1.1                          A bill for an act
  1.2             relating to consumer protection; regulating telephone 
  1.3             sales calls; requiring telephone solicitors to 
  1.4             register with the secretary of state; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 325F. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [325F.701] [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.9   325F.701 to 325F.707, the terms defined in this section have the 
  1.10  meanings given them. 
  1.11     Subd. 2.  [TELEPHONE SALES CALL.] "Telephone sales call" 
  1.12  means a call made by a telephone solicitor to a consumer, for 
  1.13  the purpose of soliciting a sale or rental of, or investment in, 
  1.14  any consumer goods or services, soliciting an extension of 
  1.15  credit for consumer goods or services, or obtaining information 
  1.16  that will or may be used for the direct solicitation of a sale 
  1.17  of consumer goods or services or an extension of credit for 
  1.18  those purposes. 
  1.19     Subd. 3.  [CONSUMER GOODS OR SERVICES.] "Consumer goods or 
  1.20  services" means real property or tangible or intangible personal 
  1.21  property that is normally used for personal, family, or 
  1.22  household purposes, including, without limitation, property 
  1.23  intended to be attached to or installed in real property without 
  1.24  regard to whether it is so attached or installed, as well as 
  1.25  cemetery lots and timeshare estates, and services related to 
  2.1   that property. 
  2.2      Subd. 4.  [UNSOLICITED TELEPHONE SALES CALL.] "Unsolicited 
  2.3   telephone sales call" means a telephone sales call other than a 
  2.4   call made: 
  2.5      (1) in response to an express request of the person called; 
  2.6      (2) primarily in connection with an existing debt or a 
  2.7   contract, payment, or performance that has not been completed at 
  2.8   the time of the call; 
  2.9      (3) to a person with whom the telephone solicitor or an 
  2.10  affiliate of the telephone solicitor has a prior or existing 
  2.11  business or personal relationship; 
  2.12     (4) by a person soliciting without the intent to complete, 
  2.13  and who does not in fact complete the sales presentation during 
  2.14  the call, but who completes the sales presentation at a later 
  2.15  face-to-face meeting between the solicitor and the prospective 
  2.16  purchaser; or 
  2.17     (5) that is an isolated transaction and not made in the 
  2.18  course of repeated transactions of like nature. 
  2.19     "Unsolicited telephone sales call" does not include a call 
  2.20  that the solicitor intends to make to a person covered by 
  2.21  clauses (1) to (3), but which is unintentionally made to another 
  2.22  person. 
  2.23     Subd. 5.  [SOLICITOR.] "Solicitor" means a natural person, 
  2.24  firm, organization, partnership, association, or corporation who 
  2.25  makes or causes to be made a telephone sales call, including, 
  2.26  but not limited to, calls made by use of automated dialing or 
  2.27  recorded message devices, but not including electronic mail. 
  2.28     Subd. 6.  [CONSUMER.] "Consumer" means an actual or 
  2.29  prospective purchaser, lessee, or recipient of consumer goods or 
  2.30  services. 
  2.31     Sec. 2.  [325F.702] [REGISTRATION OF SOLICITORS REQUIRED.] 
  2.32     No solicitor shall make an unsolicited telephone sales call 
  2.33  to any consumer residing within the state of Minnesota unless 
  2.34  the solicitor has registered with the secretary of state as 
  2.35  required in section 325F.703.  A solicitor working as an 
  2.36  employee of another solicitor is not required to register if the 
  3.1   employer is registered. 
  3.2      Sec. 3.  [325F.703] [REGISTRATION.] 
  3.3      Subdivision 1.  [CONTENTS.] In order to register as a 
  3.4   telephone solicitor, a person must submit to the secretary of 
  3.5   state: 
  3.6      (1) the name and mailing address of the solicitor; 
  3.7      (2) a statement of compliance used by the solicitor to 
  3.8   comply with the federal Telephone Consumer Protection Act, 
  3.9   United States Code, title 47, section 227, as amended through 
  3.10  December 31, 1999, or a statement that the solicitor is exempt 
  3.11  from the no-call policy requirements of that act and an 
  3.12  explanation of the basis for the exemption; 
  3.13     (3) a telephone number that can be used by consumers to 
  3.14  contact the solicitor in the event of a dispute arising from a 
  3.15  solicitation; 
  3.16     (4) the solicitor's fax number and electronic mail address, 
  3.17  if these exist; and 
  3.18     (5) the name and address of the seller's agent who is 
  3.19  authorized to receive service of process, or a designation of 
  3.20  the secretary of state to receive service of process.  
  3.21     Subd. 2.  [UPDATES.] Any time there are changes to the 
  3.22  information required by subdivision 1, the solicitor must submit 
  3.23  the changes to the secretary of state's office.  
  3.24     Subd. 3.  [FORMS.] The secretary of state shall establish 
  3.25  forms for the submission of information pursuant to subdivisions 
  3.26  1 and 2. 
  3.27     Subd. 4.  [EFFECT OF COMPLIANCE.] Compliance with this 
  3.28  section does not constitute an approval or endorsement by the 
  3.29  secretary of state. 
  3.30     Subd. 5.  [VIOLATION; PENALTY.] If a telephone solicitor is 
  3.31  registered to do business in Minnesota and makes an unsolicited 
  3.32  telephone sales call and has not filed a registration pursuant 
  3.33  to the requirements of this section and a consumer submits a 
  3.34  written complaint to the secretary of state, the secretary of 
  3.35  state shall give notice by first class mail to the telephone 
  3.36  solicitor at its registered office that it is required to 
  4.1   register and that a completed registration as well as a $50 late 
  4.2   registration fee must be submitted to the secretary of state 
  4.3   within 60 days.  The secretary of state shall assess a fine of 
  4.4   $500 against any solicitor who has not registered by the 
  4.5   expiration of the 60 days, and may assess that additional late 
  4.6   fee once for every 60 days that the solicitor fails to register. 
  4.7      Sec. 4.  [325F.704] [INTERFERENCE WITH CALLER 
  4.8   IDENTIFICATION.] 
  4.9      No telephone solicitor who makes a telephone sales call to 
  4.10  a consumer in this state shall knowingly use any method to block 
  4.11  or otherwise circumvent the consumer's use of a caller 
  4.12  identification service, provided that the equipment of both the 
  4.13  consumer and the telephone solicitor is otherwise technically 
  4.14  capable of providing, displaying, or receiving the caller 
  4.15  identification information. 
  4.16     Sec. 5.  [325F.705] [TELEPHONE SOLICITATIONS IN VIOLATION 
  4.17  OF FEDERAL LAW.] 
  4.18     No person shall make a telephone sales call to any person 
  4.19  in the state of Minnesota that constitutes a violation of the 
  4.20  Telephone Consumer Protection Act, United States Code, title 47, 
  4.21  section 227, as amended through December 31, 1999, or of any 
  4.22  rule promulgated by the Federal Trade Commission pursuant to 
  4.23  that act. 
  4.24     Sec. 6.  [325F.706] [VIOLATIONS; PENALTIES.] 
  4.25     (a) The commissioner of commerce shall enforce the 
  4.26  provisions of section 325F.704, pursuant to the provisions of 
  4.27  section 45.027, except that the maximum civil penalty per 
  4.28  violation is $500. 
  4.29     (b) The commissioner of commerce shall enforce the 
  4.30  provisions of section 325F.705, pursuant to the provisions of 
  4.31  section 45.027, except that the commissioner may assess a civil 
  4.32  penalty of up to $15,000 per violation. 
  4.33     Sec. 7.  [325F.707] [JURISDICTION; PRIVATE ACTIONS.] 
  4.34     The courts of this state have jurisdiction over private 
  4.35  actions commenced to enforce the provisions of the Telephone 
  4.36  Consumer Protection Act, United States Code, title 47, section 
  5.1   227, to the extent permitted by federal law. 
  5.2      Sec. 8.  [EFFECTIVE DATE.] 
  5.3      Sections 2 to 6 are effective January 1, 2001.