1.1                          A bill for an act 
  1.2             relating to consumer protection; regulating certain 
  1.3             telephone sales calls; providing for the registration 
  1.4             of telephone solicitors; providing telephone 
  1.5             solicitation educational efforts; providing remedies; 
  1.6             appropriating money; amending Minnesota Statutes 2000, 
  1.7             section 13.712, by adding a subdivision; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 325G.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 13.712, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 3.  [NO CALL LIST.] Access to and use of information 
  1.13  in the no call list maintained by the commissioner of commerce 
  1.14  is governed by section 325G.59.  
  1.15     Sec. 2.  [325G.53] [DEFINITIONS.] 
  1.16     Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.17  325G.54 to 325G.591, the terms defined in this section have the 
  1.18  meanings given them. 
  1.19     Subd. 2.  [CONSUMER MERCHANDISE.] "Consumer merchandise" 
  1.20  means merchandise that is normally used for personal, family, or 
  1.21  household purposes.  For purposes of this subdivision, 
  1.22  "merchandise" has the meaning given in section 325F.68, 
  1.23  subdivision 2. 
  1.24     Subd. 3.  [TELEPHONIC SALES CALL.] "Telephonic sales call" 
  1.25  means a call made by a telephone solicitor to a consumer, for 
  1.26  the purpose of soliciting a sale or rental of, or investment in, 
  1.27  any consumer merchandise, soliciting an extension of credit for 
  2.1   consumer merchandise, obtaining information that will or may be 
  2.2   used for the direct solicitation of a sale of consumer 
  2.3   merchandise, or an extension of credit for those purposes. 
  2.4      Subd. 4.  [TELEPHONE SOLICITOR.] "Telephone solicitor" 
  2.5   means a person who regularly makes or causes to be made a 
  2.6   telephonic sales call, including, but not limited to, calls made 
  2.7   by use of automated dialing or recorded message devices. 
  2.8      Subd. 5.  [UNSOLICITED TELEPHONIC SALES CALL.] "Unsolicited 
  2.9   telephonic sales call" means a telephonic sales call other than 
  2.10  a call made: 
  2.11     (1) in response to an express request of the person called; 
  2.12     (2) primarily in connection with an existing debt or a 
  2.13  contract, payment, or performance that has not been completed at 
  2.14  the time of the call; 
  2.15     (3) to a person with whom the telephone solicitor or an 
  2.16  affiliate of the telephone solicitor has a prior or existing 
  2.17  business relationship; 
  2.18     (4) to an actual or prospective seller or lessor of real 
  2.19  property when the call is made in response to a yard sign or 
  2.20  other form of advertisement placed by the seller or lessor; 
  2.21     (5) by a nonprofit organization or political party to its 
  2.22  own members or to individuals who have contributed time or money 
  2.23  to the organization or party within the past five years; 
  2.24     (6) by Minnesota state colleges and universities and the 
  2.25  University of Minnesota; or 
  2.26     (7) to solicit the expression of ideas, opinions, or votes. 
  2.27     Sec. 3.  [325G.54] [REGISTRATION OF SOLICITORS REQUIRED.] 
  2.28     A telephone solicitor shall not make an unsolicited 
  2.29  telephonic sales call to any consumer residing within the state 
  2.30  unless the solicitor has registered with the commissioner of 
  2.31  commerce as required in section 325G.55.  A telephone solicitor 
  2.32  working as an employee of another solicitor is not required to 
  2.33  register if the employer is registered. 
  2.34     Sec. 4.  [325G.55] [REGISTRATION.] 
  2.35     Subdivision 1.  [CONTENTS.] In order to register as a 
  2.36  telephone solicitor, a person shall submit to the commissioner 
  3.1   of commerce: 
  3.2      (1) the name and the mailing address of the solicitor; 
  3.3      (2) a toll-free telephone number that can be used by 
  3.4   consumers to contact the solicitor in the event of a dispute 
  3.5   arising from a solicitation; 
  3.6      (3) an agreement that the solicitor may be served with 
  3.7   process in this state in a dispute arising from a solicitation 
  3.8   and an irrevocable appointment of the commissioner of commerce 
  3.9   as its agent to accept service of process in any proceeding in 
  3.10  the manner provided in section 45.028 and an address to which 
  3.11  process may be forwarded; and 
  3.12     (4) a registration fee that is based on the cost of 
  3.13  establishing the do-not-call list. 
  3.14     Subd. 2.  [RENEWAL.] A registration is valid for a period 
  3.15  of one year from the date it is received by the commissioner of 
  3.16  commerce.  A renewal must include all information required for 
  3.17  an initial registration, as well as a renewal fee that is based 
  3.18  on the cost of maintaining the do-not-call list. 
  3.19     Subd. 3.  [FEES.] Registration fees collected pursuant to 
  3.20  this section must be deposited into the state treasury and 
  3.21  credited to a special account and are appropriated annually to 
  3.22  the commissioner of commerce to administer this section.  Fees 
  3.23  collected under this section are not subject to section 16A.1285.
  3.24     Sec. 5.  [325G.56] [NO CALL LIST.] 
  3.25     Subdivision 1.  [PLACEMENT.] A residential telephone 
  3.26  subscriber desiring to be placed on a "no sales solicitation 
  3.27  calls" listing indicating that the subscriber does not wish to 
  3.28  receive unsolicited telephonic sales calls may notify the 
  3.29  department of commerce to be placed on the listing.  The listing 
  3.30  may include the individual's residential telephone numbers, 
  3.31  cellular or mobile telephone numbers, or telephonic paging 
  3.32  device numbers that the individual uses primarily for personal 
  3.33  or household purposes.  This listing must be renewed by the 
  3.34  department annually for each subscriber upon receipt of a 
  3.35  renewal notice from the subscriber. 
  3.36     Subd. 2.  [UPDATING.] The department of commerce shall 
  4.1   update its "no sales solicitation calls" listing on at least a 
  4.2   quarterly basis.  A telephone solicitor, or an agent or trade 
  4.3   association acting on behalf of the telephone solicitor, shall 
  4.4   obtain on at least a quarterly basis from the department of 
  4.5   commerce, the most recent "no sales solicitation calls" listing. 
  4.6   The department may charge an annual fee not to exceed $50 to 
  4.7   provide the listing to telephone solicitors.  The department 
  4.8   shall provide the listing to trade associations acting on behalf 
  4.9   of telephone solicitors free of charge.  Money received by the 
  4.10  department under this subdivision must be deposited in the state 
  4.11  treasury and credited to a special account.  Money in this 
  4.12  account is appropriated annually to the commissioner to 
  4.13  administer this section.  The commissioner may contract with an 
  4.14  agent to carry out any of the commissioner's responsibilities of 
  4.15  this act. 
  4.16     Subd. 3.  [SALES CALLS PROHIBITED.] No telephone solicitor 
  4.17  shall make or cause to be made an unsolicited telephonic sales 
  4.18  call to a residential, mobile, or telephonic paging device 
  4.19  telephone number if the number for that telephone appears in the 
  4.20  most recent listing obtained from the department.  A telephone 
  4.21  solicitor or person who offers for sale any consumer information 
  4.22  that includes residential, mobile, or telephonic paging device 
  4.23  telephone numbers, except directory assistance and telephone 
  4.24  directories sold by telephone companies and organizations exempt 
  4.25  under section 501(c)(3) or 501(c)(6) of the Internal Revenue 
  4.26  Code, shall screen and exclude those numbers that appear on the 
  4.27  most recent "no sales solicitation calls" list obtained from the 
  4.28  department. 
  4.29     Sec. 6.  [325G.58] [INTERFERENCE WITH CALLER 
  4.30  IDENTIFICATION.] 
  4.31     No telephone solicitor who makes a telephonic sales call to 
  4.32  a consumer in this state shall knowingly use any method to block 
  4.33  the consumer's use of a caller identification service. 
  4.34     Sec. 7.  [325G.59] [FEDERAL LIST; RELEASE OF INFORMATION; 
  4.35  NOTICE OF RIGHTS.] 
  4.36     Subdivision 1.  [FEDERAL LIST.] If, pursuant to United 
  5.1   States Code, title 47, section 227(c)(3), the Federal 
  5.2   Communications Commission establishes a single national list of 
  5.3   telephone numbers of subscribers who object to receiving 
  5.4   telephonic sales calls, the commissioner shall include 
  5.5   subscribers who live in Minnesota and are included in the 
  5.6   national list in the list established under section 325G.56. 
  5.7      Subd. 2.  [RELEASE OF INFORMATION.] Information contained 
  5.8   in the list established under section 325G.56 must be used only 
  5.9   for the purposes of compliance with section 325G.56 or in a 
  5.10  proceeding or action under section 325G.591.  The information 
  5.11  contained in the list is private data on individuals or 
  5.12  nonpublic data as defined in section 13.02. 
  5.13     Subd. 3.  [NOTICE.] Telephone companies shall inform their 
  5.14  customers of the right to place their name on the "no sales 
  5.15  solicitation call list."  The notification may be made by: 
  5.16     (1) quarterly inserts in the billing statements mailed to 
  5.17  customers; or 
  5.18     (2) conspicuous publication of the notice in the consumer 
  5.19  information pages of the local telephone directories. 
  5.20     Sec. 8.  [325G.591] [VIOLATIONS; PENALTIES.] 
  5.21     (a) In enforcing sections 325G.53 to 325G.591, the 
  5.22  commissioner of commerce has all powers provided by section 
  5.23  45.027. 
  5.24     (b) A violation of sections 325G.53 to 325G.591 is a 
  5.25  deceptive practice under section 325F.69, subdivision 1.  In 
  5.26  addition to the remedies provided in this section, the attorney 
  5.27  general may bring an action under section 8.31 against a person 
  5.28  for violation of sections 325G.53 to 325G.591. 
  5.29     Sec. 9.  [TELEPHONE SOLICITATION EDUCATIONAL EFFORTS.] 
  5.30     (a) The commissioner of commerce shall, by July 1, 2002, 
  5.31  consult with representatives of state and local government, 
  5.32  senior citizen organizations, telemarketing companies, and other 
  5.33  businesses to compile a list of educational tools to help 
  5.34  consumers understand their options with regard to telephone 
  5.35  solicitations. 
  5.36     (b) The department shall provide information on its Web 
  6.1   site for residential telephone subscribers and otherwise 
  6.2   promote, where feasible, information regarding national 
  6.3   do-not-call lists and other consumer options pertaining to 
  6.4   telephone solicitations. 
  6.5      (c) The commissioner shall make a good-faith effort to 
  6.6   notify those telephone solicitors affected by this act. 
  6.7      Sec. 10.  [EFFECTIVE DATES.] 
  6.8      Sections 1 to 8 are effective January 1, 2003.  Section 9 
  6.9   is effective the day following final enactment.