Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Senate committee approves bill to clarify pyramid‑scheme rules, add seller protections
Summary
The Senate Insurance & Commerce Committee passed SB176, presented by Senator Trent Garner, which narrows the legal definition of pyramid schemes, requires bona fide inventory‑repurchase programs and adds protections (including a 90% buyback in specified cases) for direct sellers.
Senator Trent Garner told the Insurance & Commerce Committee that Senate Bill 176 is designed to draw a clear legal line between legitimate direct‑selling businesses and frauds commonly called pyramid schemes. "The purpose of SB176 is to make a clear line distinction between legitimate direct sale of businesses and true pyramid schemes," Garner said in committee testimony.
Garner described key provisions that would replace an "outdated and very broad" statutory definition with more specific terms, require a bona fide inventory repurchase program, prohibit inventory‑loading practices…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
