Bill Summary – FastDemocracy

SENATE BILL NO. 1040
 October 16, 2024, Introduced by Senators ANTHONY, CAVANAGH, MOSS, GEISS,
   POLEHANKI, CHANG, BAYER, MCBROOM, VICTORY, KLINEFELT and
   MCMORROW and referred to the Committee on Finance, Insurance, and Consumer
   Protection.
      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 the title and sections 1 and 3 (MCL 445.111 and
113), the title as amended by 2002 PA 612, section 1 as amended
by 2009 PA 93, and section 3 as amended by 2006 PA 138; and to
repeal acts and parts of acts.
              THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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                                  TITLE
        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.
        Sec. 1. As used in this act:
        (a) "Business day" means Monday through Friday. Business day
  does not include Saturday, Sunday, or any of the following business
  holidays: New Year's Day, Martin Luther King Jr. Day, Presidents'
 Day, Memorial Day, Juneteenth, Independence Day, Labor Day,
 Columbus Day, Veterans Day, Thanksgiving Day, or Christmas Day.
       (b) "Commission" means the Michigan public service commission.
       (c) "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.
       (d) "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.
       (e) "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
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  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 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
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  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.
        (f) (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), 2008 PA 551, MCL
 451.2101 to 451.2703.
       (g) "Person" means an individual, partnership, corporation,
 limited liability company, association, governmental entity, or
 other legal entity.
       (h) (f) "Written solicitation" means a postcard or other
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  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
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  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.
       Sec. 3. (1) In a home solicitation sale, unless the buyer
 requests the seller to provide goods or services without delay in
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  an emergency, the seller shall present to the buyer and obtain the
  buyer's signature to a written agreement or offer to purchase that
  designates as the date of the transaction the date on which the
  buyer actually signs.
        The agreement or offer to purchase shall must contain a
  statement substantially as follows in immediate proximity to the
  space reserved in the agreement or offer to purchase for the
  signature of the buyer:
        "You, the buyer, may cancel this transaction at any time prior
 to midnight of the third business day after the date of this
 transaction. See the attached notice of cancellation form for an
 explanation of this right. Additionally, the seller is prohibited
 from having an independent courier service or other third party
 pick up your payment at your residence before the end of the 3-
 business-day period in which you can cancel the transaction."
       (2) The seller shall attach to the copy or cause to be printed
 on the reverse side of the written agreement or offer to purchase
 retained by the buyer a notice of cancellation in duplicate that
 shall must appear as follows:
                         "notice of cancellation
                                        (enter date of transaction)
                                                   (date)
       You may cancel this transaction, without any penalty or
 obligation, within 3 business days from the above date.
       If you cancel, any property traded in, any payments made by
 you under the contract or sale, and any negotiable instrument
 executed by you will be returned within 10 business days following
 receipt by the seller of your cancellation notice, and any security
 interest arising out of the transaction will be canceled.
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        If you cancel, you must make available to the seller at your
  residence, in substantially as good condition as when received, any
  goods delivered to you under this contract or sale; or you may if
  you wish, comply with the instructions of the seller regarding the
  return shipment of the goods at the seller's expense and risk.
        If you do make the goods available to the seller and the
  seller does not pick them up within 20 days of the date of your
  notice of cancellation, you may retain or dispose of the goods
  without any further obligation. If you fail to make the goods
 available to the seller or if you agree to return the goods to the
 seller and fail to do so, then you remain liable for performance of
 all obligations under the contract.
       To cancel this transaction, mail or deliver a signed and dated
 copy of this cancellation notice or any other written notice, or
 send a telegram to (name of seller), at (address of seller's place
 of business) not later than midnight on
 _________________________________
               (date)
 I hereby cancel this transaction.
 _________________________________
               (date)
                                       ____________________________
                                           (buyer's signature) "
       (3) The notices required by this section shall must be in not
 less than 10-point bold type and shall must be 2 points larger than
 the text of the contract. A written agreement or offer to purchase
 and the notice of cancellation attached to the agreement or offer
 shall must be written in the same language as that used in any oral
 presentation that was given to facilitate sale of the goods or
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  services. The seller shall enter on the blanks in the notice of
  cancellation the date of transaction , which that is the date the
  buyer signs the written agreement, and the date for mailing the
  notice of cancellation. An error in entering this information shall
  does not diminish the buyer's rights under this act.
        (4) Until the seller has complied with this section, the buyer
  may cancel the home solicitation sale by notifying the seller in
  any manner and by any means of his or her the buyer's intention to
  cancel.
       (5) This section does not apply to a home solicitation sale
 where the seller engaged in a telephone solicitation of the sale if
 sections 505 to 507 of the Michigan telecommunications act, 1991 PA
 179, MCL 484.2505 to 484.2507, apply to the solicitation or sale.
       (5) (6) This section does not apply to a home solicitation
 sale of natural gas or electricity if the seller is any of the
 following:
       (a) An electric utility or gas utility that is regulated by
 the commission and complies with any orders or tariffs issued by
 the commission concerning home solicitations by alternative
 electric suppliers or alternative gas suppliers in making the
 solicitation.
       (b) An alternative gas supplier or alternative electric
 supplier licensed by the commission that complies with any
 applicable orders or tariffs issued by the commission concerning
 home solicitations in making the solicitation.
       Enacting section 1. Sections 1a to 1e of 1971 PA 227, MCL
 445.111a to 445.111e, are repealed.
       Enacting section 2. This amendatory act does not take effect
 unless Senate Bill No. 1037
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 of the 102nd Legislature is enacted into law.
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Statutes affected: 
Senate Introduced Bill: 445.111, 445.113