New Mexico 2019 Regular Session Status: Enacted 1 R cosponsors

SB 350 — AUTOMATIC RENEWAL OF SERVICE CONTRACTS

Last action — Signed

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 25, 2019. Enacted.

Prognosis

Advancing 52% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

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Bill Text

What changed in the latest version

226 added · 377 removed

Plain-language change summary

The recent amendment to Bill SB 350 introduces a definition of "automatic renewal provision" for service contracts, which allows these contracts to automatically renew after their initial term unless the consumer cancels them. This change is important because it aims to increase transparency and ensure consumers are aware of how their agreements can extend without their active consent. By clearly defining this term, it helps protect consumers from unexpected charges and provides them with clearer expectations about their service agreements.

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SENATE BILL 350 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Clemente Sanchez Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.
It is a tool to show the amendments in context and is not to be used for the purpose of amendments.
AMENDING THE SERVICE CONTRACT h REGULATION ACT;
AMENDING THE SERVICE CONTRACT REGULATION ACT;
g o PROVIDING FOR AUTOMATIC RENEWAL OF SERVICE CONTRACTS.
PROVIDING FOR AUTOMATIC RENEWAL OF SERVICE CONTRACTS.
t hr g e i k h r i s BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
h , t, SECTION 1.
SECTION 1.
Section 59A-58-2 NMSA 1978 (being Laws 2001, e u g e b l e e h Chapter 206, Section 2, as amended) is amended to read:
Section 59A-58-2 NMSA 1978 (being Laws 2001, Chapter 206, Section 2, as amended) is amended to read:
n d d i = = o h "59A-58-2.
"59A-58-2.
DEFINITIONS.--As used in the Service Contract l ] b ,d i a º e Regulation Act:
DEFINITIONS.--As used in the Service Contract Regulation Act:
r i = r t e w d m a n o A.
A.
"administrator" means a person who is d m :
"administrator" means a person who is responsible for administering a service contract that is issued, sold or offered for sale by a provider or sold by a seller;
b e d s º o t n = .212263.2 s k m e e a n e d r e l u [ A d responsible for administering a service contract that is issued, sold or offered for sale by a provider or sold by a seller;
B.
SCORCº B.
"automatic renewal provision" means a provision within a service contract that acts to automatically renew the service contract after the end of the original term for a renewal term greater than two months, and such renewal is effective unless the holder gives notice to the provider or administrator of the holder's intention to terminate the service contract;
"automatic renewal provision" means that a provision pursuant to a service contract is renewed for a specified period of more than one month if the renewal causes the service contract to continue in effect more than two months after the end of the term of the original contract and such renewal is effective unless the holder gives notice to the provider or administrator of the holder's intention to terminate the service contract;»SCORC SCORCºB.
C.
"automatic renewal provision" means a provision within a service contract that acts to automatically renew the service contract after the end of the original term for a renewal term greater than two months, and such renewal is effective unless the holder gives notice to the provider or h administrator of the holder's intention to terminate the u » r t h service contract;»SCORC g e l i [B.] C.
"consumer" means a person who purchases, other than for resale, property used primarily for personal, family or household purposes and not for business or research purposes;
"consumer" means a person who purchases, h r i s other than for resale, property used primarily for personal, h , e h t u g family or household purposes and not for business or research e b l e e , gh purposes;
SB 350 Page 1 D.
n d d i = = o h [C.] D.
"holder" means a resident of this state who:
"holder" means a resident of this state l ] b ,d i a º r e r = who:
(1) purchases a service contract;
t e w d m a n o (1) purchases a service contract;
or (2) is legally in possession of a service contract and is entitled to enforce the rights of the original purchaser of the service contract;
or d m :
E.
b r e t º o t n = .212263.2 s k m e - 2 - e a n e d r e l u [ A d (2) is legally in possession of a service contract and is entitled to enforce the rights of the original purchaser of the service contract;
[D.
] E.
[E.
F.
] F.
"maintenance agreement" means a contract for a limited period that provides only for scheduled maintenance;
"maintenance agreement" means a contract h for a limited period that provides only for scheduled g o t hr maintenance;
G.
g e i k [F.
"major manufacturing company" means a person who:
] G.
(1) manufactures or produces and sells products under its own name or label or is a wholly owned subsidiary or affiliate of the person who manufactures or produces products;
"major manufacturing company" means a h r i s person who:
and SB 350 Page 2 (2) maintains, or its parent company maintains, a net worth or stockholders' equity of at least one hundred million dollars ($100,000,000);
h , t, (1) manufactures or produces and sells e u g e b l e e h products under its own name or label or is a wholly owned n d d i = = o h subsidiary or affiliate of the person who manufactures or l ] b ,d i a º e produces products;
H.
and r i = r t e w d m a n o (2) maintains, or its parent company d m :
b e d s º o t n = .212263.2 s k m e - 3 - e a n e d r e l u [ A d maintains, a net worth or stockholders' equity of at least one hundred million dollars ($100,000,000);
[G.
] H.
[H.
I.
] I.
[I.
J.
] J.
"reimbursement insurance policy" means a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider or, in the event of the provider's non-performance, to pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured service contracts issued or sold by the provider;
"reimbursement insurance policy" means a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider or, in the event of the provider's non-performance, to pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured service contracts h issued or sold by the provider;
K.
g o t hr [J.
"road hazard" means a hazard that is encountered while driving a motor vehicle and that may include potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps;
Show all 76 changed rows (36 more)
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Latest
] K.
L.
"road hazard" means a hazard that is g e i k encountered while driving a motor vehicle and that may include h r i s potholes, rocks, wood debris, metal parts, glass, plastic, h , t, curbs or composite scraps;
"seller" means a person who sells service contracts that contractually obligate another party or parties;
e u g e b l e e h [K.
SB 350 Page 3 M.
] L.
"service contract" means a contract pursuant to which a provider, in exchange for separately stated consideration, is obligated for a specified period to a holder to repair, replace or perform maintenance on, or indemnify or reimburse the holder for the costs of repairing, replacing or performing maintenance on, property that is described in the service contract and that has an operational or structural failure as a result of a defect in materials, workmanship or normal wear and tear, including a contract that provides or includes one or more of the following:
"seller" means a person who sells service n d d i = = o h contracts that contractually obligate another party or parties;
l ] b ,d i a º e [L.
] M.
"service contract" means a contract r i = r t e w d m a n o pursuant to which a provider, in exchange for separately stated d m :
b e d s º o t n = .212263.2 s k m e - 4 - e a n e d r e l u [ A d consideration, is obligated for a specified period to a holder to repair, replace or perform maintenance on, or indemnify or reimburse the holder for the costs of repairing, replacing or performing maintenance on, property that is described in the service contract and that has an operational or structural failure as a result of a defect in materials, workmanship or normal wear and tear, including a contract that provides or includes one or more of the following:
(3) the repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into h contact with road hazards;
(3) the repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into contact with road hazards;
u » r (4) the removal of dents, dings or creases on t h g e l i a motor vehicle that can be repaired using the process of h r i s paintless dent removal without affecting the existing paint h , e h finish and without replacing vehicle body panels, sanding, t u g e b l e e , gh bonding or painting;
(4) the removal of dents, dings or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;
n d d i = = o h (5) the repair of chips or cracks in motor l ] b ,d i a º r vehicle windshields or the replacement of motor vehicle e r = t e w d m a n o windshields as a result of damage caused by road hazards;
(5) the repair of chips or cracks in motor SB 350 Page 4 vehicle windshields or the replacement of motor vehicle windshields as a result of damage caused by road hazards;
d m :
(6) the replacement of a motor vehicle key or key fob in the event the key or key fob becomes inoperable or is lost or stolen;
b r e t º o t n = .212263.2 s k m e - 5 - e a n e d r e l u [ A d (6) the replacement of a motor vehicle key or key fob in the event the key or key fob becomes inoperable or is lost or stolen;
and [M.] N.
and N.
and (3) guarantees to indemnify the consumer for defective parts, mechanical or electrical failure, labor or h other remedial measures required to repair or replace the g o t hr property and may provide specified incidental costs." g e i k SECTION 2.
and (3) guarantees to indemnify the consumer for defective parts, mechanical or electrical failure, labor or other remedial measures required to repair or replace the property and may provide specified incidental costs." SECTION 2.
Section 59A-58-9 NMSA 1978 (being Laws 2001, h r i s Chapter 206, Section 9) is amended to read:
Section 59A-58-9 NMSA 1978 (being Laws 2001, Chapter 206, Section 9) is amended to read:
h , t, "59A-58-9.
"59A-58-9.
RIGHT OF HOLDER TO RETURN SERVICE CONTRACT FOR e u g e b l e e h REFUND.-- n d d i = = o h A.
RIGHT OF HOLDER TO RETURN SERVICE CONTRACT FOR REFUND.-- A.
A service contract is void and a provider shall l ] b ,d i a º e refund to the holder the purchase price of the service contract r i = r t e w d m a n o if the holder has not made a claim under the service contract d m :
A service contract is void and a provider shall SB 350 Page 5 refund to the holder the purchase price of the service contract if the holder has not made a claim under the service contract and the holder returns the service contract to the provider:
b e d s º o t n = .212263.2 s k m e - 6 - e a n e d r e l u [ A d and the holder returns the service contract to the provider:
Subsequent to the time period specified in Subsection A of this section, or if a claim was made during that time period, a holder may cancel a service contract and the provider shall refund to the contract holder one hundred h percent of the unearned pro rata provider fee, less any claims g o t hr paid.
Subsequent to the time period specified in Subsection A of this section, or if a claim was made during that time period, a holder may cancel a service contract and the provider shall refund to the contract holder one hundred percent of the unearned pro rata provider fee, less any claims paid.
If the service contract is canceled by the holder, a g e i k reasonable administrative fee may be charged by the provider, h r i s not to exceed ten percent of the purchase price of the service h , t, contract.
If the service contract is canceled by the holder, a reasonable administrative fee may be charged by the provider, not to exceed ten percent of the purchase price of the service contract.
A provider who cancels a service contract may not e u g e b l e e h impose an administrative fee.
A provider who cancels a service contract may not impose an administrative fee.
n d d i = = o h [C.] D.
SB 350 Page 6 D.
A service contract must include a provision l ] b ,d i a º e that clearly states the right of a holder to return a service r i = r t e w d m a n o contract pursuant to this section.
A service contract must include a provision that clearly states the right of a holder to return a service contract pursuant to this section.
Notwithstanding Subsection d m :
Notwithstanding Subsection C of this section, a provider is not required to deduct the amount of any claims paid under a service contract from the amount of a refund a holder is entitled to.
b e d s º o t n = .212263.2 s k m e - 7 - e a n e d r e l u [ A d C of this section, a provider is not required to deduct the amount of any claims paid under a service contract from the amount of a refund a holder is entitled to.
E.
[D.] E.
"[NEW MATERIAL ] AUTOMATIC RENEWAL--NOTICE.-- A.
"AUTOMATIC RENEWAL--NOTICE.-- A.
A provider shall not include an automatic h renewal provision within a service contract offered in this u » r state unless the provider discloses the terms of the automatic t h g e l i renewal provision in a clear and conspicuous manner, or in the h r i s case of an offer conveyed by voice, in temporal proximity, to h , e h the request for consent to the offer and the consumer consents t u g e b l e e , gh to the terms of the automatic renewal provision.
A provider shall not include an automatic renewal provision within a service contract offered in this state unless the provider discloses the terms of the automatic renewal provision in a clear and conspicuous manner, or in the case of an offer conveyed by voice, in temporal proximity, to the request for consent to the offer and the consumer consents to the terms of the automatic SB 350 Page 7 renewal provision.
n d d i = = o h B.
B.
A provider shall provide notice to a holder l ] b ,d i a º r specifying, in a clear and conspicuous manner, the procedure by e r = t e w d m a n o which the holder may cancel the service contract, and such d m :
A provider shall provide notice to a holder specifying, in a clear and conspicuous manner, the procedure by which the holder may cancel the service contract, and such notice shall be provided at least thirty days before the last day on which the holder may give notice of the holder's intention not to renew the service contract but not sooner than sixty days before the last day on which the holder may give notice of the holder's intention not to renew.
b r e t º o t n = .212263.2 s k m e - 8 - e a n e d r e l u [ A d notice shall be provided at least thirty days before the last day on which the holder may give notice of the holder's intention SCORCº to terminate not to renew»SCORC the service contract but not sooner than sixty days before the last day on which the holder may give notice SCORCºof the holder’s intention not to renew»SCORC.
The notice required by Subsection B of this section may be provided by United States mail, postage prepaid, or electronic mail if the consumer consents to receive notice via electronic mail at the inception of the service contract." - 9 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , gh n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :
The notice required by Subsection B of this section may be provided by United States mail, postage prepaid, or electronic mail if the consumer consents to receive notice via electronic mail at the inception of the service contract." SB 350 Page 8 25
b r e t º o t n = .212263.2 s k m e e a n e d r e l u [ A d
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Action History

  1. Signed

  2. passed House

  3. DO PASS committee report adopted

  4. Sent to House Judiciary Committee

  5. passed Senate

  6. DO PASS committee report adopted

  7. DO PASS, as amended, committee report adopted

  8. Sent to Senate Corporations and Transportation Committee & Senate Judiciary Committee

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 111 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (111)

111 members have not signed on to this bill.

Show all 111 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

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finance
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Frequently asked questions

Who sponsors SB 350?
SB 350 is sponsored by Joshua A. Sanchez (Republican).
What is the current status of SB 350?
This bill has been enacted into law. Introduced January 25, 2019. Enacted.
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