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The Committee on Commerce (Oelrich) recommended the following

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amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1. (1) DEFINITIONS.--As used in this act:

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     (a) "Automatic renewal provision" means a provision under

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which a service contract is renewed for a specified period if

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the renewal causes the service contract to be in effect more

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than 6 months after the day of the initiation of the service

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contract. Such renewal is effective unless the consumer gives

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notice to the seller of the consumer's intention to terminate

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the service contract.

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     (b) "Consumer" means a person receiving service,

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maintenance, or repair under a service contract. The term does

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not include a person engaged in business for profit if the

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person enters into the service contract as part of the person's

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business activities.

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     (c) "Seller" means a person providing service,

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maintenance, or repair under a service contract.

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     (d) "Service contract" means a written contract for the

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performance of services over a fixed period of time or for a

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specified duration.

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     (2) SERVICE CONTRACTS HAVING AUTOMATIC RENEWAL

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PROVISIONS.--

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     (a) Any person, firm, partnership, association, or

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corporation engaged in commerce that sells, leases, or offers to

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sell or lease any service to a consumer pursuant to a service

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contract that automatically renews unless the consumer cancels

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the contract shall disclose the automatic renewal provision

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clearly and conspicuously in the contract or contract offer.

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     (b) Any person, firm, partnership, association, or

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corporation that sells or offers to sell any service to a

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consumer pursuant to a service contract the term of which is a

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specified term of 12 months or more and that automatically

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renews for a specified term of more than 1 month unless the

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consumer cancels the contract shall provide the consumer with

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written or electronic notification of the automatic renewal

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provision. Notification shall be provided to the consumer no

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less than 30 days and no more than 60 days before the

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cancellation deadline pursuant to the automatic renewal

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provision. Such notification shall disclose clearly and

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conspicuously:

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     1. That unless the consumer cancels the contract, the

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contract will automatically renew.

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     2. Methods by which the consumer may obtain details of the

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automatic renewal provision and cancellation procedure, whether

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by contacting the seller at a specified telephone number or

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address, by referring to the contract, or by any other method.

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     (c) A person, firm, partnership, association, or

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corporation that fails to comply with the requirements of this

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subsection is in violation of this subsection unless the person,

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firm, partnership, association, or corporation demonstrates

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that:

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     1. As part of its routine business practice, it has

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established and implemented written procedures to comply with

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this section and enforces compliance with the procedures.

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     2. Any failure to comply with this subsection is the

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result of error.

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     3. As part of its routine business practice, if an error

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has caused the failure to comply with this subsection, it

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provides a full refund or credit for all amounts billed to or

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paid by the consumer from the date of the renewal until the date

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of the termination of the contract or the date of the subsequent

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notice of renewal, whichever occurs first.

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     (d) This subsection does not apply to:

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     1. A financial institution as defined in s. 655.005(1)(h),

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Florida Statutes, or any insured depository institution as

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defined in 12 U.S.C. s. 1813(c)(2);

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     2. A foreign bank maintaining a branch or agency licensed

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under the laws of any state of the United States;

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     3. Any subsidiary or affiliate of an entity described in

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subparagraph 1. or subparagraph 2.; or

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     4. A health studio as defined in s. 501.0125(1), Florida

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Statutes.

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     (e) A violation of this subsection renders the automatic

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renewal provision void and unenforceable.

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     Section 2.  This act shall take effect July 1, 2008, and

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applies only to contracts entered into on or after that date.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete everything before the enacting clause

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and insert:

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A bill to be entitled

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An act relating to automatic renewal of service contracts;

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providing definitions; requiring persons, firms, or

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corporations that sell services to consumers pursuant to

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certain contracts to disclose automatic renewal

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provisions; providing disclosure requirements; providing

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exceptions to the disclosure requirements; providing that

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certain violations render an automatic renewal provision

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void and unenforceable; providing applicability; providing

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an effective date.

3/17/2008  8:50:00 AM     14-05045-08