HF 532

1st Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

1.1A bill for an act 1.2relating to consumer protection; regulating certain contracts entered into by 1.3military service personnel; authorizing cancellations; requiring utilities to 1.4establish payment arrangements for military service personnel;proposing coding 1.5for new law in Minnesota Statutes, chapters 325E; 325G. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. new text begin [325E.027] UTILITY PAYMENT ARRANGEMENTS FOR MILITARY new text end 1.8 new text begin SERVICE PERSONNEL. new text end 1.9     new text begin Subdivision 1. new text end new text begin Restriction on disconnection; payment schedules. new text end new text begin (a) A municipal new text end 1.10 new text begin utility, cooperative electric association, or public utility must not disconnect the utility new text end 1.11 new text begin service of a residential customer if a member of the household has been issued orders into new text end 1.12 new text begin active duty, for deployment, or for a permanent change in duty station during the period of new text end 1.13 new text begin active duty, deployment, or change in duty station if such a residential customer: new text end 1.14     new text begin (1) has a household income below the state median household income or is receiving new text end 1.15 new text begin energy assistance and enters into an agreement with the municipal utility, cooperative new text end 1.16 new text begin electric association, or public utility under which the residential customer pays ten percent new text end 1.17 new text begin of the customer's gross monthly income toward the customer's bill and the residential new text end 1.18 new text begin customer remains reasonably current with those payments; or new text end 1.19     new text begin (2) has a household income above the state median household income and enters new text end 1.20 new text begin into an agreement with the municipal utility, cooperative electric association, or public new text end 1.21 new text begin utility establishing a reasonable payment schedule that considers the financial resources new text end 1.22 new text begin of the household and the residential customer remains reasonably current with payments new text end 1.23 new text begin under the payment schedule. new text end 1.24     new text begin (b) For purposes of this subdivision, "household income" means household income new text end 1.25 new text begin measured after the date of the orders specified in paragraph (a). new text end 2.1     new text begin Subd. 2. new text end new text begin Annual notice to all customers; inability to pay forms. new text end new text begin (a) A municipal new text end 2.2 new text begin utility, cooperative electric association, or public utility must notify all residential new text end 2.3 new text begin customers annually of the provisions of this section. new text end 2.4     new text begin (b) A municipal utility, cooperative electric association, or public utility must new text end 2.5 new text begin provide a form to a residential customer to request the protections of this section upon new text end 2.6 new text begin the residential customer's request. new text end 2.7     new text begin Subd. 3. new text end new text begin Application to service limiters. new text end new text begin For the purposes of this section, new text end 2.8 new text begin "disconnection" includes a service or load limiter or any device that limits or interrupts new text end 2.9 new text begin electric service in any way. new text end 2.10     new text begin Subd. 4. new text end new text begin Income verification. new text end new text begin Verification of income may be conducted by the new text end 2.11 new text begin local energy assistance provider or the municipal utility, cooperative electric association, new text end 2.12 new text begin or public utility unless the customer is automatically eligible for protection against new text end 2.13 new text begin disconnection as a recipient of any form of public assistance, including energy assistance new text end 2.14 new text begin that uses income eligibility in an amount at or below the income eligibility in subdivision new text end 2.15 new text begin 1, clause (1). new text end 2.16     new text begin Subd. 5. new text end new text begin Appeal process. new text end new text begin (a) The municipal utility, cooperative electric association, new text end 2.17 new text begin or public utility shall provide the residential customer with a commission-approved written new text end 2.18 new text begin notice of the right to appeal to the commission when the utility and residential customer new text end 2.19 new text begin are unable to agree on the establishment, reasonableness, or modification of a payment new text end 2.20 new text begin schedule, or on the reasonable timeliness of the payments under a payment schedule, new text end 2.21 new text begin provided for by this section. Any appeal must be made within seven working days after new text end 2.22 new text begin the residential customer's receipt of personally served notice, or within ten working days new text end 2.23 new text begin after the utility has deposited first class mail notice in the United States mail. new text end 2.24     new text begin (b) The utility shall not disconnect service while a payment schedule is pending new text end 2.25 new text begin appeal, or until any appeal involving payment schedules has been determined by the new text end 2.26 new text begin commission. new text end 2.27    Sec. 2. new text begin [325G.53] CANCELLATION WITHOUT PENALTY OF WIRELESS new text end 2.28 new text begin CONTRACTS BY MILITARY SERVICE PERSONNEL. new text end 2.29     new text begin Subdivision 1. new text end new text begin Authority. new text end new text begin Any service member who has been issued orders into new text end 2.30 new text begin active duty, for deployment, or for a permanent change of duty station, or the spouse of new text end 2.31 new text begin the service member, may terminate, without penalty, a wireless service contract, or some new text end 2.32 new text begin portion of it, that is executed by or on behalf of the service member or by the spouse of new text end 2.33 new text begin that service member. "Service member" includes any business entity wholly owned by the new text end 2.34 new text begin service member or the service member's spouse. new text end 3.1     new text begin Subd. 2. new text end new text begin When effective. new text end new text begin Termination of the wireless service contract is not new text end 3.2 new text begin effective until both of the following occur: new text end 3.3     new text begin (1) 30 days after the service member or the service member's spouse gives notice by new text end 3.4 new text begin certified mail, return receipt requested, of the intention to terminate the wireless service new text end 3.5 new text begin contract or part of it, and provides a copy of the service member's order for activation, new text end 3.6 new text begin deployment, or change of duty station; and new text end 3.7     new text begin (2) if the service member or the service member's spouse owns the wireless new text end 3.8 new text begin telephone, the wireless telephone is returned to the custody or control of the wireless new text end 3.9 new text begin carrier, or the service member or the service member's spouse agrees in writing to return new text end 3.10 new text begin the wireless telephone as soon as practicable after the military service is completed. new text end 3.11    Sec. 3. new text begin [325G.54] CANCELLATION WITHOUT PENALTY OF RENTAL, new text end 3.12 new text begin CLUB, SERVICE, AND MEMBERSHIP TRAVEL CONTRACTS BY MILITARY new text end 3.13 new text begin SERVICE PERSONNEL. new text end 3.14     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin This section applies to any rental contracts, club new text end 3.15 new text begin contracts under section 325G.23, service contracts, and membership travel contracts new text end 3.16 new text begin under section 325G.50 in which: new text end 3.17     new text begin (1) such a contract was executed by or on the behalf of a person who, after the new text end 3.18 new text begin execution of the contract, was issued orders into active duty, for deployment, or for a new text end 3.19 new text begin permanent change of duty station; and new text end 3.20     new text begin (2) where as a result of the orders it is impractical for the person to enjoy the benefits new text end 3.21 new text begin of the contract. For purposes of the subdivision, "service member" includes any business new text end 3.22 new text begin entity wholly owned by the service member or the service member's spouse. new text end 3.23     new text begin Subd. 2. new text end new text begin Authority. new text end new text begin A service member who enters into a rental, club, membership new text end 3.24 new text begin travel, or service contract, and who is issued orders into active duty, for deployment, or for new text end 3.25 new text begin a permanent change of duty station, subsequent to the execution of the contract, is entitled new text end 3.26 new text begin to cancel the contract at no penalty and with a full refund of any money which may have new text end 3.27 new text begin been placed on deposit where the service member's military activation, deployment, or new text end 3.28 new text begin change in duty station causes it to be impractical for the service member to abide by the new text end 3.29 new text begin terms and conditions of the contract. For purposes of this subdivision, "service member" new text end 3.30 new text begin includes any business entity wholly owned by the service member or the service member's new text end 3.31 new text begin spouse. For purposes of this section, "service contract" includes those for services such as new text end 3.32 new text begin television, computer, Internet service, or any other type of service. new text end 3.33     new text begin Subd. 3. new text end new text begin Notice. new text end new text begin Any such contract may be terminated by notice in writing sent new text end 3.34 new text begin to the contractor by the person issued orders for active duty, for deployment, or for new text end 3.35 new text begin a permanent change of duty station, canceling the service member's rental, club, or new text end 4.1 new text begin membership travel contract within two weeks of the service member's receipt of the new text end 4.2 new text begin orders, and the notice must include a copy of the orders in question. Delivery of the new text end 4.3 new text begin notice must be made by certified mail addressed to the contractor. For purposes of this new text end 4.4 new text begin subdivision, "service member" includes any business entity wholly owned by the service new text end 4.5 new text begin member or the service member's spouse. new text end 4.6    Sec. 4. new text begin [325G.55] OTHER RIGHTS AND PROTECTIONS. new text end 4.7     new text begin The rights and protections afforded to service members under the Servicemembers new text end 4.8 new text begin Civil Relief Act, United States Code, title 50, Appendix, sections 501 to 596, also apply in new text end 4.9 new text begin Minnesota to any business wholly owned by the service member or the service member's new text end 4.10 new text begin spouse. new text end 4.11    Sec. 5. new text begin ENFORCEMENT. new text end 4.12     new text begin Section 1 may be enforced pursuant to Minnesota Statutes, chapter 216B. Sections 2, new text end 4.13 new text begin 3, and 4 may be enforced by the attorney general pursuant to Minnesota Statutes, section new text end 4.14 new text begin 8.31, and are subject to the penalties set forth in that section. new text end