Text: HSB00561                          Text: HSB00563
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 562

Bill Text

PAG LIN
  1  1    Section 1. Section 322F.1, subsections 1 and 3, Code 2001,
  1  2 are amended to read as follows:
  1  3    1.  "Dealer" or "dealership" means a person engaged in the
  1  4 retail sale of equipment, if the person sells equipment
  1  5 designed to be principally used for agricultural or
  1  6 horticultural operations, or raising livestock pursuant to a
  1  7 dealership agreement.
  1  8    3.  a.  "Equipment" means a device, or part of a device, or
  1  9 an attachment to a device that is designed to be principally
  1 10 used for agriculture, purposes related to any of the
  1 11 following:
  1 12    (1)  Agriculture, including livestock or crop production;
  1 13 horticulture, or livestock raising; or floriculture.
  1 14 Equipment includes but is not limited to tractors,; trailers,;
  1 15 combines,; tillage, planting, and cultivating implements,;
  1 16 balers, and; irrigation implements; lawn mowers; lawn and
  1 17 garden tractors and implements; and rototillers.  Equipment
  1 18 also includes attachments to equipment.
  1 19    (2)  Construction or industry, including devices, parts, or
  1 20 attachments associated with earthmoving, industrial material
  1 21 handling, mining, forestry, highway construction or
  1 22 maintenance, and landscaping.  Equipment includes but is not
  1 23 limited to tractors, graders, excavators, loaders, and
  1 24 backhoes.  Equipment includes devices commonly referred to as
  1 25 "utility equipment", "industrial equipment", or "outdoor power
  1 26 equipment".
  1 27    b.  Equipment does not include self-propelled machines
  1 28 designed primarily for the transportation of persons or
  1 29 property on a street or highway.
  1 30    Sec. 2.  Section 322F.9, Code 2001, is amended to read as
  1 31 follows:
  1 32    322F.9  APPLICABILITY.
  1 33    1.  A term of a dealership agreement which is inconsistent
  1 34 with the terms of this chapter is void and unenforceable and
  1 35 does not waive any rights which are provided to a person
  2  1 provided by this chapter.
  2  2    2.  a.  This For all dealership agreements for equipment
  2  3 principally used for agricultural or horticultural operations,
  2  4 this chapter applies to all those dealership agreements in
  2  5 effect which have no expiration date and all other agreements
  2  6 entered into or renewed on or after July 1, 1990.  Any such
  2  7 dealership agreement in effect on June 30, 1990, which by its
  2  8 own terms will terminate on a subsequent date, shall be
  2  9 governed by the law as it existed prior to July 1, 1990.
  2 10    b.  For all dealership agreements, other than for equipment
  2 11 principally used for agricultural or horticultural operation,
  2 12 this chapter applies to those dealership agreements in effect
  2 13 which have no expiration date and all other agreements entered
  2 14 into or renewed on or after the effective date of this Act.
  2 15 Any such dealership agreement in effect on the effective date
  2 16 of this Act, which by its own terms will terminate on a
  2 17 subsequent date, shall be governed by the law as it existed
  2 18 prior to the effective date of this Act.  
  2 19                           EXPLANATION
  2 20    This bill provides for agreements for persons merchandising
  2 21 certain equipment under dealership (franchise) agreements
  2 22 involving agricultural equipment under Code chapter 322F.
  2 23    Generally, Code chapter 322F regulates business
  2 24 relationships between dealers and suppliers for purposes
  2 25 related to agriculture and horticulture, by providing for the
  2 26 terms and conditions of dealership agreements.  These terms
  2 27 and conditions relate to causes for termination of a
  2 28 dealership agreement, including requiring that good cause
  2 29 exist for the termination.  The requirements relate to the
  2 30 repurchase and repossession of equipment following termination
  2 31 of a dealership agreement.  The Code chapter specifies the
  2 32 rights and obligations for dealers and suppliers.  It places
  2 33 restrictions on supplier practices, and provides for supplier
  2 34 liability, and remedies available to the dealer.
  2 35    The bill provides that the same provisions that govern
  3  1 dealership agreements for agricultural equipment also apply to
  3  2 equipment used for a variety of nonagricultural or
  3  3 horticultural purposes, including construction or industrial
  3  4 purposes associated with earthmoving, industrial material
  3  5 handling, mining, forestry, highway construction or
  3  6 maintenance, and landscaping.  It also provides that the same
  3  7 provisions apply to lawn and garden equipment.
  3  8    For construction and industrial equipment, the bill applies
  3  9 to those dealership agreements in effect which have no
  3 10 expiration date and all other agreements entered into or
  3 11 renewed on or after the effective date of the bill.  
  3 12 LSB 5804HC 79
  3 13 da/pj/5

Text: HSB00561                          Text: HSB00563
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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