Consumer Rental Purchase Agreement Act-amendments.

24LSO-0241
2024
STATE OF WYOMING
24LSO-0241
Numbered
2.0

HOUSE BILL NO. HB0154

Consumer Rental Purchase Agreement Act-amendments.

Sponsored by: Representative(s) Burkhart, Brown, Henderson, Larsen, L, Larson, JT, Niemiec and Northrup and Senator(s) Case

A BILL

for

AN ACT relating to trade and commerce; amending the Wyoming Consumer Rental-Purchase Agreement Act as specified; amending licensing requirements; providing for digital agreements; providing definitions; providing limitations; allowing for the inspection of records; requiring rulemaking; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 40
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19
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102(a)(xi)(intro), by creating new paragraphs (xii) through (xiv) and by renumbering (xii) as (xv), 40
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103, 40
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106 by creating a new subsection (g), 40
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107(a)(xi) and (xiii), 40
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109(a), 40
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111(a)(intro) and (ii)(intro), 40
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113 by creating a new subsection (f), 40
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114(a), (e) through (g), (h)(intro) and (j), 40
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115 by creating a new subsection (h), 40
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117(a) through (c) and by creating new subsections (d) through (f) and 40
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118 by creating new subsections (g) through (j) are amended to read:

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102.

Definitions.

(a)

As used in this act:

(xi)

"Rental
‑
purchase agreement" means an agreement
, which may be in digital form,
between a consumer and merchant for the use of property by the consumer primarily for personal, family or household purposes:

(xii)

"Independent third
‑
party retailer location" means a physical retail location open to consumers in Wyoming or an online presence, in each case operated by a person who is not a merchant but where a merchant regularly offers or displays property for use under rental
‑
purchase agreements;

(xiii)

"Place of business" means a merchant's physical retail location open to consumers in Wyoming or a merchant's online presence, in each case where the merchant regularly offers or displays the merchant's property for use under rental
‑
purchase agreements. Place of business does not include an independent third
‑
party retailer location;

(xiv)

"Rental
‑
purchase property" means property displayed or offered primarily for rental
‑
purchase pursuant to a rental
‑
purchase agreement;

(xii)
(xv)

"This act" means W.S. 40
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101 through 40
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120.

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103.

Notices.

Notices required by this act shall be given personally or sent by first class or registered mail to the known residential address of the consumer.

Notice, if
last
sent
by mail, is given when deposited in a mailbox properly addressed and postage prepaid.
Notice may also be given upon delivery of the communication to the consumer by email or other electronic means if the consumer provides written consent to receive notice by email or other electronic means in response to a clear and conspicuous request for consent.

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106.

General requirements of rental
‑
purchase agreements.

(g)

A merchant may offer or display property for use under rental
‑
purchase agreements via a website, mobile application, electronic application or other digital or physical means made available by an independent third
‑
party retailer or by the merchant.

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107.

Disclosures.

(a)

For each rental
‑
purchase agreement, the merchant shall disclose in the agreement the following items as applicable:

(xi)

A statement that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the property in good repair, reasonable wear and tear excepted,
in accordance with the terms of the rental
‑
purchase agreement,
along with any past due rental payments upon expiration of any rental period;

(xiii)

The following notice printed or typed in a size equal to or greater than ten (10) point bold type
or, when disclosed in a digital format, outlined with a noticeable box in a type and size equal to or larger than any surrounding language or otherwise disclosed in a clear and conspicuous manner
:

NOTICE TO CONSUMER

Do not sign this agreement before you read it or if it contains blank spaces. You are entitled to a copy of the agreement you sign.

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109.

Default; notice of default and right to cure.

(a)

In any rental
‑
purchase agreement, after a consumer is in default for three (3) business days or more and does not voluntarily surrender possession of the rented property, a merchant may give the consumer the notice provided in this section.

Notice may be given to the consumer under this section by the merchant personally delivering the notice to the consumer or by mailing the notice to the consumer's last known residential address.
Notice may also be given by delivering the communication to the consumer by email or other electronic means if the consumer provides written consent to receive notice by email or other electronic means in response to a clear and conspicuous request for consent.

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111.

Liability damage waivers; fees.

(a)

A consumer and merchant may contract for a liability damage waiver
in physical or digital format
.

The selling or offering for sale of a liability damage waiver pursuant to this act shall be subject to the following prohibitions and requirements:

(ii)

The liability damage waiver contract shall include a statement of the fee for the liability damage waiver and shall display the following notice printed or typed in a size equal to or greater than ten (10) point bold type
or, when disclosed in a digital format, outlined with a noticeable box in a type size equal to or larger than any surrounding language or otherwise disclosed in a clear and conspicuous manner
:

NOTICE: THE PURCHASE OF THIS LIABILITY DAMAGE WAIVER IS NOT MANDATORY AND MAY BE DECLINED.

THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A LIABILITY DAMAGE WAIVER TO COVER YOUR RESPONSIBILITY FOR DAMAGE TO THE PROPERTY.

BEFORE DECIDING WHETHER TO PURCHASE THE LIABILITY DAMAGE WAIVER, YOU MAY WISH TO DETERMINE WHETHER YOUR HOMEOWNER'S OR CASUALTY INSURANCE, IF ANY, AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL PROPERTY AND THE AMOUNT OF THE DEDUCTIBLE UNDER YOUR OWN INSURANCE COVERAGE.

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113.

Advertising.

(f)

For rental
‑
purchase property displayed or offered to a consumer by means of an online rental
‑
purchase agreement or via electronic commerce or other digital transaction means, whether at a merchant's place of business or an independent third
‑
party retailer location, a merchant may disclose the information required by this section, including the information under subsection (d) of this section, in a digital format. A merchant's disclosure in a digital format shall constitute the tag or card under subsection (d) of this section, provided the disclosure is made before disclosing the information required under W.S. 40
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107, includes all information required by subsection (d) of this section and is clear and conspicuous. A disclosure in digital format under this section shall include an outline of the disclosure with a noticeable box in a type size equal to or larger than any surrounding language or otherwise be presented in a clear and conspicuous manner.

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114.

License required; application for license; fee; qualifications.

(a)

Any person acting as a merchant, as defined by W.S. 40
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102(a)(viii), in this state shall be licensed
with a single statewide license
to conduct such business under this section.

(e)

The applicant shall be notified when the application is approved.

Within twenty (20) days after notification, the applicant shall pay an initial license fee
not to exceed five hundred dollars ($500.00), as set by rule of the administrator
that shall include only the following:

(i)

An amount not to exceed five hundred dollars ($500.00) for each place of business which is a physical location, as set by rule of the administrator;

(ii)

An amount not to exceed one thousand dollars ($1,000.00) if the applicant displays or offers rental purchase property through an independent third
‑
party retailer location regardless of the number of independent third
‑
party retailer locations, as set by rule of the administrator; and

(iii)

An amount not to exceed five hundred dollars ($500.00) if the applicant has a place of business that is an online presence, and the applicant is not subject to the amounts in paragraphs (i) or (ii) of this subsection
.

(f)

Each
office or
place of business
, including online presence, and independent third
‑
party retailer location as of the time of application
shall be
licensed separately
disclosed in the application to the administrator, provided that the independent third
‑
party retailer locations may be deemed confidential business information and not subject to public disclosure
.

(g)

Each license shall state the
primary
address
of the office
from which the business is to be conducted and the name of the licensee.

The license shall be prominently displayed at
the
each
place of business
named in the license
of the licensee that is a physical location open to consumers
.
If the licensee has no place of business that is a physical location open to consumers, the license number shall be clearly displayed at the online presence of the licensee.
The license shall not be transferable or assignable.

(h)

If a licensee wishes to move
his office
the primary address listed on the license
to another location, the licensee shall:

(j)

Each license issued under this section shall expire on
July 1
December 31
.

The license shall be renewed annually not less than thirty (30) days before the expiration date
.

The

by submitting a request for renewal on a form designated by the administrator. The licensee shall pay a
renewal fee
for each license
that
shall
not exceed five hundred dollars ($500.00), as set by rule of the administrator
only include the following:

(i)

An amount not to exceed five hundred dollars ($500.00) for each place of business which is a physical location, as set by rule of the administrator;

(ii)

An amount not to exceed one thousand dollars ($1,000.00) if the applicant displays or offers rental purchase property through an independent third
‑
party retailer location regardless of the number of independent third
‑
party retailer locations, as set by rule of the administrator; and

(iii)

An amount not to exceed five hundred dollars ($500.00) if the applicant has a place of business that is an online presence, and the applicant is not subject to the amounts in paragraphs (i) or (ii) of this subsection
.

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115.

Revocation or suspension of license.

(h)

In lieu of a revocation or suspension of a license as provided in this section, the administrator may order a licensee to cease acting as a merchant at any place of business or independent third
‑
party retailer location within Wyoming.

Any order under this subsection is subject to the same laws and regulations applicable to revocation or suspension of a license.

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117.

Examination and investigation.

(a)

Upon complaint
T
he administrator may
examine and copy the records of a
conduct examinations of licensees under this act at intervals he deems necessary, but no more frequently than one (1) time per year per
licensee
,
.

The investigation may be made for the purposes of discovering

to determine whether
violations of this act
or securing information lawfully required.

For these purposes he shall have free and reasonable access during normal office hours to the offices, places of business and records of the licensee.

Each licensee shall pay to the administrator an amount assessed by the administrator to cover the direct and indirect cost of an investigation under this subsection
are occurring and the frequency and seriousness of any violations
.

(b)

For the purposes
In addition to the examinations provided for in subsection (a)
of this section,
if
the administrator
has probable cause to believe that a licensee has engaged in a violation of this act, he may make an investigation to determine if the alleged violation has been committed, and, to the extent necessary for this purpose,
may administer oaths or affirmations
.
, and

U
pon his own motion or upon request of any party
, he
may subpoena witnesses, compel their attendance, adduce evidence and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition and location of any books, documents or other tangible things and the identity and location of person having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of admissible evidence.

(c)

Upon failure without lawful excuse to obey a subpoena or to give testimony and upon
If a person being investigated under this section maintains records outside this state, the person at his option shall either make them available at a location within this state convenient to the administrator, which may include an electronic portal or other online method for making records available, or pay the
reasonable
notice to all persons affected thereby,
and necessary expenses for the administrator or his representative to examine them at the place out-of-state where they are maintained. For purposes of this section,
the administrator
may apply to the district court for an order compelling compliance
shall have free and reasonable access during normal business hours to the offices, place of business and records of the person being examined or investigated
.
Upon reasonable notice to the person being inspected and subject to maintaining the confidentiality of the inspection, the administrator may designate auditors or other representatives, including comparable officials of the state in which the records are located, to inspect them on his behalf.

(d)

Upon failure without reasonable excuse to obey a subpoena or to give testimony and upon reasonable notice to all persons affected thereby, the administrator may apply to the district court for an order compelling compliance.

(e)

The administrator shall not make public the name or identity of a person whose acts or conduct he investigates pursuant to this section, or the facts or records disclosed in the investigation without a lawful court order. This subsection shall not apply to disclosures in actions or enforcement proceedings pursuant to this act.

(f)

Each licensee or person subject to examination or investigation under this act shall pay to the administrator an amount assessed by the administrator to cover the reasonable direct and indirect costs of examinations or investigations conducted pursuant to this section, unless otherwise provided by rule of the administrator. The total amount assessed by the administrator shall not exceed the reasonable direct and indirect costs incurred by the administrator in carrying out the examination or investigation.

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118.

Powers and functions of the administrator; enforcement; penalties.

(g)

The administrator may order the refund of any unlawful fees or unlawful periodic payments made to a merchant in an amount necessary to refund the consumer and may impose an administrative fine in an amount not less than one hundred dollars ($100.00) nor more than two thousand five hundred dollars ($2,500.00) for each violation of this act, not to exceed five thousand dollars ($5,000.00) in a calendar year for all violations of a merchant.

(h)

Where there are multiple consumers to a rental
‑
purchase agreement, there shall be not more than one (1) administrative fine under this act for a violation.

(j)

The administrator may enter into a confidential consent order at any time with a person to resolve a matter arising under this act. A consent order shall be signed by the person to whom it is issued or by the person's authorized representative and shall indicate agreement with the terms contained in the order. A consent order may provide that the order does not constitute an admission by a person of any violation of this act, any rule adopted under this act or an order issued under this act.

Section 2.

A merchant with any office or place of business licensed under W.S. 40
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114(a) as of July 1, 2024 of this act shall be considered licensed statewide with the license expiring on December 31, 2024.

Section 3.

The state banking commissioner shall promulgate any rules necessary to implement this act.

Section 4
.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2024
.

(b)

Sections 3 and 4 of this act are

effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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HB0154