| 9 | | - | definitions; to provide for related matters; to provide for an effective date and applicability;4 |
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| 10 | | - | to repeal conflicting laws; and for other purposes.5 |
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| 11 | | - | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 12 | | - | SECTION 1.7 |
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| 13 | | - | Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by8 |
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| 14 | | - | revising Chapter 12, relating to automatic renewal provisions, as follows:9 |
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| 15 | | - | "CHAPTER 1210 |
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| 16 | | - | 13-12-1.11 |
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| 17 | | - | As used in this chapter, the term:12 |
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| 18 | | - | (1) 'Automatic renewal provision' means a provision under which a service contract is13 |
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| 19 | | - | renewed for a specified period of more than one month if the renewal causes the service14 |
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| 20 | | - | - 1 - 25 LC 55 0502S |
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| 21 | | - | contract to be in effect more than six months after the day of the initiation of the service15 |
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| 22 | | - | contract. Such renewal is effective unless the consumer or small business gives notice16 |
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| 23 | | - | to the seller of the consumer's or small business's intention to terminate the service17 |
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| 24 | | - | contract.18 |
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| 25 | | - | (2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation19 |
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| 26 | | - | under Section 501(c)(3) of the Internal Revenue Code of 1986 receiving service,20 |
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| 27 | | - | maintenance, or repair benefits under a service contract. The term does not include a21 |
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| 28 | | - | natural person engaged in business or employed by or otherwise acting on behalf of a22 |
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| 29 | | - | governmental entity if the person enters into the service contract as part of or ancillary23 |
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| 30 | | - | to the person's business activities or on behalf of the business or governmental entity.24 |
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| 31 | | - | (3) 'Seller' means any person, firm, partnership, association, or corporation engaged in25 |
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| 32 | | - | commerce that sells, leases, or offers to sell or lease any service to a consumer or small26 |
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| 33 | | - | business pursuant to a service contract.27 |
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| 34 | | - | (4) 'Service contract' means a written contract for the performance of services for a28 |
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| 35 | | - | specified period of time.29 |
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| 36 | | - | (5) 'Small business' means a business that is independently owned and operated, is not30 |
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| 37 | | - | dominant in its field of operation, and employs fewer than 200 employees.31 |
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| 38 | | - | 13-12-2.32 |
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| 39 | | - | Any seller that sells, leases, or offers to sell or lease any service to a consumer or small33 |
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| 40 | | - | business pursuant to a service contract that has an automatic renewal provision shall34 |
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| 41 | | - | disclose the automatic renewal provision clearly and conspicuously in the contract or35 |
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| 42 | | - | contract offer.36 |
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| 43 | | - | 13-12-3.37 |
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| 44 | | - | (a) Any seller that sells, leases, or offers to sell or lease any service to a consumer or small38 |
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| 45 | | - | business pursuant to a service contract for a specified period of 12 months or more and that39 |
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| 46 | | - | - 2 - 25 LC 55 0502S |
|---|
| 47 | | - | automatically renews for a specified period of more than one month, unless the consumer40 |
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| 48 | | - | or small business cancels the contract, shall provide the consumer or small business with41 |
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| 49 | | - | written or electronic notification of the automatic renewal provision. Notification shall be42 |
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| 50 | | - | provided to the consumer or small business no less than 30 days or no more than 60 days43 |
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| 51 | | - | before the cancellation deadline pursuant to the automatic renewal provision. Such44 |
|---|
| 52 | | - | notification shall disclose clearly and conspicuously:45 |
|---|
| 53 | | - | (1) That unless the consumer or small business cancels the contract, the contract will46 |
|---|
| 54 | | - | automatically renew; and47 |
|---|
| 55 | | - | (2) The methods by which the consumer or small business may obtain details of the48 |
|---|
| 56 | | - | automatic renewal provision and cancellation procedure, including contacting the seller49 |
|---|
| 57 | | - | at a specified telephone number or address, referring to the contract, or any other method.50 |
|---|
| 58 | | - | (b) For any contract for service to a consumer or small business that automatically renews51 |
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| 59 | | - | for a specified period of more than 24 months, the seller shall, in addition to providing the52 |
|---|
| 60 | | - | notification required under subsection (a) of this Code section, obtain the following for the53 |
|---|
| 61 | | - | automatic renewal provision of such contract to be enforceable:54 |
|---|
| 62 | | - | (1) Written or electronic acknowledgment from the consumer or small business of55 |
|---|
| 63 | | - | receipt of the notification required under subsection (a) of this Code section; and56 |
|---|
| 64 | | - | (2) An affirmative written or electronic response that the consumer or small business57 |
|---|
| 65 | | - | does not intend to terminate the service contract.58 |
|---|
| 66 | | - | 13-12-4.59 |
|---|
| 67 | | - | This chapter shall not apply to:60 |
|---|
| 68 | | - | (1) A financial institution as provided in Chapter 1 or 2 of Title 7 or any depository61 |
|---|
| 69 | | - | institution as defined in 12 U.S.C. Section 1813(c)(2);62 |
|---|
| 70 | | - | (2) A foreign bank maintaining a branch or agency licensed under the laws of any state63 |
|---|
| 71 | | - | of the United States;64 |
|---|
| 72 | | - | - 3 - 25 LC 55 0502S |
|---|
| 73 | | - | (3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code65 |
|---|
| 74 | | - | section;66 |
|---|
| 75 | | - | (4) Any electric utility as provided in Chapter 3 of Title 46;67 |
|---|
| 76 | | - | (5) Any entity regulated pursuant to Chapter 45 of Title 43; or68 |
|---|
| 77 | | - | (6) Any county, municipal corporation, authority, or local government or governing69 |
|---|
| 78 | | - | body; or70 |
|---|
| 79 | | - | (7) Any service contract between a seller and a small business wherein the small71 |
|---|
| 80 | | - | business is required to pay more than $200.00 in consideration on a monthly basis for the72 |
|---|
| 81 | | - | services to be provided thereunder or the equivalent thereof for any other installment73 |
|---|
| 82 | | - | period provided in such service contract.74 |
|---|
| 83 | | - | 13-12-5.75 |
|---|
| 84 | | - | A violation of this chapter renders the automatic renewal provision of a contract void and76 |
|---|
| 85 | | - | unenforceable."77 |
|---|
| 86 | | - | SECTION 2.78 |
|---|
| 87 | | - | This Act shall become effective on July 1, 2026, and shall apply to service contracts entered79 |
|---|
| 88 | | - | into on or after such date.80 |
|---|
| 89 | | - | SECTION 3.81 |
|---|
| 90 | | - | All laws and parts of laws in conflict with this Act are repealed.82 |
|---|
| 11 | + | definitions; to provide for related matters; to repeal conflicting laws; and for other purposes.4 |
|---|
| 12 | + | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 |
|---|
| 13 | + | SECTION 1.6 |
|---|
| 14 | + | Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by7 |
|---|
| 15 | + | revising Chapter 12, relating to automatic renewal provisions, as follows:8 |
|---|
| 16 | + | "CHAPTER 129 |
|---|
| 17 | + | 13-12-1.10 |
|---|
| 18 | + | As used in this chapter, the term:11 |
|---|
| 19 | + | (1) 'Automatic renewal provision' means a provision under which a service contract is12 |
|---|
| 20 | + | renewed for a specified period of more than one month if the renewal causes the service13 |
|---|
| 21 | + | contract to be in effect more than six months after the day of the initiation of the service14 |
|---|
| 22 | + | S. B. 127 |
|---|
| 23 | + | - 1 - 25 LC 55 0462 |
|---|
| 24 | + | contract. Such renewal is effective unless the consumer or small business gives notice15 |
|---|
| 25 | + | to the seller of the consumer's or small business's intention to terminate the service16 |
|---|
| 26 | + | contract.17 |
|---|
| 27 | + | (2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation18 |
|---|
| 28 | + | under Section 501(c)(3) of the Internal Revenue Code of 1986 receiving service,19 |
|---|
| 29 | + | maintenance, or repair benefits under a service contract. The term does not include a20 |
|---|
| 30 | + | natural person engaged in business or employed by or otherwise acting on behalf of a21 |
|---|
| 31 | + | governmental entity if the person enters into the service contract as part of or ancillary22 |
|---|
| 32 | + | to the person's business activities or on behalf of the business or governmental entity.23 |
|---|
| 33 | + | (3) 'Seller' means any person, firm, partnership, association, or corporation engaged in24 |
|---|
| 34 | + | commerce that sells, leases, or offers to sell or lease any service to a consumer or small25 |
|---|
| 35 | + | business pursuant to a service contract.26 |
|---|
| 36 | + | (4) 'Service contract' means a written contract for the performance of services for a27 |
|---|
| 37 | + | specified period of time.28 |
|---|
| 38 | + | (5) 'Small business' means a business that is independently owned and operated, is not29 |
|---|
| 39 | + | dominant in its field of operation, and employs fewer than 200 employees.30 |
|---|
| 40 | + | 13-12-2.31 |
|---|
| 41 | + | Any seller that sells, leases, or offers to sell or lease any service to a consumer or small32 |
|---|
| 42 | + | business pursuant to a service contract that has an automatic renewal provision shall33 |
|---|
| 43 | + | disclose the automatic renewal provision clearly and conspicuously in the contract or34 |
|---|
| 44 | + | contract offer.35 |
|---|
| 45 | + | 13-12-3.36 |
|---|
| 46 | + | (a) Any seller that sells, leases, or offers to sell or lease any service to a consumer or small37 |
|---|
| 47 | + | business pursuant to a service contract for a specified period of 12 months or more and that38 |
|---|
| 48 | + | automatically renews for a specified period of more than one month, unless the consumer39 |
|---|
| 49 | + | S. B. 127 |
|---|
| 50 | + | - 2 - 25 LC 55 0462 |
|---|
| 51 | + | or small business cancels the contract, shall provide the consumer or small business with40 |
|---|
| 52 | + | written or electronic notification of the automatic renewal provision. Notification shall be41 |
|---|
| 53 | + | provided to the consumer or small business no less than 30 days or no more than 60 days42 |
|---|
| 54 | + | before the cancellation deadline pursuant to the automatic renewal provision. Such43 |
|---|
| 55 | + | notification shall disclose clearly and conspicuously:44 |
|---|
| 56 | + | (1) That unless the consumer or small business cancels the contract, the contract will45 |
|---|
| 57 | + | automatically renew; and46 |
|---|
| 58 | + | (2) The methods by which the consumer or small business may obtain details of the47 |
|---|
| 59 | + | automatic renewal provision and cancellation procedure, including contacting the seller48 |
|---|
| 60 | + | at a specified telephone number or address, referring to the contract, or any other method.49 |
|---|
| 61 | + | (b) For any contract for service to a consumer or small business that automatically renews50 |
|---|
| 62 | + | for a specified period of more than 24 months, the seller shall, in addition to providing the51 |
|---|
| 63 | + | notification required under subsection (a) of this Code section, obtain the following for the52 |
|---|
| 64 | + | automatic renewal provision of such contract to be enforceable:53 |
|---|
| 65 | + | (1) Written or electronic acknowledgment from the consumer or small business of54 |
|---|
| 66 | + | receipt of the notification required under subsection (a) of this Code section; and55 |
|---|
| 67 | + | (2) An affirmative written or electronic response that the consumer or small business56 |
|---|
| 68 | + | does not intend to terminate the service contract.57 |
|---|
| 69 | + | 13-12-4.58 |
|---|
| 70 | + | This chapter shall not apply to:59 |
|---|
| 71 | + | (1) A financial institution as provided in Chapter 1 or 2 of Title 7 or any depository60 |
|---|
| 72 | + | institution as defined in 12 U.S.C. Section 1813(c)(2);61 |
|---|
| 73 | + | (2) A foreign bank maintaining a branch or agency licensed under the laws of any state62 |
|---|
| 74 | + | of the United States;63 |
|---|
| 75 | + | (3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code64 |
|---|
| 76 | + | section;65 |
|---|
| 77 | + | S. B. 127 |
|---|
| 78 | + | - 3 - 25 LC 55 0462 |
|---|
| 79 | + | (4) Any electric utility as provided in Chapter 3 of Title 46; |
|---|
| 80 | + | 66 |
|---|
| 81 | + | (5) Any entity regulated pursuant to Chapter 45 of Title 43; or |
|---|
| 82 | + | 67 |
|---|
| 83 | + | (6) Any county, municipal corporation, authority, or local government or governing68 |
|---|
| 84 | + | body; or69 |
|---|
| 85 | + | (7) Any service contract between a seller and a small business wherein the small70 |
|---|
| 86 | + | business is required to pay more than $200.00 in consideration on a monthly basis for the71 |
|---|
| 87 | + | services to be provided thereunder or the equivalent thereof for any other installment72 |
|---|
| 88 | + | period provided in such service contract.73 |
|---|
| 89 | + | 13-12-5.74 |
|---|
| 90 | + | A violation of this chapter renders the automatic renewal provision of a contract void and75 |
|---|
| 91 | + | unenforceable."76 |
|---|
| 92 | + | SECTION 2.77 |
|---|
| 93 | + | All laws and parts of laws in conflict with this Act are repealed.78 |
|---|
| 94 | + | S. B. 127 |
|---|