§ 16a-21 — Heating fuel dealers. Sale of heating fuel. Renting or leasing of heating fuel tank. Contract requirements. Surcharge prohibited. Exceptions. Consumer right to cancel. Regulations. Penalties.

Connecticut § 16a-21

• Jurisdiction: Connecticut
• Title 16a: Planning and Energy Policy
• Ch. 296: Operation of Fuel Supply Business

Text

(a)(1)(A) No heating fuel dealer shall sell heating fuel or rent or lease a heating fuel tank without a written contract that contains all terms and conditions for delivery of such heating fuel and the amount of fees, charges, surcharges or penalties allowed under this section and assessed to the consumer under such contract. No such contract shall contain any fees, charges, surcharges or penalties, except for those allowed pursuant to subsections (e), (f) and (g) of this section and for tank rental fees or liquidated damages for violation of the contract terms. No contract for the delivery of heating fuel under this subsection shall include a provision for liquidated damages for a consumer breach of such contract where the liquidated damages exceed the actual damages to the heating fuel dealer caused by such breach. No written contract period for heating fuel shall be for a term longer than thirty-six months. Each heating fuel dealer shall offer consumers the option to enter into a bona fide commercially reasonable contract for a term of eighteen months. A consumer and a heating fuel dealer may agree to enter into a bona fide commercially reasonable contract for a term of less than eighteen months. Longer fuel contract term lengths may be permitted for underground tank consumers, provided the fuel term agreements are concurrent with tank lease agreements as specified in subdivision (2) of this subsection. No provision in a contract that restricts a consumer's ability to utilize another propane fuel provider shall be valid or enforceable unless the consumer has initialed a clear and conspicuous statement in all capital letters in at least twelve-point boldface type indicating that the consumer is aware of such restriction. (B) A heating fuel dealer who leases or lends, or who leased or lent, a heating fuel tank and associated equipment to a consumer shall remove such tank and associated equipment from the consumer's residential premises not later than thirty days after the delivery of heating fuel service is discontinued by the consumer. (2) If a tank is being leased or lent to a consumer, a contract for the tank rental or loan shall indicate in writing a description of the tank, initial installation charges, if any, the amount and timing of rental or loan payments, the manner in which the lessor will credit the lessee for any unused heating fuel and terms by which a lessee may terminate the contract. A lessor may enter into a separate contract with the lessee for additional services including, but not limited to, maintenance, repair and warranty of equipment, provided such contract complies with the provisions of this section. No contract for tanks installed above ground shall be for a term longer than thirty-six months. Each consumer shall be given the option to enter into a bona fide commercially reasonable contract for a term of eighteen months. A lessee and a lessor may agree to enter into a bona fide commercially reasonable contract for a term of less than eighteen months. No contract for a tank installed underground shall exceed five years. (3) (A) If a tank installed underground is provided to a consumer, a contract for such tank shall contain a clause providing the consumer with the option to purchase the tank and associated equipment at a price not exceeding a commercially reasonable price at any time during the length of the contract. The purchase price for the tank shall be disclosed in the contract and shall not increase before the contract expires. Any waiver of liability or transfer of warranty shall be stated in the contract. No contract for such tank shall be valid or enforceable unless the consumer has initialed a clear and conspicuous statement in all capital letters in at least twelve-point boldface type, indicating the consumer is aware of such option to purchase the tank and associated equipment. For existing contracts, whether oral or written, where the purchase option or purchase price is silent or unspecified, a contract addendum including the purchase option and a commercially reasonable price shall be mailed or delivered to the consumer not later than September 1, 2013. Such contract addendum shall contain a clause providing the lessee with the option of purchasing the tank and associated equipment at any time prior to September 1, 2018. Upon purchase of the tank and any associated equipment, any existing contract obligations pursuant to subdivisions (1) and (2) of this subsection shall terminate immediately, except for guaranteed price plans pursuant to chapter 296a. (B) If a tank installed above ground is provided to a consumer, a contract for such tank shall contain a clause providing the consumer with the option to purchase a new tank and associated equipment at a price not exceeding a commercially reasonable price at any time during the length of the contract. The purchase price for the tank, associated equipment and associated installation charges shall be disclosed in the contract and not increase before the contract expires. Any waiver of liability or transfer of warranty shall be stated in the contract. No contract for such tank shall be valid or enforceable unless the consumer has initialed a clear and conspicuous statement in all capital letters in at least twelve-point boldface type, indicating that the consumer is aware of such option to purchase a new tank and associated equipment. Upon purchase of the tank and any associated equipment, any existing contract obligations pursuant to subdivisions (1) and (2) of this subsection shall terminate immediately, except for guaranteed price plans pursuant to chapter 296a. (4) A contract required by this section shall be in writing and shall comply with the plain language requirements of section 42-152 , provided any fee, charge, surcharge or penalty disclosed in such contract shall be in twelve-point, boldface type of uniform font. Any fee, charge, surcharge or penalty shall not increase prior to the expiration of the contract. (5) A written contract for the sale of heating fuel or lease of equipment that calls for an automatic renewal of the contract is not valid unless such contract complies with the provisions of this section, section 42-126b and chapter 296a. (6) The requirement that contracts be in writing pursuant to this section shall not apply to any heating fuel delivery initiated by a consumer, payable on delivery or billed to the consumer with no future delivery commitment, where no fee, charge, surcharge or penalty is assessed, except for any fee, charge or surcharge authorized under subsection (g) of this section. (7) The requirement that contracts be in writing pursuant to this section shall not apply to agreements that are solely automatic delivery where: (A) The consumer may terminate automatic delivery at any time and where no fee, charge, surcharge or penalty is assessed for termination; and (B) the dealer providing automatic delivery provides written notice to the consumer the dealer serves under automatic delivery of the method for the termination of automatic delivery, as specified in this subdivision. Such written notice shall be included with each invoice for products subject to automatic delivery. Notice from a consumer to a dealer requesting termination of automatic delivery may be delivered to the dealer by (i) a written request by the consumer delivered by certified mail to the dealer, (ii) electronic mail sent from the consumer to a valid electronic mail address of the dealer, or (iii) electronic facsimile by the consumer to be sent to a valid facsimile number at the dealer's place of business. The consumer shall give notice at least one day prior to the day upon which the consumer desires to terminate automatic delivery. The consumer shall not be responsible for payment of deliveries made by the dealer after such notice has been given, except for deliveries made within one business day after such notice has been given and which were scheduled for delivery by the dealer prior to such notice being given, provided consideration shall be given for weekend and holiday closings or extenuating circumstances not under the control of the dealer. (b) If a consumer complaint is being mediated or investigated by the commissioner, the heating fuel dealer, if it owns the tank and has exclusive fill requirements, may not deny the consumer deliveries of heating fuel, or fuel for cooking or power generation, because of the existence of the mediation or investigation, provided the heating fuel dealer remains the exclusive supplier of such fuel and the consumer pays cash for such fuel upon delivery. (c) The requirement that contracts be in writing as set forth in this section may be satisfied pursuant to the provisions of: (1) The Connecticut Uniform Electronic Transactions Act, sections 1-266 to 1-286 , inclusive; (2) sections 42a-7-101 to 42a-7-106 , inclusive; or (3) the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq. Except as provided in subsection (d) of this section, verbal telephonic communications shall not satisfy the writing requirement of this section. (d) The requirement that contracts be in writing pursuant to this section and section 16a-23n may be satisfied telephonically, only if a heating fuel dealer: (1) Has provided to the consumer prior to any telephonic communication all terms and conditions of the contract, in writing, except for the contract duration, the unit price and the maximum number of units covered by the contract; (2) Employs an interactive voice response system or similar technology that provides the consumer with the contract duration, the unit price and the maximum number of units covered by the contract; (3) Retains for a period of not less than one year from the date of the expiration of the contract, in a readily retrievable format, a recording of the consumer affirmation to each such term and condition; (4) Sends the consumer a letter confirming the consumer's agreement to such terms and conditions, with a written copy of the terms and conditions agreed to; and (5) Retains a copy of each such letter. (e) No heating fuel dealer shall deliver heating fuel without placing the unit price, clearly indicated as such, the total number of gallons or units sold and the amount of any fee, charge or surcharge allowed pursuant to this section in a conspicuous place on the delivery ticket given to the consumer or an agent of the consumer at the time of delivery. No heating fuel dealer shall bill or otherwise attempt to collect from any consumer of heating fuel an amount that exceeds the unit price multiplied by the total number of gallons or units stated on the delivery ticket, plus the amount of any fee, charge or surcharge allowed pursuant to this section and stated on the delivery ticket. (f) No heating fuel dealer shall assess a fee, charge or surcharge on any delivery, including, but not limited to, any delivery under an automatic delivery agreement, initiated by the dealer to a consumer. (g) No heating fuel dealer shall assess a fee, charge or surcharge on the price per gallon or total delivery charge for any heating fuel delivery initiated by a consumer, except when: (1) The heating fuel delivery is less than one hundred gallons; (2) The heating fuel delivery is made outside the normal service area of the dealer; (3) The heating fuel delivery is made outside the normal business hours of the dealer; or (4) The dealer incurs extraordinary labor costs for the heating fuel delivery. (h) Except for the underground tank addendum required pursuant to subdivision (3) of subsection (a) of this section, the provisions of this section shall not apply to existing customers of a heating fuel dealer on July 1, 2013, who have valid written contracts on said date. The provisions of this section shall apply as of the renewal or expiration dates of such contracts. (i) A consumer shall have the right to cancel the consumer's relationship with a heating fuel dealer without penalty for an above-ground tank that is lent or leased if such relationship is based upon either an oral agreement or a course of dealing. No tank removal charge or forfeiture of unused heating fuel shall be permitted if a consumer cancels such relationship. The consumer shall be entitled to a refund of all unused heating fuel at the same price at which the consumer purchased such heating fuel. (j) The Commissioner of Consumer Protection may adopt regulations pursuant to chapter 54 to: (1) Establish a consumer bill of rights regarding home heating dealers; (2) require heating fuel dealers to provide consumers with such consumer bill of rights prior to entering into a contract; and (3) permit home heating dealers to post such consumer bill of rights on their Internet web sites or record and play back such consumer bill of rights when consumers call the offices of such heating fuel dealers. (k) A violation of the provisions of this section shall be an unfair trade practice under subsection (a) of section 42-110b . (l) (1) Except as provided in subdivision (2) of this subsection, any heating fuel dealer who violates any provision of this section shall be fined not more than five hundred dollars for the first offense, not more than seven hundred fifty dollars for a second offense occurring not more than three years after a prior offense and not more than one thousand five hundred dollars for a third or subsequent offense occurring not more than three years after a prior offense. (2) Any heating fuel dealer who violates any provision of subparagraph (B) of subdivision (1) of subsection (a) of this section may be fined not more than two hundred fifty dollars per violation in accordance with the provisions of section 51-164n .

Legislative History

(P.A. 74-212, S. 1, 2; P.A. 79-256; P.A. 81-330, S. 3, 13; P.A. 90-304, S. 5; June Sp. Sess. P.A. 01-9, S. 14, 131; P.A. 12-76, S. 2; P.A. 14-51, S. 1; Dec. Sp. Sess. P.A. 15-1, S. 47; P.A. 16-69, S. 1; P.A. 22-104, S. 39; P.A. 23-99, S. 2.) History: P.A. 79-256 removed reference to “number two” fuel oil and replaced “bill” with “statement of charges and delivery ticket” in Subsec. (a); P.A. 81-330 required in Subsec. (a) that delivery ticket contain the total number of units sold and amount of delivery surcharge in addition to unit price and added provision for computation of charges; P.A. 90-304 added provision requiring a seller to provide the secretary of the office of policy and management with a notice of any change in price of fuel oil or propane gas; June Sp. Sess. P.A. 01-9 amended Subsec. (a) by deleting provision requiring seller to provide the Secretary of the Office of Policy and Management with notice of any change in price of fuel oil or propane gas and making a technical change for the purpose of gender neutrality, effective July 1, 2001; P.A. 12-76 replaced former Subsec. (a) re heating oil or propane gas sales and billing requirements with new Subsec. (a) re heating fuel and heating fuel tank written contract requirements, added new Subsec. (b) re consumer complaint being mediated or investigated by commissioner, added Subsec. (c) re satisfaction of written contract requirement, added Subsec. (d) re satisfaction telephonically, added Subsec. (e) re delivery ticket requirements, added Subsec. (f) re fee, charge or surcharge prohibition for automatic delivery initiated by dealer, added Subsec. (g) re fee, charge or surcharge prohibition for delivery initiated by consumer, subject to exceptions, added Subsec. (h) re existing customers having valid written contracts on July 1, 2013, added Subsec. (i) re consumer right to cancel relationship re above-ground tank, added Subsec. (j) permitting Commissioner of Consumer Protection to adopt regulations, added Subsec. (k) re unfair trade practice violation and redesignated existing Subsec. (b) as Subsec. (l) and amended same by increasing fine for first offense from $100 to $500, adding second offense fine of $750 and third or subsequent offense fine of $1,500, effective July 1, 2013; P.A. 14-51 amended Subsec. (g)(1) by substituting “less” for “not more” than 100 gallons, effective July 1, 2014; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (a) by adding provision re contract for rent or lease of propane fuel tank in Subdiv. (1) and, in Subdiv. (3), designating existing provisions as Subpara. (A) and adding Subpara. (B) re tank installed above ground, effective December 29, 2015; P.A. 16-69 amended Subsec. (a) by replacing provision re informing consumer of restrictions on ability to utilize another propane fuel provider with provision re consumer to initial clear and conspicuous statement re same in Subdiv. (1), adding provisions re purchase of tank and associated equipment at commercially reasonable price, deleting provisions re purchase of tank and associated equipment not later than 5 years after commencement of contract and adding provision re exception for guaranteed price plans in Subdiv. (3)(A) and (B), deleting provision re contract addendum in Subdiv. (3)(B), and making technical and conforming changes, effective July 1, 2016; P.A. 22-104 amended Subsec. (b) by adding “or fuel for cooking or power generation” and deleting “from October first to March thirty-first, inclusive”, and made technical and conforming changes, effective May 24, 2022; P.A. 23-99 amended Subsec. (a)(1) by designating existing provisions as Subpara. (A) and adding Subpara. (B) re removal of heating fuel tank and associated equipment, amended Subsec. (l) by designating existing provisions as Subdiv. (1), adding reference to Subdiv. (2) in Subdiv. (1) and adding Subdiv. (2) re penalty for violation of Subsec. (a)(1)(B), and made technical and conforming changes in Subsecs. (a), (c), (i) and (j), effective June 29, 2023.