March 26, 2013
ENGROSSED
SENATE BILL No. 237
_____
DIGEST OF SB 237
(Updated March 25, 2013 11:59 am - DI 69)
Citations Affected: IC 24-7.
Synopsis: Rental purchase agreements. Allows a lessor, in connection
with a rental purchase agreement, to contract for and receive a fee for
rental payments made by telephone if certain conditions are met.
Provides that certain fees and charges relating to rental purchase
agreements are subject to change under the provisions for adjustment
of dollar amounts. Allows a lessee who fails to make timely rental
payments to reinstate the original rental purchase agreement without
losing any rights or options previously acquired under the rental
purchase agreement if: (1) after failing to make a timely rental
payment, the lessee surrenders the property to the lessor not later than
seven days after the date the lessor requests the property be
surrendered; and (2) not more than 120 days elapse after the date the
lessee surrenders the property. (Current law states that the lessee has
to surrender the property promptly and that not more than 60 days
elapse after the date the lessee surrenders the property.)
Effective: July 1, 2013.
Holdman
, Steele
(HOUSE SPONSORS _ BURTON, MOED)
January 7, 2013, read first time and referred to Committee on Financial Institutions.
February 18, 2013, amended, reported favorably _ Do Pass.
February 21, 2013, read second time, ordered engrossed.
February 22, 2013, engrossed.
February 25, 2013, read third time, passed. Yeas 50, nays 0.
HOUSE ACTION
March 12, 2013, read first time and referred to Committee on Judiciary.
March 26, 2013, amended, reported _ Do Pass.
March 26, 2013
First Regular Session 118th General Assembly (2013)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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ENGROSSED
SENATE BILL No. 237
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 24-7-5-12; (13)ES0237.1.1. -->
SECTION 1. IC 24-7-5-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 12. (a) A lessor may contract for and receive a fee for
accepting rental payments by telephone in connection with a rental
purchase agreement, if all of the following conditions are met:
(1) The fee is assessed only upon request by the lessee for the
underlying payment by telephone service.
(2) The payment by telephone service is not established in
advance, under the rental purchase agreement or otherwise,
as the expected method for making rental payments under
such rental purchase agreement.
(3) The fee does not exceed two dollars and fifty cents ($2.50).
(4) The lessee retains the right to make rental payments by
payment methods in connection with which no additional fee
would be assessed or incurred (including in-person payments
and payments by mail) as a result of such alternative payment
methods.
(5) The fee is contracted for and disclosed by the lessor in the
rental purchase agreement.
(6) The lessor posts a sign at each store location disclosing to
existing and prospective lessees:
(A) the amount of the fee;
(B) lessee's right and option to make rental payments by
alternative payment methods and not be assessed or incur
an additional fee; and
(C) the alternative payment methods offered by the lessor
in connection with which no additional fee would be
assessed or incurred.
(7) The lessor's books and records provide an audit trail
sufficient to allow the department and its examiners to
confirm the lessee's compliance with the conditions listed in
subdivisions (1) through (6).
(b) A fee may not be charged under this section unless there is
interaction between a live employee or representative of the lessor
and the lessee.
SOURCE: IC 24-7-5-13; (13)ES0237.1.2. -->
SECTION 2. IC 24-7-5-13 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 13. (a) The dollar amounts of the fees and charges in
sections 1, 4, 5, 6, 11, and 12 of this chapter are subject to change
pursuant to subsection (b).
(b) The dollar amounts in this chapter subject to change, as
provided in subsection (a), are subject to change under the
provisions for adjustment of dollar amounts in IC 24-4.5-1-106.
However, notwithstanding IC 24-4.5-1-106(1), the Reference Base
Index to be used under this subsection is the Index for October
2012.
SOURCE: IC 24-7-6-1; (13)ES0237.1.3. -->
SECTION 3. IC 24-7-6-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 1. A lessee who fails to make timely
rental payments has the right to reinstate the original rental purchase
agreement without losing any rights or options previously acquired
under the rental purchase agreement if:
(1) subsequent to having failed to make a timely rental payment,
the lessee
promptly surrenders the property to the lessor,
if
requested by the lessor; not later than seven (7) days after the
date the lessor requests the property be surrendered; and
(2) not more than
sixty (60) one hundred twenty (120) days
elapse after
the date the lessee
returns surrenders the property.