HF 532

Conference Committee Report - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to consumer protection; regulating certain contracts entered into by
military service personnel; authorizing cancellations; requiring utilities to
establish payment arrangements for military service personnel; proposing coding
for new law in Minnesota Statutes, chapters 325E; 325G.

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

Section 1.

new text begin [325E.027] UTILITY PAYMENT ARRANGEMENTS FOR MILITARY
SERVICE PERSONNEL.
new text end

new text begin Subdivision 1. new text end

new text begin Restriction on disconnection; payment schedules. new text end

new text begin A municipal
utility, cooperative electric association, or public utility must not disconnect the utility
service of a residential customer if a member of the household has been issued orders into
active duty, for deployment, or for a permanent change in duty station during the period of
active duty, deployment, or change in duty station if such a residential customer:
new text end

new text begin (1) has a household income of less than the state median income or is receiving
energy assistance and, at any time, enters into a payment schedule under which the
residential customer pays ten percent of the customer's gross monthly income toward the
customer's bill and the residential customer remains reasonably current with the payments
under the payment schedule; or
new text end

new text begin (2) has a household income of more than the state median income and enters into a
reasonable payment schedule that considers the financial resources of the household and
the residential customer remains reasonably current with payments under the payment
schedule.
new text end

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
utility, cooperative electric association, or public utility must notify all residential
customers annually of the provisions of this section.
new text end

new text begin (b) A municipal utility, cooperative electric association, or public utility must
provide a form to a residential customer to request the protections of this section upon
the residential customer's request.
new text end

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,
"disconnection" includes a service or load limiter or any device that limits or interrupts
electric service in any way.
new text end

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
local energy assistance provider or the municipal utility, cooperative electric association,
or public utility unless the customer is automatically eligible for protection against
disconnection as a recipient of any form of public assistance, including energy assistance
that uses income eligibility in an amount at or below the income eligibility in subdivision
1, clause (1).
new text end

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,
or public utility shall provide the residential customer with a commission-approved written
notice of the right to appeal to the commission when the utility and residential customer
are unable to agree on the establishment, reasonableness, or modification of a payment
schedule, or on the reasonable timeliness of the payments under a payment schedule,
provided for by this section. Any appeal must be made within seven working days after
the residential customer's receipt of personally served notice, or within ten working days
after the utility has deposited first class mail notice in the United States mail.
new text end

new text begin (b) The utility shall not disconnect service while a payment schedule is pending
appeal, or until any appeal involving payment schedules has been determined by the
commission.
new text end

Sec. 2.

new text begin [325G.53] CANCELLATION WITHOUT PENALTY OF WIRELESS
CONTRACTS BY MILITARY SERVICE PERSONNEL.
new text end

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
active duty, for deployment, or for a permanent change of duty station, or the spouse of
the service member, may terminate, without penalty, a wireless service contract, or some
portion of it, that is executed by or on behalf of the service member or by the spouse of
that service member. "Service member" includes any business entity wholly owned by the
service member or the service member's spouse.
new text end

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
effective until both of the following occur:
new text end

new text begin (1) 30 days after the service member or the service member's spouse gives notice by
certified mail, return receipt requested, of the intention to terminate the wireless service
contract or part of it, and provides a copy of the service member's order for activation,
deployment, or change of duty station; and
new text end

new text begin (2) if the service member or the service member's spouse owns the wireless
telephone, the wireless telephone is returned to the custody or control of the wireless
carrier, or the service member or the service member's spouse agrees in writing to return
the wireless telephone as soon as practicable after the military service is completed.
new text end

Sec. 3.

new text begin [325G.54] CANCELLATION WITHOUT PENALTY OF RENTAL,
CLUB, AND MEMBERSHIP TRAVEL CONTRACTS BY MILITARY SERVICE
PERSONNEL.
new text end

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
contracts, and membership travel contracts in which:
new text end

new text begin (1) such a contract was executed by or on the behalf of a person who, after the
execution of the contract, was issued orders into active duty, for deployment, or for a
permanent change of duty station; and
new text end

new text begin (2) where as a result of the orders it is impractical for the person to abide by the
terms and conditions of the rental contract. For purposes of the subdivision, "service
member" includes any business entity wholly owned by the service member or the service
member's spouse.
new text end

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, or service
contract, including that for services such as computer, Internet service, or any other type
of service, and who is issued orders into active duty, for deployment, or for a permanent
change of duty station, subsequent to the execution of the contract, is entitled to cancel the
contract at no penalty and with a full refund of any money which may have been placed
on deposit where the service member's military activation, deployment, or change in
duty station causes it to be impractical for the service member to abide by the terms and
conditions of the contract. For purposes of this subdivision, "service member" includes
any business entity wholly owned by the service member or the service member's spouse.
new text end

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
to the contractor by the person issued orders for active duty, for deployment, or for
a permanent change of duty station, canceling the service member's rental, club, or
membership travel contract within two weeks of the service member's receipt of the
orders, and the notice must include a copy of the orders in question. Delivery of the
notice must be made by certified mail addressed to the contractor. For purposes of this
subdivision, "service member" includes any business entity wholly owned by the service
member or the service member's spouse.
new text end

new text begin Subd. 4. new text end

new text begin Other rights and protections. new text end

new text begin The rights and protections afforded to
service members under the Servicemembers Civil Relief Act, United States Code, title 50,
sections 501 to 596, also apply in Minnesota to any business wholly owned by the service
member or the service member's spouse.
new text end

Sec. 4. new text begin ENFORCEMENT.
new text end

new text begin Sections 1 and 2 may be enforced by the attorney general pursuant to Minnesota
Statutes, section 8.31, and are subject to the penalties set forth in that section. Section 3
may be enforced pursuant to Minnesota Statutes, chapter 216B.
new text end