Florida Senate - 2009 COMMITTEE AMENDMENT Bill No. CS for SB 660 Barcode 611636 LEGISLATIVE ACTION Senate . House Comm: FAV . 04/01/2009 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Ring) recommended the following: 1 Senate Amendment (with title amendment) 2 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. (1) DEFINITIONS.—As used in this section: 7 (a) “Automatic renewal provision” means a provision under 8 which a service contract is renewed for a specified period of 9 more than 1 month if the renewal causes the service contract to 10 be in effect more than 6 months after the day of the initiation 11 of the service contract. Such renewal is effective unless the 12 consumer gives notice to the seller of the consumer’s intention 13 to terminate the service contract. 14 (b) “Consumer” means an individual, as defined in s. 15 501.603, receiving service, maintenance, or repair under a 16 service contract. The term does not include an individual 17 engaged in business or employed by or otherwise acting on behalf 18 of a governmental entity if the individual enters into the 19 service contract as part of or ancillary to the individual’s 20 business activities or on behalf of the business or governmental 21 entity. 22 (c) “Seller” means any person, firm, partnership, 23 association, or corporation engaged in commerce that sells, 24 leases, or offers to sell or lease any service to a consumer 25 pursuant to a service contract. 26 (d) “Service contract” means a written contract for the 27 performance of services over a fixed period of time or for a 28 specified duration. 29 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.— 30 (a) Any seller that sells, leases, or offers to sell or 31 lease any service to a consumer pursuant to a service contract 32 that automatically renews for a specified period of more than 1 33 month, unless the consumer cancels the contract, shall disclose 34 the automatic renewal provision clearly and conspicuously in the 35 contract or contract offer. 36 (b) Any seller that sells or offers to sell any service to 37 a consumer pursuant to a service contract the term of which is a 38 specified period of 12 months or more and that automatically 39 renews for a specified period of more than 1 month, unless the 40 consumer cancels the contract, shall provide the consumer with 41 written or electronic notification of the automatic renewal 42 provision. Notification shall be provided to the consumer no 43 less than 30 days or no more than 60 days before the 44 cancellation deadline pursuant to the automatic renewal 45 provision. Such notification shall disclose clearly and 46 conspicuously: 47 1. That unless the consumer cancels the contract the 48 contract will automatically renew. 49 2. Methods by which the consumer may obtain details of the 50 automatic renewal provision and cancellation procedure, whether 51 by contacting the seller at a specified telephone number or 52 address, by referring to the contract, or by any other method. 53 (c) A seller that fails to comply with the requirements of 54 this subsection is in violation of this subsection unless the 55 seller demonstrates that: 56 1. As part of the seller’s routine business practice, the 57 seller has established and implemented written procedures to 58 comply with this section and enforces compliance with the 59 procedures. 60 2. Any failure to comply with this subsection is the result 61 of error. 62 3. As part of the seller’s routine business practice, where 63 an error has caused the failure to comply with this subsection, 64 the unearned portion of the contract subject to the automatic 65 renewal provision is refunded as of the date on which the seller 66 is notified of the error. 67 (d) This subsection does not apply to: 68 1. A financial institution as defined in s. 655.005(1)(h), 69 Florida Statutes, or any depository institution as defined in 12 70 U.S.C. s. 1813(c)(2). 71 2. A foreign bank maintaining a branch or agency licensed 72 under the laws of any state of the United States. 73 3. Any subsidiary or affiliate of an entity described in 74 subparagraph 1. or subparagraph 2. 75 4. A health studio as defined in s. 501.0125(1), Florida 76 Statutes. 77 5. Any entity licensed under chapter 624, chapter 627, 78 chapter 634, chapter 636, or chapter 641, Florida Statutes. 79 6. Any electric utility as defined in s. 366.02(2), Florida 80 Statutes. 81 7. Any private company as defined in s. 180.05, Florida 82 Statutes, providing services described in chapter 180, Florida 83 Statutes, that is competing against a governmental entity or has 84 a governmental entity providing billing services on its behalf. 85 (e) A violation of this subsection renders the automatic 86 renewal provision void and unenforceable. 87 Section 2. This act shall take effect July 1, 2009, and 88 shall apply only to contracts entered into on or after that 89 date. 90 91 ================= T I T L E A M E N D M E N T ================ 92 And the title is amended as follows: 93 Delete everything before the enacting clause 94 and insert: 95 A bill to be entitled 96 An act relating to automatic renewal of service 97 contracts; providing definitions; requiring sellers 98 that sell, lease, or offer to sell or lease any 99 services to consumers pursuant to certain contracts to 100 disclose automatic renewal provisions; providing 101 disclosure requirements; providing exceptions to the 102 disclosure requirements; providing that certain 103 violations will render an automatic renewal provision 104 void and unenforceable; providing applicability; 105 providing an effective date.