New Law Requires Written Notice for Automatic Contract Renewals

PLAINFIELD—State Representative Mark Batinick (R-Plainfield) sponsored legislation that will provide more disclosure to school districts on auto-renewing contracts.  The legislation, SB1630, was signed by the Governor on Friday August 16th.  

The Automatic Contract Renewal Act requires most companies to clearly and conspicuously disclose automatic renewal provisions in contracts.  Current law excludes school districts from such provisions, so they do not have to be notified of the automatic renewal.  SB1630 changes current law to provide additional disclosure to school districts when engaging in contracts.

As the sponsor of the SB1630 in the House, Representative Batinick believes that school districts should be given a higher level of transparency in their contracting.

“The automatic renewal process should be clearly disclosed,” said Batinick.  “Holding our school districts to a higher standard in the contract process increases transparency which is a benefit for school districts, Illinois taxpayers and consumers.”

The bill passed unanimously in the House of Representatives during spring legislative session.  With the Governor’s signature, the bill is effect immediately.