House File 110 - Introduced
HOUSE FILE
BY STRUYK
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to telephone solicitations including the
2 establishment of a state do=not=call database, providing for
3 certain restrictions on telephone solicitors, and providing
4 for a fee, penalties, and remedies.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 477A.1 DEFINITIONS.
1 2 As used in this chapter, unless the context otherwise
1 3 requires:
1 4 1. "Caller identification service" means a telephone
1 5 service which permits telephone subscribers to see the
1 6 telephone number of incoming calls.
1 7 2. "Established business relationship" means a prior or
1 8 existing relationship formed by a voluntary two=way
1 9 communication between a person and a telephone subscriber with
1 10 or without an exchange of consideration, on the basis of the
1 11 subscriber's purchase or transaction with the person within
1 12 one hundred eighty days immediately preceding the date of the
1 13 telephone call.
1 14 3. "Telephone solicitation" means the initiation of a
1 15 telephone call or message for the purpose of encouraging the
1 16 purchase or rental of, or investment in, property, goods, or
1 17 services, which is transmitted to a telephone subscriber, but
1 18 does not include a call or message that is any of the
1 19 following:
1 20 a. To any telephone subscriber with that subscriber's
1 21 prior express invitation or permission.
1 22 b. To any telephone subscriber with whom the caller has an
1 23 established business relationship or personal relationship.
1 24 c. By or on behalf of a tax=exempt nonprofit organization
1 25 while such entity is engaged in fundraising to support the
1 26 charitable purpose for which the entity was established,
1 27 provided that a bona fide member of the nonprofit organization
1 28 makes the voice communication.
1 29 4. "Telephone solicitor" means a person doing business in
1 30 this state who makes or causes to be made a telephone
1 31 solicitation.
1 32 5. "Telephone subscriber" means a person who has
1 33 subscribed to residential telephone or wireless communications
1 34 service from a local exchange company or wireless
1 35 communications provider or other person living with or
2 1 residing with such person.
2 2 Sec. 2. NEW SECTION. 477A.2 DO=NOT=CALL DATABASE AND
2 3 LIST.
2 4 1. The attorney general shall establish and provide for
2 5 the operation of a database to compile a list of telephone
2 6 numbers of telephone subscribers who object to receiving
2 7 telephone solicitations. There shall be no cost to the
2 8 subscriber for joining the database.
2 9 2. The attorney general shall include in the database
2 10 telephone subscribers in this state who are included in the
2 11 national database established by the federal communications
2 12 commission pursuant to 47 U.S.C. } 227(c)(3).
2 13 3. A telephone solicitor doing business in this state
2 14 shall obtain a subscription to receive updated listings of
2 15 telephone subscribers in this state who have registered to be
2 16 included on the do=not=call list established in this section.
2 17 4. Information contained in the do=not=call list
2 18 established in this section shall be used only for the purpose
2 19 of compliance with section 477A.3 and this section. Such
2 20 information shall not be considered a public record for the
2 21 purposes of chapter 22.
2 22 Sec. 3. NEW SECTION. 477A.3 SOLICITATION PROHIBITION.
2 23 A person shall not make or cause to be made a telephone
2 24 solicitation to any telephone subscriber in this state who is
2 25 included on the do=not=call list established pursuant to
2 26 section 477A.2.
2 27 Sec. 4. NEW SECTION. 477A.4 RULES == ACCESS FEES.
2 28 The attorney general shall adopt rules pursuant to chapter
2 29 17A to govern the establishment of a state do=not=call
2 30 database and to administer this chapter. The rules shall
2 31 include all of the following:
2 32 1. The methods by which a telephone subscriber may give
2 33 notice to the attorney general of the subscriber's objection
2 34 to receiving telephone solicitations and revocation of such
2 35 notice.
3 1 2. The length of time for which a notice of objection
3 2 shall be effective and the effect of a change of telephone
3 3 number.
3 4 3. The methods by which objections and revocations shall
3 5 be collected and added to the database.
3 6 4. The methods by which a person desiring to make
3 7 telephone solicitations may obtain access to the database as
3 8 required to avoid calling the telephone numbers of telephone
3 9 subscribers included in the database, including any fees for
3 10 access to the database. The attorney general may utilize any
3 11 fees collected for the purposes of establishing and operating
3 12 the state do=not=call database.
3 13 Sec. 5. NEW SECTION. 477A.5 CALLER IDENTIFICATION.
3 14 1. A telephone solicitor who makes a telephone
3 15 solicitation to a telephone subscriber in this state shall at
3 16 the beginning of such call state clearly the identity of the
3 17 telephone solicitor initiating the call.
3 18 2. A telephone solicitor who makes a telephone
3 19 solicitation to a telephone subscriber in this state shall not
3 20 use any method to block or otherwise circumvent the
3 21 subscriber's use of a caller identification service.
3 22 Sec. 6. NEW SECTION. 477A.6 VIOLATIONS == PENALTIES ==
3 23 CAUSES OF ACTION.
3 24 1. A violation of this chapter is an unlawful practice
3 25 under section 714.16, subsection 2, paragraph "a". All the
3 26 powers conferred upon the attorney general to accomplish the
3 27 objectives and carry out the duties prescribed pursuant to
3 28 section 714.16 are also conferred upon the attorney general to
3 29 enforce this chapter, including seeking injunctive relief and
3 30 civil penalties.
3 31 2. a. A person who has received more than one telephone
3 32 solicitation within any twelve=month period by or on behalf of
3 33 the same telephone solicitor in violation of this chapter may
3 34 bring an action in a court of competent jurisdiction for any
3 35 of the following relief:
4 1 (1) To enjoin future violations.
4 2 (2) To recover actual monetary loss as a result of the
4 3 violation or to receive up to five thousand dollars in
4 4 liquidated damages for each knowing or willful violation,
4 5 whichever is greater.
4 6 b. It shall be an affirmative defense in any action
4 7 brought under this subsection that the defendant has
4 8 established and implemented reasonable practices and
4 9 procedures to effectively prevent telephone solicitations in
4 10 violation of this chapter.
4 11 c. An action may not be brought pursuant to this
4 12 subsection more than two years after the person bringing the
4 13 action knew or should have known of the occurrence of the
4 14 alleged violation.
4 15 3. The remedies, duties, and penalties of this section are
4 16 not exclusive and are in addition to all other causes of
4 17 action, remedies, and penalties provided by law.
4 18 EXPLANATION
4 19 This bill establishes new Code chapter 477A regarding
4 20 restrictions on solicitations made by telephone. The bill
4 21 provides definitions for "caller identification service",
4 22 "established business relationship", "telephone solicitation",
4 23 "telephone solicitor", and "telephone subscriber". "Telephone
4 24 solicitation" does not include a call to a person with that
4 25 person's prior express permission, to a person with whom the
4 26 caller has an established business relationship, or by a tax=
4 27 exempt nonprofit organization engaging in fundraising to
4 28 support the charitable purpose for which the organization was
4 29 established.
4 30 The bill requires the attorney general to establish a
4 31 database of residential and wireless telephone subscribers in
4 32 this state who object to receiving telephone solicitations.
4 33 The list shall include subscribers in this state who have
4 34 registered with the national list established by the federal
4 35 communications commission. Telephone solicitors doing
5 1 business in this state must subscribe to updates to the list.
5 2 Information contained in the list is not public information
5 3 for the purposes of Code chapter 22.
5 4 The bill prohibits a telephone solicitor from making a
5 5 telephone solicitation to any telephone subscriber in this
5 6 state who is included on the do=not=call list. The attorney
5 7 general shall adopt rules to enforce new Code chapter 477A,
5 8 including the methods for telephone subscribers to be included
5 9 on the state do=not=call list, the length of time the notice
5 10 of objection shall be effective, the methods by which the
5 11 objections shall be collected for the database, and the
5 12 methods for telephone solicitors to access the database.
5 13 The bill requires telephone solicitors to immediately
5 14 identify themselves when making a telephone solicitation and
5 15 may not use any method to block or circumvent the use of a
5 16 caller identification system.
5 17 The attorney general can enforce new Code chapter 477A in
5 18 the same manner as a consumer fraud under Code section 714.16.
5 19 A person who has received more than one telephone solicitation
5 20 within any 12=month period by or on behalf of the same
5 21 telephone solicitor in violation of the new Code chapter may
5 22 bring a court action to enjoin future violations, and to
5 23 recover damages from the violation or to receive up to $5,000
5 24 in liquidated damages for each willful violation. The bill
5 25 provides a telephone solicitor an affirmative defense if the
5 26 solicitor has established and implemented reasonable practices
5 27 and procedures to effectively prevent telephone solicitations
5 28 in violation of Code chapter 477A. Individual actions against
5 29 telephone solicitors have a statute of limitations period of
5 30 two years.
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