Permits automatic renewal of contracts for electronic and life safety alarm services.
TITLE OF BILL: An act to amend the general obligations law, in relation to automatic renewal of contracts for electronic and life safety alarm services
PURPOSE OF THE BILL: To amend the requirement that persons be given notice by certified mail of the extension of contracts for life safety and electronic alarm services where such person has received notice of renewal and paid an invoice that clearly indicates that such payment is for a contract extension and renewal.
SUMMARY OF SPECIFIC PROVISIONS: Adds a new section 5-903 to the General Obligations law.
JUSTIFICATION: Under current law, notice of the automatic extension or renewal of an electronic and life safety alarm service must be given by certified mail. This is both costly for the alarm company and can be inconvenient for the customer if they are not available to receive the certified mail. It can result in the unintentional cancellation of an alarm monitoring/servicing contract. This bill provides that if the customer makes payment on an invoice for the renewal/extension of the contract that clearly indicates that such payment of for renewal/extension, the notice provisions of Section 5-903 shall have been deemed to be satisfied.
PRIOR LEGISLATIVE HISTORY: 2009-2010: A.10043. 2011-2012: S.5201/A.4338-A - PASSED SENATE/Judiciary
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 2443 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to automatic renewal of contracts for electronic and life safety alarm services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 5-903 of the general obligations law is amended by adding a new subdivision 2-a to read as follows: 2-A. PAYMENT BY THE PERSON RECEIVING THE SERVICE OF AN INVOICE ON A CONTRACT FOR ELECTRONIC AND LIFE SAFETY ALARM SERVICES AFTER EXPIRATION OF THE TERM OF THE CONTRACT SHALL BE CONSIDERED ACKNOWLEDGMENT BY THE PERSON RECEIVING THE SERVICE THAT THE TERM OF THE CONTRACT HAS BEEN EXTENDED OR RENEWED FOR THE ORIGINAL TERM, OR ONE ADDITIONAL YEAR, WHICHEVER IS LESS, AND SUCH PAYMENT SHALL FULFILL THE NOTICE REQUIRE- MENTS OF THIS SECTION, PROVIDED THAT SUCH INVOICE CLEARLY INDICATES THAT PAYMENT CONSTITUTES AN EXTENSION OR RENEWAL OF SUCH CONTRACT AND PROVIDES THE TERMS OF SUCH EXTENSION OR RENEWAL. S 2. This act shall take effect on the ninetieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05242-01-3