HB-5811, As Passed House, March 23, 2006

HOUSE BILL No. 5811

March 1, 2006, Introduced by Reps. Huizenga, Dillon, Stahl and Green and referred to the Committee on Energy and Technology.

      A bill to amend 1971 PA 227, entitled

"An act to prescribe the rights and duties of parties to home

solicitation sales; to regulate certain telephone solicitation;

to provide for the powers and duties of certain state officers

and entities; and to prescribe penalties and remedies,"

by amending section 3 (MCL 445.113), as amended by 2002 PA 612.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 3. (1) In a home solicitation sale, unless the buyer

 2  requests the seller to provide goods or services without delay in

 3  an emergency, the seller shall present to the buyer and obtain

 4  the buyer's signature to a written agreement or offer to purchase

 5  that designates as the date of the transaction the date on which

 6  the buyer actually signs.

 7        The agreement or offer to purchase shall contain a statement

 1  substantially as follows in immediate proximity to the space

 2  reserved in the agreement or offer to purchase for the signature

 3  of the buyer:

 4        "You, the buyer, may cancel this transaction at any time

 5  prior to midnight of the third business day after the date of

 6  this transaction. See the attached notice of cancellation form

 7  for an explanation of this right. Additionally, the seller is

 8  prohibited from having an independent courier service or other

 9  third party pick up your payment at your residence before the end

10  of the 3-business-day period in which you can cancel the

11  transaction."

12        (2) The seller shall attach to the copy or cause to be

13  printed on the reverse side of the written agreement or offer to

14  purchase retained by the buyer a notice of cancellation in

15  duplicate that shall appear as follows:

16                   "notice of cancellation

17       

                                  (enter date of transaction)

18                               ___________________________________

19                                             (date)

20        You may cancel this transaction, without any penalty or

21  obligation, within 3 business days from the above date.

22        If you cancel, any property traded in, any payments made by

23  you under the contract or sale, and any negotiable instrument

24  executed by you will be returned within 10 business days

25  following receipt by the seller of your cancellation notice, and

26  any security interest arising out of the transaction will be

27  canceled.

 1        If you cancel, you must make available to the seller at your

 2  residence, in substantially as good condition as when received,

 3  any goods delivered to you under this contract or sale; or you

 4  may if you wish, comply with the instructions of the seller

 5  regarding the return shipment of the goods at the seller's

 6  expense and risk.

 7        If you do make the goods available to the seller and the

 8  seller does not pick them up within 20 days of the date of your

 9  notice of cancellation, you may retain or dispose of the goods

10  without any further obligation. If you fail to make the goods

11  available to the seller or if you agree to return the goods to

12  the seller and fail to do so, then you remain liable for

13  performance of all obligations under the contract.

14        To cancel this transaction, mail or deliver a signed and

15  dated copy of this cancellation notice or any other written

16  notice, or send a telegram to (name of seller), at (address of

17  seller's place of business) not later than midnight on

18 _________________________________   

19 (date)                              

20       

I hereby cancel this transaction.      

21       

_________________________________      

22 (date)                              

23                                      _____________________________

24                                      (buyer's signature)        "

25        (3) The notices required by this section shall be in not

26  less than 10-point bold type and shall be 2 points larger than

27  the text of the contract. A written agreement or offer to

   House Bill No. 5811 as amended March 22, 2006

1  purchase and the notice of cancellation attached to the agreement

 2  or offer shall be written in the same language as that used in

 3  any oral presentation that was given to facilitate sale of the

 4  goods or services. The seller shall enter on the blanks in the

 5  notice of cancellation the date of transaction, which is the date

 6  the buyer signs the written agreement, and the date for mailing

 7  the notice of cancellation. An error in entering this information

 8  shall not diminish the buyer's rights under this act.

 9        (4) Until the seller has complied with this section, the

10  buyer may cancel the home solicitation sale by notifying the

11  seller in any manner and by any means of his or her intention to

12  cancel.

13        (5) This section does not apply to a home solicitation sale

14  where the seller engaged in a telephone solicitation of the sale

15  if sections 505 to 507 of the Michigan telecommunications act,

16  1991 PA 179, MCL 484.2505 to 484.2507, apply to the solicitation

17  or sale.

18        [(6) This section does not apply to a home solicitation sale of

19  natural gas or electricity if the seller is any of the following:

20        (a) An electric utility or gas utility that is regulated by the

21  commission and complies with any orders or tariffs issued by the

22  commission concerning home solicitations by alternative electric
    suppliers or alternative gas suppliers in making the solicitation.
          (b) An alternative gas supplier or alternative electric supplier
    licensed by the commission that complies with any applicable orders or
    tariffs issued by the commission concerning home solicitations in making
    the solicitation.]