HOUSE BILL 885

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Keith J. Gardner

AN ACT

RELATING TO CELLULAR TELEPHONE SERVICE CONTRACTS; REQUIRING CELLULAR TELEPHONE SERVICE COMPANIES TO PERMIT THIRTY-DAY GRACE PERIODS AND GRADUATED PAYMENT OF EARLY TERMINATION FEES FOR CANCELLATIONS AFTER THIRTY DAYS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Cellular Telephone Services Act is enacted to read:

     "[NEW MATERIAL] CELLULAR TELEPHONE SERVICE CONTRACTS--TERMINATION FEE GRACE PERIOD--GRADUATED PAYMENT.--A cellular service contract between a cellular service company and an individual customer for a two-year service period that contains provisions requiring the payment of a fee for termination before the expiration of the two-year period shall:

          A. permit the customer thirty days from the date of signing the contract in which to rescind the contract for any reason, free of charge, provided that the customer return any equipment the cellular service company provided to the customer in reasonably the same condition as the equipment was provided to the customer;

          B. permit the customer to pay a sum equal to one-half of the early termination fee if the customer cancels the contract within thirty-one to three hundred sixty-five days of the date of signing the contract;

          C. permit the customer to pay a sum equal to one-quarter of the early termination fee if the customer cancels the contract within three hundred sixty-six days to four hundred fifty-six days after signing the contract; and

          D. permit the customer to cancel the contract without paying any termination fee if the customer cancels the contract four hundred fifty-seven days or more after signing the contract."

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