Text: SSB01071 Text: SSB01073 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 322D.1, subsection 2, Code 2003, is 1 2 amended to read as follows: 1 3 2. "Attachment" means a machine or part of a machine 1 4 designed to be used on and in conjunction with a farm 1 5 implement, motorcycle,orall-terrain vehicle, or snowmobile. 1 6 Sec. 2. Section 322D.1, subsection 4, paragraphs b and e, 1 7 Code 2003, are amended to read as follows: 1 8 b. The franchisee is granted the right to offer and sell 1 9 farm implements, motorcycles, all-terrain vehicles, 1 10 snowmobiles, or related parts or attachments manufactured or 1 11 distributed by the franchiser. 1 12 e. The operation of the franchisee's business is 1 13 substantially reliant on the franchiser for the continued 1 14 supply of farm implements, motorcycles, all-terrain vehicles, 1 15 snowmobiles, or related parts or attachments. 1 16 Sec. 3. Section 322D.1, subsections 5 and 6, Code 2003, 1 17 are amended to read as follows: 1 18 5. "Franchisee" means a person who receives farm 1 19 implements, motorcycles, all-terrain vehicles, snowmobiles, or 1 20 related parts or attachments from the franchiser under a 1 21 franchise and who offers and sells the farm implements, 1 22 motorcycles, all-terrain vehicles, snowmobiles, or related 1 23 parts or attachments to the general public. 1 24 6. "Franchiser" means a person who manufactures, 1 25 wholesales, or distributes farm implements, motorcycles, all- 1 26 terrain vehicles, snowmobiles, or related parts or 1 27 attachments, and who enters into a franchise. 1 28 Sec. 4. Section 322D.1, Code 2003, is amended by adding 1 29 the following new subsection: 1 30 NEW SUBSECTION. 11. "Snowmobile" means the same as 1 31 defined in section 321G.1. 1 32 Sec. 5. Section 322D.2, Code 2003, is amended to read as 1 33 follows: 1 34 322D.2 FRANCHISEE'S RIGHTS TO PAYMENT. 1 35 1. A franchisee who enters into a written franchise with a 2 1 franchiser to maintain a stock of farm implements, 2 2 motorcycles, all-terrain vehicles, snowmobiles, or related 2 3 parts or attachments has the following rights to payment, at 2 4 the option of the franchisee, if the franchise is terminated: 2 5 a. One hundred percent of the net cost of new, unused, 2 6 complete farm implements, motorcycles, all-terrain vehicles, 2 7 snowmobiles, or related attachments, which were purchased from 2 8 the franchiser. In addition, the franchisee shall have a 2 9 right of payment for transportation charges on the farm 2 10 implements, motorcycles,orall-terrain vehicles, or 2 11 snowmobiles, which have been paid by the franchisee. 2 12 b. Eighty-five percent of the net prices of any repair 2 13 parts, including superseded parts, which were purchased from 2 14 the franchiser and held by the franchisee on the date that the 2 15 franchise terminated. 2 16 c. Five percent of the net prices of parts resold under 2 17 paragraph "b" for handling, packing, and loading of the parts. 2 18 However, this payment shall not be due to the franchisee if 2 19 the franchiser elects to perform the handling, packing, and 2 20 loading. 2 21 2. Upon receipt of the payments due under subsection 1, 2 22 the franchiser is entitled to possession of and title to the 2 23 farm implements, motorcycles, all-terrain vehicles, 2 24 snowmobiles, or related parts or attachments. 2 25 3. The cost of farm implements, motorcycles, all-terrain 2 26 vehicles, snowmobiles, or related attachments and the price of 2 27 repair parts shall be determined by reference to the 2 28 franchiser's price list or catalog in effect at the time of 2 29 the franchise termination. 2 30 Sec. 6. Section 322D.3, subsections 7 and 9, Code 2003, 2 31 are amended to read as follows: 2 32 7. A farm implement, motorcycle,orall-terrain vehicle, 2 33 or snowmobile which is not in new, unused, undamaged, or 2 34 complete condition. 2 35 9. A farm implement, motorcycle,orall-terrain vehicle, 3 1 or snowmobile which was purchased twenty-four months or more 3 2 prior to the termination of the franchise. 3 3 Sec. 7. NEW SECTION. 322D.10 APPLICATION – SNOWMOBILE 3 4 FRANCHISE AGREEMENTS. 3 5 The rights under section 322D.2, subsection 1, apply to 3 6 snowmobile franchises in effect on July 1, 2003, which have no 3 7 expiration date and are continuing franchises, and to 3 8 franchises executed or renewed on or after July 1, 2003, but 3 9 only to snowmobiles and related parts or attachments purchased 3 10 on or after July 1, 2003. 3 11 EXPLANATION 3 12 This bill provides that franchises for the merchandising of 3 13 snowmobiles, or related parts and equipment, are governed by 3 14 the same inventory repurchase requirements under Code chapter 3 15 322D that currently apply to farm implement, motorcycle, and 3 16 all-terrain vehicle franchises upon termination of the 3 17 franchise agreement. The bill provides that the franchisee is 3 18 entitled to payment by the franchiser of 100 percent of the 3 19 net cost of new, unused, complete snowmobiles or related 3 20 attachments which were purchased from the franchiser, plus 3 21 transportation charges. The franchisee is also entitled to 85 3 22 percent of the net price of repair parts purchased from the 3 23 franchiser, plus 5 percent of the net price of the parts if 3 24 the franchisee performs handling, packing, and loading of the 3 25 parts. Exceptions are made based on the condition, age, or 3 26 obsolescence of the merchandise; evidence of ownership; the 3 27 source from which the merchandise was acquired; and the 3 28 franchisee's contractual right to ownership of the 3 29 merchandise. 3 30 Under the provisions of Code chapter 322D, the franchisee's 3 31 right to repurchase of inventory passes to the franchisee's 3 32 heirs. A franchiser is civilly liable for the amount owed 3 33 plus the franchisee's attorney fees for failure to comply with 3 34 the repurchase requirements within 60 days after receipt of 3 35 inventory. 4 1 The bill applies to continuing franchises in effect on July 4 2 1, 2003, that have no expiration date, and to franchises 4 3 entered into or renewed on or after July 1, 2003, but only for 4 4 snowmobiles and related parts or attachments purchased on or 4 5 after July 1, 2003. 4 6 LSB 2221SC 80 4 7 dea/cl/14
Text: SSB01071 Text: SSB01073 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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