Bill Text: MI HB5727 | 2017-2018 | 99th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Businesses; franchises; prohibition against pyramid schemes; revise in franchise investment law. Amends sec. 28 of 1974 PA 269 (MCL 445.1528). TIE BAR WITH: HB 5726'18

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-08-15 - Assigned Pa 187'18 With Immediate Effect [HB5727 Detail]

Download: Michigan-2017-HB5727-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5727

 

 

March 15, 2018, Introduced by Reps. Hornberger, Lucido, Marino, Leutheuser, Noble and Iden and referred to the Committee on Commerce and Trade.

 

     A bill to amend 1974 PA 269, entitled

 

"Franchise investment law,"

 

by amending section 28 (MCL 445.1528).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 28. (1) A person may not offer or sell any form of

 

participation in a pyramid or chain promotion. A pyramid or chain

 

promotion is any plan or scheme or device by which (a) a

 

participant gives a valuable consideration for the opportunity to

 

receive compensation or things of value in return for inducing

 

other persons to become participants in the program or (b) a

 

participant is to receive compensation when a person introduced by

 

the participant introduces one or more additional persons into

 

participation in the plan, each of whom receives the same or


similar right, privilege, license, chance, or opportunity.

 

     (2) A pyramid or chain promotion is declared to be illegal and

 

against the public policy of the state. Any contract made in

 

violation of this section is voidable at the sole option of the

 

purchaser.

 

     (3) The department shall not accept for filing a franchise

 

which involves a pyramid or chain distribution contrary to the laws

 

of this state.that involves a pyramid promotional scheme that

 

violates the pyramid promotional scheme act, MCL 445.2581 to

 

445.2585.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5726 (request no.

 

04879'17) of the 99th Legislature is enacted into law.

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