Bill Text: IA HSB5 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to franchisor-franchisee relationships for the purposes of certain employment laws and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-06 - Committee report, recommending amendment and passage. H.J. 229. [HSB5 Detail]
Download: Iowa-2019-HSB5-Introduced.html
House
Study
Bill
5
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
CARLSON)
A
BILL
FOR
An
Act
relating
to
franchisor-franchisee
relationships
for
1
the
purposes
of
certain
employment
laws
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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1512YC
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H.F.
_____
Section
1.
NEW
SECTION
.
85.55
Franchisor-franchisee
1
relationship.
2
1.
For
purposes
of
this
section,
franchisee
and
franchisor
3
mean
the
same
as
defined
in
16
C.F.R.
§436.1.
4
2.
For
purposes
of
this
chapter
and
chapters
86
and
87,
5
a
franchisor
shall
not
be
considered
to
be
an
employer
of
a
6
franchisee
or
of
an
employee
of
a
franchisee
unless
any
of
the
7
following
conditions
apply:
8
a.
The
franchisor
has
agreed
in
writing
to
be
considered
to
9
be
the
employer
of
the
franchisee
or
of
the
employees
of
the
10
franchisee.
11
b.
The
franchisor
has
been
found
by
the
workers’
12
compensation
commissioner
to
have
exercised
a
type
or
degree
of
13
control
over
the
franchisee
or
the
franchisee’s
employees
that
14
is
not
customarily
exercised
by
a
franchisor
for
the
purpose
of
15
protecting
the
franchisor’s
trademarks
and
brand.
16
Sec.
2.
NEW
SECTION
.
91A.15
Franchisor-franchisee
17
relationship.
18
1.
For
purposes
of
this
section,
franchisee
and
franchisor
19
mean
the
same
as
defined
in
16
C.F.R.
§436.1.
20
2.
For
purposes
of
this
chapter,
a
franchisor
shall
not
be
21
considered
to
be
an
employer
of
a
franchisee
or
of
an
employee
22
of
a
franchisee
unless
any
of
the
following
conditions
apply:
23
a.
The
franchisor
has
agreed
in
writing
to
be
considered
to
24
be
the
employer
of
the
franchisee
or
of
the
employees
of
the
25
franchisee.
26
b.
The
franchisor
has
been
found
by
the
commissioner
to
have
27
exercised
a
type
or
degree
of
control
over
the
franchisee
or
28
the
franchisee’s
employees
that
is
not
customarily
exercised
29
by
a
franchisor
for
the
purpose
of
protecting
the
franchisor’s
30
trademarks
and
brand.
31
Sec.
3.
Section
91D.1,
Code
2019,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
2A.
a.
For
purposes
of
this
subsection,
34
franchisee
and
franchisor
mean
the
same
as
defined
in
16
C.F.R.
35
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H.F.
_____
§436.1.
1
b.
For
purposes
of
this
chapter,
a
franchisor
shall
not
be
2
considered
to
be
an
employer
of
a
franchisee
or
of
an
employee
3
of
a
franchisee
unless
any
of
the
following
conditions
apply:
4
(1)
The
franchisor
has
agreed
in
writing
to
be
considered
5
to
be
the
employer
of
the
franchisee
or
of
the
employees
of
the
6
franchisee.
7
(2)
The
franchisor
has
been
found
by
the
labor
commissioner
8
to
have
exercised
a
type
or
degree
of
control
over
the
9
franchisee
or
the
franchisee’s
employees
that
is
not
10
customarily
exercised
by
a
franchisor
for
the
purpose
of
11
protecting
the
franchisor’s
trademarks
and
brand.
12
Sec.
4.
NEW
SECTION
.
96.36
Franchisor-franchisee
13
relationship.
14
1.
For
purposes
of
this
section,
franchisee
and
franchisor
15
mean
the
same
as
defined
in
16
C.F.R.
§436.1.
16
2.
For
purposes
of
this
chapter,
a
franchisor
shall
not
be
17
considered
to
be
an
employer
of
a
franchisee
or
of
an
employee
18
of
a
franchisee
unless
any
of
the
following
conditions
apply:
19
a.
The
franchisor
has
agreed
in
writing
to
be
considered
to
20
be
the
employer
of
the
franchisee
or
of
the
employees
of
the
21
franchisee.
22
b.
The
franchisor
has
been
found
by
the
department
to
have
23
exercised
a
type
or
degree
of
control
over
the
franchisee
or
24
the
franchisee’s
employees
that
is
not
customarily
exercised
25
by
a
franchisor
for
the
purpose
of
protecting
the
franchisor’s
26
trademarks
and
brand.
27
Sec.
5.
NEW
SECTION
.
216.22
Franchisor-franchisee
28
relationship.
29
1.
For
purposes
of
this
section,
franchisee
and
franchisor
30
mean
the
same
as
defined
in
16
C.F.R.
§436.1.
31
2.
For
purposes
of
this
chapter,
a
franchisor
shall
not
be
32
considered
to
be
an
employer
of
a
franchisee
or
of
an
employee
33
of
a
franchisee
unless
any
of
the
following
conditions
apply:
34
a.
The
franchisor
has
agreed
in
writing
to
be
considered
to
35
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2/
4
H.F.
_____
be
the
employer
of
the
franchisee
or
of
the
employees
of
the
1
franchisee.
2
b.
The
franchisor
has
been
found
by
the
commission
to
have
3
exercised
a
type
or
degree
of
control
over
the
franchisee
or
4
the
franchisee’s
employees
that
is
not
customarily
exercised
5
by
a
franchisor
for
the
purpose
of
protecting
the
franchisor’s
6
trademarks
and
brand.
7
Sec.
6.
APPLICABILITY.
This
Act
applies
to
work
performed
8
on
or
after
the
effective
date
of
this
Act.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
provides
that,
for
the
purposes
of
certain
13
specified
employment
laws,
a
franchisor
shall
not
be
considered
14
to
be
an
employer
of
a
franchisee
or
of
an
employee
of
a
15
franchisee
unless
at
least
one
of
two
specified
conditions
are
16
met.
The
first
condition
is
that
the
franchisor
has
agreed
in
17
writing
to
be
considered
to
be
the
employer
of
the
franchisee
18
or
of
the
employees
of
the
franchisee.
The
second
condition
19
is
that
the
franchisor
has
been
found
by
the
governing
state
20
agency
to
have
exercised
a
type
or
degree
of
control
over
21
the
franchisee
or
the
franchisee’s
employees
that
is
not
22
customarily
exercised
by
a
franchisor
for
the
purpose
of
23
protecting
the
franchisor’s
trademarks
and
brand.
24
The
affected
employment
laws
are
Code
chapter
216
relating
25
to
civil
rights,
Code
chapters
85,
86,
and
87
relating
to
26
workers’
compensation,
Code
chapter
91A
relating
to
wage
27
payment
collection,
Code
chapter
91D
relating
to
the
minimum
28
wage,
and
Code
chapter
96
relating
to
unemployment
insurance.
29
Franchisee
is
defined
by
federal
regulation
as
any
30
person
who
is
granted
a
franchise.
Franchisor
is
defined
31
by
federal
regulation
as
any
person
who
grants
a
franchise
32
and
participates
in
the
franchise
relationship
and
includes
33
subfranchisors
unless
otherwise
stated
in
federal
regulations.
34
The
bill
applies
to
work
performed
on
or
after
the
effective
35
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