H.F. 2448 Section 1. NEW SECTION . 554J.1 Business entities’ telephone 1 communications. 2 1. As used in this section, unless the context otherwise 3 requires: 4 a. (1) “Business entity” means a domestic or foreign sole 5 proprietorship, corporation, association, partnership, limited 6 liability company, limited liability partnership, or other 7 similar form of business organization or legal entity that is 8 regulated by state law and that meets all of the following 9 requirements: 10 (a) The entity conducts business with consumers in the 11 state. 12 (b) The entity’s annual gross revenue in the state exceeds 13 thirty million dollars per calendar year. 14 (2) “Business entity” does not include a domestic or foreign 15 sole proprietorship, corporation, association, partnership, 16 limited liability company, limited liability partnership, or 17 other business organization or legal entity that is regulated 18 by federal law. 19 b. “Conducts business” means the sale of goods or services, 20 subscriptions, leases, rentals, or warranties by a business 21 entity, financing arrangements tied to consumer products, or 22 any other transactional relationship between a business entity 23 and a consumer in the state. 24 c. “Director” means the director of the department of 25 insurance and financial services. 26 d. “Representative” means an individual human being that 27 is an agent of, and that is authorized by, a business entity 28 to speak on the business entity’s behalf, and who can verbally 29 communicate in English. 30 2. a. Except as otherwise provided by federal law, a 31 business entity shall maintain a minimum of one publicly 32 accessible telephone number that is available to consumers 33 in the state to contact the business entity for the purpose 34 of consumer inquiries related to billing, accounts, service 35 -1- LSB 6809HH (2) 91 nls/ko 1/ 5

H.F. 2448 issues, transactions, or questions reasonably related to the 1 business entity’s regularly conducted business. 2 b. A representative shall be available during a business 3 entity’s publicly posted customer service hours to communicate 4 with consumers in the state using the telephone number under 5 paragraph “a” . 6 3. a. A business entity may use an automated response 7 system except that an automated response system shall not 8 require more than three menu prompts before providing the 9 option to route the call directly to a representative. An 10 automated response system shall not include infinite loops, 11 circular phone trees, or any other system designed to prevent 12 or delay connection to a representative. 13 b. A business entity shall not engage in a call-routing 14 practice that intentionally delays connecting a consumer to 15 a representative, repeatedly disconnects a consumer call, 16 recycles a consumer through a menu, or otherwise substantially 17 impedes a consumer’s access to a representative. A business 18 entity shall ensure that a consumer that selects an option to 19 speak to a representative is connected to a representative 20 within two minutes after selecting such option. 21 4. a. A business entity that violates this section shall 22 be subject to civil penalties in an amount set by the director 23 by rule. 24 b. The attorney general may bring an action in a district 25 court to enjoin a violation of this section. 26 c. A consumer injured by a violation of this section may 27 bring an action in district court to recover damages including 28 actual damages, statutory damages in an amount no less than 29 five hundred dollars per violation, and reasonable attorney 30 fees and court costs. 31 d. A plaintiff in a class action against a business entity 32 for violation of this section may only recover actual damages 33 and reasonable attorney fees. 34 e. Prior to the assessment of a civil penalty or the 35 -2- LSB 6809HH (2) 91 nls/ko 2/ 5

H.F. 2448 initiation of a civil action, a business entity shall be 1 permitted a reasonable amount of time to demonstrate compliance 2 with this section through documented staffing plans, call 3 center metrics, and call center recordings. 4 5. This section shall not apply to a business entity for 5 which federal laws or rules preempt state laws and rules 6 governing customer service operations, including but not 7 limited to: 8 a. National banks, federal savings associations, credit 9 unions, or other business entities regulated by the office of 10 the comptroller of the currency of the United States department 11 of treasury or the national credit union administration. 12 b. Interstate telecommunications carriers regulated by the 13 federal communications commission or subject to the federal 14 Communications Act of 1934, 47 U.S.C. §151 et seq. 15 c. Airline carriers regulated by the federal Airline 16 Deregulation Act of 1978, Pub. L. No. 95-504. 17 d. Motor carriers, freight brokers, and logistics companions 18 regulated by the federal Aviation Administration Authorization 19 Act of 1994, Pub. L. No. 103-305. 20 6. The director shall adopt rules pursuant to chapter 17A to 21 administer and enforce this section, including but not limited 22 to rules providing for: 23 a. The frequency and manner by which the director will test 24 and verify a business entity’s compliance with this section. 25 b. The procedures for a consumer to file a complaint 26 regarding a violation of this section with the attorney 27 general. 28 c. The civil penalties imposed pursuant to subsection 4, 29 paragraph “a” . 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to the requirements for business entities’ 34 telephone communications with consumers in this state. 35 -3- LSB 6809HH (2) 91 nls/ko 3/ 5

H.F. 2448 Under the bill, except as otherwise provided by federal 1 law, a business entity (business) shall maintain a telephone 2 number that is available to consumers to contact the business 3 regarding inquiries or questions reasonably related to the 4 business’s regularly conducted business. A business shall 5 have a representative available during customer service 6 hours to communicate with consumers using the business’s 7 telephone number. “Business entity”, “conduct business”, and 8 “representative” are defined in the bill. 9 A business may use an automated response system, but 10 the system shall not require more than three menu prompts 11 before providing the option to route the call directly to a 12 representative, and shall not include infinite loops, circular 13 phone trees, or any other system designed to prevent or delay 14 connection to a representative. A business shall not engage in 15 a call-routing practice that intentionally delays connecting a 16 consumer to a representative, repeatedly disconnects a call, 17 recycles a caller through a menu, or otherwise substantially 18 impedes a consumer’s access to a representative. 19 A business shall ensure that a consumer that selects 20 an option to speak to a representative is connected to a 21 representative within two minutes. 22 A business that violates the bill shall be subject to civil 23 penalties in an amount set by the director of the department 24 of insurance and financial services (director) by rule. The 25 attorney general may bring an action in a district court to 26 enjoin a violation of the bill. A consumer injured by a 27 violation may bring an action for damages including actual 28 damages, statutory damages in an amount no less than $500 per 29 violation, and reasonable attorney fees and court costs. A 30 plaintiff in a class action against a business may only recover 31 actual damages and reasonable attorney fees. Prior to the 32 assessment of a civil penalty or the initiation of an action, 33 a business shall be permitted a reasonable amount of time to 34 demonstrate compliance with the bill. 35 -4- LSB 6809HH (2) 91 nls/ko 4/ 5

H.F. 2448 The bill does not apply to a business for which federal law 1 or rule expressly or impliedly preempts state customer service 2 operations. 3 The director shall adopt rules to administer the bill, 4 including rules providing for the testing and verification of 5 a business’s compliance with the bill, the procedures for a 6 consumer to file a complaint regarding a violation of the bill, 7 and the amount of civil penalties imposed on a business for 8 violation of the bill. 9 -5- LSB 6809HH (2) 91 nls/ko 5/ 5