HB-5011, As Passed House, April 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5011

 

July 10, 2007, Introduced by Rep. Simpson and referred to the Committee on Commerce.

 

     A bill to amend 1971 PA 227, entitled

 

"An act to prescribe the rights and duties of parties to home

solicitation sales; to regulate certain telephone solicitation; to

provide for the powers and duties of certain state officers and

entities; and to prescribe penalties and remedies,"

 

by amending section 1 (MCL 445.111), as amended by 2002 PA 612.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Home solicitation sale" means a sale of goods or services

 

of more than $25.00 in which the seller or a person acting for the

 

seller engages in a personal, telephonic, or written solicitation

 

of the sale, the solicitation is received by the buyer at a

 

residence of the buyer, and the buyer's agreement or offer to

 

purchase is there given to the seller or a person acting for the


 

seller. Home solicitation sale does not include any of the

 

following:

 

     (i) A sale made pursuant to a preexisting revolving charge

 

account.

 

     (ii) A sale made pursuant to prior negotiations between the

 

parties at a business establishment at a fixed location where goods

 

or services are offered or exhibited for sale.

 

     (iii) A sale or solicitation of insurance by an insurance agent

 

licensed by the commissioner of insurance.

 

     (iv) A sale made at a fixed location of a business

 

establishment where goods or services are offered or exhibited for

 

sale.

 

     (v) A sale made pursuant to a printed advertisement in a

 

publication of general circulation.

 

     (vi) A sale of services by a real estate broker or salesperson

 

licensed by the department of consumer and industry services.

 

     (vii) A sale of agricultural or horticultural equipment and

 

machinery that is demonstrated to the consumer by the vendor at the

 

request of either or both of the parties.

 

     (b) "Fixed location" means a place of business where the

 

seller or an agent, servant, employee, or solicitor of that seller

 

primarily engages in the sale of goods or services of the same kind

 

as would be sold at the residence of a buyer.

 

     (c) "Business day" means Monday through Friday and does not

 

include Saturday, Sunday, or the following business holidays: New

 

Year's day, Martin Luther King's birthday, Washington's birthday,

 

Memorial day, Independence day, Labor day, Columbus day, Veterans'


 

day, Thanksgiving day, and Christmas day.

 

     (d) "Federally insured depository institution" means a state

 

or national bank, state or federal savings bank, state or federal

 

savings and loan association, or state or federal credit union that

 

holds deposits insured by an agency of the United States.

 

     (e) As used in only the definition of home solicitation sales,

 

"goods or services" does not include any of the following:

 

     (i) A loan, deposit account, or trust account lawfully offered

 

or provided by a federally insured depository institution or a

 

subsidiary or affiliate of a federally insured depository

 

institution.

 

     (ii) An extension of credit that is subject to any of the

 

following acts:

 

     (A) The mortgage brokers, lenders, and servicers licensing

 

act, 1987 PA 173, MCL 445.1651 to 445.1684.

 

     (B) The secondary mortgage loan act, 1981 PA 125, MCL 493.51

 

to 493.81.

 

     (C) The regulatory loan act, 1939 PA 21, MCL 493.1 to 493.24.

 

     (D) The consumer financial services act, 1988 PA 161, MCL

 

487.2051 to 487.2072.

 

     (E) 1984 PA 379, MCL 493.101 to 493.114.

 

     (F) The motor vehicle sales finance act, 1950 (Ex Sess) PA 27,

 

MCL 492.101 to 492.141.

 

     (iii) A sale of a security or interest in a security that is

 

subject to the uniform securities act, 1964 PA 265, MCL 451.501 to

 

451.818, or the uniform securities act (2002), MCL 451.2101 to

 

451.2703.


 

     (f) "Written solicitation" means a postcard or other written

 

notice delivered to a buyer's residence that requests that the

 

buyer contact the seller or seller's agent by telephone to inquire

 

about a good or service, unless the postcard or other written

 

notice concerns a previous purchase or order or specifies the price

 

of the good or service and accurately describes the good or

 

service.

 

     (g) "ADAD" or "automatic dialing and announcing device" means

 

any device or system of devices that is used, whether alone or in

 

conjunction with other equipment, for the purpose of automatically

 

selecting or dialing telephone numbers.

 

     (h) "Commission" means the public service commission.

 

     (i) "Do-not-call list" means a do-not-call list of consumers

 

and their residential telephone numbers maintained by the

 

commission, by a vendor designated by the commission, or by an

 

agency of the federal government, under section 1a.

 

     (j) "Existing customer" means an individual who has purchased

 

goods or services from a person, who is the recipient of a voice

 

communication from that person, and who either paid for the goods

 

or services within the 12 months preceding the voice communication

 

or has not paid for the goods and services at the time of the voice

 

communication because of a prior agreement between the person and

 

the individual.

 

     (k) "Person" means an individual, partnership, corporation,

 

limited liability company, association, governmental entity, or

 

other legal entity.

 

     (l) "Residential telephone subscriber" or "subscriber" means a


 

person residing in this state who has residential telephone

 

service.

 

     (m) "Telephone solicitation" means any voice communication

 

over a telephone for the purpose of encouraging the recipient of

 

the call to purchase, rent, or invest in goods or services during

 

that telephone call. Telephone solicitation does not include any of

 

the following:

 

     (i) A voice communication to a residential telephone subscriber

 

with that subscriber's express invitation or permission prior to

 

the voice communication.

 

     (ii) A voice communication to an existing customer of the

 

person on whose behalf the voice communication is made, unless the

 

existing customer is a consumer who has requested that he or she

 

not receive calls from or on behalf of that person under section

 

1c(1)(g).

 

     (iii) A voice communication to a residential telephone

 

subscriber in which the caller requests a face-to-face meeting with

 

the residential telephone subscriber to discuss a purchase, sale,

 

or rental of, or investment in, goods or services but does not urge

 

the residential telephone subscriber to make a decision to

 

purchase, sell, rent, invest, or make a deposit on that good or

 

service during the voice communication.

 

     (n) "Telephone solicitor" means any person doing business in

 

this state who makes or causes to be made a telephone solicitation

 

from within or outside of this state, including, but not limited

 

to, calls made by use of automated dialing and announcing devices

 

or by a live person.


 

     (o) "Vendor" means a person designated by the commission to

 

maintain a do-not-call list under section 1a. The term may include

 

a governmental entity.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5008(request no.

 

00420'07) of the 94th Legislature is enacted into law.