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: 7 TLSB 1196XS 81 8 kk/pj/5 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. 4 30 LSB 1196XS 81 4 31 kk/pj/5