Text: H08553 Text: H08555 Text: H08500 - H08599 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 2326, as passed by the Senate, as 1 2 follows: 1 3 #1. Page 27, by inserting after line 9 the 1 4 following: 1 5 "Sec. . NEW SECTION. 476B.1 DEFINITIONS. 1 6 As used in this chapter, unless the context 1 7 otherwise requires: 1 8 1. "ADAD equipment" means automatic dialing- 1 9 announcing device equipment, which is a device or 1 10 system of devices used, either alone or in conjunction 1 11 with other equipment, for the purpose of automatically 1 12 selecting or dialing telephone numbers, for 1 13 disseminating prerecorded messages to the numbers 1 14 selected or dialed without the use of a live operator. 1 15 2. "Autodialer" means an automatic telephone 1 16 dialing system or equipment that has both the capacity 1 17 to store or produce telephone numbers to be called 1 18 using a random or sequential number generator, and to 1 19 dial such numbers. 1 20 3. "Board" means the utilities board created in 1 21 section 474.1. 1 22 4. "Caller identification" means the display, on 1 23 the call recipient's telephone or related equipment, 1 24 of the caller's telephone number or identity to the 1 25 recipient of the call. 1 26 5. "Consumer" means an actual or prospective 1 27 purchaser, lessee, or recipient of a consumer good or 1 28 service. 1 29 6. "Consumer good or service" means any real 1 30 property or any tangible or intangible personal 1 31 property that is normally used for personal, family, 1 32 or household purposes, including, without limitation, 1 33 any such property intended to be attached to or 1 34 installed in any real property without regard to 1 35 whether such property is so attached or installed, as 1 36 well as cemetery lots and timeshare estates, and any 1 37 service related to such property. 1 38 7. "Conversation time" is the time when two-way 1 39 telecommunications is possible during a telephone 1 40 call. 1 41 8. "Doing business in this state" means a business 1 42 that conducts telephone solicitations from a location 1 43 in this state or from other states or nations to 1 44 consumers located in this state. 1 45 9. "Existing business relationship" means an 1 46 established pattern of activity between a consumer and 1 47 a merchant, involving an inquiry, application, 1 48 purchase, or transaction initiated by a consumer 1 49 regarding consumer goods or services offered by a 1 50 merchant. 2 1 10. "Merchant" means a person who, directly or 2 2 indirectly, offers or makes available to a consumer 2 3 any consumer good or service. 2 4 11. "Predictive dialing technology" means an 2 5 automated dialing system or computer software that 2 6 utilizes a formula or similar mechanism to initiate a 2 7 certain greater number of telephone calls than the 2 8 number of telephone solicitors available to speak to 2 9 prospective customers, with a goal of keeping the 2 10 available telephone solicitors continually speaking to 2 11 one prospective customer after another. 2 12 12. "Prepaid calling card" means an object 2 13 containing an access number and authorization code 2 14 that enables an end user to use prepaid calling 2 15 services. 2 16 13. "Prepaid calling card company" means any 2 17 person providing prepaid calling services to the 2 18 public using its own or another person's 2 19 telecommunication network or networks. 2 20 14. "Prepaid calling services" means any prepaid 2 21 telecommunications service that allows end users to 2 22 originate calls through an access number and 2 23 authorization code, whether manually or electronically 2 24 dialed. 2 25 15. "Telephone solicitation" means any voice 2 26 communication, wherever originated, transmitted over a 2 27 telephone for the purpose of encouraging action on the 2 28 part of a consumer, including but not limited to any 2 29 of the following actions: 2 30 a. The purchase or rental of consumer goods or 2 31 services. 2 32 b. Investment in consumer goods or services. 2 33 c. Soliciting a sale of a consumer good or 2 34 service. 2 35 d. Offering an extension of credit for a consumer 2 36 good or service. 2 37 e. Obtaining information that will or may be used 2 38 for the direct solicitation of a sale of a consumer 2 39 good or service or an offer of extension of credit for 2 40 such purpose. 2 41 f. Soliciting a donation for any group, 2 42 organization, or purpose. 2 43 16. "Telephone solicitor" means a person doing 2 44 business in this state, who makes or causes to be made 2 45 a telephone solicitation, including, but not limited 2 46 to, calls made by use of ADAD equipment, predictive 2 47 dialing technology, or an autodialer. 2 48 17. "Unsolicited telephone solicitation" means a 2 49 telephone solicitation other than a telephone call 2 50 made as follows: 3 1 a. In response to an express request of the person 3 2 called. 3 3 b. Primarily in connection with an existing debt 3 4 or contract, payment, or performance of which has not 3 5 been completed at the time of such call. 3 6 c. To a person with whom the telephone solicitor 3 7 has an existing business relationship. 3 8 d. To a residential subscriber if the telephone 3 9 solicitation is made on behalf of a not-for-profit 3 10 organization exempt from paying taxes under section 3 11 501(c) of the Internal Revenue Code, and if a bona 3 12 fide member of the exempt organization directly makes 3 13 such call, and does not contract with a telemarketing 3 14 firm or other third party to make the call. 3 15 e. By a person licensed pursuant to chapter 543B 3 16 who makes a telephone call to an actual or prospective 3 17 seller or lessor of real property if the call is made 3 18 in response to a yard sign or other form of real 3 19 estate sales advertisement placed by the seller or 3 20 lessor. 3 21 Sec. . NEW SECTION. 476B.2 RESTRICTIONS ON 3 22 THE USE OF CERTAIN TELEMARKETING EQUIPMENT. 3 23 1. A person shall not do any of the following: 3 24 a. Utilize any ADAD equipment, predictive dialing 3 25 technology, or autodialer to call any person 3 26 registered on the do-not-call list maintained pursuant 3 27 to section 476B.3. 3 28 b. Make a telephone call to any person registered 3 29 on the do-not call list maintained pursuant to section 3 30 476B.3 while the person who is making the call is 3 31 performing paid telephone solicitation services 3 32 pursuant to contract, including payment by acceptance 3 33 of a percentage of any charitable donations collected 3 34 by the person while performing telephone solicitation 3 35 services. 3 36 c. Operate any ADAD equipment, predictive dialing 3 37 technology, or autodialers in a manner that 3 38 intentionally impedes or prevents the function of a 3 39 recipient's caller identification if the caller's 3 40 existing equipment is capable of allowing the display 3 41 of the caller's telephone number or identity. 3 42 2. a. Except as provided in paragraph "b", a 3 43 person shall not use, employ, or direct another person 3 44 to use, or contract for the use of, ADAD equipment. 3 45 b. Except for ADAD equipment that randomly or 3 46 sequentially selects the telephone numbers for 3 47 calling, the prohibition in paragraph "a" does not 3 48 apply to any of the following, provided that the 3 49 telephone numbers selected for automatic dialing have 3 50 been screened to exclude any consumer who is included 4 1 on the do-not-call list pursuant to section 476B.3 or 4 2 who has an unlisted telephone number, unless the calls 4 3 made concern a consumer good or service that has been 4 4 previously ordered or purchased: 4 5 (1) Calls made with ADAD equipment by a nonprofit 4 6 organization or by an individual using the calls other 4 7 than for commercial profit-making purposes or fund- 4 8 raising, if the calls do not involve the advertisement 4 9 or offering for sale, lease, or rental of goods, 4 10 services, or property. 4 11 (2) Calls made with ADAD equipment relating to 4 12 payment for, service of, or warranty coverage of 4 13 previously ordered or purchased consumer goods or 4 14 services or to persons or organizations with an 4 15 existing business relationship with the persons or 4 16 organizations using the calls. 4 17 (3) Calls made with ADAD equipment relating to the 4 18 collection of lawful debts. 4 19 (4) Calls made with ADAD equipment to members or 4 20 employees of the organization making the calls. 4 21 (5) Calls made with ADAD equipment that use an 4 22 initial prerecorded message of a duration no greater 4 23 than seven seconds prior to a live operator intercept, 4 24 or calls that involve an initial message from a live 4 25 operator. 4 26 3. Calls made with ADAD equipment must terminate 4 27 the connection with any call within ten seconds after 4 28 the person receiving the call acts to disconnect the 4 29 call. 4 30 4. Calls made with predictive dialing technology 4 31 must meet a standard that allows a live telephone 4 32 solicitor to engage in conversation with a call 4 33 recipient within two seconds after the call is 4 34 answered by the call recipient. 4 35 Sec. . NEW SECTION. 476B.3 DO-NOT-CALL 4 36 LISTING. 4 37 1. The secretary of state shall contract with a 4 38 service that maintains a national do-not-call list, so 4 39 that Iowa telephone subscribers who do not wish to 4 40 receive unsolicited telephone solicitations utilizing 4 41 any ADAD equipment, predictive dialing technology, or 4 42 autodialers may register to be included on the list. 4 43 The contract shall be made in consultation with the 4 44 consumer protection division of the department of 4 45 justice, so that all evidentiary issues and other 4 46 issues related to enforcement are considered. 4 47 2. A residential, mobile, or telephonic paging 4 48 device telephone subscriber who does not wish to 4 49 receive unsolicited telephone solicitations may 4 50 register to be included on the do-not-call list 5 1 contracted for by the secretary of state pursuant to 5 2 subsection 1. 5 3 3. A telephone solicitor doing business in Iowa 5 4 shall pay a fee to be determined pursuant to 5 5 subsection 5, and shall obtain a subscription to 5 6 receive the quarterly updated subscription listings of 5 7 consumers in Iowa who have registered to be included 5 8 on the do-not-call list referred to in this section. 5 9 4. A telephone solicitor shall not make a 5 10 telephone call with any ADAD equipment, predictive 5 11 dialing technology, or autodialer to any consumer in 5 12 Iowa whose name is on the do-not-call list referred to 5 13 in this section. 5 14 5. The secretary of state and consumer protection 5 15 division of the department of justice shall adopt 5 16 rules pursuant to chapter 17A to administer this 5 17 section, including appropriate notices to consumers of 5 18 the types of telephone calls toward which such 5 19 registration is directed, and the charging of a fee 5 20 for subscriptions to the list so that the list income 5 21 supports the cost of maintaining the list. 5 22 Sec. . NEW SECTION. 476B.4 TELEPHONE 5 23 SOLICITATION RESTRICTIONS. 5 24 A telephone solicitor who makes a telephone 5 25 solicitation to a residential, mobile, or telephonic 5 26 paging device telephone number shall disclose the 5 27 identity of the telephone solicitor and the business 5 28 on whose behalf the telephone solicitor is making the 5 29 telephone solicitation, immediately upon making 5 30 contact by telephone with the person who is the object 5 31 of the telephone solicitation. The telephone 5 32 solicitor shall also comply with the provisions of 16 5 33 C.F.R. } 310.4 in regard to required disclosures and 5 34 other actions of the telephone solicitor. The 5 35 business employing the telephone solicitor shall also 5 36 comply with the provisions of 16 C.F.R. } 310.5, 5 37 particularly with regard to the use of fictitious 5 38 names by employees and recordkeeping by the business 5 39 regarding such names. 5 40 Sec. . NEW SECTION. 476B.5 REQUIREMENTS FOR 5 41 CONTRACTS MADE PURSUANT TO TELEPHONE SOLICITATION. 5 42 1. A contract made pursuant to a telephone 5 43 solicitation is not valid and enforceable against a 5 44 consumer unless made in compliance with this section. 5 45 2. A contract made pursuant to a telephone 5 46 solicitation must satisfy all of the following: 5 47 a. The contract must be reduced to writing and 5 48 signed by the consumer. 5 49 b. The contract must comply with all other 5 50 applicable laws and rules. 6 1 c. The contract must match the description of 6 2 consumer goods or services as principally communicated 6 3 in the telephone solicitation. 6 4 d. The contract must contain the name, address, 6 5 and telephone number of the seller, the total price of 6 6 the contract, and a detailed description of the 6 7 consumer goods or services being sold. 6 8 e. The contract must contain, in bold, conspicuous 6 9 type, immediately preceding the signature, the 6 10 following statement: 6 11 "You are not obligated to pay any money unless you 6 12 sign this contract and return it to the seller." 6 13 f. The contract must not exclude from its terms 6 14 any oral or written representations made by the 6 15 telephone solicitor to the consumer in connection with 6 16 the transaction. 6 17 This section does not apply to contractual sales 6 18 specifically regulated by other law, or to the sale of 6 19 financial services, security sales, or sales 6 20 transacted by insurance companies or their wholly 6 21 owned subsidiaries or agents, or to the sale of cable 6 22 television services to a franchised cable television 6 23 operator's existing subscribers within that cable 6 24 television operator's franchise area, or to any sales 6 25 where no prior payment is made to the merchant and an 6 26 invoice accompanies the consumer goods or services 6 27 allowing the consumer no less than seven days to 6 28 cancel or return the consumer goods or services 6 29 without obligation for any payment. 6 30 Sec. . NEW SECTION. 476B.6 RESTRICTIONS ON 6 31 CHARGES TO CREDIT CARD ACCOUNTS AND ELECTRONIC 6 32 TRANSFERS OF FUNDS. 6 33 1. A merchant who engages a telephone solicitor to 6 34 make or cause to be made a telephone solicitation 6 35 shall not make or submit any charge to a consumer's 6 36 credit card account or make or cause to be made any 6 37 electronic transfer of funds until after the merchant 6 38 receives from the consumer a copy of the contract, 6 39 signed by the consumer, that complies with section 6 40 476B.5. 6 41 2. This section does not apply to any of the 6 42 following: 6 43 a. A transaction made pursuant to prior 6 44 negotiations in the course of a visit by the consumer 6 45 to a merchant operating a retail business 6 46 establishment which has a fixed permanent location and 6 47 where consumer goods or services are displayed or 6 48 offered for sale on a continuing basis. 6 49 b. A transaction in which the consumer may obtain 6 50 a full refund for the return of undamaged and unused 7 1 consumer goods or a cancellation of consumer services 7 2 by notice to the seller within seven days after 7 3 receipt by the consumer, and the seller will process 7 4 the refund within thirty days after receipt of the 7 5 returned consumer goods or cancellation of the 7 6 consumer services by the consumer. 7 7 c. A transaction in which the consumer purchases 7 8 consumer goods or services pursuant to an examination 7 9 of a television, radio, or print advertisement or a 7 10 sample, brochure, or catalog of the merchant that 7 11 contains all of the following: 7 12 (1) The name, address, and telephone number of the 7 13 merchant. 7 14 (2) A description of the consumer goods or 7 15 services being sold. 7 16 (3) Any limitations or restrictions that apply to 7 17 the offer. 7 18 d. A transaction in which the merchant is a bona 7 19 fide charitable organization or a newspaper. 7 20 Sec. . NEW SECTION. 476B.7 PREPAID CALLING 7 21 CARDS DISCLOSURES REQUIREMENTS. 7 22 1. A prepaid calling card company shall provide 7 23 all of the following information about the prepaid 7 24 calling services in a prominent area at the point of 7 25 sale of the prepaid calling services, legibly and 7 26 visibly printed on the card, packaging, or display in 7 27 such a manner that the consumer may make an informed 7 28 decision about the prepaid calling services prior to 7 29 purchase: 7 30 a. The maximum charge per minute for the prepaid 7 31 calling services. 7 32 b. All applicable surcharges. 7 33 c. The expiration policy for the prepaid calling 7 34 services, if applicable. 7 35 The company shall insure by contract with its 7 36 retailers or distributors that the information is 7 37 provided to the consumer. 7 38 2. A prepaid calling card company shall legibly 7 39 print all of the following information on the prepaid 7 40 calling card: 7 41 a. The name of the prepaid calling card company, 7 42 as registered with the secretary of state. 7 43 b. A toll-free customer service number. 7 44 c. A toll-free network access number. 7 45 d. The authorization code, if such a code is 7 46 required to access telecommunications service. 7 47 3. A prepaid calling card company shall provide 7 48 all of the following information and services through 7 49 its customer service telephone number: 7 50 a. Rates and surcharges. 8 1 b. Balance of use in account. 8 2 c. Expiration date or period, if applicable. 8 3 d. A live operator to answer incoming calls 8 4 twenty-four hours a day, seven days a week, or 8 5 electronic voice recording of consumer messages. A 8 6 combination of live operators or recorders may be 8 7 used. If a recorder is used, the company shall 8 8 attempt to contact each consumer no later than the 8 9 next business day following the date of the recording. 8 10 4. A prepaid calling card company shall use the 8 11 following billing standards: 8 12 a. A prepaid calling card company shall only 8 13 charge a consumer for conversation time used plus 8 14 applicable surcharges. 8 15 b. The billing increment used by a prepaid calling 8 16 card company shall not exceed one minute. 8 17 c. Conversation time of less than a full minute 8 18 shall not be rounded up beyond the next full minute. 8 19 5. Cards that do not have a specific expiration 8 20 period printed on the card, and that have a balance of 8 21 service remaining, shall be considered active for a 8 22 minimum of one year from the date of first use, or if 8 23 recharged, from the date of the last recharge. 8 24 6. A prepaid calling card company shall have a 8 25 refund policy that meets all of the following minimum 8 26 requirements: 8 27 a. For prepaid calling services that are rendered 8 28 unusable for reasons beyond the consumer's control, 8 29 and have not exceeded the expiration period, a prepaid 8 30 calling card company shall provide a refund equal to 8 31 the value remaining in the account. 8 32 b. Each company may, but shall not be required to, 8 33 provide a refund when a card has been lost or stolen. 8 34 c. Refunds may be cash or replacement service, at 8 35 the prepaid calling card company's option, but must be 8 36 made to the consumer within sixty days of the request 8 37 for a refund by the consumer. 8 38 7. All cards sold by a prepaid calling card 8 39 company in Iowa after July 1, 2002, shall comply with 8 40 this section. 8 41 Sec. . NEW SECTION. 476B.8 INVESTIGATIONS 8 42 CIVIL ACTIONS CIVIL PENALTY OTHER REMEDIES. 8 43 1. A violation of this chapter is a violation of 8 44 section 714.16, subsection 2, paragraph "a". All the 8 45 powers conferred upon the attorney general to 8 46 accomplish the objectives and carry out the duties 8 47 prescribed pursuant to section 714.16 are also 8 48 conferred upon the attorney general to enforce this 8 49 chapter, including, but not limited to, the power to 8 50 issue subpoenas, adopt rules pursuant to chapter 17A 9 1 which shall have the force of law, and seek injunctive 9 2 relief and civil penalties. 9 3 2. In seeking reimbursement pursuant to section 9 4 714.16, subsection 7, from a person who has committed 9 5 a violation of this chapter, the attorney general may 9 6 seek an order from the court that the person pay to 9 7 the attorney general on behalf of consumers the 9 8 amounts for which the person would be liable under 9 9 section 476B.9, subsection 2, for each consumer who 9 10 has a cause of action pursuant to section 476B.9, 9 11 subsection 2. Section 714.16, as it relates to 9 12 consumer reimbursement, shall apply to consumer 9 13 reimbursement pursuant to this section. 9 14 Sec. . NEW SECTION. 476B.9 PRIVATE CAUSE OF 9 15 ACTION DAMAGES AND INJUNCTIVE RELIEF. 9 16 In addition to any other remedies, a consumer who 9 17 receives more than one telephone solicitation within 9 18 any twelve-month period by or on behalf of the same 9 19 person in violation of any provision of this chapter 9 20 may bring an action against the person to recover all 9 21 of the following: 9 22 1. Preliminary and permanent injunctive relief 9 23 necessary to protect the public against further 9 24 violations. 9 25 2. The greater of actual monetary damages or a sum 9 26 not less than one hundred dollars but not more than 9 27 two thousand dollars for each telephone call made in 9 28 violation of this chapter. 9 29 3. Costs and reasonable attorney fees. 9 30 Reimbursement awarded to the attorney general 9 31 pursuant to section 714.16, subsection 7, on behalf of 9 32 a plaintiff who has filed an action pursuant to this 9 33 section concerning the same set of facts shall be 9 34 deducted from any damages awarded to the plaintiff in 9 35 an action filed under this section. 9 36 Sec. . NEW SECTION. 476B.10 NOTIFICATION OF 9 37 RIGHTS. 9 38 The board shall by rule ensure that 9 39 telecommunications providers inform their customers of 9 40 the customers' rights under this chapter. The 9 41 notification shall be made by at least both of the 9 42 following: 9 43 1. Annual inserts in the billing statements mailed 9 44 to customers. 9 45 2. Conspicuous publication of the notice in the 9 46 consumer information pages of the local telephone 9 47 directories." 9 48 #2. Page 28, by inserting after line 14 the 9 49 following: 9 50 "Sec. . Section 476.57, Code 2001, is 10 1 repealed." 10 2 10 3 10 4 10 5 SCHRADER of Marion 10 6 SF 2326.216 79 10 7 jj/sh
Text: H08553 Text: H08555 Text: H08500 - H08599 Text: H Index Bills and Amendments: General Index Bill History: General Index
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