Bill Text: IN HB1328 | 2010 | Regular Session | Introduced
Bill Title: Notice of renewal of contracts.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-01-13 - First reading: referred to Committee on Rules and Legislative Procedures [HB1328 Detail]
Download: Indiana-2010-HB1328-Introduced.html
Citations Affected: IC 24-5-27.
Synopsis: Notice of renewal of contracts. Requires a merchant
providing services, including: (1) the maintenance, repair, or sale of
real property; or (2) the maintenance, repair, lease, or sale of personal
property; to a recipient under a contract with an automatic renewal
clause to provide written notice to the recipient not later than 30 days
before the contract automatically renews. Provides that the notice must
include: (1) the renewal date of the contract; (2) a statement that the
recipient must notify the merchant if the recipient intends to terminate
the contract at the expiration of the contract term; and (3) information
on any promotions or discounts available, additional fees or costs, or
any increase of fees or costs.
Effective: July 1, 2010.
January 13, 2010, read first time and referred to Committee on Rules and Legislative
Procedures.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
Chapter 27. Automatic Renewal Clauses; Renewal Options
Sec. 1. This chapter does not apply to a lease or rental of real property.
Sec. 2. As used in this chapter, "automatic renewal clause" means a provision in a contract that provides that the contract is automatically renewed unless the recipient provides notice to the merchant that the recipient intends to terminate the contract at the expiration of the contract term.
Sec. 3. As used in this chapter, "merchant" means an individual, a partnership, a limited liability company, a corporation, an association, or any other legal entity that has entered into a contract with a recipient.
Sec. 4. As used in this chapter, "recipient" means an individual, a partnership, a limited liability company, a corporation, an
association, or any other legal entity that has entered into a
contract with a merchant.
Sec. 5. (a) A merchant providing services, including:
(1) the maintenance, repair, or sale of real property; or
(2) the maintenance, repair, lease, or sale of personal
property;
to a recipient under a contract that contains an automatic renewal
clause shall provide to the recipient the written notice described in
subsection (b) not later than thirty (30) days before the date the
contract automatically renews.
(b) The notice under subsection (a) must include the following
information:
(1) The renewal date of the contract.
(2) A statement that if the recipient does not wish for the
contract to be automatically renewed, the recipient must
provide notice to the merchant that the recipient intends to
terminate the contract at the expiration of the contract term.
(3) Information on any promotions or discounts available,
additional fees or costs, or any increase of fees or costs related
to the services provided under the contract.
