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BILL NUMBER:S2443

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.

Text

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