1.1                          A bill for an act 
  1.2             relating to consumer protection; regulating certain 
  1.3             telephone sales calls; providing remedies; 
  1.4             appropriating money; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 325G. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [325G.53] [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.9   325G.54 to 325G.57, the terms defined in this section have the 
  1.10  meanings given them. 
  1.11     Subd. 2.  [ACCOUNT.] "Account" means a credit card, debit 
  1.12  card, checking account, savings account, loan account, telephone 
  1.13  service account, other utility account, or similar account. 
  1.14     Subd. 3.  [ACCOUNT HOLDER.] "Account holder" means a person 
  1.15  who owns an account, or a person who has authority to charge or 
  1.16  debit an account. 
  1.17     Subd. 4.  [CONSUMER.] "Consumer" means an actual or 
  1.18  prospective purchaser, lessee, or recipient of consumer goods or 
  1.19  services. 
  1.20     Subd. 5.  [CONSUMER GOODS OR SERVICES.] "Consumer goods or 
  1.21  services" means real property or tangible or intangible personal 
  1.22  property that is normally used for personal, family, or 
  1.23  household purposes, including, without limitation, property 
  1.24  intended to be attached to or installed in real property without 
  1.25  regard to whether it is so attached or installed, as well as 
  2.1   cemetery lots and timeshare estates, and services related to 
  2.2   that property. 
  2.3      Subd. 6.  [ELECTRONIC CHARGE.] "Electronic charge" means a 
  2.4   charge or debit, or attempt to charge or debit, to an account, 
  2.5   if that account can be charged without the express written 
  2.6   authorization of the account holder to each specific charge or 
  2.7   debit.  Electronic charge does not include a charge or debit, or 
  2.8   attempt to charge or debit, to a telephone service account for 
  2.9   local or long distance telecommunication services. 
  2.10     Subd. 7.  [INBOUND THIRD-PARTY TELEPHONE CALL.] "Inbound 
  2.11  third-party telephone call" means a telephone call initiated by 
  2.12  an account holder during which a telephone solicitor attempts to 
  2.13  sell consumer goods or services for another person, or during 
  2.14  which a telephone solicitor receives the transfer of a call from 
  2.15  another person. 
  2.16     Subd. 8.  [PREACQUIRED ACCOUNT TELEPHONE 
  2.17  CALL.] "Preacquired account telephone call" means an outbound 
  2.18  telephone call initiated by a telephone solicitor or an inbound 
  2.19  third-party telephone call in which the telephone solicitor 
  2.20  attempts to obtain account holder authorization to a current or 
  2.21  future electronic charge without obtaining the account number 
  2.22  from the account holder during the call. 
  2.23     Subd. 9.  [TELEPHONE SALES CALL.] "Telephone sales call" 
  2.24  means a call made by a telephone solicitor to a consumer, for 
  2.25  the purpose of soliciting a sale or rental of, or investment in, 
  2.26  any consumer goods or services, soliciting an extension of 
  2.27  credit for consumer goods or services, or obtaining information 
  2.28  that will or may be used for the direct solicitation of a sale 
  2.29  of consumer goods or services or an extension of credit for 
  2.30  those purposes. 
  2.31     Subd. 10.  [TELEPHONE SOLICITOR.] "Telephone solicitor" 
  2.32  means a natural person, firm, organization, partnership, 
  2.33  association, or corporation, doing business in this state, who 
  2.34  makes or causes to be made a telephonic sales call, including, 
  2.35  but not limited to, calls made by use of automated dialing or 
  2.36  recorded message devices. 
  3.1      Subd. 11.  [UNSOLICITED TELEPHONIC SALES 
  3.2   CALL.] "Unsolicited telephonic sales call" means a telephonic 
  3.3   sales call other than a call made:  
  3.4      (1) in response to an express request of the person called; 
  3.5      (2) primarily in connection with an existing debt or a 
  3.6   contract, payment, or performance that has not been completed at 
  3.7   the time of the call; 
  3.8      (3) to a person with whom the telephone solicitor or an 
  3.9   affiliate of the telephone solicitor has a prior or existing 
  3.10  business relationship; or 
  3.11     (4) in which the sale of goods or services is not 
  3.12  completed, and payment or authorization of payment is not 
  3.13  required, until after a face-to-face sales presentation is made 
  3.14  by the seller or a mailing explaining the offer and cancellation 
  3.15  process is received, provided that the purchase price of the 
  3.16  goods or services does not exceed $200. 
  3.17     Sec. 2.  [325G.54] [NO CALL LIST.] 
  3.18     Subdivision 1.  [PLACEMENT.] A residential, mobile, or 
  3.19  telephonic paging device telephone subscriber desiring to be 
  3.20  placed on a "no sales solicitation calls" listing indicating 
  3.21  that the subscriber does not wish to receive unsolicited 
  3.22  telephonic sales calls may notify the department of commerce and 
  3.23  be placed on that listing upon receipt by the department of a 
  3.24  $12 initial listing charge.  This listing shall be renewed by 
  3.25  the department annually for each consumer upon receipt of a 
  3.26  renewal notice and a $6 assessment. 
  3.27     Subd. 2.  [UPDATING.] The department of commerce shall 
  3.28  update its "no sales solicitation calls" listing on at least a 
  3.29  quarterly basis.  A telephone solicitor, or an agent or trade 
  3.30  association acting on behalf of the telephone solicitor, shall 
  3.31  obtain on at least a quarterly basis from the department of 
  3.32  commerce the most recent "no sales solicitation calls" listing.  
  3.33  The department may charge an annual fee not to exceed $50 to 
  3.34  provide the listing to telephone solicitors.  The commissioner 
  3.35  may fulfill the requirements of this subdivision by contracting 
  3.36  with an agent for the establishment and maintenance of the list. 
  4.1      Subd. 3.  [SALES CALLS PROHIBITED.] No telephone solicitor 
  4.2   shall make or cause to be made an unsolicited telephonic sales 
  4.3   call to a residential, mobile, or telephonic paging device 
  4.4   telephone number if the number for that telephone appears in the 
  4.5   most recent listing obtained from the department.  A telephone 
  4.6   solicitor or person who offers for sale any consumer information 
  4.7   that includes residential, mobile, or telephonic paging device 
  4.8   telephone numbers, except directory assistance and telephone 
  4.9   directories sold by telephone companies and organizations exempt 
  4.10  under section 501(c)(3) or 501(c)(6) of the Internal Revenue 
  4.11  Code, shall screen and exclude those numbers that appear on the 
  4.12  most recent "no sales solicitation calls" list obtained from the 
  4.13  department.  This section does not apply to a person who calls 
  4.14  an actual or prospective seller or lessor of real property when 
  4.15  the call is made in response to a yard sign or other form of 
  4.16  advertisement placed by the seller or lessor. 
  4.17     Subd. 4.  [PRIOR WRITTEN AUTHORIZATION REQUIRED.] No 
  4.18  telephone solicitor shall cause an electronic charge as a result 
  4.19  of a preacquired account telephone call unless the telephone 
  4.20  solicitor obtains from the account holder, prior to causing the 
  4.21  electronic charge, written authorization to the specific 
  4.22  electronic charge discussed with the account holder during the 
  4.23  call. 
  4.24     Subd. 5.  [DISCLOSURE REQUIRED.] A telephone solicitor 
  4.25  shall disclose during a preacquired account telephone call that 
  4.26  the account holder will not be charged for the merchandise until 
  4.27  the account holder has provided written authorization for the 
  4.28  specific electronic charge discussed with the account holder 
  4.29  during the call. 
  4.30     Sec. 3.  [325G.55] [INTERFERENCE WITH CALLER 
  4.31  IDENTIFICATION.] 
  4.32     No telephone solicitor who makes a telephone sales call to 
  4.33  a consumer in this state shall knowingly use any method to block 
  4.34  or otherwise circumvent the consumer's use of a caller 
  4.35  identification service. 
  4.36     Sec. 4.  [325G.56] [NO CALL LIST.] 
  5.1      Subdivision 1.  [FEDERAL LIST.] If, pursuant to United 
  5.2   States Code, title 47, section 227(c)(3), the Federal 
  5.3   Communications Commission establishes a single national list of 
  5.4   telephone numbers of subscribers who object to receiving 
  5.5   telephone sales calls, the commissioner shall include 
  5.6   subscribers who live in Minnesota and are included in the 
  5.7   national list in the list established under this section. 
  5.8      Subd. 2.  [RELEASE OF INFORMATION.] Information contained 
  5.9   in the list established under this section shall be used only 
  5.10  for the purposes of compliance with this section or in a 
  5.11  proceeding or action under section 325G.57.  The information 
  5.12  contained in the list is private data on individuals or 
  5.13  nonpublic data as defined in section 13.02. 
  5.14     Subd. 3.  [NOTICE.] Telephone companies must inform their 
  5.15  customers of the right to place their name on the "no sales 
  5.16  solicitation call list."  The notification may be made by: 
  5.17     (1) quarterly inserts in the billing statements mailed to 
  5.18  customers; or 
  5.19     (2) conspicuous publication of the notice in the consumer 
  5.20  information pages of the local telephone directories. 
  5.21     Sec. 5.  [325G.57] [VIOLATIONS; PENALTIES.] 
  5.22     (a) In enforcing sections 325G.53 to 325G.57, the 
  5.23  commissioner has all powers provided by section 45.027, 
  5.24  including but not limited to the power to impose a civil penalty 
  5.25  to a maximum of $2,000 for each solicitation that violates these 
  5.26  sections. 
  5.27     (b) A person injured by a violation of this section may 
  5.28  bring a civil action to enforce this section and recover any 
  5.29  actual damages, costs, and disbursements, including reasonable 
  5.30  attorney's fees, incurred in the civil action.  In addition to 
  5.31  the remedies provided in this section, the attorney general may 
  5.32  bring an action under section 8.31 against a person for 
  5.33  violation of sections 325G.53 to 325G.57. 
  5.34     Sec. 6.  [APPROPRIATION.] 
  5.35     $....... is appropriated for the fiscal year ending June 
  5.36  30, 2001, from the general fund to the attorney general for the 
  6.1   purposes of Minnesota Statutes, section 325G.52. 
  6.2      Sec. 7.  [EFFECTIVE DATES.] 
  6.3      Sections 1; 2, subdivisions 3 to 5; and 3 to 5 are 
  6.4   effective January 1, 2001.  Section 2, subdivisions 1 and 2, are 
  6.5   effective July 1, 2000.