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.