Minnesota Legislature
HF 532
1st Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
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. [325E.027] UTILITY PAYMENT ARRANGEMENTS FOR MILITARY
1.8SERVICE PERSONNEL.
1.9 Subdivision 1. Restriction on disconnection; payment schedules. (a) A municipal
1.10utility, cooperative electric association, or public utility must not disconnect the utility
1.11service of a residential customer if a member of the household has been issued orders into
1.12active duty, for deployment, or for a permanent change in duty station during the period of
1.13active duty, deployment, or change in duty station if such a residential customer:
1.14 (1) has a household income below the state median household income or is receiving
1.15energy assistance and enters into an agreement with the municipal utility, cooperative
1.16electric association, or public utility under which the residential customer pays ten percent
1.17of the customer's gross monthly income toward the customer's bill and the residential
1.18customer remains reasonably current with those payments; or
1.19 (2) has a household income above the state median household income and enters
1.20into an agreement with the municipal utility, cooperative electric association, or public
1.21utility establishing a reasonable payment schedule that considers the financial resources
1.22of the household and the residential customer remains reasonably current with payments
1.23under the payment schedule.
1.24 (b) For purposes of this subdivision, "household income" means household income
1.25measured after the date of the orders specified in paragraph (a).
2.1 Subd. 2. Annual notice to all customers; inability to pay forms. (a) A municipal
2.2utility, cooperative electric association, or public utility must notify all residential
2.3customers annually of the provisions of this section.
2.4 (b) A municipal utility, cooperative electric association, or public utility must
2.5provide a form to a residential customer to request the protections of this section upon
2.6the residential customer's request.
2.7 Subd. 3. Application to service limiters. For the purposes of this section,
2.8"disconnection" includes a service or load limiter or any device that limits or interrupts
2.9electric service in any way.
2.10 Subd. 4. Income verification. Verification of income may be conducted by the
2.11local energy assistance provider or the municipal utility, cooperative electric association,
2.12or public utility unless the customer is automatically eligible for protection against
2.13disconnection as a recipient of any form of public assistance, including energy assistance
2.14that uses income eligibility in an amount at or below the income eligibility in subdivision
2.151, clause (1).
2.16 Subd. 5. Appeal process. (a) The municipal utility, cooperative electric association,
2.17or public utility shall provide the residential customer with a commission-approved
2.18written notice of the right to appeal to the commission or other appropriate governing
2.19body when the utility and residential customer are unable to agree on the establishment,
2.20reasonableness, or modification of a payment schedule, or on the reasonable timeliness of
2.21the payments under a payment schedule, provided for by this section. Any appeal must
2.22be made within seven working days after the residential customer's receipt of personally
2.23served notice, or within ten working days after the utility has deposited first class mail
2.24notice in the United States mail.
2.25 (b) The utility shall not disconnect service while a payment schedule is pending
2.26appeal, or until any appeal involving payment schedules has been determined by the
2.27commission.
2.28 Sec. 2. [325G.53] CANCELLATION WITHOUT PENALTY OF WIRELESS
2.29CONTRACTS BY MILITARY SERVICE PERSONNEL.
2.30 Subdivision 1. Authority. Any service member who has been issued orders into
2.31active duty, for deployment, or for a permanent change of duty station, or the spouse of
2.32the service member, may terminate, without penalty, a wireless service contract, or some
2.33portion of it, that is executed by or on behalf of the service member or by the spouse of
2.34that service member. "Service member" includes any business entity wholly owned by the
2.35service member or the service member's spouse.
3.1 Subd. 2. When effective. Termination of the wireless service contract is not
3.2effective until 30 days after the service member or the service member's spouse gives
3.3notice by certified mail, return receipt requested, of the intention to terminate the wireless
3.4service contract or part of it, and provides a copy of the service member's order for
3.5activation, deployment, or change of duty station.
3.6 Sec. 3. [325G.54] CANCELLATION WITHOUT PENALTY OF RENTAL,
3.7CLUB, SERVICE, AND MEMBERSHIP TRAVEL CONTRACTS BY MILITARY
3.8SERVICE PERSONNEL.
3.9 Subdivision 1. Application. This section applies to any rental contracts, club
3.10contracts under section 325G.23, service contracts, and membership travel contracts
3.11under section 325G.50 in which:
3.12 (1) such a contract was executed by or on the behalf of a person who, after the
3.13execution of the contract, was issued orders into active duty, for deployment, or for a
3.14permanent change of duty station; and
3.15 (2) where as a result of the orders it is impractical for the person to enjoy the benefits
3.16of the contract. For purposes of the subdivision, "service member" includes any business
3.17entity wholly owned by the service member or the service member's spouse.
3.18 Subd. 2. Authority. A service member who enters into a rental, club, membership
3.19travel, or service contract, and who is issued orders into active duty, for deployment, or for
3.20a permanent change of duty station, subsequent to the execution of the contract, is entitled
3.21to cancel the contract at no penalty and with a full refund of any money which may have
3.22been placed on deposit where the service member's military activation, deployment, or
3.23change in duty station causes it to be impractical for the service member to abide by the
3.24terms and conditions of the contract. For purposes of this subdivision, "service member"
3.25includes any business entity wholly owned by the service member or the service member's
3.26spouse. For purposes of this section, "service contract" includes those for services such as
3.27television, computer, Internet service, or any other type of service.
3.28 Subd. 3. Notice. Any such contract may be terminated by notice in writing sent
3.29to the contractor by the person issued orders for active duty, for deployment, or for
3.30a permanent change of duty station, canceling the service member's rental, club, or
3.31membership travel contract. The notice must include a copy of the orders in question.
3.32Delivery of the notice must be made by certified mail addressed to the contractor. The
3.33termination of the contract is effective the day following receipt of proper notice as
3.34described in this subdivision. For purposes of this subdivision, "service member" includes
3.35any business entity wholly owned by the service member or the service member's spouse.
4.1 Sec. 4. ENFORCEMENT.
4.2 Section 1 may be enforced pursuant to Minnesota Statutes, chapter 216B. Sections 2
4.3and 3 may be enforced by the attorney general pursuant to Minnesota Statutes, section
4.48.31, and are subject to the penalties set forth in that section.
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. [325E.027] UTILITY PAYMENT ARRANGEMENTS FOR MILITARY
1.8SERVICE PERSONNEL.
1.9 Subdivision 1. Restriction on disconnection; payment schedules. (a) A municipal
1.10utility, cooperative electric association, or public utility must not disconnect the utility
1.11service of a residential customer if a member of the household has been issued orders into
1.12active duty, for deployment, or for a permanent change in duty station during the period of
1.13active duty, deployment, or change in duty station if such a residential customer:
1.14 (1) has a household income below the state median household income or is receiving
1.15energy assistance and enters into an agreement with the municipal utility, cooperative
1.16electric association, or public utility under which the residential customer pays ten percent
1.17of the customer's gross monthly income toward the customer's bill and the residential
1.18customer remains reasonably current with those payments; or
1.19 (2) has a household income above the state median household income and enters
1.20into an agreement with the municipal utility, cooperative electric association, or public
1.21utility establishing a reasonable payment schedule that considers the financial resources
1.22of the household and the residential customer remains reasonably current with payments
1.23under the payment schedule.
1.24 (b) For purposes of this subdivision, "household income" means household income
1.25measured after the date of the orders specified in paragraph (a).
2.1 Subd. 2. Annual notice to all customers; inability to pay forms. (a) A municipal
2.2utility, cooperative electric association, or public utility must notify all residential
2.3customers annually of the provisions of this section.
2.4 (b) A municipal utility, cooperative electric association, or public utility must
2.5provide a form to a residential customer to request the protections of this section upon
2.6the residential customer's request.
2.7 Subd. 3. Application to service limiters. For the purposes of this section,
2.8"disconnection" includes a service or load limiter or any device that limits or interrupts
2.9electric service in any way.
2.10 Subd. 4. Income verification. Verification of income may be conducted by the
2.11local energy assistance provider or the municipal utility, cooperative electric association,
2.12or public utility unless the customer is automatically eligible for protection against
2.13disconnection as a recipient of any form of public assistance, including energy assistance
2.14that uses income eligibility in an amount at or below the income eligibility in subdivision
2.151, clause (1).
2.16 Subd. 5. Appeal process. (a) The municipal utility, cooperative electric association,
2.17or public utility shall provide the residential customer with a commission-approved
2.18written notice of the right to appeal to the commission or other appropriate governing
2.19body when the utility and residential customer are unable to agree on the establishment,
2.20reasonableness, or modification of a payment schedule, or on the reasonable timeliness of
2.21the payments under a payment schedule, provided for by this section. Any appeal must
2.22be made within seven working days after the residential customer's receipt of personally
2.23served notice, or within ten working days after the utility has deposited first class mail
2.24notice in the United States mail.
2.25 (b) The utility shall not disconnect service while a payment schedule is pending
2.26appeal, or until any appeal involving payment schedules has been determined by the
2.27commission.
2.28 Sec. 2. [325G.53] CANCELLATION WITHOUT PENALTY OF WIRELESS
2.29CONTRACTS BY MILITARY SERVICE PERSONNEL.
2.30 Subdivision 1. Authority. Any service member who has been issued orders into
2.31active duty, for deployment, or for a permanent change of duty station, or the spouse of
2.32the service member, may terminate, without penalty, a wireless service contract, or some
2.33portion of it, that is executed by or on behalf of the service member or by the spouse of
2.34that service member. "Service member" includes any business entity wholly owned by the
2.35service member or the service member's spouse.
3.1 Subd. 2. When effective. Termination of the wireless service contract is not
3.2effective until 30 days after the service member or the service member's spouse gives
3.3notice by certified mail, return receipt requested, of the intention to terminate the wireless
3.4service contract or part of it, and provides a copy of the service member's order for
3.5activation, deployment, or change of duty station.
3.6 Sec. 3. [325G.54] CANCELLATION WITHOUT PENALTY OF RENTAL,
3.7CLUB, SERVICE, AND MEMBERSHIP TRAVEL CONTRACTS BY MILITARY
3.8SERVICE PERSONNEL.
3.9 Subdivision 1. Application. This section applies to any rental contracts, club
3.10contracts under section 325G.23, service contracts, and membership travel contracts
3.11under section 325G.50 in which:
3.12 (1) such a contract was executed by or on the behalf of a person who, after the
3.13execution of the contract, was issued orders into active duty, for deployment, or for a
3.14permanent change of duty station; and
3.15 (2) where as a result of the orders it is impractical for the person to enjoy the benefits
3.16of the contract. For purposes of the subdivision, "service member" includes any business
3.17entity wholly owned by the service member or the service member's spouse.
3.18 Subd. 2. Authority. A service member who enters into a rental, club, membership
3.19travel, or service contract, and who is issued orders into active duty, for deployment, or for
3.20a permanent change of duty station, subsequent to the execution of the contract, is entitled
3.21to cancel the contract at no penalty and with a full refund of any money which may have
3.22been placed on deposit where the service member's military activation, deployment, or
3.23change in duty station causes it to be impractical for the service member to abide by the
3.24terms and conditions of the contract. For purposes of this subdivision, "service member"
3.25includes any business entity wholly owned by the service member or the service member's
3.26spouse. For purposes of this section, "service contract" includes those for services such as
3.27television, computer, Internet service, or any other type of service.
3.28 Subd. 3. Notice. Any such contract may be terminated by notice in writing sent
3.29to the contractor by the person issued orders for active duty, for deployment, or for
3.30a permanent change of duty station, canceling the service member's rental, club, or
3.31membership travel contract. The notice must include a copy of the orders in question.
3.32Delivery of the notice must be made by certified mail addressed to the contractor. The
3.33termination of the contract is effective the day following receipt of proper notice as
3.34described in this subdivision. For purposes of this subdivision, "service member" includes
3.35any business entity wholly owned by the service member or the service member's spouse.
4.1 Sec. 4. ENFORCEMENT.
4.2 Section 1 may be enforced pursuant to Minnesota Statutes, chapter 216B. Sections 2
4.3and 3 may be enforced by the attorney general pursuant to Minnesota Statutes, section
4.48.31, and are subject to the penalties set forth in that section.