1.1                          A bill for an act 
  1.2             relating to consumer protection; regulating certain 
  1.3             telephonic sales calls; requiring the registration of 
  1.4             telephone solicitors; providing remedies; 
  1.5             appropriating money; amending Minnesota Statutes 2000, 
  1.6             section 13.712, by adding a subdivision; proposing 
  1.7             coding for new law in Minnesota Statutes, chapter 325G.
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 13.712, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 3.  [NO CALL LIST.] Access to and use of information 
  1.12  in the no call list maintained by the commissioner of commerce 
  1.13  is governed by section 325G.59.  
  1.14     Sec. 2.  [325G.53] [DEFINITIONS.] 
  1.15     Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.16  325G.54 to 325G.591, the terms defined in this section have the 
  1.17  meanings given them. 
  1.18     Subd. 2.  [ACCOUNT.] "Account" means a credit card, debit 
  1.19  card, checking account, savings account, loan account, telephone 
  1.20  service account, other utility account, or similar account. 
  1.21     Subd. 3.  [ACCOUNT HOLDER.] "Account holder" means a person 
  1.22  who owns an account or a person who has authority to charge or 
  1.23  debit an account. 
  1.24     Subd. 4.  [CONSUMER.] "Consumer" means an actual or 
  1.25  prospective purchaser, lessee, or recipient of consumer 
  1.26  merchandise. 
  2.1      Subd. 5.  [CONSUMER MERCHANDISE.] "Consumer merchandise" 
  2.2   means merchandise that is normally used for personal, family, or 
  2.3   household purposes.  For purposes of this subdivision, 
  2.4   "merchandise" has the meaning given in section 325F.68, 
  2.5   subdivision 2.  
  2.6      Subd. 6.  [ELECTRONIC CHARGE.] "Electronic charge" means a 
  2.7   charge or debit, or attempt to charge or debit, to an account, 
  2.8   if that account can be charged without the express written 
  2.9   authorization of the account holder to each specific charge or 
  2.10  debit.  The term does not include a charge or debit, or attempt 
  2.11  to charge or debit, to a telephone service account for local or 
  2.12  long distance telecommunication services. 
  2.13     Subd. 7.  [INBOUND THIRD-PARTY TELEPHONE CALL.] "Inbound 
  2.14  third-party telephone call" means a telephone call initiated by 
  2.15  an account holder during which a telephone solicitor attempts to 
  2.16  sell consumer merchandise for another person, or during which a 
  2.17  telephone solicitor receives the transfer of a call from another 
  2.18  person. 
  2.19     Subd. 8.  [PREACQUIRED ACCOUNT TELEPHONE 
  2.20  CALL.] "Preacquired account telephone call" means an outbound 
  2.21  telephone call initiated by a telephone solicitor or an inbound 
  2.22  third-party telephone call in which the telephone solicitor 
  2.23  attempts to obtain account holder authorization to a current or 
  2.24  future electronic charge without obtaining the account number 
  2.25  from the account holder during the call.  
  2.26     Subd. 9.  [TELEPHONIC SALES CALL.] "Telephonic sales call" 
  2.27  means a call made by a telephone solicitor to a consumer, for 
  2.28  the purpose of soliciting a sale or rental of, or investment in, 
  2.29  any consumer merchandise, soliciting an extension of credit for 
  2.30  consumer merchandise, obtaining information that will or may be 
  2.31  used for the direct solicitation of a sale of consumer 
  2.32  merchandise or an extension of credit for those purposes, or 
  2.33  soliciting a contribution for a political party as defined in 
  2.34  section 200.02, subdivision 6, or a charitable organization as 
  2.35  defined in section 309.50, subdivision 4. 
  2.36     Subd. 10.  [TELEPHONE SOLICITOR.] "Telephone solicitor" 
  3.1   means a person who regularly makes or causes to be made a 
  3.2   telephonic sales call, including, but not limited to, calls made 
  3.3   by use of automated dialing or recorded message devices. 
  3.4      Subd. 11.  [UNSOLICITED TELEPHONIC SALES 
  3.5   CALL.] "Unsolicited telephonic sales call" means a telephonic 
  3.6   sales call other than a call made: 
  3.7      (1) in response to an express request of the person called; 
  3.8      (2) primarily in connection with an existing debt or a 
  3.9   contract, payment, or performance that has not been completed at 
  3.10  the time of the call; 
  3.11     (3) to a person with whom the telephone solicitor or an 
  3.12  affiliate of the telephone solicitor has a prior or existing 
  3.13  business relationship; 
  3.14     (4) in which the sale of consumer merchandise is not 
  3.15  completed, and payment or authorization of payment is not 
  3.16  required, until after a face-to-face sales presentation is made 
  3.17  by the seller or a mailing explaining the offer and cancellation 
  3.18  process is received, provided that the purchase price of the 
  3.19  consumer merchandise is not reasonably expected to exceed $200; 
  3.20     (5) to an actual or prospective seller or lessor of real 
  3.21  property when the call is made in response to a yard sign or 
  3.22  other form of advertisement placed by the seller or lessor; or 
  3.23     (6) by a nonprofit organization or political party to its 
  3.24  own members or to individuals who have contributed time or money 
  3.25  to the organization or party within the past five years. 
  3.26     Sec. 3.  [325G.54] [REGISTRATION OF SOLICITORS REQUIRED.] 
  3.27     No solicitor shall make an unsolicited telephone sales call 
  3.28  to any consumer residing within the state of Minnesota unless 
  3.29  the solicitor has registered with the commissioner of commerce 
  3.30  as required in section 325G.55.  A solicitor working as an 
  3.31  employee of another solicitor is not required to register if the 
  3.32  employer is registered. 
  3.33     Sec. 4.  [325G.55] [REGISTRATION.] 
  3.34     Subdivision 1.  [CONTENTS.] In order to register as a 
  3.35  telephone solicitor, a person shall submit to the commissioner 
  3.36  of commerce: 
  4.1      (1) the name of the mailing address of the solicitor; 
  4.2      (2) a copy of the no call policy used by the solicitor to 
  4.3   comply with the federal Telephone Consumer Protection Act, or a 
  4.4   statement that the solicitor is exempt from the no call policy 
  4.5   requirements of that act and an explanation of the basis for the 
  4.6   exemption; 
  4.7      (3) a telephone number that can be used by consumers to 
  4.8   contact the solicitor in the event of a dispute arising from a 
  4.9   solicitation, which must be a toll-free number unless the 
  4.10  solicitor calls only telephone numbers located within the same 
  4.11  local area as the solicitor; 
  4.12     (4) an agreement that the solicitor may be served with 
  4.13  process in this state in a dispute arising from a solicitation 
  4.14  and an irrevocable appointment of the commissioner of commerce 
  4.15  as its agent to accept service of process in any proceeding in 
  4.16  the manner provided in section 45.028 and an address to which 
  4.17  process by may be forwarded; and 
  4.18     (5) a registration fee of $150.  
  4.19     Subd. 2.  [RENEWAL.] A registration is valid for a period 
  4.20  of one year from the date it is received by the commissioner of 
  4.21  commerce.  A renewal must include all information required for 
  4.22  an initial registration, as well as a renewal fee of $75. 
  4.23     Subd. 3.  [FEES.] Registration fees collected pursuant to 
  4.24  this section must be credited to a special account in the state 
  4.25  treasury and are appropriated to the commissioner of commerce to 
  4.26  administer this section.  Any excess funds not needed to 
  4.27  administer the program must be transferred to the attorney 
  4.28  general for the consumer advocacy network under section 
  4.29  325G.52.  Fees collected under this section are not subject to 
  4.30  section 16A.1285.  
  4.31     Sec. 5.  [325G.56] [NO CALL LIST.] 
  4.32     Subdivision 1.  [PLACEMENT.] A residential telephone 
  4.33  subscriber desiring to be placed on a "no sales solicitation 
  4.34  calls" listing indicating that the subscriber does not wish to 
  4.35  receive unsolicited telephonic sales calls may notify the 
  4.36  department of commerce to be placed on the listing.  The listing 
  5.1   may include the individual's residential telephone numbers and 
  5.2   mobile or telephonic paging device numbers that the individual 
  5.3   uses primarily for personal or household purposes.  This listing 
  5.4   must be renewed by the department annually for each subscriber 
  5.5   upon receipt of a renewal notice. 
  5.6      Subd. 2.  [UPDATING.] The department of commerce shall 
  5.7   update its "no sales solicitation calls" listing on at least a 
  5.8   quarterly basis.  A telephone solicitor, or an agent or trade 
  5.9   association acting on behalf of the telephone solicitor, shall 
  5.10  obtain on at least a quarterly basis from the department of 
  5.11  commerce, the most recent "no sales solicitation calls" listing. 
  5.12  The department may charge an annual fee not to exceed $50 to 
  5.13  provide the listing to telephone solicitors.  The department 
  5.14  shall provide the listing to trade associations acting on behalf 
  5.15  of telephone solicitors free of charge.  Money received by the 
  5.16  department under this subdivision must be deposited in the state 
  5.17  treasury and credited to an account in the special revenue 
  5.18  fund.  Money in this account is annually appropriated to the 
  5.19  commissioner for purposes of administering this section.  The 
  5.20  commissioner may fulfill the requirements of this subdivision by 
  5.21  contracting with an agent for the establishment and maintenance 
  5.22  of the list. 
  5.23     Subd. 3.  [SALES CALLS PROHIBITED.] No telephone solicitor 
  5.24  shall make or cause to be made an unsolicited telephonic sales 
  5.25  call to a residential, mobile, or telephonic paging device 
  5.26  telephone number if the number for that telephone appears in the 
  5.27  most recent listing obtained from the department.  A telephone 
  5.28  solicitor or person who offers for sale any consumer information 
  5.29  that includes residential, mobile, or telephonic paging device 
  5.30  telephone numbers, except directory assistance and telephone 
  5.31  directories sold by telephone companies and organizations exempt 
  5.32  under section 501(c)(3) or 501(c)(6) of the Internal Revenue 
  5.33  Code, shall screen and exclude those numbers that appear on the 
  5.34  most recent "no sales solicitation calls" list obtained from the 
  5.35  department. 
  5.36     Subd. 4.  [NATIONAL NO CALL LIST OPTION.] (a) The 
  6.1   department or its agent shall notify every telephone subscriber 
  6.2   inquiring about the no call list of the availability of the 
  6.3   telephone preference service operated by the direct marketing 
  6.4   association and the procedures for being listed on the telephone 
  6.5   preference service no call list or other comparable national no 
  6.6   call lists. 
  6.7      (b) A telephone solicitor that subscribes to and complies 
  6.8   with the telephone preference service or other comparable 
  6.9   national no call lists is not subject to this section. 
  6.10     Sec. 6.  [325G.57] [PREACQUIRED ACCOUNT TELEPHONE CALLS.] 
  6.11     Subdivision 1.  [PRIOR AUTHORIZATION REQUIRED.] A telephone 
  6.12  solicitor may not cause an electronic charge as a result of a 
  6.13  preacquired account telephone call until the telephone solicitor 
  6.14  has obtained an authorization for the specific electronic charge 
  6.15  discussed during the call.  The authorization may be obtained 
  6.16  through: 
  6.17     (1) a written authorization from the account holder; or 
  6.18     (2) an oral or written statement from the account holder 
  6.19  disclosing the last four digits of the account number, if the 
  6.20  telephone solicitor has reasonable procedures to verify that the 
  6.21  last four digits provided by the account holder match the last 
  6.22  four digits of the account to be charged. 
  6.23     An authorization under clause (1) or (2) is not required if 
  6.24  the telephone solicitor obtains the entire account number from 
  6.25  the account holder during the telephone call. 
  6.26     Subd. 2.  [DISCLOSURE REQUIRED.] During a preacquired 
  6.27  account telephone call, the telephone solicitor shall disclose 
  6.28  to the account holder that the account will not be charged for 
  6.29  the merchandise until the account holder has provided the 
  6.30  required authorization. 
  6.31     Sec. 7.  [325G.58] [INTERFERENCE WITH CALLER 
  6.32  IDENTIFICATION.] 
  6.33     No telephone solicitor who makes a telephonic sales call to 
  6.34  a consumer in this state shall knowingly use any method to block 
  6.35  the consumer's use of a caller identification service. 
  6.36     Sec. 8.  [325G.59] [FEDERAL LIST; RELEASE OF INFORMATION; 
  7.1   NOTICE OF RIGHTS.] 
  7.2      Subdivision 1.  [FEDERAL LIST.] If, pursuant to United 
  7.3   States Code, title 47, section 227(c)(3), the Federal 
  7.4   Communications Commission establishes a single national list of 
  7.5   telephone numbers of subscribers who object to receiving 
  7.6   telephonic sales calls, the commissioner shall include 
  7.7   subscribers who live in Minnesota and are included in the 
  7.8   national list in the list established under section 325G.56. 
  7.9      Subd. 2.  [RELEASE OF INFORMATION.] Information contained 
  7.10  in the list established under section 325G.56 must be used only 
  7.11  for the purposes of compliance with section 325G.56 or in a 
  7.12  proceeding or action under section 325G.591.  The information 
  7.13  contained in the list is private data on individuals or 
  7.14  nonpublic data as defined in section 13.02. 
  7.15     Subd. 3.  [NOTICE.] Telephone companies shall inform their 
  7.16  customers of the right to place their name on the "no sales 
  7.17  solicitation call list."  The notification may be made by: 
  7.18     (1) quarterly inserts in the billing statements mailed to 
  7.19  customers; or 
  7.20     (2) conspicuous publication of the notice in the consumer 
  7.21  information pages of the local telephone directories. 
  7.22     Sec. 9.  [325G.591] [VIOLATIONS; PENALTIES.] 
  7.23     (a) In enforcing sections 325G.53 to 325G.591, the 
  7.24  commissioner of commerce has all powers provided by section 
  7.25  45.027. 
  7.26     (b) A violation of sections 325G.53 to 325G.591 is a 
  7.27  deceptive practice under section 325F.69, subdivision 1.  In 
  7.28  addition to the remedies provided in this section, the attorney 
  7.29  general may bring an action under section 8.31 against a person 
  7.30  for violation of sections 325G.53 to 325G.591. 
  7.31     Sec. 10.  [EFFECTIVE DATES.] 
  7.32     Sections 1, 2, and 5 to 9 are effective January 1, 2003.