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General Assembly Committee Bill No. 6048
January Session, 2025
LCO No. 5115
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING REFUNDS FOR UNUSED HEATING FUEL.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsections (a) to (i), inclusive, of section 16a-21 of the 1
general statutes are repealed and the following is substituted in lieu 2
thereof (Effective July 1, 2025): 3
(a) (1) (A) No heating fuel dealer shall sell heating fuel or rent or lease 4
a heating fuel tank without a written contract that contains all terms and 5
conditions for delivery of such heating fuel and the amount of fees, 6
charges, surcharges or penalties allowed under this section and assessed 7
to the consumer under such contract. No such contract shall contain any 8
fees, charges, surcharges or penalties, except for those allowed pursuant 9
to subsections (e), (f) and (g) of this section and for tank rental fees or 10
liquidated damages for violation of the contract terms. No contract for 11
the delivery of heating fuel under this subsection shall include a 12
provision for liquidated damages for a consumer breach of such contract 13
where the liquidated damages exceed the actual damages to the heating 14
fuel dealer caused by such breach. No written contract period for 15
heating fuel shall be for a term longer than thirty-six months. Each 16
heating fuel dealer shall offer consumers the option to enter into a bona 17
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fide commercially reasonable contract for a term of eighteen months. A 18
consumer and a heating fuel dealer may agree to enter into a bona fide 19
commercially reasonable contract for a term of less than eighteen 20
months. Longer fuel contract term lengths may be permitted for 21
underground tank consumers, provided the fuel term agreements are 22
concurrent with tank lease agreements as specified in subdivision (2) of 23
this subsection. No provision in a contract that restricts a consumer's 24
ability to utilize another propane fuel provider shall be valid or 25
enforceable unless the consumer has initialed a clear and conspicuous 26
statement in all capital letters in at least twelve-point boldface type 27
indicating that the consumer is aware of such restriction. 28
(B) A heating fuel dealer who leases or lends, or who leased or lent, a 29
heating fuel tank and associated equipment to a consumer shall remove 30
such tank and associated equipment from the consumer's residential 31
premises not later than thirty days after the delivery of heating fuel 32
service is discontinued by the consumer. 33
(2) If a tank is being leased or lent to a consumer, a contract for the 34
tank rental or loan shall indicate in writing a description of the tank, 35
initial installation charges, if any, the amount and timing of rental or 36
loan payments, the [manner in] period within which the lessor [will 37
credit] shall refund the lessee for any unused heating fuel and the terms 38
by which [a] the lessee may terminate the contract. Such refund shall be 39
in an amount that is equal to the lesser of the price at which the lessee 40
purchased such unused heating fuel or the market price of such unused 41
heating fuel upon termination of such contract. A lessor may enter into 42
a separate contract with the lessee for additional services including, but 43
not limited to, maintenance, repair and warranty of equipment, 44
provided such contract complies with the provisions of this section. No 45
contract for tanks installed above ground shall be for a term longer than 46
thirty-six months. Each consumer shall be given the option to enter into 47
a bona fide commercially reasonable contract for a term of eighteen 48
months. A lessee and a lessor may agree to enter into a bona fide 49
commercially reasonable contract for a term of less than eighteen 50
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months. No contract for a tank installed underground shall exceed five 51
years. 52
(3) (A) If a tank installed underground is provided to a consumer, a 53
contract for such tank shall contain a clause providing the consumer 54
with the option to purchase the tank and associated equipment at a price 55
not exceeding a commercially reasonable price at any time during the 56
length of the contract. The purchase price for the tank shall be disclosed 57
in the contract and shall not increase before the contract expires. Any 58
waiver of liability or transfer of warranty shall be stated in the contract. 59
No contract for such tank shall be valid or enforceable unless the 60
consumer has initialed a clear and conspicuous statement in all capital 61
letters in at least twelve-point boldface type, indicating the consumer is 62
aware of such option to purchase the tank and associated equipment. 63
For existing contracts, whether oral or written, where the purchase 64
option or purchase price is silent or unspecified, a contract addendum 65
including the purchase option and a commercially reasonable price shall 66
be mailed or delivered to the consumer not later than September 1, 2013. 67
Such contract addendum shall contain a clause providing the lessee 68
with the option of purchasing the tank and associated equipment at any 69
time prior to September 1, 2018. Upon purchase of the tank and any 70
associated equipment, any existing contract obligations pursuant to 71
subdivisions (1) and (2) of this subsection shall terminate immediately, 72
except for guaranteed price plans pursuant to chapter 296a. 73
(B) If a tank installed above ground is provided to a consumer, a 74
contract for such tank shall contain a clause providing the consumer 75
with the option to purchase a new tank and associated equipment at a 76
price not exceeding a commercially reasonable price at any time during 77
the length of the contract. The purchase price for the tank, associated 78
equipment and associated installation charges shall be disclosed in the 79
contract and not increase before the contract expires. Any waiver of 80
liability or transfer of warranty shall be stated in the contract. No 81
contract for such tank shall be valid or enforceable unless the consumer 82
has initialed a clear and conspicuous statement in all capital letters in at 83
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least twelve-point boldface type, indicating that the consumer is aware 84
of such option to purchase a new tank and associated equipment. Upon 85
purchase of the tank and any associated equipment, any existing 86
contract obligations pursuant to subdivisions (1) and (2) of this 87
subsection shall terminate immediately, except for guaranteed price 88
plans pursuant to chapter 296a. 89
(4) A contract required by this section shall be in writing and shall 90
comply with the plain language requirements of section 42-152, 91
provided any fee, charge, surcharge or penalty disclosed in such 92
contract shall be in twelve-point, boldface type of uniform font. Any fee, 93
charge, surcharge or penalty shall not increase prior to the expiration of 94
the contract. 95
(5) A written contract for the sale of heating fuel or lease of equipment 96
that calls for an automatic renewal of the contract is not valid unless 97
such contract complies with the provisions of this section, section 42-98
126b and chapter 296a. 99
(6) The requirement that contracts be in writing pursuant to this 100
section shall not apply to any heating fuel delivery initiated by a 101
consumer, payable on delivery or billed to the consumer with no future 102
delivery commitment, where no fee, charge, surcharge or penalty is 103
assessed, except for any fee, charge or surcharge authorized under 104
subsection (g) of this section. 105
(7) The requirement that contracts be in writing pursuant to this 106
section shall not apply to agreements that are solely automatic delivery 107
where: (A) The consumer may terminate automatic delivery at any time 108
and where no fee, charge, surcharge or penalty is assessed for 109
termination; and (B) the dealer providing automatic delivery provides 110
written notice to the consumer the dealer serves under automatic 111
delivery of the method for the termination of automatic delivery, as 112
specified in this subdivision. Such written notice shall be included with 113
each invoice for products subject to automatic delivery. Notice from a 114
consumer to a dealer requesting termination of automatic delivery may 115
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be delivered to the dealer by (i) a written request by the consumer 116
delivered by certified mail to the dealer, (ii) electronic mail sent from the 117
consumer to a valid electronic mail address of the dealer, or (iii) 118
electronic facsimile by the consumer to be sent to a valid facsimile 119
number at the dealer's place of business. The consumer shall give notice 120
at least one day prior to the day upon which the consumer desires to 121
terminate automatic delivery. The consumer shall not be responsible for 122
payment of deliveries made by the dealer after such notice has been 123
given, except for deliveries made within one business day after such 124
notice has been given and which were scheduled for delivery by the 125
dealer prior to such notice being given, provided consideration shall be 126
given for weekend and holiday closings or extenuating circumstances 127
not under the control of the dealer. 128
(b) If a consumer complaint is being mediated or investigated by the 129
commissioner, the heating fuel dealer, if [it] the heating fuel dealer owns 130
the tank and has exclusive fill requirements, may not deny the consumer 131
deliveries of heating fuel, or fuel for cooking or power generation, 132
because of the existence of the mediation or investigation, provided the 133
heating fuel dealer remains the exclusive supplier of such fuel and the 134
consumer pays cash for such fuel upon delivery. 135
(c) The requirement that contracts be in writing as set forth in this 136
section may be satisfied pursuant to the provisions of: (1) The 137
Connecticut Uniform Electronic Transactions Act, sections 1-266 to 1-138
286, inclusive; (2) sections 42a-7-101 to 42a-7-106, inclusive; or (3) the 139
Electronic Signatures in Global and National Commerce Act, 15 USC 140
7001 et seq. Except as provided in subsection (d) of this section, verbal 141
telephonic communications shall not satisfy the writing requirement of 142
this section. 143
(d) The requirement that contracts be in writing pursuant to this 144
section and section 16a-23n may be satisfied telephonically, only if a 145
heating fuel dealer: 146
(1) Has provided to the consumer prior to any telephonic 147
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communication all terms and conditions of the contract, in writing, 148
except for the contract duration, the unit price and the maximum 149
number of units covered by the contract; 150
(2) Employs an interactive voice response system or similar 151
technology that provides the consumer with the contract duration, the 152
unit price and the maximum number of units covered by the contract; 153
(3) Retains for a period of not less than one year from the date of the 154
expiration of the contract, in a readily retrievable format, a recording of 155
the consumer affirmation to each such term and condition; 156
(4) Sends the consumer a letter confirming the consumer's agreement 157
to such terms and conditions, with a written copy of the terms and 158
conditions agreed to; and 159
(5) Retains a copy of each such letter. 160
(e) No heating fuel dealer shall deliver heating fuel without placing 161
the unit price, clearly indicated as such, the total number of gallons or 162
units sold and the amount of any fee, charge or surcharge allowed 163
pursuant to this section in a conspicuous place on the delivery ticket 164
given to the consumer or an agent of the consumer at the time of 165
delivery. No heating fuel dealer shall bill or otherwise attempt to collect 166
from any consumer of heating fuel an amount that exceeds the unit price 167
multiplied by the total number of gallons or units stated on the delivery 168
ticket, plus the amount of any fee, charge or surcharge allowed pursuant 169
to this section and stated on the delivery ticket. 170
(f) No heating fuel dealer shall assess a fee, charge or surcharge on 171
any delivery, including, but not limited to, any delivery under an 172
automatic delivery agreement, initiated by the dealer to a consumer. 173
(g) No heating fuel dealer shall assess a fee, charge or surcharge on 174
the price per gallon or total delivery charge for any heating fuel delivery 175
initiated by a consumer, except when: 176
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(1) The heating fuel delivery is less than one hundred gallons; 177
(2) The heating fuel delivery is made outside the normal service area 178
of the dealer; 179
(3) The heating fuel delivery is made outside the normal business 180
hours of the dealer; or 181
(4) The dealer incurs extraordinary labor costs for the heating fuel 182
delivery. 183
(h) Except for the underground tank addendum required pursuant to 184
subdivision (3) of subsection (a) of this section, the provisions of this 185
section shall not apply to existing customers of a heating fuel dealer on 186
July 1, 2013, who have valid written contracts on said date. The 187
provisions of this section shall apply as of the renewal or expiration 188
dates of such contracts. 189
(i) A consumer shall have the right to cancel the consumer's 190
relationship with a heating fuel dealer without penalty for an above-191
ground tank that is lent or leased if such relationship is based upon 192
either an oral agreement or a course of dealing. No tank removal charge 193
or forfeiture of unused heating fuel shall be permitted if a consumer 194
cancels such relationship. The consumer shall be entitled to a refund [of] 195
for all unused heating fuel [at the same] in an amount that is equal to 196
the lesser of the price at which the consumer purchased such unused 197
heating fuel or the market price of such unused heating fuel upon 198
cancellation of such relationship. 199
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 16a-21(a) to (i)
Statement of Purpose:
To provide that a consumer shall be entitled to a refund for unused
heating fuel in an amount that is equal to the lesser of (1) the price at
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which the consumer purchased such heating fuel, or (2) the market price
of such heating fuel upon (A) termination a tank rental or loan contract,
or (B) cancellation of the consumer's relationship with a heating fuel
dealer.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
Co-Sponsors: REP. NUCCIO, 53rd Dist.
H.B. 6048