HF 635

4th Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:37 p.m.

1.1A bill for an act 1.2relating to telecommunications; enacting the Minnesota Wireless Telephone 1.3Consumer Protection Act; proposing coding for new law in Minnesota Statutes, 1.4chapter 325F; repealing Minnesota Statutes 2006, section 325F.695. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. new text begin [325F.696] MINNESOTA WIRELESS TELEPHONE CONSUMER new text end 1.7 new text begin PROTECTION ACT. new text end 1.8     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) The definitions in this subdivision apply to this new text end 1.9 new text begin section. new text end 1.10     new text begin (b) "Customer" means an individual consumer purchasing wireless new text end 1.11 new text begin telecommunications service, or a business or corporate entity making a bulk purchase of new text end 1.12 new text begin wireless telecommunications service for use by its employees. new text end 1.13     new text begin (c) "Government-mandated charges and taxes" means any taxes, fees, and other new text end 1.14 new text begin charges that a wireless carrier is legally required to collect directly from consumers and new text end 1.15 new text begin to remit to federal, state, or local governments, or to third parties authorized by such new text end 1.16 new text begin governments, for the administration of government programs. "Government-mandated new text end 1.17 new text begin charges and taxes" does not include discretionary charges authorized, but not required by, new text end 1.18 new text begin government action. new text end 1.19     new text begin (d) "Wireless carrier" means a provider of wireless telecommunications service. new text end 1.20     new text begin (e) "Wireless telecommunications service" means commercial mobile radio service new text end 1.21 new text begin as defined in Code of Federal Regulations, title 47, part 20. new text end 1.22     new text begin Subd. 2. new text end new text begin Required disclosures. new text end new text begin (a) Wireless carriers providing wireless new text end 1.23 new text begin telecommunications service, other than prepaid per minute service that does not require a new text end 1.24 new text begin minimum term agreement from the customer, in the state must: new text end 2.1     new text begin (1) provide the customer, at the time of sale, with a coverage map showing where new text end 2.2 new text begin service is generally available and that identifies areas where any domestic roaming or new text end 2.3 new text begin additional charges would apply to the customer's service; new text end 2.4     new text begin (2) make coverage maps showing where service is generally available to new text end 2.5 new text begin prospective and existing customers at any location where the wireless carrier's new text end 2.6 new text begin wireless telecommunications service is offered for sale and make those maps available new text end 2.7 new text begin electronically at the carrier's Web site; new text end 2.8     new text begin (3) clearly and conspicuously disclose at the time of sale the price for the service new text end 2.9 new text begin being purchased by the customer, including the monthly access fee or base charge, new text end 2.10 new text begin the amount of any activation or initiation fee, any charges for domestic roaming, any new text end 2.11 new text begin charge for domestic long distance, any charge for exceeding the number of minutes new text end 2.12 new text begin or usage included in any allowance, and any other charges collected and retained by new text end 2.13 new text begin the carrier and disclose a good faith estimate of the amount or range of all applicable new text end 2.14 new text begin government-mandated or authorized charges and taxes; new text end 2.15     new text begin (4) clearly and conspicuously disclose to the customer at the time of sale, in at least new text end 2.16 new text begin 12-point font in written materials: (i) that the price is not guaranteed to remain the same new text end 2.17 new text begin for the minimum term of the contract if a contract provision allows the wireless carrier to new text end 2.18 new text begin change the price of the service during the minimum term, and (ii) any early termination new text end 2.19 new text begin fee that applies if service is terminated during the minimum term; and new text end 2.20     new text begin (5) prior to the execution of a contract for wireless telephone service, provide new text end 2.21 new text begin the customer the terms of the contract, and after execution of the contract provide the new text end 2.22 new text begin customer with a copy of the writing or writings constituting the contract, at the time of new text end 2.23 new text begin sale and thereafter upon the customer's request. new text end 2.24     new text begin (b) With regard to any early termination fee provisions or provisions allowing the new text end 2.25 new text begin wireless carrier to change the price of the service during the minimum contract term, new text end 2.26 new text begin the wireless carrier must obtain a specific acknowledgment from the customer that the new text end 2.27 new text begin customer has read and understands the provisions. new text end 2.28     new text begin Subd. 3. new text end new text begin Billing; listing of government taxes and fees. new text end new text begin All bills for wireless new text end 2.29 new text begin telecommunications services must list government-mandated charges and taxes in a new text end 2.30 new text begin section of the bill separate from the section or sections listing the price and any other new text end 2.31 new text begin charges for the wireless telecommunications service. The wireless carrier must include new text end 2.32 new text begin a brief, easy-to-understand description of each charge included in the bill. The wireless new text end 2.33 new text begin carrier must not represent, expressly or by implication, that discretionary cost recovery new text end 2.34 new text begin fees or charges are government-mandated charges and taxes. new text end 2.35     new text begin Subd. 4. new text end new text begin Billing for third-party goods and services. new text end new text begin (a) A wireless carrier must new text end 2.36 new text begin not include on a customer's bill a charge for goods or services that the carrier bills on new text end 3.1 new text begin behalf of a third party unless the wireless carrier has obtained the customer's prior express new text end 3.2 new text begin authorization to include those charges on the customer's bill issued by the wireless carrier. new text end 3.3     new text begin (b) If a customer of a wireless carrier disputes any third-party charge appearing on new text end 3.4 new text begin that customer's wireless bill, the customer shall not be obligated to pay the disputed charge new text end 3.5 new text begin until the wireless carrier provides evidence of the customer's prior express authorization new text end 3.6 new text begin to include such charge. Evidence of the customer's prior express authorization must be new text end 3.7 new text begin produced to the customer within 60 calendar days after the customer notifies the wireless new text end 3.8 new text begin carrier that the charge is disputed. A customer shall be permitted to dispute any charges new text end 3.9 new text begin that a wireless carrier bills on behalf of a third party for up to six months after the charge new text end 3.10 new text begin appears on the customer's wireless bill. If the wireless carrier cannot produce evidence new text end 3.11 new text begin that the customer authorized the third-party charge, the wireless carrier must remove the new text end 3.12 new text begin charge from the customer's wireless bill and credit the customer for the unauthorized new text end 3.13 new text begin third-party charges incurred during the previous six months. new text end 3.14     new text begin (c) A wireless carrier meets the prior express authorization requirements of this new text end 3.15 new text begin subdivision only if it obtains or receives authorization from the customer containing new text end 3.16 new text begin clear, unambiguous, and separate authorizations for each third-party good or service to be new text end 3.17 new text begin included on the customer's bill. new text end 3.18     new text begin (d) Nothing in this subdivision restricts the right of a wireless carrier to seek to new text end 3.19 new text begin recover from a third party unauthorized charges credited to the customer by the wireless new text end 3.20 new text begin carrier. new text end 3.21     new text begin Subd. 5. new text end new text begin Extensions in contract length. new text end new text begin (a) If a customer is offered, accepts, or new text end 3.22 new text begin requests a good, service, or promotion or changes the customer's wireless service plan in new text end 3.23 new text begin any manner, and this good, service, promotion, or change will result in the extension of new text end 3.24 new text begin the minimum contract term or create a new contract with a minimum term, the wireless new text end 3.25 new text begin carrier must disclose to the customer at the point of sale or acceptance that the requested new text end 3.26 new text begin good, service, promotion, or change will result in a contract extension or creation of a new new text end 3.27 new text begin contract with a minimum term, and must further disclose the length of the extension or new text end 3.28 new text begin new term. new text end 3.29     new text begin (b) If the customer and a representative of the carrier are personally present at new text end 3.30 new text begin the point of sale or acceptance, the wireless provider must also in connection with the new text end 3.31 new text begin new good, service, promotion, or change obtain the customer's signed consent in an new text end 3.32 new text begin independent document. The independent document must only include the terms set forth new text end 3.33 new text begin in clauses (1) to (3) and must clearly and conspicuously disclose in at least 14-point font: new text end 3.34     new text begin (1) that the new good, service, promotion, or change will result in an extension or new text end 3.35 new text begin renewal of the customer's contract; new text end 3.36     new text begin (2) the new contract start and end dates; and new text end 4.1     new text begin (3) that failure to complete the new contract term may result in early termination new text end 4.2 new text begin fees and, if so, the amount of the fees. new text end 4.3     new text begin (c) If the customer's consent is obtained via the Internet, the wireless provider must new text end 4.4 new text begin disclose in at least 14-point font the terms listed in paragraph (b), clauses (1) to (3). The new text end 4.5 new text begin customer must provide a valid electronic signature showing that the wireless provider has new text end 4.6 new text begin disclosed and the customer has agreed to the extension or renewal of the contract. An new text end 4.7 new text begin electronic record must be available upon request to the customer until the new contract new text end 4.8 new text begin term expires. new text end 4.9     new text begin (d) If the customer's consent is obtained orally, the wireless provider must clearly new text end 4.10 new text begin disclose the terms listed in paragraph (b), clauses (1) to (3), and the customer's consent new text end 4.11 new text begin to each term must be recorded and retained by the provider and be made available upon new text end 4.12 new text begin request to the customer until the new contract term expires. new text end 4.13     new text begin (e) Within ten days after a customer's contract has been extended or renewed, the new text end 4.14 new text begin wireless service provider must notify the customer in an independent writing that the new text end 4.15 new text begin contract has been extended or renewed. The independent writing must only include the new text end 4.16 new text begin terms set forth in clauses (1) to (3) and must clearly and conspicuously disclose in at new text end 4.17 new text begin least 14-point font: new text end 4.18     new text begin (1) that the new good, service, promotion, or change will result in an extension or new text end 4.19 new text begin renewal of the customer's contract; new text end 4.20     new text begin (2) the new contract start and end dates; and new text end 4.21     new text begin (3) that failure to complete the new contract term may result in early termination new text end 4.22 new text begin fees and, if so, the amount of the fees. new text end 4.23     new text begin (f) Failure of the provider to make any of the disclosures or to obtain any of new text end 4.24 new text begin the consents required in this subdivision voids any contract extension covered by this new text end 4.25 new text begin subdivision. new text end 4.26     new text begin Subd. 6. new text end new text begin Remedies; penalties, enforcement. new text end new text begin A violation of this section is a new text end 4.27 new text begin violation of a law referred to in section 8.31, subdivision 1. new text end 4.28     new text begin Subd. 7. new text end new text begin Severability. new text end new text begin Each of the provisions of this section, and each application new text end 4.29 new text begin of a provision to particular circumstances, is severable. If a provision or application is new text end 4.30 new text begin found to be contrary to law and unenforceable, it is the intention of the legislature that the new text end 4.31 new text begin remaining provisions and applications of this section remain valid and enforceable to the new text end 4.32 new text begin full extent possible under section 645.20. new text end 4.33    Sec. 2. new text begin REPEALER. new text end 4.34 new text begin Minnesota Statutes 2006, section 325F.695, new text end new text begin is repealed. new text end 5.1    Sec. 3. new text begin EFFECTIVE DATE. new text end 5.2     new text begin Section 1 is effective August 1, 2008, except that subdivision 4 is effective March new text end 5.3 new text begin 1, 2009. new text end