23 SB 149/AP S. B. 149 (SUB) - 1 - The House Committee on Agriculture and Consumer Affairs offers the following substitute to SB 149: AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling1 and other trade practices, so as to enact the "Georgia Door-to-Door Sales Act"; to provide2 for a short title; to provide for definitions; to require sellers to furnish to buyers receipts and3 copies of any contracts; to require sellers to provide notice of how to cancel a sale; to restrict4 certain door-to-door sales; to regulate the use of certain forms and notices; to provide for5 certain exemptions; to provide for related matters; to repeal conflicting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other10 trade practices, is amended by adding a new article to read as follows:11 "ARTICLE 1A12 10-1-20.13 This article shall be known and may be cited as the 'Georgia Door-to-Door Sales Act.'14 23 SB 149/AP S. B. 149 (SUB) - 2 - 10-1-21.15 As used in this article, unless the context otherwise requires, the term:16 (1) 'Business days' means any calendar day except Saturdays, Sundays, and any federal17 holiday.18 (2)(A) 'Door-to-door sale' means a sale, lease, or rental of goods or services:19 (i) Solicited in person by the seller or seller's representative, including, but not20 limited to, solicitations in response to or following an invitation by the buyer;21 (ii) For which the buyer's agreement or offer to purchase is made at a place other than22 the seller's place of business; and23 (iii) That includes the following three components:24 (I) Payments of $10,000.00 or more;25 (II) A lease, financing arrangement, or other agreement with a term of more than26 120 months; and27 (III) Is eligible, or is alleged by the seller or seller's representative to be eligible, for28 federal tax credits.29 (B) 'Door-to door sale' shall not include a transaction:30 (i) Conducted without any in-person contact between the buyer and the seller or31 seller's representative prior to delivery of the goods or performance of the services;32 (ii) In which the buyer has initiated the contact and specifically requested the seller33 or seller's representative to visit the buyer's home for the purpose of repairing or34 performing maintenance upon the buyer's property. If, in the course of such a visit,35 the seller sells the buyer the right to receive additional goods or services, other than36 replacement parts necessarily used in performing maintenance or making repairs, the37 sale of those additional goods or services would not fall under this exclusion; or38 (iii) Pertaining to the sale or rental of real property or to the sale of insurance.39 (3) 'Place of business' means the main or permanent branch, office, or local address of40 a seller.41 23 SB 149/AP S. B. 149 (SUB) - 3 - (4) 'Purchase price' means the total price paid or to be paid for the goods or services,42 including all interest and service charges.43 10-1-22.44 (a) The seller shall furnish the buyer with a fully completed receipt of the purchase price45 or copy of the contract pertaining to any door-to-door sale at the time of its execution.46 Such receipt or contract shall:47 (1) Be in each language used in the oral sale presentation and the in-person interaction48 between seller and buyer;49 (2) Show the date of the transaction and contain the name and address of the seller;50 (3) Be in at least ten-point boldface type; 51 (4) Have adjacent to the contract's signature lines, or on the front page of the receipt if52 a contract is not used, the following statement:53 "You, the buyer, may cancel this transaction at any time prior to midnight of the54 thirtieth business day after the date of this transaction. See the attached notice of55 cancellation form for an explanation of this right."; and56 (5) Provide the buyer with a duplicate notice of cancellation as outlined in Code Section57 10-1-23.58 (b) In the event of cancellation, the buyer must be able to retain a complete copy of the59 receipt or contract.60 10-1-23.61 (a) The seller in a door-to-door sale shall provide to each buyer, at the time the buyer signs62 the door-to-door sales contract or otherwise agrees to buy goods or services from the seller,63 a notice of cancellation form meeting the requirements of subsection (b) of this Code64 section that may be used by the buyer.65 23 SB 149/AP S. B. 149 (SUB) - 4 - (b) The form shall be captioned "NOTICE OF CANCELLATION" and shall provide the66 following information in at least ten-point boldface type:67 (1) That the buyer has 30 business days to cancel the sale;68 (2) That upon cancellation all of the buyer's payments will be returned within ten69 business days;70 (3) That the buyer may keep or dispose of the goods if the seller fails to pick them up71 within 20 business days of the date of the notice of cancellation;72 (4) The seller's name and the address or email address to which notices of cancellation73 must be sent;74 (5) That the buyer has until midnight of the thirtieth business day to cancel the75 transaction; and76 (6) A signature and date line for the buyer.77 (c) The seller shall inform the buyer orally, at the time that the buyer signs the contract or78 purchases the goods or services, of the buyer's right to cancel.79 (d) The seller shall notify the buyer within ten days of receipt of the buyer's notice of80 cancellation whether the seller intends to repossess or to abandon any shipped, delivered,81 or installed goods.82 10-1-24.83 The seller in a door-to-door sale shall not negotiate, transfer, sell, or assign any note or84 other evidence of indebtedness to a finance company or other third party prior to midnight85 on the second day following the end of the period during which the buyer has a right to86 cancel pursuant to this article.87 23 SB 149/AP S. B. 149 (SUB) - 5 - 10-1-25.88 The use of the forms and notices of the right to cancel prescribed by the Federal Trade89 Commission's trade regulation rule, 16 C.F.R. Part 429, establishing a cooling-off period90 for door-to-door sales, may be used to comply with Code Sections 10-1-22 and 10-1-23;91 provided, however, that they are altered to accurately reflect the provisions of such Code92 sections and are in compliance with all provisions of this article.93 10-1-26.94 The rights of buyers in a door-to-door sale shall be not limited to those provided for in this95 article. Buyers in a door-to-door sale shall also have all applicable rights and remedies96 afforded under any other state or federal laws.97 10-1-27.98 (a) The requirements of this article shall not apply to sellers of automobiles, vans, trucks,99 motorized farm equipment, or other motor vehicles that are sold at auctions, tent sales, or100 other temporary places of business, provided that the seller is a seller of vehicles with a101 permanent place of business.102 (b) The requirements of this article shall not apply to sellers of arts, crafts, food,103 beverages, or other goods or services that are sold at fairs, carnivals, festivals, or other104 community events.105 (c) The requirements of this article shall not apply to sellers of goods or services that are106 sold at events sponsored, licensed, or hosted by this state, any local government, a church,107 or a public charity."108 SECTION 2.109 All laws and parts of laws in conflict with this Act are repealed.110