Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. CS for SB 660
Barcode 611636
LEGISLATIVE ACTION
Senate . House
Comm: FAV .
04/01/2009 .
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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.