Text: HSB00696 Text: HSB00698 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 714.8, subsection 15, Code 1995, is 1 2 amended to read as follows: 1 3 15. Obtains or attempts to obtain the transfer of 1 4 possession, control, or ownership, of the property of another 1 5 by deception through communications conducted primarily by 1 6 telephone and involving direct or implied claims thatthe1 7othera personcontactedhaswon or is about to win a prize,1 8or involving direct or implied claims that the other person1 9contactedbeen selected, or may be selected, to receive a 1 10 prize, award, premium, or bonus, or will recover, or may be 1 11 able to recover, any losses sufferedby such other personin 1 12 connection with aprize promotiontelephone solicitation. 1 13 Sec. 2. NEW SECTION. 714B.2A REGISTRATION. 1 14 1. A person and the employer of a person who obtains or 1 15 attempts to obtain the transfer of possession, control, or 1 16 ownership of the property of another through communications 1 17 conducted primarily by telephone, shall register with the 1 18 attorney general prior to soliciting any resident of this 1 19 state, if the solicitation involves direct or implied claims 1 20 that a person has been selected, or may be selected, to 1 21 receive a prize, award, premium, or bonus, or will recover, or 1 22 may be able to recover, any losses suffered in connection with 1 23 a telephone solicitation. 1 24 2. A registrant under this section shall provide on forms 1 25 provided by the attorney general, all of the following: 1 26 a. The registrant's true name. 1 27 b. The registrant's date of birth and social security 1 28 number, if applicable. 1 29 c. The registrant's diver's license number and state of 1 30 issue, if applicable. 1 31 d. All aliases and assumed or fictitious names used by the 1 32 registrant in connection with such solicitations. 1 33 e. Any other information deemed necessary by the attorney 1 34 general to identify or locate the registrant including, but 1 35 not limited to, the registrant's home address and home 2 1 telephone number, if applicable, and the registrant's business 2 2 address and business telephone number. 2 3 3. For purposes of this section, an "employer" is any 2 4 person who supervises, directs, or controls the activities of 2 5 a person making a solicitation pursuant to subsection 1 at the 2 6 time the solicitation is made. 2 7 4. The required registration of any aliases and assumed or 2 8 fictitious names shall not be construed as permitting the use 2 9 of such aliases or assumed or fictitious names, or that the 2 10 practice is otherwise permitted under section 714.8, 2 11 subsection 15, section 714.16, or any other statute. 2 12 5. The requirements of this section do not apply to a 2 13 domestic corporation, a foreign corporation that has obtained 2 14 a certificate of authority pursuant to section 490.1501, or to 2 15 an officer, director, employee, or agent of such domestic or 2 16 foreign corporation, unless it appears to the attorney general 2 17 that such domestic or foreign corporation, or an officer, 2 18 director, employee, or agent of such domestic or foreign 2 19 corporation has engaged in, is engaging in, or is about to 2 20 engage in, any practice in violation of section 714.16, and 2 21 that such domestic or foreign corporation or an officer, 2 22 director, employee, or agent of such domestic or foreign 2 23 corporation has received notification from the attorney 2 24 general that registration is required. 2 25 6. a. A person required to register with the attorney 2 26 general pursuant to this section, and who fails to do so 2 27 within five days after receiving notice of such failure and 2 28 the requirements of this section from the attorney general, 2 29 either orally or in writing, is guilty of an aggravated 2 30 misdemeanor. 2 31 b. A person required to register with the attorney general 2 32 pursuant to this section, and who intentionally provides false 2 33 information, either orally or in writing, related to the 2 34 registration which is required under subsection 2, is guilty 2 35 of a class "D" felony. 3 1 EXPLANATION 3 2 This bill amends section 714.8, subsection 15, to indicate 3 3 that a fraudulent practice is committed when a person attempts 3 4 to obtain the property of another by deception through 3 5 communications conducted primarily by telephone. 3 6 New section 714B.2A is established and requires that a 3 7 person and the employer of a person who obtains or attempts to 3 8 obtain the transfer of possession, control, or ownership of 3 9 the property of another through communications conducted 3 10 primarily by telephone, shall register with the attorney 3 11 general prior to soliciting any resident of this state if the 3 12 solicitation involves direct or implied claims that a person 3 13 has been selected, or may be selected, to receive a prize, 3 14 award, premium, or bonus, or will recover, or may be able to 3 15 recover, any losses suffered in connection with a telephone 3 16 solicitation. 3 17 The requirements of new section 714.2A do not apply to a 3 18 domestic corporation, a foreign corporation that has obtained 3 19 a certificate of authority pursuant to section 490.1501, or to 3 20 an officer, director, employee, or agent of such domestic or 3 21 foreign corporation, unless it appears to the attorney general 3 22 that such person has engaged in, is engaging in, or is about 3 23 to engage in, any practice in violation of section 714.16 3 24 (consumer frauds), and that such person has received 3 25 notification from the attorney general that registration is 3 26 required. 3 27 A person required to register with the attorney general and 3 28 who fails to do so within five days after receiving notice of 3 29 such failure and the requirements of this section from the 3 30 attorney general, either orally or in writing, is guilty of an 3 31 aggravated misdemeanor. A person required to register with 3 32 the attorney general and who intentionally provides false 3 33 information, either orally or in writing, related to the 3 34 registration which is required under this section, is guilty 3 35 of a class "D" felony. 4 1 BACKGROUND STATEMENT 4 2 SUBMITTED BY THE AGENCY 4 3 Sections 1 and 2 of the bill provide that persons engaged 4 4 in fraudulent prize notification or "recovery" schemes are 4 5 nearly always located out-of-state and they use false names 4 6 and addresses when contacting victims in order to avoid 4 7 detection and prosecution. Their victims are nearly always 4 8 elderly. Soon after the victims lose their money, the 4 9 perpetrators shut down their operation and disappear before 4 10 they can be identified. Investigations by the attorney 4 11 general are frequently hampered by individuals intentionally 4 12 providing false information to the attorney general to conceal 4 13 their identity. This bill would deter fraudulent prize 4 14 notification schemes by making detection of the perpetrators 4 15 more likely and by prohibiting the false statements regarding 4 16 a person's identity that further complicate investigations. 4 17 Section 714.8, subsection 15, makes it a fraudulent 4 18 practice to attempt to obtain property of another by deceptive 4 19 prize or recovery telephone schemes. The attorney general has 4 20 initiated many successful prosecutions under this section as a 4 21 result of transferring phone lines of elderly victims to the 4 22 attorney general's office, where the calls are taken by 4 23 undercover investigators posing as the elderly victim. Some 4 24 defendants have unsuccessfully argued in court that the 4 25 statute, as written, does not apply where the "other person 4 26 contacted" is an undercover investigator. While the attorney 4 27 general and the courts have not agreed with this 4 28 interpretation, it would be best to clarify the statute. It 4 29 is also important for purposes of statutory construction by 4 30 the courts that section 714.8, subsection 15, parallel the 4 31 language of the new registration statute included in this 4 32 bill. 4 33 LSB 4289DP 76 4 34 mj/cf/24
Text: HSB00696 Text: HSB00698 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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