Bill Text: FL H0751 | 2010 | Regular Session | Comm Sub

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Bill Title: Automatic Renewal of Service Contracts [CPSC]

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2010-05-11 - Approved by Governor; Chapter No. 2010-58 [H0751 Detail]

Download: Florida-2010-H0751-Comm_Sub.html

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CS/HB 751

1	A bill to be entitled
2	An act relating to automatic renewal of service contracts;
3	providing definitions; requiring sellers that sell, lease,
4	or offer to sell or lease any services to consumers
5	pursuant to certain contracts to disclose automatic
6	renewal provisions; providing disclosure requirements;
7	providing exceptions to the disclosure requirements;
8	providing that certain violations will render an automatic
9	renewal provision void and unenforceable; providing
10	applicability; providing an effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. (1) DEFINITIONS.-As used in this section:
15	(a) "Automatic renewal provision" means a provision under
16	which a service contract is renewed for a specified period of
17	more than 1 month if the renewal causes the service contract to
18	be in effect more than 6 months after the day of the initiation
19	of the service contract. Such renewal is effective unless the
20	consumer gives notice to the seller of the consumer's intention
21	to terminate the service contract.
22	(b) "Consumer" means an individual, as defined in s.
23	501.603, Florida Statutes, receiving service, maintenance, or
24	repair under a service contract. The term does not include an
25	individual engaged in business or employed by or otherwise
26	acting on behalf of a governmental entity if the individual
27	enters into the service contract as part of or ancillary to the
28	individual's business activities or on behalf of the business or
29	governmental entity.
30	(c) "Seller" means any person, firm, partnership,
31	association, or corporation engaged in commerce that sells,
32	leases, or offers to sell or lease any service to a consumer
33	pursuant to a service contract.
34	(d) "Service contract" means a written contract for the
35	performance of services over a fixed period of time or for a
36	specified duration.
37	(2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.-
38	(a) Any seller that sells, leases, or offers to sell or
39	lease any service to a consumer pursuant to a service contract
40	that has an automatic renewal provision, unless the consumer
41	cancels that contract, shall disclose the automatic renewal
42	provision clearly and conspicuously in the contract or contract
43	offer.
44	(b) Any seller that sells or offers to sell any service to
45	a consumer pursuant to a service contract the term of which is a
46	specified period of 12 months or more and that automatically
47	renews for a specified period of more than 1 month, unless the
48	consumer cancels the contract, shall provide the consumer with
49	written or electronic notification of the automatic renewal
50	provision. Notification shall be provided to the consumer no
51	less than 30 days or no more than 60 days before the
52	cancellation deadline pursuant to the automatic renewal
53	provision. Such notification shall disclose clearly and
54	conspicuously:
55	1. That unless the consumer cancels the contract the
56	contract will automatically renew.
57	2. Methods by which the consumer may obtain details of the
58	automatic renewal provision and cancellation procedure, whether
59	by contacting the seller at a specified telephone number or
60	address, by referring to the contract, or by any other method.
61	(c) A seller that fails to comply with the requirements of
62	this subsection is in violation of this subsection unless the
63	seller demonstrates that:
64	1. As part of the seller's routine business practice, the
65	seller has established and implemented written procedures to
66	comply with this section and enforces compliance with the
67	procedures;
68	2. Any failure to comply with this subsection is the
69	result of error; and
70	3. As part of the seller's routine business practice,
71	where an error has caused the failure to comply with this
72	subsection, the unearned portion of the contract subject to the
73	automatic renewal provision is refunded as of the date on which
74	the seller is notified of the error.
75	(d) This subsection does not apply to:
76	1. A financial institution as defined in s. 655.005(1)(h),
77	Florida Statutes, or any depository institution as defined in 12
78	U.S.C. s. 1813(c)(2).
79	2. A foreign bank maintaining a branch or agency licensed
80	under the laws of any state of the United States.
81	3. Any subsidiary or affiliate of an entity described in
82	subparagraph 1. or subparagraph 2.
83	4. A health studio as defined in s. 501.0125(1), Florida
84	Statutes.
85	5. Any entity licensed under chapter 624, chapter 627,
86	chapter 634, chapter 636, or chapter 641, Florida Statutes.
87	6. Any electric utility as defined in s. 366.02(2),
88	Florida Statutes.
89	7. Any private company as defined in s. 180.05, Florida
90	Statutes, providing services described in chapter 180, Florida
91	Statutes, that is competing against a governmental entity or has
92	a governmental entity providing billing services on its behalf.
93	(e) A violation of this subsection renders the automatic
94	renewal provision void and unenforceable.
95	Section 2. This act shall take effect July 1, 2010, and
96	applies only to contracts entered into on or after that date.

CODING: Words stricken are deletions; words underlined are additions.