Senate File 363 - Enrolled

PAG LIN

  1  1                                             SENATE FILE 363
  1  2
  1  3                             AN ACT
  1  4 PROVIDING FOR THE REGULATION OF PERSONS ENGAGED IN SOLICITING
  1  5    BUSINESS OPPORTUNITIES, INCLUDING FRANCHISES.
  1  6
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8
  1  9    Section 1.  Section 551A.3, subsection 3, paragraphs a and
  1 10 b, Code 2005, are amended to read as follows:
  1 11    a.  A uniform franchise offering circular prepared in
  1 12 accordance with the guidelines adopted by the North American
  1 13 securities administrators association, inc., as amended
  1 14 through July 1, 2004.
  1 15    b.  A disclosure document prepared pursuant to the federal
  1 16 trade commission rule relating to disclosure requirements and
  1 17 prohibitions concerning franchising and business opportunity
  1 18 ventures in accordance with 16 C.F.R. } 436 or any successor
  1 19 regulation.
  1 20    Sec. 2.  Section 551A.4, subsection 1, paragraph b, Code
  1 21 2005, is amended to read as follows:
  1 22    b.  An offer or sale of a business opportunity which is a
  1 23 franchise, provided that the seller delivers to each purchaser
  1 24 at the earlier of the first personal meeting between the
  1 25 seller and the purchaser, or ten business fourteen days prior
  1 26 to the earlier of the execution by a purchaser of a contract
  1 27 imposing a binding legal obligation on the purchaser or the
  1 28 payment by a purchaser of any consideration in connection with
  1 29 the offer or sale of the business opportunity, one of the
  1 30 following disclosure documents:
  1 31    (1)  A uniform franchise=offering circular prepared in
  1 32 accordance with the guidelines adopted by the North American
  1 33 securities administrators association, inc., as amended
  1 34 through September 21, 1983.
  1 35    (2)  A disclosure document prepared pursuant to the federal
  2  1 trade commission rule entitled "Disclosure requirements and
  2  2 prohibitions concerning franchising and business opportunity
  2  3 ventures", 16 C.F.R. } 436 (1979) or any successor regulation.
  2  4    For the purposes of this paragraph "b", a personal meeting
  2  5 means a face=to=face meeting between the purchaser and the
  2  6 seller or their representatives, which is held for the purpose
  2  7 of discussing the offer or sale of a business opportunity.
  2  8
  2  9
  2 10                                                             
  2 11                               JOHN P. KIBBIE
  2 12                               President of the Senate
  2 13
  2 14
  2 15                                                             
  2 16                               CHRISTOPHER C. RANTS
  2 17                               Speaker of the House
  2 18
  2 19    I hereby certify that this bill originated in the Senate and
  2 20 is known as Senate File 363, Eighty=first General Assembly.
  2 21
  2 22
  2 23                                                             
  2 24                               MICHAEL E. MARSHALL
  2 25                               Secretary of the Senate
  2 26 Approved                , 2005
  2 27
  2 28
  2 29                                
  2 30 THOMAS J. VILSACK
  2 31 Governor