Maine LD 894: An Act Relating to Automatic Contract Renewals

LD 894 (subjects: BUSINESS PRACTICES , BILLING )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=894&PID=1456&snum=127


Sponsors | Actions | Bill Text | Patterns of Support


Sponsors

Principal Sponsor: Rep. Karleton Ward of Dedham: (R – District 131) — e-mail | Facebook

9 Cosponsors:

Actions

Chamber

Action
3/12/2015 House Committee on Labor, Commerce, Research and Economic Development suggested and ordered printed.
The Bill was REFERRED to the Committee on LABOR, COMMERCE, RESEARCH AND ECONOMIC DEVELOPMENT.
Sent for concurrence. ORDERED SENT FORTHWITH.
3/12/2015 Senate On motion by Senator Volk of Cumberland, REFERRED to the Committee on Labor, Commerce, Research and Economic Development, in concurrence.
5/26/2015 House Reports READ.
On motion of Representative HERBIG of Belfast, the Majority Ought Not to Pass Report was ACCEPTED.
ROLL CALL NO. 97
(Yeas 77 – Nays 67 – Absent 7 – Excused 0)
Sent for concurrence. ORDERED SENT FORTHWITH.
5/27/2015 Senate Reports READ.
On motion by Senator VOLK of Cumberland the Majority Ought Not to Pass Report ACCEPTED, in concurrence.
Placed in the Legislative Files (DEAD).

Bill Text

.

An Act Relating to Automatic Contract Renewals

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 10 MRSA c. 229 is enacted to read:

CHAPTER 229

AUTOMATIC CONTRACT RENEWAL ACT

1500-H. Short title

This chapter may be known and cited as “the Automatic Contract Renewal Act.”

1500-I. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Consumer. “Consumer” means an individual, business, corporation or other legal entity receiving products, services or repair under a contract.
2. Contract. “Contract” means a written agreement between 2 or more parties.
3. Parties. “Parties” includes individuals and other legal entities, but does not include the Federal Government, the State or another state, a unit of local government or a school district.

1500-J. Automatic renewal; requirements

1. Automatic renewal. A person, firm, partnership, association or corporation that sells or offers to sell a product or service to a consumer pursuant to a contract that automatically renews unless the consumer cancels the account shall disclose the automatic renewal clause clearly and conspicuously in the contract, including the cancellation procedure. The automatic renewal clause must be printed in upper case letters, underscored and in bold print of a print size larger than the text of the rest of the contract.
2. Written notice. A person, firm, partnership, association or corporation that sells or offers to sell a product or service to a consumer pursuant to a contract that has a specified term of 12 months or more and that automatically renews for a specified term of more than one month unless the consumer cancels the contract shall notify the consumer in writing of the automatic renewal. Written notice under this subsection must be provided to the consumer no fewer than 30 days and no more than 60 days before the cancellation deadline pursuant to the automatic renewal clause and must disclose clearly and conspicuously:

A. That unless the consumer cancels the contract it will automatically renew; and
B. Where the consumer may obtain details regarding the automatic renewal provision and cancellation procedure.

1500-K. Applicability

1. Financial institutions. This chapter does not apply to a bank, trust company, savings and loan association, savings bank or credit union licensed or organized under the laws of any state or the United States or to a foreign bank maintaining a branch or agency licensed or organized under the laws of any state or the United States or any subsidiary or affiliate.
2. Contract changes. This chapter does not apply to a contract that is extended beyond the original term of the contract as the result of a consumer’s initiation of a change in the original contract terms.

Sec. 2. Application. This Act does not apply to a contract entered into before the effective date of this Act.

SUMMARY

This bill requires any entity who sells or provides services through an automatic renewal contract to disclose to the consumer the automatic renewal clause clearly and conspicuously in the contract, including the cancellation procedure. The bill also requires that written notice be provided to the consumer no fewer than 30 days and no more than 60 days before the cancellation deadline pursuant to the automatic renewal clause.

Patterns of Support

Pattern of Cosponsorship by Region:

Pattern of Cosponsorship by Gender:

Pattern of Cosponsorship by Party:

Pattern of Cosponsorship by Campaign Finance Classification:

Note: Maine Clean Elections Act (MCEA) Qualified candidates only accept a small dollar value of initial contributions early in their campaigns, pledge not to accept further campaign contributions from private sources, and receive public funding for their campaigns. MCEA Non-Qualified candidates choose not to obtain public funding and instead are free to accept campaign contributions from individuals, party committees, political action committees and business sources.


This information about LD 894 was last updated on 2016-05-12.
The Open Maine Politics website is in a beta release and results should not be taken as definitive. Please visit the official website of the Maine State Legislature for entirely verifiable information.

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