HB1224: HB1224 Contracts; termination of certain automatic renewal provisions; reduce applicable period

26 LC 44 3509S The House Committee on Agriculture and Consumer Affairs offers the following substitute to HB 1224: A BILL TO BE ENTITLED AN ACT To amend Chapter 12 of Title 13 of the Official Code of Georgia Annotated, relating to1 automatic renewal provisions, so as to reduce the applicable period for termination of certain2 automatic renewal provisions; to provide to consumers an option of having the service3 contract terminate after its specified period; to provide for related matters; to provide for an4 effective date and applicability; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 12 of Title 13 of the Official Code of Georgia Annotate d, relating to automatic8 renewal provisions, is amended by revising Code Section 13-12-3 , relating to notice to9 consumer prior to automatic renewal of a service contract, as follows:10 "13-12-3.11 (a) Any seller that sells, leases, or offers to sell or lease any service to a consumer pursuant12 to a service contract for a specified period of 12 months or mo re and that automatically13 renews for a specified period of more than one month, unless th e consumer cancels the14 contract, shall provide the consumer with written or electronic notification of the automatic15 renewal provision. Notification shall be provided to the consumer no less than 30 days or16 H. B. 1224 (SUB) - 1 - 26 LC 44 3509S no more than 60 days before the cancellation deadline pursuant to the automatic renewal17 provision. Such notification shall disclose clearly and conspicuously:18 (1) That unless the consumer cancels the contract, the contract will automatically renew;19 and20 (2) The methods by which the consumer may obtain details of th e automatic renewal21 provision and cancellation procedure, including contacting the seller at a specified22 telephone number or address, referring to the contract, or any other method.23 (b) For any contract for service to a consumer that automatica lly renews for a specified24 period of more than 24 months, the seller shall, in addition to providing the notification25 required under subsection (a) of this Code section, obtain the following for the automatic26 renewal provision of such contract to be enforceable:27 (1) Written or electronic acknowledgment from the consumer of receipt of the28 notification required under subsection (a) of this Code section; and29 (2) An affirmative written or electronic response that the con sumer does not intend to30 terminate the service contract.31 (c) For any contract for service to a consumer that automatica lly renews for a specified32 period of one year or more and that increases the cost to the c onsumer by 50 percent or33 more, the seller shall, in addition to providing the notification required under subsection (a)34 of this Code section, obtain the following for the automatic re newal provision of such35 contract to be enforceable:36 (1) Written or electronic acknowledgment from the consumer of receipt of the37 notification required under subsection (a) of this Code section; and38 (2) An affirmative written or electronic response that the con sumer does not intend to39 terminate the service contract."40 H. B. 1224 (SUB) - 2 - 26 LC 44 3509S SECTION 2.41 This Act shall become effective on December 31, 2026, and shall apply to contracts entered42 into on or after such date.43 SECTION 3.44 All laws and parts of laws in conflict with this Act are repealed.45 H. B. 1224 (SUB) - 3 -