Text: HF02488 Text: HF02490 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 322D.1, Code 2001, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 01. "All-terrain vehicle" means the same 1 4 as defined in section 321G.1. 1 5 Sec. 2. Section 322D.1, subsection 1, Code 2001, is 1 6 amended to read as follows: 1 7 1. "Attachment" means a machine or part of a machine 1 8 designed to be used on and in conjunction with a farm 1 9 implement,or amotorcycle, or all-terrain vehicle. 1 10 Sec. 3. Section 322D.1, subsection 3, paragraphs b and e, 1 11 Code 2001, are amended to read as follows: 1 12 b. The franchisee is granted the right to offer and sell 1 13 farm implements,ormotorcycles, all-terrain vehicles, or 1 14 related parts or attachments manufactured or distributed by 1 15 the franchiser. 1 16 e. The operation of the franchisee's business is 1 17 substantially reliant on the franchiser for the continued 1 18 supply of farm implements, motorcycles, all-terrain vehicles, 1 19 or related parts,or attachments. 1 20 Sec. 4. Section 322D.1, subsections 4 through 6, Code 1 21 2001, are amended to read as follows: 1 22 4. "Franchisee" means a person who receives farm 1 23 implements,ormotorcycles, all-terrain vehicles, or related 1 24 partsfor farm implements or motorcyclesor attachments from 1 25 the franchiser under a franchise and who offers and sells the 1 26 farm implements,ormotorcycles, all-terrain vehicles, or 1 27theirrelated parts or attachments to the general public. 1 28 5. "Franchiser" means a person who manufactures, 1 29 wholesales, or distributes farm implements,ormotorcycles, 1 30 all-terrain vehicles, or related partsfor farm implements or1 31motorcyclesor attachments, and who enters into a franchise. 1 32 6. "Motorcycle"has the same meaningmeans a motor vehicle 1 33 as defined in section 321.1, subsection 40, paragraph "a"1 34 other than an all-terrain vehicle, which has a saddle or seat 1 35 for the use of a rider and that is designed to travel on not 2 1 more than two wheels in contact with the ground, but excluding 2 2 a motorized bicycle as defined in section 321.1. 2 3 Sec. 5. Section 322D.2, Code 2001, is amended to read as 2 4 follows: 2 5 322D.2 FRANCHISEE'S RIGHTS TO PAYMENT. 2 6 1. A franchisee who enters into a written franchise with a 2 7 franchiser to maintain a stock of farm implements, 2 8 motorcycles, all-terrain vehicles, or related parts,or 2 9 attachments, farm implements, or motorcycleshas the following 2 10 rights to payment, at the option of the franchisee, if the 2 11 franchise is terminated: 2 12 a. One hundred percent of the net cost of new unused 2 13 complete farm implements,ormotorcycles,includingall- 2 14 terrain vehicles, or related attachments, which were purchased 2 15 from the franchiser, and in. In addition, the franchisee 2 16 shall have a right of payment for transportation charges on 2 17 the farm implements,ormotorcycles, or all-terrain vehicles 2 18 which have been paid by the franchisee. 2 19 b. Eighty-five percent of the net prices of any repair 2 20 parts, including superseded parts, which were purchased from 2 21 the franchiser and held by the franchisee on the dateofthat 2 22 thetermination of thefranchise terminated. 2 23 c. Five percent of the net prices oftheparts resold 2 24 under paragraph "b" for handling, packing, and loading of the 2 25 partsexcept that. However, this payment shall not be due to 2 26 the franchisee if the franchiser elects to perform the 2 27 handling, packing, and loading. 2 28 2. Upon receipt of the payments due under subsection 1, 2 29 the franchiser is entitled to possession of and title to the 2 30 farm implements, motorcycles, all-terrain vehicles, or related 2 31 parts or attachments, or parts. 2 32 3. The cost of farm implements, motorcycles, all-terrain 2 33 vehicles, or related attachments and the price of repair parts 2 34 shall be determined by reference to the franchiser's price 2 35 list or catalog in effect at the time of the franchise 3 1 termination. 3 2 Sec. 6. Section 322D.3, subsections 7 and 9, Code 2001, 3 3 are amended to read as follows: 3 4 7. A farm implement,ormotorcycle, or all-terrain vehicle 3 5 which is not in new, unused, undamaged, or complete condition. 3 6 9. A farm implement,ormotorcycle, or all-terrain vehicle 3 7 which was purchased twenty-four months or more prior to the 3 8 termination of the franchise. 3 9 Sec. 7. NEW SECTION. 322D.9 APPLICATION – ALL-TERRAIN 3 10 VEHICLES. 3 11 The rights under section 322D.2, subsection 1, shall apply 3 12 to a franchise for all-terrain vehicles as follows: 3 13 1. All franchises in effect on the effective date of this 3 14 Act that have no expiration date and are continuing 3 15 franchises. 3 16 2. Franchises that have been executed or renewed on or 3 17 after the effective date of this Act, but only for all-terrain 3 18 vehicles and related parts or attachments purchased on or 3 19 after the effective date of this Act. 3 20 EXPLANATION 3 21 This bill provides for agreements for persons merchandising 3 22 all-terrain vehicles. Code chapter 322D governs agricultural 3 23 equipment and motorcycle franchises. According to Code 3 24 section 322D.7, for agricultural equipment franchises, the 3 25 provisions are transitional. Code chapter 322F replaces Code 3 26 chapter 322D's authority over franchise relationships based on 3 27 agreements executed or renewed on or after July 1, 1990, or 3 28 agreements without any expiration date. Code chapter 322D 3 29 still governs motorcycle dealerships and agricultural 3 30 dealership agreements executed prior to July 1, 1990, that 3 31 expire on a certain date. 3 32 Code chapter 322D refers to the merchandisers as 3 33 franchisees and their agreements with franchisers as franchise 3 34 agreements. The bill provides that the term "all-terrain 3 35 vehicle" means the same as defined in Code section 321G.1. 4 1 That provision states that an all-terrain vehicle is a 4 2 motorized flotation-tire vehicle with not less than three low- 4 3 pressure tires, but not more than six low-pressure tires, or a 4 4 two-wheeled off-road motorcycle, that is limited in engine 4 5 displacement to less than 800 cubic centimeters and in total 4 6 dry weight to less than 750 pounds and that has a seat or 4 7 saddle designed to be straddled by the operator and handlebars 4 8 for steering control. 4 9 The bill provides that for any remaining franchises of 4 10 agricultural equipment and for all franchises of motorcycles 4 11 governed under Code chapter 322D, those provisions apply to 4 12 govern all-terrain vehicles. 4 13 Generally, Code chapter 322D regulates business 4 14 relationships between franchisees and franchisors by providing 4 15 for the terms and conditions of franchise agreements. These 4 16 terms and conditions relate to causes for termination of a 4 17 franchise agreement. The Code chapter provides requirements 4 18 relating to the repurchase and repossession of equipment 4 19 following termination of a franchise agreement. The Code 4 20 chapter specifies rights and obligations for franchisees and 4 21 franchisers. The Code chapter places restrictions on 4 22 franchiser practices, and provides for liability and remedies 4 23 available to the franchisee. 4 24 Under Code chapter 322D, the provisions applying to all 4 25 all-terrain vehicles apply to those agreements in effect that 4 26 have no expiration date and all other agreements entered into 4 27 or renewed on or after the effective date of the bill. 4 28 LSB 6674HV 79 4 29 da/cls/14
Text: HF02488 Text: HF02490 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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