manner of sale, also means a the following:
  3 14    (1)  A sale of funeral services or funeral merchandise
  3 15 regulated under chapter 523A, irrespective of the place or
  3 16 manner of sale.
  3 17    (2)  A sale of a social referral service or an ancillary
  3 18 service.  For purposes of this subparagraph, "social referral
  3 19 service" means a service for a fee providing matching or
  3 20 introduction of individuals for the purpose of dating,
  3 21 matrimony, or general social contact not otherwise prohibited
  3 22 by law, and "ancillary service" means goods or services
  3 23 directly or indirectly related to or to be provided in
  3 24 connection with a social referral service.
  3 25    Sec. 4.  Section 552.15, Code 1999, is repealed.  
  3 26 
  3 27 
  3 28                                                             
  3 29                               MARY E. KRAMER
  3 30                               President of the Senate
  3 31 
  3 32 
  3 33                                                             
  3 34                               BRENT SIEGRIST
  3 35                               Speaker of the House
  4  1 
  4  2    I hereby certify that this bill originated in the Senate and
  4  3 is known as Senate File 2372, Seventy-eighth General Assembly.
  4  4 
  4  5 
  4  6                                                             
  4  7                               MICHAEL E. MARSHALL
  4  8                               Secretary of the Senate
  4  9 Approved                , 2000
  4 10 
  4 11 
  4 12                               
  4 13 THOMAS J. VILSACK
  4 14 Governor
     

Text: SF02371                           Text: SF02373
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