25 LC 55 0502S
The Senate Committee on Regulated Industries and Utilities offered the following
substitute to SB 127:
A BILL TO BE ENTITLED
AN ACT
To amend Title 13 of the Official Code of Georgia Annotated, relating to contracts, so as to1
make certain disclosure and notification requirements concerning automatic renewal2
provisions applicable to service contracts with small businesses; to revise and provide for3
definitions; to provide for related matters; to provide for an effective date and applicability;4
to repeal conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by8
revising Chapter 12, relating to automatic renewal provisions, as follows:9
"CHAPTER 1210
13-12-1.11
As used in this chapter, the term:12
(1) 'Automatic renewal provision' means a provision under which a service contract is13
renewed for a specified period of more than one month if the renewal causes the service14
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contract to be in effect more than six months after the day of the initiation of the service15
contract. Such renewal is effective unless the consumer or small business gives notice16
to the seller of the consumer's or small business's intention to terminate the service17
contract.18
(2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation19
under Section 501(c)(3) of the Internal Revenue Code of 1986 receiving service,20
maintenance, or repair benefits under a service contract. The term does not include a21
natural person engaged in business or employed by or otherwise acting on behalf of a22
governmental entity if the person enters into the service contract as part of or ancillary23
to the person's business activities or on behalf of the business or governmental entity.24
(3) 'Seller' means any person, firm, partnership, association, or corporation engaged in25
commerce that sells, leases, or offers to sell or lease any service to a consumer or small26
business pursuant to a service contract.27
(4) 'Service contract' means a written contract for the performance of services for a28
specified period of time.29
(5) 'Small business' means a business that is independently owned and operated, is not30
dominant in its field of operation, and employs fewer than 200 employees.31
13-12-2.32
Any seller that sells, leases, or offers to sell or lease any service to a consumer or small33
business pursuant to a service contract that has an automatic renewal provision shall34
disclose the automatic renewal provision clearly and conspicuously in the contract or35
contract offer.36
13-12-3.37
(a) Any seller that sells, leases, or offers to sell or lease any service to a consumer or small38
business pursuant to a service contract for a specified period of 12 months or more and that39
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automatically renews for a specified period of more than one month, unless the consumer40
or small business cancels the contract, shall provide the consumer or small business with41
written or electronic notification of the automatic renewal provision. Notification shall be42
provided to the consumer or small business no less than 30 days or no more than 60 days43
before the cancellation deadline pursuant to the automatic renewal provision. Such44
notification shall disclose clearly and conspicuously:45
(1) That unless the consumer or small business cancels the contract, the contract will46
automatically renew; and47
(2) The methods by which the consumer or small business may obtain details of the48
automatic renewal provision and cancellation procedure, including contacting the seller49
at a specified telephone number or address, referring to the contract, or any other method.50
(b) For any contract for service to a consumer or small business that automatically renews51
for a specified period of more than 24 months, the seller shall, in addition to providing the52
notification required under subsection (a) of this Code section, obtain the following for the53
automatic renewal provision of such contract to be enforceable:54
(1) Written or electronic acknowledgment from the consumer or small business of55
receipt of the notification required under subsection (a) of this Code section; and56
(2) An affirmative written or electronic response that the consumer or small business57
does not intend to terminate the service contract.58
13-12-4.59
This chapter shall not apply to:60
(1) A financial institution as provided in Chapter 1 or 2 of Title 7 or any depository61
institution as defined in 12 U.S.C. Section 1813(c)(2);62
(2) A foreign bank maintaining a branch or agency licensed under the laws of any state63
of the United States;64
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(3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code65
section;66
(4) Any electric utility as provided in Chapter 3 of Title 46;67
(5) Any entity regulated pursuant to Chapter 45 of Title 43; or68
(6) Any county, municipal corporation, authority, or local government or governing69
body; or70
(7) Any service contract between a seller and a small business wherein the small71
business is required to pay more than $200.00 in consideration on a monthly basis for the72
services to be provided thereunder or the equivalent thereof for any other installment73
period provided in such service contract.74
13-12-5.75
A violation of this chapter renders the automatic renewal provision of a contract void and76
unenforceable."77
SECTION 2.78
This Act shall become effective on July 1, 2026, and shall apply to service contracts entered79
into on or after such date.80
SECTION 3.81
All laws and parts of laws in conflict with this Act are repealed.82
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