A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.

Plain English Breakdown

The official source does not provide specific penalties or enforcement details for non-compliance.

Commercial Property Services Contracts

This law sets rules for commercial property service contracts made after June 30, 2026, limiting automatic renewal clauses to one year and requiring at least a three-month notice period before contract termination.

What This Bill Does

• Defines a 'commercial property services contract' as one entered into by a service provider and a business owner for commercial property-related services after June 30, 2026.
• Limits automatic renewal clauses in these contracts to no more than 12 months.
• Requires that any automatic renewal clause must specify a time frame during which the business owner may give notice of intent to terminate the contract or subsequent renewals, starting at least 120 days and ending not later than 30 days before the expiration date.
• Makes it illegal for service providers to include automatic renewal terms that do not follow these rules.

Who It Names or Affects

• Business owners who have commercial property services contracts with service providers after June 30, 2026.
• Service providers offering such contracts.

Terms To Know

Commercial Property Services Contract

A contract between a business owner and a service provider for commercial property-related services entered into after June 30, 2026.

Automatic Renewal Clause

A part of a contract that automatically extends the agreement unless the business owner ends it before a certain date.

Limits and Unknowns

• The law only applies to contracts made after June 30, 2026.
• It does not specify what happens if a service provider breaks these rules.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.
Commercial property services contracts.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.

Commercial property services contracts.

Defines a "commercial property services contract" as a contract that: (1) is initially entered into by a service provider and a property owner after June 30, 2026; and (2) provides for the provision of services and any personal property related to providing, or necessary to provide, those services; with respect to the property owner's commercial property. Provides that any automatic renewal clause included in a commercial property services contract: (1) may not provide for a renewal term that is longer than 12 months; and (2) must specify a time frame during which the property owner may give notice to the service provider of the property owner's intent to terminate the contract, or any subsequent renewal of the contract, at the end of the contract term or renewal term. Specifies that the time frame during which the property owner may give notice of the property owner's intent to terminate the contract or a renewal of the contract must: (1) begin at least 120 days before; and (2) end not later than 30 days before; the expiration of the contract term or renewal term. Provides that an automatic renewal clause that does not conform to the bill's requirements is void and may not be enforced. Provides that a service provider that does not comply with the bill's requirements commits a deceptive act that is actionable by the attorney general and the property owner under the statute concerning deceptive consumer sales.