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Senate Engrossed
rental-purchase property; electronic disclosures |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SENATE BILL 1271 |
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An Act
amending sections 44-6801 and 44-6810, Arizona Revised Statutes; relating to rental-purchase agreements.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-6801, Arizona Revised Statutes, is amended to read:
44-6801. Definitions
In this chapter, unless the context otherwise requires:
1. "Advertisement" means a commercial message in any medium that solicits a consumer to enter into a rental-purchase agreement.
2. "Cash price" means the price at which the lessor would have sold the property to the consumer for cash on the date of the rental-purchase agreement.
3. "Consumer" means an individual who rents personal property under a rental-purchase agreement to be used primarily for personal, family or household purposes.
4. "Consummation" means the date on which a consumer becomes contractually obligated under a rental-purchase agreement or on the date the first payment is made, whichever is earlier.
5. "Cost of rental" means the difference between the total of all periodic payments necessary to acquire ownership under the rental-purchase agreement and the cash price of the rental property that is subject to the rental-purchase agreement.
6. "Fee" means any charge, fee, cost or expense, however denominated, other than a rental payment.
7. "Lessor" means a person who that, in the ordinary course of business, regularly leases, offers to lease or arranges for the leasing of property under a rental-purchase agreement.
8. "Rental-purchase agreement" means an agreement that is for the use of personal property by an individual for personal, family or household purposes, that is for an initial period of four months or less, that is automatically renewable with each payment after the initial period and that permits allows the consumer to become the owner of the property but that does not obligate or require the consumer to continue leasing or using the property beyond the initial period.
9. "Rental-purchase property" means personal property that is owned by the lessor at the time it is physically displayed and offered for rental-purchase to the consumer and before execution of a rental-purchase agreement.
Sec. 2. Section 44-6810, Arizona Revised Statutes, is amended to read:
44-6810. Advertising
A. If an advertisement for a rental-purchase agreement refers to or states the dollar amount of any periodic payment and the right to acquire ownership of a specific item, the advertisement shall also clearly and conspicuously state the following, as applicable:
1. That the transaction advertised is a rental-purchase agreement.
2. The total number and total amount of periodic payments necessary to acquire ownership of the item.
3. That the consumer acquires no ownership rights unless the total amount necessary to acquire ownership is paid.
B. Except as provided in subsection C of this section, each item of rental-purchase property that is displayed or offered under a rental-purchase agreement shall bear a tag or card that clearly and conspicuously indicates in Arabic numerals, which are readable and understandable by visual inspection, each of the following:
1. The cash price of the item.
2. The amount of the periodic payment.
3. The total number and total amount of periodic payments necessary to acquire ownership.
4. The cost of rental.
C. If rental-purchase property is displayed or offered online and a consumer is able to enter into a rental-purchase agreement for the rental-purchase property online or remotely through electronic commerce, a lessor may electronically disclose the information described in subsection b of this section. The information must be:
1. Clearly and conspicuously indicated in Arabic numerals that are readable and understandable by visual inspection.
2. Disclosed to the lessee before any of the disclosures required by section 44-6804.
D. If a lessor offers personal property for rental-purchase and the personal property is not owned by the lessor when it is DISPLAYED or offered for rental-purchase, the lessor shall electronically disclose the information described in subsection B of this section. The information must be:
1. Clearly and conspicuously indicated in Arabic numerals that are readable and understandable by visual inspection.
2. Disclosed to the lessee before any of the disclosures are made in the rental-purchase agreement as prescribed in section 44-6804.