1.1                          A bill for an act 
  1.2             relating to trade practices; limiting unsolicited 
  1.3             telephone calls to certain individuals; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 325E.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [325E.311] [DEFINITIONS.] 
  1.7      Subdivision 1.  [TERMS.] For the purposes of sections 
  1.8   325E.311 to 325E.313, the following terms have the meanings 
  1.9   given them in this section. 
  1.10     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  1.11  commissioner of commerce. 
  1.12     Subd. 3.  [PERSON.] "Person" means a natural person, 
  1.13  individual, partnership, corporation, trust, estate, 
  1.14  incorporated or unincorporated association, and any other legal 
  1.15  or commercial entity, however organized and wherever located, 
  1.16  that telemarkets to individuals located in Minnesota. 
  1.17     Subd. 4.  [RESIDENTIAL SUBSCRIBER.] "Residential subscriber"
  1.18  means a person who has subscribed to residential telephone 
  1.19  services from a telephone company or other persons living or 
  1.20  residing with such a person. 
  1.21     Subd. 5.  [TELEPHONE SOLICITATION.] "Telephone solicitation"
  1.22  means any voice communication over a telephone for the purpose 
  1.23  of encouraging the purchase or rental of, or any investment in, 
  1.24  property, goods, or services, originating from Minnesota or 
  1.25  elsewhere.  Telephone solicitation does not include any of the 
  2.1   following: 
  2.2      (a) voice communications to any residential subscriber with 
  2.3   the subscriber's prior express permission; 
  2.4      (b) a voice communication over a telephone to a residential 
  2.5   subscriber if the communication is made on behalf of a 
  2.6   not-for-profit organization exempt from paying taxes under 
  2.7   section 501(c) of the Internal Revenue Code of 1986, as amended, 
  2.8   and if a bona fide member of the exempt organization makes the 
  2.9   voice communication; 
  2.10     (c) a voice communication over a telephone to any 
  2.11  residential subscriber who is an existing customer.  For the 
  2.12  purposes of this paragraph, an existing customer is a person 
  2.13  with whom the person or entity making the solicitation has had a 
  2.14  prior relationship within the prior 12 months; or 
  2.15     (d) occasional and isolated voice communications over a 
  2.16  telephone to a residential subscriber if the communication is 
  2.17  made on behalf of a business and all of the following conditions 
  2.18  are met: 
  2.19     (1) a direct employee of the business makes the 
  2.20  solicitation; 
  2.21     (2) the communication is not made as part of a 
  2.22  telecommunications marketing plan; 
  2.23     (3) the business has a reasonable belief that the specific 
  2.24  person who is receiving the voice communication is considering 
  2.25  purchasing the service or product sold or leased by the business 
  2.26  and the call is specifically directed to that person; 
  2.27     (4) the business does not sell or engage in telemarketing 
  2.28  services; and 
  2.29     (5) the business does not make more than three such voice 
  2.30  communications in any one calendar week. 
  2.31     Sec. 2.  [325E.312] [CALLS TO PERSONS OBJECTING TO 
  2.32  SOLICITATION.] 
  2.33     No person shall knowingly make or cause to be made any 
  2.34  telephone solicitation to any residential subscriber in 
  2.35  Minnesota who has given notice to the commissioner, in 
  2.36  accordance with rules adopted pursuant to section 325E.313, of 
  3.1   the subscriber's objection to receiving telephone solicitations. 
  3.2      Sec. 3.  [325E.313] [DATABASE OF INDIVIDUALS OBJECTING TO 
  3.3   SOLICITATIONS.] 
  3.4      Subdivision 1.  [ESTABLISHMENT AND OPERATION OF 
  3.5   DATABASE.] The commissioner shall establish and provide for the 
  3.6   operation of a database to compile a list of telephone numbers 
  3.7   of residential subscribers who object to receiving telephone 
  3.8   solicitations.  The commissioner shall have the database in 
  3.9   operation no later than July 1, 2002.  The database may be 
  3.10  operated by the commissioner or by another entity under contract 
  3.11  with the commissioner. 
  3.12     Subd. 2.  [RULEMAKING.] No later than January 1, 2002, the 
  3.13  commissioner shall make rules that: 
  3.14     (1) require each telephone company to inform its 
  3.15  residential subscribers semiannually of the opportunity to 
  3.16  provide notification to the commissioner or the commissioner's 
  3.17  contractor that the subscriber objects to receiving telephone 
  3.18  solicitations; 
  3.19     (2) specify the methods by which each residential 
  3.20  subscriber may give notice to the commissioner or the contractor 
  3.21  of the subscriber's objection to receiving solicitations or of 
  3.22  the revocation of that notice; 
  3.23     (3) specify the length of time for which a notice of 
  3.24  objection will be effective and the effect of a change of 
  3.25  telephone number on an existing notice; 
  3.26     (4) specify the methods by which objections and revocations 
  3.27  will be collected and added to the database; 
  3.28     (5) specify the methods by which any person or entity 
  3.29  desiring to make telephone solicitations will obtain access to 
  3.30  the database as required to avoid calling the telephone numbers 
  3.31  of residential subscribers included in the database; and 
  3.32     (6) address other matters that the commissioner deems 
  3.33  necessary to implement sections 325E.311 to 325E.313. 
  3.34     Subd. 3.  [FEDERAL LIST.] If, pursuant to United States 
  3.35  Code, title 47, section 227(c)(3), the Federal Communications 
  3.36  Commission establishes a single national database of telephone 
  4.1   numbers of subscribers who object to receiving telephone 
  4.2   solicitations, the commissioner shall include the part of the 
  4.3   single national database that relates to Minnesota in the 
  4.4   database established under this section. 
  4.5      Subd. 4.  [OBTAINING DO NOT CALL LIST.] (a) A person or 
  4.6   entity intending to make telephone solicitations to any 
  4.7   residential subscriber shall pay to the commissioner, on or 
  4.8   before March 15, 2002, an annual registration fee of $500 to 
  4.9   defray regulatory and enforcement expenses.  The annual 
  4.10  registration fee must allow access to the Do Not Call list 
  4.11  compiled from the database established under this section from 
  4.12  July 1, 2002, to June 30, 2003.  After June 30, 2003, the 
  4.13  registration deadline and annual time period shall be determined 
  4.14  by rule by the commissioner. 
  4.15     (b) Unlimited electronic copies of the Do Not Call list 
  4.16  must be available to persons or entities upon payment of the 
  4.17  annual registration fee.  A fee must be established by the 
  4.18  commissioner by rule for paper copies of the Do Not Call list. 
  4.19     (c) Fifteen days after the registration deadline in 
  4.20  paragraph (1), the nonpayment of any required fee is a violation 
  4.21  of this section.  The telephone solicitation of any residential 
  4.22  subscriber listed in the Do Not Call list compiled from the 
  4.23  database established under this section by any person or entity 
  4.24  who is not registered and is not otherwise exempted by law is a 
  4.25  violation of this section. 
  4.26     (d) As used in this section, "entity" includes any parent, 
  4.27  subsidiary, or affiliate of a person. 
  4.28     Subd. 5.  [INFORMATION.] Information contained in the 
  4.29  database established under this section is private data on 
  4.30  individuals under chapter 13, and may be used only for the 
  4.31  purpose of compliance with this section or in a proceeding or 
  4.32  action under this section. 
  4.33     Subd. 6.  [REMEDIES.] (a) In enforcing sections 325E.311 to 
  4.34  325E.313, the commissioner has all powers provided by section 
  4.35  45.027, including but not limited to the right to impose a civil 
  4.36  penalty to a maximum of $2,000 for each solicitation that 
  5.1   violates these sections. 
  5.2      (b) Sections 325E.311 to 325E.313 may also be enforced in 
  5.3   accordance with the provisions of section 8.31. 
  5.4      (c) It is a defense to an action brought under this 
  5.5   subdivision that the defendant has established and implemented, 
  5.6   with due care, reasonable practices and procedures to 
  5.7   effectively prevent telephone solicitations in violation of 
  5.8   sections 325E.311 to 325E.313.