Text: HSB00123                          Text: HSB00125
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 124

Bill Text

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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