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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