BILL · 2019–20 SESSION

SB 6437: Automatic renewal/contracts

Concerning the use of automatic renewal provisions in business contracts.

Summary

  • Regulates certain business contracts entered into after May 1, 2021, for the lease of business equipment or providing business services.
  • Requires disclosure of automatic renewal periods if the renewal period exceeds one month.
  • Makes unenforceable an automatic renewal provision where the renewal period exceeds one year and the deadline to cancel the contract exceeds 60 days prior to the renewal date.
  • Prohibits a requirement in a contract that a seller be permitted to match another's offer for business contracts.
  • Allows a customer of a business contract to file a lawsuit for violations and recover damages, costs, and fees.

From the Senate Bill Report (Orig.) (SB 6437), written by the Legislature's nonpartisan staff. Read the full report ↗

Did not pass Did not pass · died in committee
  1. IntroducedJan 16, 2020
  2. Out of committeestopped here
  3. Passed Senate
  4. Passed House
  5. Governor
  6. Law
Prime sponsor
Hans Zeiger (R-25)
Introduced
January 16, 2020 in the Senate
Last action
January 16, 2020

AN ACT Relating to the use of automatic renewal provisions in business contracts;

Sponsors

Prime sponsor: Hans Zeiger (R-25)

Votes

No recorded floor votes. This measure never reached a floor vote.

History

  1. First reading, referred to Law & Justice.

SB 6437 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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