HF 676

1st Unofficial Engrossment - 90th Legislature (2017 - 2018)

Posted on 05/01/2017 02:27 p.m.

1.1A bill for an act 1.2relating to commerce; regulating landscape application contracts; providing an 1.3exclusion;amending Minnesota Statutes 2016, section 325F.245, subdivision 6; 1.4proposing coding for new law in Minnesota Statutes, chapter 325G. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. Minnesota Statutes 2016, section 325F.245, subdivision 6, is amended to read: 1.7    Subd. 6. Exclusions. This section does not apply to: 1.8(1) pesticide, fertilizer, or chemical applications for the purpose of producing agricultural 1.9commodities or any commodity for sale; 1.10(2) pesticide applications around or near the foundation of a building for the purpose of 1.11structural or indoor pest control; or 1.12(3) any single or isolated landscape application where the property owner or its agent 1.13verbally consents to the single or isolated application. new text begin ; or new text end 1.14 new text begin (4) pesticide or fertilizer applications by a licensed, commercial application company new text end 1.15 new text begin that provides customers with the ability to cancel or discontinue the agreement at any time, new text end 1.16 new text begin for any reason, with full refund of any prepaid services that were not provided and without new text end 1.17 new text begin any cancellation or discontinuance penalty. Prior to the first application of the season, the new text end 1.18 new text begin commercial application company must provide annual written notice to the customer of the new text end 1.19 new text begin customer's ability to cancel or discontinue the agreement at any time. The customer must new text end 1.20 new text begin be allowed to cancel or discontinue the agreement at any time by communication to the new text end 1.21 new text begin company in writing, electronically, verbally by telephone, or in person to company new text end 1.22 new text begin representatives or on-site service personnel. new text end 2.1    Sec. 2. new text begin [325G.56] AUTOMATIC RENEWAL OF CONSUMER CONTRACTS. new text end 2.2     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this section: new text end 2.3 new text begin (1) "automatic renewal clause" means a provision of a contract that extends the term of new text end 2.4 new text begin or renews a contract if the consumer does not take a specified action, provided the original new text end 2.5 new text begin contract term is for one year or more and the contract automatically renews for more than new text end 2.6 new text begin one month; new text end 2.7 new text begin (2) "consumer" means a person who acquires goods or services for personal, family, or new text end 2.8 new text begin household purposes; and new text end 2.9 new text begin (3) "seller" means a person who provides a service or sells or leases goods to the new text end 2.10 new text begin consumer. new text end 2.11     new text begin Subd. 2. new text end new text begin Requirements for automatic renewal. new text end new text begin If a contract between a seller and a new text end 2.12 new text begin consumer contains an automatic renewal clause, the seller shall: new text end 2.13 new text begin (1) clearly and conspicuously disclose to the consumer the automatic renewal clause new text end 2.14 new text begin and the procedure for canceling the contract at the time that the seller enters into the contract new text end 2.15 new text begin with the consumer; and new text end 2.16 new text begin (2) give the consumer written notice of the automatic renewal clause and the procedure new text end 2.17 new text begin for canceling the contract no less than 30 days and no more than 60 days before the last new text end 2.18 new text begin date on which the consumer may cancel the contract before it renews for another term. new text end 2.19     new text begin Subd. 3. new text end new text begin Notice of automatic renewal. new text end new text begin (a) Written notice provided under this section new text end 2.20 new text begin must clearly and conspicuously disclose: new text end 2.21 new text begin (1) that the contract will automatically renew if the consumer does not cancel the contract; new text end 2.22 new text begin (2) the cancellation procedure, which shall allow for cancellation by regular mail or new text end 2.23 new text begin e-mail; and new text end 2.24 new text begin (3) the dates during which the consumer may cancel the contract. new text end 2.25 new text begin (b) Written notice under this section must be made in a stand-alone mailing using new text end 2.26 new text begin boldfaced type. new text end 2.27     new text begin Subd. 4. new text end new text begin Consumer's right to cancel. new text end new text begin (a) A consumer may cancel the automatic renewal new text end 2.28 new text begin of a contract at any time before the date on which the contract renews for another term, at new text end 2.29 new text begin no cost to the consumer, by following the procedure set out in the disclosure and notice new text end 2.30 new text begin provided under this section or by standard mail or e-mail. new text end 3.1 new text begin (b) If the seller fails to provide either the disclosure or the written notice required by new text end 3.2 new text begin subdivision 2, the consumer may cancel the contract by any reasonable means at any time, new text end 3.3 new text begin including by standard mail, e-mail, or telephone, at no cost to the consumer. new text end 3.4     new text begin Subd. 5. new text end new text begin Right of first refusal. new text end new text begin A contract subject to this section must not require that new text end 3.5 new text begin the consumer has to permit the seller to match any offer the consumer has received. A new text end 3.6 new text begin provision in a contract that violates this subdivision is void and unenforceable. new text end 3.7     new text begin Subd. 6. new text end new text begin Exemption. new text end new text begin (a) This section does not apply to a class of contracts governed by new text end 3.8 new text begin other specific provisions related to automatic or guaranteed renewal in state or federal statute new text end 3.9 new text begin or regulation. new text end 3.10 new text begin (b) This section does not apply to contracts when the consumer may cancel at any time new text end 3.11 new text begin and receive a refund for goods or services not yet provided, if notice of this cancellation new text end 3.12 new text begin right is given in the manner provided in subdivision 3, and the consumer may cancel by any new text end 3.13 new text begin reasonable means, including by standard mail, e-mail, or telephone. new text end 3.14     new text begin Subd. 7. new text end new text begin Enforcement. new text end new text begin This section may be enforced by the attorney general under new text end 3.15 new text begin section 8.31. new text end 3.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018, for contracts entered new text end 3.17 new text begin into, modified, or renewed on or after that date. new text end 3.18    Sec. 3. new text begin EFFECTIVE DATE. new text end 3.19 new text begin Section 1 is effective the day following final enactment and applies to agreements entered new text end 3.20 new text begin into on or after that date. new text end