HB 686 — Freedom to Celebrate the Fourth of July.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 H 21 HOUSE BILL 686 Committee Substitute Favorable 5/3/19 Short Title:

Representative Stevens.

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Judiciary, if favorable, Rules, Calendar, and Operations of the House April 11, 2019 A BILL TO BE ENTITLED AN ACT TO AMENDREQUIRE THECERTAIN REQUIREMENTSDISCLOSURES AND NOTICES TO CONSUMERS AND TO PROVIDE FOR ADDITIONAL OPTIONS TO OPT OUT OF CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.

75-41(a)75-41 reads as rewritten:

(1) Disclose the automatic renewal clause clearly and conspicuously in the contract or contract offer.Provide a separate disclosure statement that clearly and conspicuouslyconspicuously, in at least 12-point type and in bold print, provides notice of all of the following:

That thecontractthe contract will be automaticallyrenewediftheconsumerautomatically agreesrenewed toif the contract.consumer signs the contract and the disclosure statement.

TheThat, lengthif of the initialconsumer termdoes ofnot sign the contract and disclosure statement, the lengthcontract will not be automatically renewed, but that a notice of eachtermination renewalof periodcontract underwill be provided to the contract.consumer at least 60 days prior to the contract termination date.

The amountlength toof be charged to the consumer for the initial term of the contract and the amountlength toof beeach chargedrenewal toperiod under the consumercontract. for anyrenewal periods.

IfThe anyamount termsto be charged to the consumer for the initial term of the contract willand changethe uponamount contractto renewal,be acharged listto andthe explanationconsumer offor thoseanyrenewal terms.periods.

AnIf electronicany mailterms address,of mailingthe address,contract toll-freewill telephonechange number,upon orcontract anotherrenewal, costa effective,list timely, and easy-to-useexplanation mechanismof thatthose theterms. consumer may use to terminate the automatic renewal.

(1a)f. Obtain the consumer's affirmative consent before charging the consumer for an automatic renewal.

An electronic mail address, mailing address, and a toll-free telephone numberthattheconsumermayuseto terminate the automatic renewal.

(3)(3)(2) For any automatic renewal exceeding 60 days, of 12 months or more, provide written notice to the consumer by personal delivery, electronic mail, or first-class mail, or anyother form of notice agreed to bythe consumer, at least 15 days but no earlier than 45 60 days before the date the contract is to be automatically renewed, stating the date on which the contract is scheduled to *H686-v-1* General Assembly Of North Carolina Session 2019 automatically renew and notifying the consumer that the contract will automatically renew unless it is cancelled by the consumer prior to that date.

*H686-v-2* General Assembly Of North Carolina Session 2019 (4) If the terms of the contract will change upon the automatic renewal of the contract,disclosethechangingtermsofthecontractclearlyandconspicuously on the notification in at least 12 point type and in bold print."print. SECTION 2.

This(3) actIf becomesa effectiveconsumer Januarydoes 1,not 2020,sign andthe appliesdisclosure statement, send a notice to contractsthe enteredconsumer intothat onprovides or(i) afterthe date that date.the contract is scheduled to terminate and (ii) the renewal options available to the consumer.

PageA 2notice Houseprovided Billto 686-Seconda Editionconsumer pursuant to this subdivision shall be sent at least 60 days prior to the contract termination date by personal delivery, electronic mail, or first-class mail.

(4) If the consumer cancels the automatic renewal in accordance with this section, provide a written confirmation and notice of termination of the automatic renewal within 30 days of receipt of cancellation.

(b) Repealed bySession Laws 2016-113, s.

16(a), effective July26, 2016, and applicable to contracts entered into on or after that date.

(b1) A person subject to this section maynot (i) automaticallyrenew a contract, (ii) charge a consumer a higher fee or contract amount, or (iii) otherwise penalize a consumer if the consumer does not sign a disclosure statement.

A person shall terminate the automatic renewal provision of a contract within 30 days of receipt of a notice from a consumer that the consumer has permanently relocated to a hospital, nursing home, or assisted living facility.

(c) A person that fails to comply with the requirements of this section is in violation of this section unless the person demonstrates that all of the following are its routine business practice:

(1) The person has established and implemented written procedures to comply with this section and enforces compliance with the procedures.

(2) Any failure to comply with this section is the result of error.

(3) Where an error has caused the failure to comply with this section, the person provides a full refund or credit for all amounts billed to or paid by the consumer from the date of the renewal until the date of the termination of the contract, or the date of the subsequent notice of renewal, whichever occurs first.

(d) This section does not apply to insurers licensed under Chapter 58 of the General Statutes, or to banks, trust companies, savings and loan associations, savings banks, or credit unions licensed or organized under the laws of any state or the United States, or any foreign bank maintaining a branch or agency licensed under the laws of the United States, or any subsidiary or affiliate thereof, nor does this section apply to any entity subject to regulation by the Federal Communications Commission under Title 47 of the United States Code or by the North Carolina Utilities Commission under Chapter 62 of the General Statutes, or to any entity doing business directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization issued by a political subdivision of the State or an agency thereof.

(d1) This section does not apply to real estate professionals licensed under Chapter 93A of the General Statutes.

(e) A violation of this section renders the automatic renewal clause void and unenforceable." SECTION 2.

This act is effective January 1, 2020, and applies to contracts entered into on or after that date.

Page 2 House Bill 686-First Edition