HCS HB 162 -- CONTRACT RENEWALS

SPONSOR:  Ervin (Dusenberg)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Small
Business by a vote of 9 to 0.

This substitute specifies that the automatic renewal of contracts
for service, maintenance, or repair to or for any residential
real property intended for personal, family, or household use
will be invalid unless a written notice by certified mail or
email is given to the customer 30 to 90 days prior to the
contract being renewed.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say consumers who purchase a service like
a security system that renews automatically need a reminder so
that the contract can be canceled if they want out of the
contract.  Kansas has a law that requires a 30-day notice before
a contract can renew.

Testifying for the bill was Representative Dusenberg.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that it is a good
idea, but the language is too broad and could include extended
warranties for motor vehicles and appliances, Internet and
telephone services, newspaper subscriptions and delivery, cable
television services, lawn care services, and other numerous
services.

Testifying on the bill were Assurant; Missouri Cable
Telecommunications Association; and General Motors.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am