Bill Text: MI HB5360 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Consumer protection: solicitations; citations to the motor vehicle sales finance act in 1971 PA 227; revise. Amends sec. 1 of 1971 PA 227 (MCL 445.111). TIE BAR WITH: HB 5354'23
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-10 - Per Rule 41 Referred To Committee On Insurance And Financial Services [HB5360 Detail]
Download: Michigan-2023-HB5360-Introduced.html
HOUSE BILL NO. 5360
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 2009 PA 93.
the people of the state of michigan enact:
(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.under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.
(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.under article 25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518.
(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 Business day does not include Saturday, Sunday, or any of the following business holidays:
(i) New Year's day, Day. Martin
(ii) Martin Luther King's birthday, King, Jr. Day.
(iii) Washington's birthday, Birthday.
(iv) Memorial day, Day.
(v) Independence day, Day.
(vi) Labor day, Day.
(vii) Columbus day, Day.
(viii) Veterans' day, Veterans Day.
(ix) Thanksgiving day, and Day.
(x) Christmas day.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 492.141.492.137a.
(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), 2008 PA 551, 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 "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 under section 1a 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 an individual 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 if that subscriber's express invitation or permission prior to was given before 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 to 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 that makes or causes to be made a telephone solicitation from within or outside of this state, including, but not limited to, calls a call made by use of an automated dialing and announcing devices device or by a live person.an individual.
(o) "Vendor" means a person designated by the commission to maintain a do-not-call list under section 1a. The term Vendor may include a governmental entity.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5354 (request no. 03158'23) of the 102nd Legislature is enacted into law.
