HF 3845

as introduced - 86th Legislature (2009 - 2010) Posted on 05/13/2010 08:48am

A bill for an act
relating to consumer protection; specifying procedures for contract renewals for
telecommunications services for business customers; proposing coding for new
law in Minnesota Statutes, chapter 325F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325F.6951] TELECOMMUNICATIONS SERVICES CONTRACT
RENEWALS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Contract" means a written agreement of definite
duration between a provider and a customer, describing the telecommunications services
to be provided to the customer, and their terms and conditions.
new text end

new text begin (b) "Customer" means a business that is a party to a valid existing contract with a
provider to receive telecommunications services.
new text end

new text begin (c) "Existing contract" means a contract in force between a customer and a provider
as of the date of issue of the notice of contract renewal required under subdivision 3.
new text end

new text begin (d) "Proposed renewed contract" means a contract proposed by a provider to govern
the continued provision of services to a customer immediately following termination
of an existing contract with that customer.
new text end

new text begin (e) "Provider" means a provider of telecommunications services.
new text end

new text begin (f) "Telecommunications services" has the meaning given in United States Code,
title 47, section 153, paragraph 46.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin All contract renewals for telecommunications services for
business customers are governed by this section.
new text end

new text begin Subd. 3. new text end

new text begin Notice of contract renewal. new text end

new text begin Between 60 and 90 days before the
termination date of an existing contract, the provider must send written notice to the
customer, in a letter mailed separately from any bill or other written material, except
as provided in this subdivision:
new text end

new text begin (1) a copy of the proposed renewed contract;
new text end

new text begin (2) a postage-paid postcard as described in clause (3), addressed to the provider; and
new text end

new text begin (3) a document that states the following: "Your contract with [name of provider] will
terminate on [termination date]. You have the following three choices regarding receiving
future telecommunications services from [name of provider]:
new text end

new text begin (a) You may allow your contract to terminate on [termination date] without paying
any financial penalty. To choose this option, you may:
new text end

new text begin (1) fill out the enclosed addressed and postage-paid postcard, check the box marked
"I want my contract to terminate on [termination date]," and place the postcard in the mail
before [15 days prior to termination date];
new text end

new text begin (2) before [ten days prior to termination date] call [name of provider] at [provider
telephone number] and tell an account representative that you want to allow your contract
to terminate on [termination date]; or
new text end

new text begin (3) before [ten days prior to termination date], go to the company's Web site at [web
address], and click on "Terminate contract" and follow the instructions.
new text end

new text begin (b) You may renew your contract under the terms and conditions described in the
enclosed renewal contract. To choose this option, you don't need to contact [name of
provider]. The enclosed contract will automatically continue your service subject to the
terms and conditions of the enclosed renewal contract.
new text end

new text begin (c) You may indicate that you would like to continue service with [name of provider],
but would like to discuss services provided, terms, or conditions that are different from
those contained in the enclosed renewal contract. To choose this option, you may:
new text end

new text begin (1) fill out the enclosed addressed and postage-paid postcard, check the box marked
"I want to discuss the terms of my renewal contract" and place the postcard in the mail
before [30 days prior to termination date];
new text end

new text begin (2) before [30 days prior to termination date], call [name of provider] at [provider
telephone number] and tell an account representative that you want to discuss the terms
of your renewal contract. If you choose this option, you retain your right to terminate
your existing contract without penalty if no agreement is reached on the contents of a
renewal contract; or
new text end

new text begin (3) before [30 days prior to termination date], go to the company's Web site at [web
address], and click on "Discuss renewal contract" and follow the instructions. If you
choose this option, you retain your right to terminate your existing contract without
penalty if no agreement is reached on the contents of a renewal contract."
new text end

new text begin A provider may meet the requirements of this subdivision by providing the customer
an electronic copy of the required documents at the customer's request.
new text end

new text begin Subd. 4. new text end

new text begin Termination without penalty; notice. new text end

new text begin (a) A customer receiving notice of
a proposed contract renewal under subdivision 3 may elect to allow the existing contract
to terminate on the termination date without penalty of any kind, including any payment
of termination fees, provided that the customer notifies the provider in writing at least ten
days before the existing contract's termination date. A provider must terminate an existing
contract on the termination date contained in the existing contract following receipt of
a notice of termination from a customer.
new text end

new text begin (b) No provision of this section releases a customer from the obligation to comply
with the provisions of an existing contract.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2010, and applies to
contracts for telecommunications services entered into on or after that date.
new text end