1.1                          A bill for an act
  1.2             relating to consumer protection; regulating certain 
  1.3             waste hauling contracts; proposing coding for new law 
  1.4             in Minnesota Statutes, chapter 325G. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [325G.53] [DEFINITIONS.] 
  1.7      Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.8   325G.53 to 325G.57, the terms in this section have the meanings 
  1.9   given them. 
  1.10     Subd. 2.  [AUTOMATIC RENEWAL PROVISION.] "Automatic renewal 
  1.11  provision" means a contract provision that results in the 
  1.12  contract being automatically renewed for a specified additional 
  1.13  period of time unless the consumer notifies the provider that 
  1.14  the consumer declines renewal of the contract for the additional 
  1.15  period of time. 
  1.16     Subd. 3.  [CANCELLATION DATE.] "Cancellation date" means 
  1.17  the date by which the consumer is required to notify the waste 
  1.18  hauler that the consumer declines renewal under a contract 
  1.19  containing an automatic renewal provision. 
  1.20     Subd. 4.  [CONSUMER.] "Consumer" means a person or entity 
  1.21  located in Minnesota that enters into a contract for small 
  1.22  containerized solid waste hauling service. 
  1.23     Subd. 5.  [SMALL CONTAINER.] "Small container" means a two- 
  1.24  to ten-cubic yard container or dumpster. 
  1.25     Subd. 6.  [SMALL CONTAINERIZED SOLID WASTE HAULING 
  2.1   SERVICE.] "Small containerized solid waste hauling service" 
  2.2   means providing solid waste collection, removal, and hauling 
  2.3   service to customers by providing the customer with a small 
  2.4   container or dumpster that is picked up and emptied mechanically 
  2.5   using a frontload or rearload truck, and expressly excludes hand 
  2.6   pickup service and service using a compactor that is attached to 
  2.7   or part of a small container. 
  2.8      Subd. 7.  [SOLID WASTE HAULING.] "Solid waste hauling" 
  2.9   means the collection, removal, and transportation to a solid 
  2.10  waste transfer or disposal site of trash and garbage, but not 
  2.11  construction and demolition debris, medical waste, hazardous 
  2.12  waste, organic waste, special waste such as contaminated soil or 
  2.13  sludge, or recyclable materials from residential, commercial, 
  2.14  and industrial customers. 
  2.15     Subd. 8.  [WASTE HAULER.] "Waste hauler" means any person 
  2.16  or entity providing small containerized solid waste hauling 
  2.17  service in Minnesota. 
  2.18     Sec. 2.  [325G.54] [PROHIBITIONS IN CONTRACTS FOR SMALL 
  2.19  CONTAINERIZED SOLID WASTE HAULING SERVICE.] 
  2.20     Subdivision 1.  [TERM OF CONTRACT.] No contract for small 
  2.21  containerized solid waste hauling service may have an initial 
  2.22  term of more than two years.  No contract for small 
  2.23  containerized solid waste hauling service with an automatic 
  2.24  renewal provision may have a renewal term greater than one year. 
  2.25     Subd. 2.  [CANCELLATION DATE.] No contract for small 
  2.26  containerized solid waste hauling service may have a 
  2.27  cancellation date more than 60 days prior to the contract 
  2.28  termination or renewal date. 
  2.29     Subd. 3.  [PROHIBITION ON RIGHT TO COMPETE CLAUSES.] No 
  2.30  contract for small containerized solid waste hauling service may 
  2.31  require consumers to inform their waste hauler concerning prices 
  2.32  or other terms offered by competitors, or require consumers to 
  2.33  afford the waste hauler an opportunity to match or respond to a 
  2.34  competitor's offer. 
  2.35     Subd. 4.  [PENALTY FOR EARLY TERMINATION OF CONTRACT.] All 
  2.36  contracts for the provision of small containerized solid waste 
  3.1   hauling service shall limit the maximum allowable financial 
  3.2   charge to the consumer for early termination of the contract as 
  3.3   follows: 
  3.4      (1) if the contract is terminated during the first year of 
  3.5   the initial term, three times the current monthly charge plus 
  3.6   any reasonable costs incurred by the waste hauler in collecting 
  3.7   the early termination fee; and 
  3.8      (2) after the first year of the initial term, two times the 
  3.9   current monthly charge, plus any reasonable costs incurred by 
  3.10  the waste hauler in collecting the early termination fee. 
  3.11     Sec. 3.  [325G.55] [AUTOMATIC RENEWAL PROVISIONS; REQUIRED 
  3.12  DISCLOSURES.] 
  3.13     Subdivision 1.  [CONSUMER DISCLOSURE FOR AUTOMATIC RENEWAL 
  3.14  PROVISIONS.] An automatic renewal provision in a contract for 
  3.15  small containerized solid waste hauling service is not 
  3.16  enforceable by the waste hauler unless the waste hauler provides 
  3.17  the following consumer disclosure on the front page and the 
  3.18  signature page of the contract in at least 14-point type with 
  3.19  the case and bolding as follows: 
  3.20       CONSUMER NOTICE REGARDING AUTOMATIC CONTRACT RENEWAL
  3.21     This contract with (enter provider name) for waste hauling 
  3.22  service will be <b>automatically renewed</b> on (date) for (term of 
  3.23  renewal) unless we receive a timely written notice of 
  3.24  termination.  The written notice of termination must be received 
  3.25  (dates when notice timely).  If we do not receive a timely 
  3.26  notice of termination, every (term of renewal) your contract 
  3.27  will be renewed for another (term of renewal). 
  3.28     Subd. 2.  [CONSUMER PRICE DISCLOSURE FOR AUTOMATICALLY 
  3.29  RENEWING CONTRACTS.] All contracts for small containerized solid 
  3.30  waste hauling service containing automatic renewal provisions 
  3.31  that permit the waste hauler to increase prices to the consumer 
  3.32  during the contract term without the consumer's express written 
  3.33  consent shall not be enforceable by the waste hauler unless the 
  3.34  waste hauler provides the following consumer disclosure on the 
  3.35  front page and the signature page of the contract in at least 
  3.36  14-point type with the case as follows: 
  4.1                  CONSUMER NOTICE REGARDING PRICE
  4.2                  AND AUTOMATIC CONTRACT RENEWALS
  4.3      Please note that this contract allows (enter provider name) 
  4.4   to unilaterally impose price increases under the conditions set 
  4.5   forth in (enter paragraphs listing conditions authorizing price 
  4.6   increases).  This contract does not guarantee the availability 
  4.7   of small containerized solid waste hauling service to you at a 
  4.8   fixed price while the contract is in effect. 
  4.9      Sec. 4.  [325G.56] [AUTOMATIC RENEWAL PROVISIONS; RENEWAL 
  4.10  NOTICE REQUIRED; PROCEDURE FOR CANCELLATION.] 
  4.11     Subdivision 1.  [RENEWAL NOTICE REQUIRED.] An automatic 
  4.12  renewal provision in a contract for small containerized solid 
  4.13  waste hauling service providing for a renewal period greater 
  4.14  than one month is not enforceable by the waste hauler unless the 
  4.15  waste hauler provides a renewal notice to the consumer in 
  4.16  accordance with this section. 
  4.17     Subd. 2.  [TIMING OF RENEWAL NOTICE.] The renewal notice 
  4.18  must be furnished to the consumer no earlier than 30 days and no 
  4.19  later than 20 days prior to the cancellation date of the 
  4.20  contract. 
  4.21     Subd. 3.  [CONTENT OF RENEWAL NOTICE.] The renewal notice 
  4.22  must be on its own page and must not be included with other 
  4.23  information or documents, except that the waste hauler may 
  4.24  include a return envelope and the notice may appear on the 
  4.25  letterhead of the waste hauler.  The notice must appear in at 
  4.26  least 12-point type with the case and bolding as follows and 
  4.27  must state the following: 
  4.28           NOTICE REGARDING AUTOMATIC CONTRACT RENEWAL
  4.29     Your contract with (enter provider name) for waste hauling 
  4.30  service will be <b>automatically renewed</b> unless we hear from you.  
  4.31  You must let us know if you do not want your contract with us 
  4.32  automatically renewed.  If we do not hear from you, your 
  4.33  contract will be renewed for another (term of renewal). 
  4.34     <b>To prevent automatic renewal of your contract</b>, sign this 
  4.35  form and put it in the U.S. mail to us by (enter date three days 
  4.36  prior to cancellation date).  Mail it to us at:  (enter 
  5.1   provider's address for cancellation). 
  5.2      (OPTIONAL:  If you have any questions about this matter, 
  5.3   please call us at (enter provider's phone number).) 
  5.4      I HEREBY DECLINE AUTOMATIC RENEWAL OF MY CONTRACT. 
  5.5      
  5.6    Customer Signature ............... Date ................
  5.7      Subd. 4.  [DECLINATION OF RENEWAL FOR CONTRACT CONTAINING 
  5.8   AUTOMATIC RENEWAL PROVISION.] A consumer may decline renewal of 
  5.9   a contract for small containerized solid waste hauling service 
  5.10  containing an automatic renewal provision by:  (1) signing the 
  5.11  declination clause at the bottom of the renewal notice required 
  5.12  by this section and depositing the notice in the U.S. mail at 
  5.13  least three days prior to the cancellation date; (2) otherwise 
  5.14  delivering the signed declination clause to the provider by the 
  5.15  cancellation date; or (3) depositing a letter informing the 
  5.16  waste hauler of the cancellation in the U.S. mail at least three 
  5.17  days prior to the cancellation date.  Nothing in this section 
  5.18  shall be construed to limit the right of the consumer to cancel 
  5.19  the contract at any other time or by any other method permitted 
  5.20  under the contract or under other law. 
  5.21     Sec. 5.  [325G.57] [VIOLATIONS.] 
  5.22     A violation of section 2, 3, or 4 is a deceptive practice 
  5.23  under section 325F.69, subdivision 1. 
  5.24     Sec. 6.  [CONTRACTS IN EFFECT ON DAY OF FINAL ENACTMENT.] 
  5.25     (a) Any contract for small containerized solid waste 
  5.26  hauling services that is in effect on the day of final enactment 
  5.27  of this section is unenforceable by the waste hauler after July 
  5.28  31, 2004, if: 
  5.29     (1) the contract is currently in a renewal term rather than 
  5.30  an initial term; 
  5.31     (2) the renewal term of the contract on the day of 
  5.32  enactment is scheduled to end later than July 31, 2004; and 
  5.33     (3) the current renewal term was entered into as a result 
  5.34  of the operation of an automatic renewal provision. 
  5.35     (b) A contract is not unenforceable under this section if 
  5.36  it is renewed after the day of final enactment of this section 
  6.1   in a manner that complies with this section. 
  6.2      Sec. 7.  [EFFECTIVE DATE.] 
  6.3      Sections 1, 2, 3, and 5 apply to contracts entered into or 
  6.4   renewed on or after August 1, 2003.  Section 4 is effective 
  6.5   August 1, 2003, and applies to contracts in effect on that date 
  6.6   as well as contracts entered into on or after that date.  
  6.7   Section 6 is effective the day following final enactment.