Bill Text: HI HB2045 | 2024 | Regular Session | Amended
Bill Title: Relating To Automatic Renewals.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-03-07 - Referred to CPN. [HB2045 Detail]
Download: Hawaii-2024-HB2045-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2045 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to automatic renewals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 481-9.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Any person who sells or offers to sell any
products or services to a consumer pursuant to a consumer contract that has a
specified term of [more than] one month or more and an automatic
renewal clause under which the contract will automatically renew for a
specified term of [more than] one month or more unless the
consumer cancels the contract, shall disclose the automatic renewal clause and
the procedure by which the consumer can cancel automatic renewal of the
consumer contract clearly and conspicuously in the consumer contract."
2. By amending subsection (h) to read:
"(h) In the case of a material change in the terms of the automatic renewal or continuous service offer pursuant to a consumer contract that has been accepted by a consumer in Hawaii, the person shall clearly and conspicuously provide the consumer with a notice of the material change and provide information regarding how to cancel in a manner that is capable of being retained by the consumer prior to the implementation of the material change. The notice provided to the consumer under this subsection shall be sent to the consumer no less than thirty days before the effective date of any material change."
3. By amending subsections (j) and (k) to read:
"(j) This section shall not apply to any:
(1) Financial institution subject to chapter 412 to the extent that the financial institution is engaged in activities regulated pursuant to chapter 412;
(2) Insurer subject to
chapter 431, 432, or 432D to the extent that the insurer is engaged in
activities regulated pursuant to those chapters[;] or any affiliate
of the insurer;
(3) Entity regulated by the insurance division
pursuant to chapter 481X or any affiliate of the entity;
[(3)] (4) Telecommunications provider subject to
chapter 269; and
[(4)] (5) Cable operator subject to chapter 440G
to the extent that the provider is engaged in activities regulated pursuant to
chapter 440G or the Federal Communications Commission.
(k) For purposes of this section:
"Automatic renewal" means a plan
or arrangement in which a paid subscription or purchasing agreement with a term
of [more than] one month or more is automatically renewed at the
end of a definite term for a specified term of [more than] one month[.]
or more.
"Clearly and conspicuously" means in larger type than the surrounding text; in contrasting type, font, or color to the surrounding text of the same size; or set off from the surrounding text of the same size by symbols or other marks in a manner that clearly calls attention to the language. In the case of an audio disclosure, "clear and conspicuous" and "clearly and conspicuously" mean in a volume and cadence sufficient to be readily audible and understandable.
"Consumer" [shall have]
has the same meaning as in section 480-1.
"Continuous service" means a plan or arrangement in which a paid subscription or purchasing agreement continues until the consumer cancels the service."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 3000.
Report Title:
Contracts for Products or Services; Automatic Renewal Clause
Description:
Expands the law governing automatic renewal clauses to contracts with specified terms of one month or more and that renew for specified terms of one month or more. Requires that a notice of any material change be sent to the consumer no less than thirty days before the effective date of any material change. Exempts affiliates of insurers, providers of service contracts, and affiliates of those providers from the law governing automatic renewal clauses and continuous service clauses. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
