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hb405_01_RH
As Reported by the House Insurance Committee
136th
General Assembly
Regular
Session
H. B. No. 405
2025-2026
Representatives Lorenz, Daniels
A
BILL
To
amend section 1345.21 of the Revised Code
to
exclude consumer goods service contracts from home solicitation sales
regulations.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 1345.21 of the Revised Code be amended to read as follows:
Sec.
1345.21.
As
used in sections 1345.21 to 1345.28 of the Revised Code:
(A)
"Home solicitation sale" means a sale of consumer goods or
services in which the seller or a person acting for the seller
engages in a personal solicitation of the sale at a residence of the
buyer, including solicitations in response to or following an
invitation by the buyer, and the buyer's agreement or offer to
purchase is there given to the seller or a person acting for the
seller, or in which the buyer's agreement or offer to purchase is
made at a place other than the seller's place of business. It does
not include a transaction or transactions in which:
(1)
The total purchase price to be paid by the buyer, whether under
single or multiple contracts, is less than twenty-five dollars;
(2)
The transaction was conducted and consummated entirely by mail or by
telephone if initiated by the buyer, and without any other contact
between the seller or the seller's representative prior to the
delivery of goods or performance of the service;
(3)
The final agreement is made pursuant to prior negotiations in the
course of a visit by the buyer to a retail business establishment
having a fixed permanent location where the goods are exhibited or
the services are offered for sale on a continuing basis;
(4)
The buyer initiates the contact between the parties for the purpose
of negotiating a purchase and the seller has a business establishment
at a fixed location in this state where the goods or services
involved in the transaction are regularly offered or exhibited for
sale.
Advertisements
by such a seller in newspapers, magazines, catalogues, radio, or
television do not constitute the seller initiation of the contact.
(5)
The buyer initiates the contact between the parties, the goods or
services are needed to meet a bona fide immediate personal emergency
of the buyer which will jeopardize the welfare, health, or safety of
natural persons, or endanger property which the buyer owns or for
which the buyer is responsible, and the buyer furnishes the seller
with a separate, dated, and signed statement in the buyer's
handwriting describing the situation requiring immediate remedy and
expressly acknowledging and waiving the right to cancel the sale
within three business days;
(6)
The buyer has initiated the contact between the parties and
specifically requested the seller to visit the buyer's home for the
purpose of repairing or performing maintenance upon the buyer's
personal property. If, in the course of such a visit, the seller
sells the buyer additional services or goods other than replacement
parts necessarily used in performing the maintenance or in making the
repairs, the sale of those additional goods or services does not fall
within this exclusion.
(7)
The buyer is accorded the right of rescission by the "Consumer
Credit Protection Act," (1968) 82 Stat. 152, 15 U.S.C. 1635, or
regulations adopted pursuant to it.
(B)
"Sale" includes a lease or rental.
(C)
"Seller" includes a lessor or anyone offering goods for
rent.
(D)
"Buyer" includes a lessee or anyone who gives a
consideration for the privilege of using goods.
(E)
"Consumer goods or services" means goods or services
purchased, leased, or rented primarily for personal, family, or
household purposes, including courses or instruction or training
regardless of the purpose for which they are taken.
(F)
"Consumer goods or services" does not include goods or
services pertaining to any of the following:
(1)
Sales or rentals of real property by a real estate broker or
salesperson, or by a foreign real estate dealer or salesperson, who
is licensed by the Ohio real estate commission under Chapter 4735. of
the Revised Code;
(2)
The sale of securities or commodities by a broker-dealer registered
with the securities and exchange commission;
(3)
The sale of securities or commodities by a securities dealer or
salesperson licensed by the division of securities under Chapter
1707. of the Revised Code;
(4)
The sale of insurance by a person licensed by the superintendent of
insurance;
(5)
Goods sold or services provided by automobile dealers and
salespersons licensed by the registrar of motor vehicles under
Chapter 4517. of the Revised Code;
(6)
The sale of property at an auction by an auctioneer licensed by the
department of agriculture under Chapter 4707. of the Revised Code
;
(7)
The sale of consumer goods service contracts or related goods or
services subject to section 3905.423 of the Revised Code
.
(G)
"Purchase price" means the total cumulative price of the
consumer goods or services, including all interest and service
charges.
(H)
"Place of business" means the main office, or a permanent
branch office or permanent local address of a seller.
(I)
"Business day" means any calendar day except Sunday, or the
following business holidays: New Year's day, Martin Luther King day,
Presidents' day, Memorial day, Juneteenth day, Independence day,
Labor day, Columbus day, Veterans day, Thanksgiving day, and
Christmas day.
Section
2.
That
existing section 1345.21 of the Revised Code is hereby repealed.