Text: HSB00123 Text: HSB00125 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 322F.3, subsection 1, unnumbered
1 2 paragraph 1, Code 2001, is amended to read as follows:
1 3 If a dealership agreement is terminated by cancellation or
1 4 nonrenewal, the supplier must repurchase equipment and parts
1 5 in the dealer's inventory and must repurchase special tools
1 6 and computer hardware or software required for the dealership.
1 7 The repurchase is subject to the following conditions:
1 8 Sec. 2. Section 322F.3, subsection 1, Code 2001, is
1 9 amended by adding the following new paragraphs:
1 10 NEW PARAGRAPH. c. The supplier shall pay to the dealer or
1 11 credit the dealer's account with one hundred percent of the
1 12 amortized value of any specific computer hardware or software
1 13 that the supplier required the dealer to purchase within the
1 14 three years immediately preceding notification by either party
1 15 of an intent to terminate the contract.
1 16 NEW PARAGRAPH. d. The supplier shall pay to the dealer or
1 17 credit the dealer's account with the following amounts for
1 18 special repair tools that were unique to the supplier's
1 19 product line and that are in complete and resalable condition:
1 20 (1) Seventy-five percent of the net cost of special repair
1 21 tools purchased within the three years immediately preceding
1 22 notification by either party of an intent to terminate the
1 23 contract.
1 24 (2) Fifty percent of the net cost of special repair tools
1 25 purchased within the four to six years immediately preceding
1 26 notification by either party of an intent to terminate the
1 27 contract.
1 28 NEW PARAGRAPH. e. The supplier shall only be required to
1 29 repurchase the items described in paragraphs "c" and "d" if
1 30 the items are free and clear of all claims, liens, and
1 31 encumbrances, to the satisfaction of the supplier.
1 32 EXPLANATION
1 33 This bill requires a supplier of agricultural equipment who
1 34 has an agricultural equipment dealership agreement with a
1 35 dealer of agricultural equipment to repurchase certain
2 1 unencumbered items from the dealer upon termination of the
2 2 agreement by cancellation or nonrenewal. The bill requires
2 3 the supplier to repurchase at its amortized value any specific
2 4 computer hardware or software that the supplier required the
2 5 dealer to purchase within the last three years.
2 6 The bill also requires the supplier to repurchase special
2 7 repair tools that were unique to the supplier's product line
2 8 and that are in complete and resalable condition. The
2 9 supplier must pay the dealer 75 percent of the net cost of
2 10 such tools if purchased within the last three years and 50
2 11 percent of the net cost if purchased within the last four to
2 12 six years.
2 13 LSB 2021HC 79
2 14 nh/cls/14
Text: HSB00123 Text: HSB00125 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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