HF 532

3rd Engrossment - 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 190; 325E; 325G.

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

Section 1.

new text begin [190.056] 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, Appendix, 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. 2.

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) 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 below the state median household income or is receiving
energy assistance and enters into an agreement with the municipal utility, cooperative
electric association, or public utility 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 those payments; or
new text end

new text begin (2) has a household income above the state median household income and enters
into an agreement with the municipal utility, cooperative electric association, or public
utility establishing 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 (b) For purposes of this subdivision, "household income" means household income
measured after the date of the orders specified in paragraph (a).
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 or other appropriate governing
body 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. 3.

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 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.
new text end

Sec. 4.

new text begin [325G.54] CANCELLATION WITHOUT PENALTY OF RENTAL,
CLUB, SERVICE, 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 under section 325G.23, service contracts, and membership travel contracts
under section 325G.50 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 enjoy the benefits
of the 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, membership
travel, or service contract, 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. For purposes of this section, "service contract" includes those for services such as
television, computer, Internet service, or any other type of service.
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. 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. The
termination of the contract is effective the day following receipt of proper notice as
described in this subdivision. 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

Sec. 5. new text begin ENFORCEMENT.
new text end

new text begin Section 2 may be enforced pursuant to Minnesota Statutes, chapter 216B. Sections 1,
3, and 4 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.
new text end