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Committee modernizes rent‑to‑own law to allow digital disclosures and third‑party retail arrangements
Summary
The Senate committee approved amendments updating the Consumer Rental Purchase Agreement Act to allow digital notices, to clarify licensing for third‑party retail locations and to modernize fee and enforcement provisions; the measure passed unanimously in committee.
Senator Bonner presented amendments to the Consumer Rental Purchase Agreement Act to update the statute for online transactions, digital disclosures and arrangements where third‑party retailers offer rent‑to‑own options handled by an out‑of‑state merchant. The committee approved the amendments and advanced the bill.
The changes clarify that required pricing and ownership disclosures may be provided electronically and that transactions initiated at third‑party retail locations (for example, a big‑box store facilitating an online rental‑purchase agreement) are to be treated as online transactions. The bill also streamlines licensing so that a merchant may hold a single statewide license rather than a separate license for each physical location, and it sets application and renewal dates and fees for online, third‑party and brick‑and‑mortar operations.
Supporters argued the amendments modernize a statute last updated in 1996 and will provide consumer protections in the digital marketplace while allowing small local retailers to offer an additional purchasing option. Dave Pickard of Upbound Group and Cindy Delancey for Progressive Holdings described how third‑party arrangements let a customer complete an online rental purchase at a retail location and leave with the item while the rental merchant purchases the item from the retailer.
Banking Commissioner Jeremiah Bishop, the act’s administrator, described implementation details: the proposal moves license renewals to Dec. 31 to align with other entities, requires merchants to report third‑party retail locations for oversight and keeps the division’s ability to suspend operations at a single location for violations. The committee adopted the amendment package and approved the bill by roll call vote (5 ayes recorded in committee).
The committee asked the sponsor and banking division to provide drafting language to replace the generic term "administrator" with the appropriate official title and to coordinate any conforming changes through LSO. No objections were recorded in committee testimony; the bill advances with committee amendments.
