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Senate committee advances bill to curb automatic renewals for small-business service contracts

2316288 · February 13, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Senate Bill 127 (LC 550462) cleared the Senate Regulated Industries and Utilities Committee on Feb. 14, 2025, after the panel approved an amendment that sets the acteffective date to July 1, 2026.

Senate Bill 127 (LC 550462) cleared the Senate Regulated Industries and Utilities Committee on Feb. 14, 2025, after the panel approved an amendment that sets the acteffective date to July 1, 2026.

The bill targets automatic-renewal provisions in service contracts for small businesses (the bill defines a small business for this chapter as 200 employees or fewer). It would require vendors to “clearly and conspicuously” disclose any automatic-renewal provision in a contract or contract offer. For contracts that renew on a 12-month cycle, vendors must provide…

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