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Second Regular Session
Sixty-first General Assembly
LLS NO. 980436.01 BJA
HOUSE BILL 981087
STATE OF COLORADO
BY REPRESENTATIVE Salaz
STATE, VETERANS & MILITARY
A BILL FOR AN ACT
CONCERNING THE REGULATION OF UNPAID ORDERS FOR SUBSCRIPTIONS
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Requires the sender of a magazine, newspaper, or other periodical that is mailed from within Colorado to send a card or letter to confirm unpaid orders for new subscriptions to the periodical. Allows the sender of a periodical to send more than one confirmation card to confirm an unpaid order for a new subscription. Permits one initial invoice, bill, or dunning communication to be included with the first confirmation card. Prohibits the sender of a periodical from sending any additional invoice, bill, or other dunning communication to a person concerning an unpaid order for a new subscription unless the sender has received a completed confirmation card from that person.
Provides that a person shall not be deemed to have ordered, solicited, or agreed to purchase an unpaid new subscription to a periodical if the sender of the periodical has not received a confirmation card from that person. Specifies statements required to be included in any confirmation card.
Stipulates that full or partially paid subscriptions, subscriptions that are being renewed, and subscriptions for which no bill will be sent to any person in Colorado are not subject to these requirements.
States that any violation of these requirements is
a criminal offense punishable by fine and constitutes a deceptive
trade practice under the "Colorado Consumer Protection Act".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 66101, Colorado Revised Statutes, is amended to read:
66101. Definitions. As used in this article, unless the context otherwise requires:
(1) "COMPLETED CONFIRMATION CARD" MEANS A CONFIRMATION CARD THAT HAS BEEN RETURNED TO THE SENDER OF THE PERIODICAL AND SIGNED BY EITHER THE PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO A PERIODICAL OR BY THAT PERSON'S AGENT.
(2) "CONFIRMATION CARD" MEANS A CARD, LETTER, OR OTHER WRITTEN COMMUNICATION TO BE DELIVERED TO A PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO A PERIODICAL FOR THE PURPOSE OF CONFIRMING THAT THE PERSON ORDERED THE SUBSCRIPTION.
(3) "PERIODICAL" MEANS A MAGAZINE, NEWSPAPER, JOURNAL, NEWSLETTER, OR OTHER PRINTED PUBLICATION OF WHICH THE ISSUES ARE PUBLISHED AT A STATED OR REGULAR INTERVAL.
(4) "SENDER" MEANS THE PUBLISHER OF A PERIODICAL, ANY PERSON ACTING AS THE AGENT OF THE PUBLISHER, ANY PERSON PURPORTING TO ACT AS THE AGENT OF THE PUBLISHER, OR ANY PERSON SELLING THE PERIODICAL.
(1) (5) "Unsolicited
goods" means contractual obligations or other tangible or
intangible property or services delivered to a person who has
not ordered, solicited, or agreed to purchase them but shall not
include tangible or intangible goods or services which are misdirected,
misdelivered, or offered in good faith in substitution for goods
solicited by the recipient.
SECTION 2. Article 6 of title 6, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
66102.5. Confirmation of unpaid orders for subscriptions to periodicals penalty. (1) THE SENDER OF A PERIODICAL THAT IS MAILED FROM WITHIN THIS STATE SHALL CONFIRM ALL UNPAID ORDERS FOR NEW SUBSCRIPTIONS TO THE PERIODICAL BY SENDING A CONFIRMATION CARD TO THE PERSON BELIEVED TO HAVE ORDERED THE SUBSCRIPTION. EXCEPT AS PROVIDED IN SUBSECTION (2) OF THIS SECTION, THE SENDER OF A PERIODICAL SHALL NOT SEND ANY INVOICE, BILL, OR OTHER DUNNING COMMUNICATION TO ANY PERSON CONCERNING AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO THE PERIODICAL UNLESS THE SENDER HAS RECEIVED A COMPLETED CONFIRMATION CARD FROM THAT PERSON.
(2) A CONFIRMATION CARD SHALL CLEARLY STATE THAT:
(a) THE CONFIRMATION CARD IS NOT A BILL OR AN INVOICE;
(b) THE PERSON HAS NO OBLIGATION TO SIGN OR RETURN THE CONFIRMATION CARD; AND
(c) THE PERSON WILL NOT BE DEEMED TO HAVE ORDERED, SOLICITED, OR AGREED TO PURCHASE A PERIODICAL AS A RESULT OF NOT RETURNING THE CONFIRMATION CARD OR ANY INVOICE INCLUDED WITH THE CONFIRMATION CARD.
(3) NOTWITHSTANDING THE REQUIREMENTS SET FORTH IN SUBSECTION (1) OF THIS SECTION, THE SENDER OF A PERIODICAL MAY SEND:
(a) MORE THAN ONE CONFIRMATION CARD TO A PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A SUBSCRIPTION TO THE PERIODICAL; AND
(b) ONE INITIAL INVOICE, BILL, OR DUNNING COMMUNICATION WITH THE FIRST CONFIRMATION CARD SENT TO A PERSON PURSUANT TO THIS SECTION TO CONFIRM A NEW SUBSCRIPTION.
(4) A PERSON SHALL NOT BE DEEMED BY THE SENDER OF A PERIODICAL TO HAVE ORDERED, SOLICITED, OR AGREED TO PURCHASE AN UNPAID NEW SUBSCRIPTION TO THE PERIODICAL UNLESS THE SENDER OF THE PERIODICAL HAS RECEIVED A COMPLETED CONFIRMATION CARD REQUIRED BY THIS SECTION.
(5) IF A PERSON COMPLETES A CONFIRMATION CARD, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHT OF A PERSON TO CANCEL A SUBSCRIPTION TO A PERIODICAL PURSUANT TO SECTION 66103 (2).
(6) THIS SECTION SHALL NOT APPLY TO THE FOLLOWING:
(a) A SUBSCRIPTION FOR WHICH FULL OR PARTIAL PAYMENT HAS BEEN RECEIVED BY THE SENDER OF THE PERIODICAL;
(b) THE RENEWAL OF A CURRENT SUBSCRIPTION TO A PERIODICAL; OR
(c) A SUBSCRIPTION TO A PERIODICAL FOR WHICH NO BILL, INVOICE, OR OTHER DUNNING COMMUNICATION IS DELIVERED TO ANY PERSON IN THE STATE OF COLORADO.
(7) VIOLATION OF THIS SECTION SHALL CONSTITUTE A CLASS 2 PETTY OFFENSE, AND, UPON CONVICTION THEREOF, THE VIOLATOR SHALL BE PUNISHED BY A FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS. VIOLATION OF THIS SECTION SHALL ALSO CONSTITUTE A DECEPTIVE TRADE PRACTICE IN VIOLATION OF THE "COLORADO CONSUMER PROTECTION ACT", ARTICLE 1 OF THIS TITLE, AND SHALL BE SUBJECT TO REMEDIES OR PENALTIES, OR BOTH, PURSUANT THERETO.
SECTION 3. 66103 (2) (c), Colorado Revised Statutes, is repealed as follows:
66103. Collections prohibited
penalty. (2) (c)
purposes of this subsection (2), "sender" means the
publisher of a periodical, any person acting as the agent of such
publisher, and any person purporting to act as the agent of such
publisher, and a seller of the periodical.
SECTION 4. Effective date applicability. (1) This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.
(2) The provisions of this act shall apply to unpaid orders for new subscriptions placed on or after the applicable effective date of this act.