Substitute Senate Bill 196 Summary

• Increases the upper threshold for "initial payment" in business opportunity plans from $50,000 to $100,000, and clarifies that promissory notes are included in the definition of initial payment.

• Extends the cancellation period for purchasers who fail to receive proper disclosures from 5 business days to 12 months, while maintaining the 5 business day cancellation right for compliant transactions.

• Expands cancellation notice methods to include electronic mail and facsimile transmission in addition to mail, telegram, and manual delivery.

• Increases net worth thresholds for seller exemptions from $5 million to $15 million on a consolidated basis, and simplifies exemptions for existing customers by removing the requirement to have been engaged in the business for one year with $25,000 gross income.

• Voids any agreement provisions that restrict jurisdiction or venue to forums outside Ohio or require application of another state's laws, and declares business opportunity plan regulation a matter of public policy that cannot be waived by purchasers.