Senate File 31 - Introduced
SENATE FILE
BY KREIMAN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to telephone solicitations including establishing
2 certain restrictions on telephone solicitors, providing for
3 registration for residential customers objecting to receiving
4 certain telephone solicitations, and providing penalties and
5 remedies.
6 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. "Established business relationship" means a prior or
1 5 existing relationship formed by a voluntary two=way
1 6 communication between a person or entity and a telephone
1 7 subscriber with or without an exchange of consideration, on
1 8 the basis of the telephone subscriber's purchase or
1 9 transaction with the person or entity within eighteen months
1 10 immediately preceding the date of the telephone call or on the
1 11 basis of the telephone subscriber's inquiry or application
1 12 regarding products or services offered by the person or entity
1 13 within the last three months immediately preceding the date of
1 14 the telephone call, which relationship has not been previously
1 15 terminated by either party.
1 16 2. "Telephone solicitation" means the initiation of a
1 17 telephone call or message for the purpose of encouraging the
1 18 purchase or rental of, or investment in, property, goods, or
1 19 services, which is transmitted to any person, but such term
1 20 does not include a call or message that is any of the
1 21 following:
1 22 a. To any person with that person's prior express
1 23 invitation or permission.
1 24 b. To any person with whom the caller has an established
1 25 business relationship.
1 26 c. By or on behalf of a tax=exempt nonprofit organization
1 27 while the organization is engaged in fund=raising to support
1 28 the charitable purpose for which the organization was
1 29 established provided that a bona fide member of the
1 30 organization makes the voice communication.
1 31 3. "Telephone solicitor" means a person doing business in
1 32 this state that makes or causes to be made a telephone
1 33 solicitation.
1 34 4. "Telephone subscriber" means a person that has
1 35 subscribed to residential telephone or wireless communications
2 1 service from a local exchange company or wireless
2 2 communications provider, or any other person living with or
2 3 residing with such person.
2 4 Sec. 2. NEW SECTION. 477A.2 DO=NOT=CALL LISTING.
2 5 1. The secretary of state shall contract with a service to
2 6 maintain a do=not=call list of telephone subscribers in this
2 7 state who object to receiving telephone solicitations.
2 8 2. The secretary of state shall include telephone
2 9 subscribers in this state who are included in the national
2 10 database established by the federal communications commission
2 11 pursuant to 47 U.S.C. } 227(c)(3).
2 12 3. A telephone solicitor doing business in this state
2 13 shall obtain a subscription to receive an updated listing of
2 14 telephone subscribers in this state who have registered to be
2 15 included on the do=not=call list established in this section.
2 16 4. Information contained in the do=not=call list
2 17 established in this section shall be used only for the purpose
2 18 of compliance with section 477A.3 and this section. Such
2 19 information shall not be considered a public record for the
2 20 purposes of chapter 22.
2 21 Sec. 3. NEW SECTION. 477A.3 SOLICITATION PROHIBITION.
2 22 A telephone solicitor shall not make or cause to be made a
2 23 telephone solicitation to any telephone subscriber in this
2 24 state who has given notice to the secretary of state of the
2 25 telephone subscriber's objection to receiving telephone
2 26 solicitations.
2 27 Sec. 4. NEW SECTION. 477A.4 RULES.
2 28 The secretary of state, in cooperation with the consumer
2 29 protection division of the department of justice, shall adopt
2 30 rules pursuant to chapter 17A to administer this chapter.
2 31 Sec. 5. NEW SECTION. 477A.5 INVESTIGATIONS == PENALTIES.
2 32 1. A violation of this chapter is an unlawful practice
2 33 under section 714.16, subsection 2, paragraph "a". All the
2 34 powers conferred upon the attorney general to accomplish the
2 35 objectives and carry out the duties prescribed pursuant to
3 1 section 714.16 are also conferred upon the attorney general to
3 2 enforce this chapter including seeking injunctive relief and
3 3 civil penalties.
3 4 2. a. A telephone subscriber who has received more than
3 5 one telephone solicitation from or on behalf of the same
3 6 telephone solicitor within any twelve=month period in
3 7 violation of this chapter may bring a civil action against the
3 8 telephone solicitor for any of the following relief:
3 9 (1) To enjoin a future violation.
3 10 (2) To recover actual monetary loss from the violation or
3 11 to receive up to five hundred dollars in damages for each
3 12 violation, whichever is greater.
3 13 b. In addition to other damages allowed under this
3 14 section, a court may award liquidated damages up to three
3 15 times the amount available under paragraph "a" if the court
3 16 finds the telephone solicitor willfully or knowingly violated
3 17 this chapter.
3 18 c. It shall be an affirmative defense in any action
3 19 brought under this subsection that the telephone solicitor has
3 20 established and implemented reasonable practices and
3 21 procedures to effectively prevent telephone solicitation in
3 22 violation of this chapter.
3 23 EXPLANATION
3 24 This bill establishes restrictions on solicitations made by
3 25 telephone. New Code section 477A.1 provides definitions for
3 26 "established business relationship", "telephone solicitation",
3 27 "telephone solicitor", and "telephone subscriber". "Telephone
3 28 solicitations" does not include calls to a person with that
3 29 person's prior express permission, to a person with whom the
3 30 caller has an established business relationship, and by a tax=
3 31 exempt nonprofit organization engaging in fund=raising to
3 32 support the charitable purpose for which the organization was
3 33 established.
3 34 The bill requires the secretary of state to contract with a
3 35 service to maintain a state do=not=call list for residential
4 1 telephone and wireless subscribers in this state who object to
4 2 receiving telephone solicitations. The list shall include
4 3 subscribers in this state who have registered with the
4 4 national list established by the federal communications
4 5 commission. Telephone solicitors doing business in this state
4 6 must subscribe to updates to the list. Information contained
4 7 in the list is not public information for the purposes of Code
4 8 chapter 22.
4 9 The bill prohibits a telephone solicitor from making a
4 10 telephone solicitation to any telephone subscriber in this
4 11 state who has given notice to the secretary of state of the
4 12 subscriber's objection to receiving telephone solicitations.
4 13 The secretary of state may adopt rules to enforce new Code
4 14 chapter 477A.
4 15 The attorney general can enforce new Code chapter 477A in
4 16 the same manner as consumer fraud under Code section 714.16.
4 17 Residential subscribers who have received more than one
4 18 telephone call within any 12=month period from or on behalf of
4 19 the same solicitor in violation of the chapter may bring a
4 20 court action to enjoin a future violation, and to recover
4 21 damages from the violation or to receive up to $500 in damages
4 22 for each violation, whichever is greater. The court may also
4 23 award liquidated damages up to three times the amount of
4 24 damages awarded if the solicitor willfully or knowingly
4 25 violated Code chapter 477A. The bill provides for an
4 26 affirmative defense that the solicitor has established and
4 27 implemented reasonable practices and procedures to effectively
4 28 prevent telephone solicitation in violation of Code chapter
4 29 477A.
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