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.