HB 1419

1	A bill to be entitled
2	An act relating to prepaid telephone calling cards;
3	creating s. 501.96, F.S.; providing definitions;
4	specifying disclosures to be made by prepaid calling
5	service providers and prepaid calling card distributors;
6	prohibiting selling or offering for sale prepaid phone
7	cards that violate specified standards; providing remedies
8	and penalties for violations; providing for rulemaking;
9	requiring a report by the Division of Consumer Services of
10	the Department of Agriculture and Consumer Services;
11	permitting certain actions necessary for the timely
12	implementation of this act; providing for applicability;
13	providing effective dates.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Section 501.96, Florida Statutes, is created to
18	read:
19	501.96  Prepaid telephone calling cards.--
20	(1)  As used in this section, the term:
21	(a)  "Advertisement" means the attempt, directly or
22	indirectly, by publication, dissemination, solicitation,
23	endorsement, or circulation or in any other way to induce,
24	directly or indirectly, any person to purchase any prepaid
25	calling card or service, whether appearing in any newspaper,
26	magazine, periodical, circular, in-store or out-of-store sign or
27	other written matter placed before the consuming public, or in
28	any radio broadcast, television broadcast, or electronic medium,
29	or delivered to or through any computer.
30	(b)  "Company" means any entity, corporation, company,
31	association, firm, partnership, or other business entity or
32	individual engaged in the business of a prepaid calling service
33	provider or prepaid calling card distributor in this state.
34	(c)  "Division" means the Division of Consumer Services of
35	the Department of Agriculture and Consumer Services.
36	(d)  "Government fees" means and includes any and all fees,
37	taxes, and charges assessed pursuant to state or federal law,
38	regulation, or other mandate or requirement, including universal
39	service fees and charges.
40	(e)  "Payphone surcharge" means the surcharge that a
41	provider may charge a customer when that customer places a call
42	with a card from a payphone using a toll-free access number. The
43	payphone surcharge shall be deducted from a card's balance.
44	(f)  "Permitted fee" means the fees and surcharges that a
45	provider may charge to, or deduct from, a card's balance for the
46	use of that other object.
47	(g)  "Prepaid calling card" means a card or other rights of
48	use that provide access to a prepaid calling service. The term
49	"prepaid calling card" may not be construed to include cards or
50	other rights of use that provide access to:
51	1.  Telecommunications service if the card or other rights
52	of use and telecommunications service are provided:
53	a.  For free or at no additional charge as a promotional
54	item accompanying a product or service purchased by a customer;
55	or
56	b.  Pursuant to an awards, loyalty, rebate, or promotional
57	program without any separate monetary consideration being given
58	by the customer solely in exchange therefor; or
59	2.  A wireless telecommunications service account if the
60	purchaser has a preexisting relationship with the wireless
61	service provider or establishes a carrier-customer relationship
62	via the purchase of the object.
63	(h)  "Prepaid calling card distributor" or "distributor"
64	means and includes the following:
65	1.  Any company that purchases or receives prepaid calling
66	cards from a prepaid calling service provider or distributor and
67	sells or distributes those cards to one or more distributors of
68	prepaid calling cards or to one or more prepaid calling card
69	retailers.
70	2.  Any company that otherwise actively engages in the
71	promotion, advertising, or dissemination of prepaid calling
72	cards and which is not a provider. "Prepaid calling card
73	distributor" does not include any prepaid calling card retailer
74	engaged exclusively in point of sale transactions with
75	customers.
76	(i)  "Prepaid calling card retailer" means any company that
77	sells or offers to sell prepaid calling cards directly to
78	customers.
79	(j)  "Prepaid calling service" or "service" shall have the
80	same meaning as the term "prepaid calling arrangement" as
81	provided in s. 202.11. However, the term "prepaid calling
82	service" may not include any service that provides access to a
83	wireless telecommunications service account wherein the
84	purchaser has a preexisting relationship with the wireless
85	service provider or establishes a carrier-customer relationship
86	via the purchase of the object. "Prepaid calling card" may not
87	be construed to include cards or other rights of use that
88	provide access to:
89	1.  Telecommunications service if the card or other rights
90	of use and telecommunications service are provided:
91	a.  For free or at no additional charge as a promotional
92	item accompanying a product or service purchased by a customer;
93	or
94	b.  Pursuant to an awards, loyalty, rebate, or promotional
95	program without any separate monetary consideration being given
96	by the customer solely in exchange therefor; or
97	2.  A wireless telecommunications service account if the
98	purchaser has a preexisting relationship with the wireless
99	service provider or establishes a carrier-customer relationship
100	via the purchase of the object.
101	(k)  "Prepaid calling service provider" or "provider" means
102	any company providing prepaid calling service to the public
103	using its own or a resold telecommunications network or voice-
104	over-Internet protocol technology.
105	(l)  "Toll-free number" means a telephone number widely
106	understood to be toll-free, which, when called as the
107	destination number or as an access number, does not result in
108	the calling party being assessed, by virtue of completing the
109	call, any fee, charge, or higher rate for the call unless such
110	fee, charge, or higher rate is disclosed pursuant to paragraph
111	(2)(a).
112	(2)(a)  Prepaid calling service providers and prepaid
113	calling card distributors shall disclose the following
114	information on cards or their packaging, as prescribed by the
115	division, and in any advertising for the service or cards,
116	including any Internet website used to promote or distribute the
117	service or cards:
118	1.  The name of the prepaid calling service provider.
119	2.  The provider's 24-hour customer service telephone
120	number.
121	3.  The amount and frequency of any permitted fee that may
122	be applicable to the use of the card or service for calls
123	originating within the United States.
124	4.  Notice if additional or different per-minute rates,
125	charges, or fees apply to use of the card or the service for
126	calls originating outside the United States and calls to or from
127	international, international cellular, and international
128	wireless telephone numbers.
129	5.  Notice if per-minute rates may be higher for calls made
130	via toll-free numbers.
131	6.  The value of the card or service, in dollars or
132	minutes.
133	7.  Any applicable policies relating to refund, recharge,
134	decrement, and expiration.
135	8.  Such additional information as the division may
136	prescribe by regulation, including, but not limited to,
137	information concerning the notice and disclosure of any rates,
138	charges, or fees for the use of the card or the service for
139	calls.
140	(b)  Prepaid calling service providers and prepaid calling
141	card distributors shall make available through the customer
142	service number, a website or other electronic medium, packaging,
143	if any, or in a clear and conspicuous poster or other writing in
144	plain language at the point of sale such information as the
145	division may prescribe by regulation.
146	(c)  All minutes or rates, or both, promoted or advertised
147	on any prepaid calling card, and any point of sale material
148	relating to that card or otherwise relating to any prepaid
149	calling service shall be available and achievable by the
150	customer, and there shall be no limitations on the period of
151	time for which the promoted or advertised minutes or rates, or
152	both, will be available to the customer unless those limitations
153	are clearly and conspicuously disclosed in the same location on
154	the card, advertising, or point of sale material where the
155	minutes or rates, or both, are promoted or advertised. All
156	minutes promoted, advertised, or disclosed on any voice prompt
157	given to a customer at the time the customer places a call with
158	the card, whether or not required by regulation to be given to
159	the customer, shall be immediately available and achievable by
160	the customer on that call. The customer may not be charged for
161	any busy signal or unanswered call.
162	(d)  A provider may not charge or apply to or deduct from a
163	card's balance any fees, taxes, surcharges, or other amounts for
164	use of the card, except the following:
165	1.  The rate per minute for the particular destination
166	called.
167	2.  Any permitted fees.
168	3.  Any rate per minute, fee, or charge permitted under
169	subparagraph (a)4. or subparagraph (a)5.
170	(e)  If a language other than English is predominantly used
171	on a prepaid calling card, on its packaging, or in point of sale
172	advertising or promotion for the prepaid calling card or prepaid
173	calling service, then the disclosures required by this section
174	shall be disclosed in that language on that card or packaging or
175	in that advertisement or promotion.
176	(f)  In the case of a prepaid calling service provider, the
177	company's 24-hour customer service telephone number shall enable
178	the customer to obtain, at no charge, any and all applicable
179	information regarding the rates and any permitted fees, charges,
180	and minutes available and remaining on the card for use in a
181	single, uninterrupted call to a single, requested destination
182	through the card and prepaid calling service. Customer service
183	may be provided by a combination of a live operator, interactive
184	voice response, and electronic voice recording of customer
185	inquiries and complaints, but live operator service shall be
186	available 24 hours a day, 7 days a week. If an electronic voice
187	recorder is used, the provider shall attempt to contact the
188	customer no later than the next day following the date of the
189	recording.
190	(g)  Providers and distributors shall conspicuously display
191	the applicable access numbers for the use of the card on the
192	body of the card itself or on its packaging.
193	(h)  A company may not impose any fee or surcharge that is
194	not disclosed as required by this section or that exceeds the
195	amount disclosed by the company.
196	(3)  Prepaid calling card retailers may not sell or offer
197	for sale any prepaid calling card that the retailer knows
198	provides fewer minutes than the number of minutes promoted or
199	advertised for that card, including the number of minutes listed
200	on the card, on any advertising or point of sale material
201	related to the card, or in any voice prompt indicating the
202	number of minutes available for a call with the card.
203	(4)  A violation of any provision of this section is a
204	deceptive and unfair trade practice and shall be subject to all
205	remedies and penalties available under part II of this chapter.
206	(5)  The division may adopt rules pursuant to ss.
207	120.536(1) and 120.54 necessary to implement this section.
208	Section 2.  Not later than 18 months after the date of
209	adoption of regulations implementing this act, the Division of
210	Consumer Services of the Department of Agriculture and Consumer
211	Services shall issue a report to the Governor, the President of
212	the Senate, and the Speaker of the House of Representatives on
213	the activities of the division, including their quantitative
214	results, in enforcing this act and any recommendations for
215	additional legislation regulating the industry.
216	Section 3.  The Division of Consumer Services of the
217	Department of Agriculture and Consumer Services may take such
218	action before January 1, 2009, as may be necessary for the
219	timely implementation of this act. This section shall take
220	effect upon this act becoming a law.
221	Section 4.  This act does not apply to prepaid telephone
222	calling cards and point of sale materials related to those
223	prepaid telephone calling cards printed prior to January 1,
224	2009. The act applies to any prepaid telephone calling card
225	printed after January 1, 2009, and to any advertisement,
226	promotion, point of sale material, or voice prompt that is
227	created, aired, printed, distributed, or otherwise disseminated
228	on or after January 1, 2009.
229	Section 5.  Except as otherwise expressly provided in this
230	act, this act shall take effect January 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.