Consumer Protection - As enacted, prohibits a provider of certain services from billing a consumer for an extra billing cycle if the consumer terminates the contract or agreement for services within the first half of a b, the official text

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PUBLIC CHAPTER NO. 154

                                                     SENATE BILL NO. 41

                                                         By Haile, Yarbro

                                             Substituted for: House Bill No. 141

                                    By Hale, Hardaway, Parkinson, Bricken, Powell

AN ACT to amend Tennessee Code Annotated, Title 7; Title 47 and Title 65, relative to consumer
          billing.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Title 47, Chapter 18, Part 1, is amended by adding
the following as a new section:

                    (a) As used in this section:

                              (1) "Billing cycle" means the defined period of time between billing statements
                    or invoices on which a consumer's payment amount for services is based under an
                    agreement or contract for covered services;

                              (2) "Covered services" means telephone, cable television, internet, broadband
                    services, or any combination of such services; and

                              (3) "Service provider" means an entity, whether a for-profit, nonprofit, or
                    government entity, that provides covered services to consumers for a fee.

                    (b) On and after July 1, 2025, if a consumer terminates an agreement or contract for
          covered services pursuant to the terms of the agreement or contract, then:

                              (1) If the date of termination occurs within the first half (1/2) of a billing cycle,
                    then the service provider may only bill the consumer for the remainder of that billing
                    cycle and shall not bill the consumer for any subsequent billing cycle; and

                              (2) If the date of termination occurs within the second half (1/2) of a billing cycle,
                    then the service provider may bill the consumer for the remainder of that billing cycle
                    and up to one (1) subseque.nt t;>illing cycle.

                    (c) This section does not prohibit a service provider from including in a service
          agreement or contract a term or period of minimum duration.

                                                                                                                                    ."

                    (d) A violation of this section constitutes a violation of the Tennessee Consumer
          Protection Act of 1977, compiled in this part. A violation of this section constitutes an unfair or
          deceptive act or practice affecting trade or commerce and is subject to the penalties and
          remedies as provided in this part.

          SECTION 2. Tennessee Code Annotated, Section 47-18-104(b), is amended by adding the
following new subdivision:

                    ( ) A violation of SECTION 1.

          SECTION 3. This·act takes effect July 1, 2025, the public welfare requiring it.
         SENATE BILL NO. 41

PASSED:  March 28, 2025

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                             SPEAKER OF THE SENATE

                         CAMER()Jtli!EXTON,SPEAKER

                         HOUSE OF REPRESENTATIVES

___fJpr_; f{~ APPROVED this  f
         day of                              2025

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                         BILL LEE, GOVERNOR