ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: FICO DP 6-0-1-0 | 3rd Read 27-0-3-0

House: COM DP 10-0-0-0 | 3rd Read 56-1-3-0

SB 1271: rental-purchase property; electronic disclosures

Sponsor: Senator Mesnard, LD 13

Transmitted

Overview

Provides for certain information to be electronically disclosed for property that is displayed or offered online for rental-purchase.

History

A rental-purchase agreement is an agreement allowing an individual to use personal property for personal, family or household purposes, for an initial period of four months or less, that is automatically renewable with each payment after the initial period and that 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 (A.R.S. § 44-6801).

Prior to the consummation of the rental-purchase agreement, the lessor must disclose specified information to the consumer (A.R.S. §§ 44-6803 and 44-6804).

Advertisements for rental-purchase agreements that specify an amount for the periodic payment and include the right to acquire ownership of the item must disclose: 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; and 3) that the consumer acquires no ownership rights unless the total amount necessary to acquire ownership is paid.

Items that are displayed or offered under a rental-purchase agreement must bear a tag that clearly and conspicuously indicates in Arabic numerals that are readable and understandable by visual inspection: 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; and 4) the cost of rental (A.R.S. § 44-6810).

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProvisions

1.   Stipulates, for rental-purchase property that is displayed or offered online and a consumer is able to enter into a rental-purchase agreement for the property online or remotely through electronic commerce, a lessor may electronically disclose the following information:

a)   the cash price of the item;

b)   the amount of the periodic payment;

c) the total number and total amount of periodic payments necessary to acquire ownership; and

d)   the cost of the rental. (Sec. 2)

2.   Stipulates, for offering personal property for rental-purchase that is not owned by the lessor when it is displayed or offered for rental-purchase, the lessor must electronically disclose the following information:

a)   the cash price of the item;

b)   the amount of the periodic payment;

c) the total number and total amount of periodic payments necessary to acquire ownership; and

d)   the cost of the rental. (Sec. 2)

3.   Requires the electronically disclosed information to be:

a)   clearly and conspicuously indicated in Arabic numerals that are legible by visual inspection; and

b)   disclosed to the lessee before any of the statutorily prescribed general disclosures. (Sec. 2)

4.   Clarifies the items that are required to bear a tag indicating specified information are relating to items of rental-purchase property. (Sec. 2)

5.   Defines rental-purchase property as personal property owned by the lessor when physically displayed and offered for rental-purchase to the consumer and before the rental-purchase agreement is executed. (Sec 1)

6.   Makes technical changes. (Sec 1)

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10.                    SB 1271

11.  Initials PB           Page 0 Transmitted

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