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A bill to be entitled

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An act relating to the automatic renewal of service

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contracts; providing definitions; requiring persons,

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firms, or corporations that sell services to consumers

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pursuant to certain contracts to disclose automatic

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renewal provisions; providing disclosure requirements;

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providing exceptions to the disclosure requirements;

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providing that certain violations render an automatic

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renewal provision void and unenforceable; providing

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applicability; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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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 the

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renewal causes the service contract to be in effect more than 6

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months after the day of the initiation of the service contract.

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Such renewal is effective unless the consumer gives notice to the

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seller of the consumer's intention to terminate the service

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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 if the person enters

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

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activities.

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

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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 renews

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

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cancels the contract shall provide the consumer with written or

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electronic notification of the automatic renewal provision.

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Notification shall be provided to the consumer no less than 30

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days and no more than 60 days before the cancellation deadline

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pursuant to the automatic renewal provision. Such notification

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shall disclose clearly and 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 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 result

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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, the

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unearned portion of the contract subject to the automatic renewal

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provision is refunded as of the date that the seller is notified

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of the error.

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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.;

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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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     5. Any entity licensed under chapter 634, Florida Statutes;

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or

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     6. Automatic renewal provisions for a duration of 12 months

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or less which are contained in service contracts with sellers

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licensed under part II of chapter 489, Florida 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.