[As Amended by House Committee of the Whole]

         
As Amended by House Committee
         
Session of 2000
         
HOUSE BILL No. 2891
                          By Representatives Johnston, Aday, Adkins, Alldritt, Ballard, Barnes,
                Beggs, Campbell, Cox, Crow, Dean, Faber, Farmer, Feuerborn, Fin-
                dley, Flaharty, Flora, Flower, Freeborn, Garner, Gatewood, Gilbert,
                Grant, Hayzlett, Helgerson, Henderson, Henry, Hermes, Horst, Huff,
                Hutchins, Jenkins, Kirk, Klein, Kuether, Larkin, M. Long, P. Long,
                Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Merrick,
                Minor, Mollenkamp, Jim Morrison, Judy Morrison, Myers, Nichols,
                O'Brien, O'Neal, Osborne, Pauls, E. Peterson, J. Peterson, Phelps,
                Pottorff, Powell, Powers, Ray, Reardon, Rehorn, Reinhardt, Ruff,
                Schwartz, Sharp, Showalter, Shriver, Spangler, Stone, Storm, Swen-
                son, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vick-
                rey, Vining, Wagle, Weiland, Wells and Welshimer
               
2-8
         

23             AN  ACT concerning unsolicited consumer certain unsolicited tele-
24             phone calls; prohibiting certain acts and providing remedies for vio-
25             lations; amending K.S.A. 1999 Supp. 50-670 and repealing the existing
26             section.
27      
28       Be it enacted by the Legislature of the State of Kansas:
29             Section  1. K.S.A. 1999 Supp. 50-670 is hereby amended to read as
30       follows: 50-670. (a) As used in this section and section 2 and amendments
31       thereto:
32             (1) ``Consumer telephone call'' means a call made by a telephone
33       solicitor to the residence of a consumer for the purpose of soliciting a
34       sale of any property or services to the person called, or for the purpose
35       of soliciting an extension of credit for property or services to the person
36       called, or for the purpose of obtaining information that will or may be
37       used for the direct solicitation of a sale of property or services to the
38       person called or an extension of credit for such purposes;.
39             (2) ``Unsolicited consumer telephone call'' means a consumer tele-
40       phone call other than a call made:
41             (A) In response to an express request of the person called;
42             (B) primarily in connection with an existing debt or contract, payment
43       or performance of which has not been completed at the time of such call;


2

  1       or
  2             (C) to any person with whom the telephone solicitor or the telephone
  3       solicitor's predecessor in interest had an existing business relationship a
  4       business relationship within the preceding 36 months if the solicitor
  5       is not an employee, a contract employee or an independent contractor of
  6       a provider of telecommunications services; or
  7             (D) by a newspaper publisher or such publisher's agent or employee
  8       in connection with such publisher's business;.
  9             (3) ``Telephone solicitor'' means any natural person, firm, organiza-
10       tion, partnership, association or corporation who makes or causes to be
11       made a consumer telephone call, including, but not limited to, calls made
12       by use of automatic dialing-announcing device;.
13             (4) ``Automatic dialing-announcing device'' means any user terminal
14       equipment which:
15             (A) When connected to a telephone line can dial, with or without
16       manual assistance, telephone numbers which have been stored or pro-
17       grammed in the device or are produced or selected by a random or se-
18       quential number generator; or.
19             (B) When connected to a telephone line can disseminate a recorded
20       message to the telephone number called, either with or without manual
21       assistance;.
22             (5) ``Negative response'' means a statement from a consumer indi-
23       cating the consumer does not wish to listen to the sales presentation or
24       participate in the solicitation presented in the consumer telephone call.
25             (6) ``Commission'' means the state corporation commission.
26        (6) ``Local exchange carrier,'' ``telecommunications carrier''
27       and ``telecommunications service'' have the meanings provided in
28       K.S.A. 66-1,187, and amendments thereto.
29             (7) ``Qualified trade association'' means an organization that
30       has:
31             (A) Written bylaws, or other governing documents, that in-
32       clude a code of conduct for the organization's members; and
33             (B) criteria and procedures for expelling or suspending mem-
34       bers who violate the association's bylaws or other governing
35       documents.
36             (8) ``Consumer'' means any person, as defined in K.S.A. 50-624,
37       and amendments thereto.
38             (b) Any telephone solicitor who makes an unsolicited consumer tel-
39       ephone call to a residential telephone number shall:
40             (1) Identify themselves;
41             (2) identify the business on whose behalf such person is soliciting;
42             (3) identify the purpose of the call immediately upon making contact
43       by telephone with the person who is the object of the telephone


3

  1       solicitation;
  2             (4)  promptly discontinue the solicitation if the person being solicited
  3       gives a negative response at any time during the consumer telephone call;
  4       and
  5             (5) hang up the phone, or in the case of an automatic dialing-an-
  6       nouncing device operator, disconnect the automatic dialing-announcing
  7       device from the telephone line within 25 seconds of the termination of
  8       the call by the person being called.
  9             (c) A telephone solicitor shall not withhold the display of the tele-
10       phone solicitor's telephone number from a caller identification service
11       when that number is being used for telemarketing purposes and when
12       the telephone solicitor's service or equipment is capable of allowing the
13       display of such number.
14             (d) A telephone solicitor shall not transmit any written information
15       by facsimile machine or computer to a consumer after the consumer
16       requests orally or in writing that such transmissions cease.
17             (e) A telephone solicitor shall not obtain by use of any professional
18       delivery, courier or other pickup service receipt or possession of a con-
19       sumer's payment unless the goods are delivered with the opportunity to
20       inspect before any payment is collected.
21             (f) No telephone solicitor shall make or cause to be made any unso-
22       licited consumer telephone call to the residence of any consumer in this
23       state who has given notice to the commission attorney general, in ac-
24       cordance with rules and regulations adopted under section 2 and amend-
25       ments thereto, of the consumer's objection to receiving unsolicited con-
26       sumer telephone calls.
27             (f) (g) Local exchange carriers and telecommunications carriers shall
28       not be responsible for the enforcement of the provisions of this section.
29             (g) (h) Any violation of this section is an unconscionable act or prac-
30       tice under the Kansas consumer protection act.
31             (i) It shall be a defense in any action or proceeding brought under
32       this section that the defendant has established and implemented, with due
33       care, reasonable practices and procedures to effectively prevent unsoli-
34       cited consumer telephone calls in violation of this section.
35             (h) (j) (i) This section shall be part of and supplemental to the Kansas
36       consumer protection act.
37             New Sec.  2. (a) The commission attorney general shall establish
38       and provide for the operation of a data base to compile a list of telephone
39       numbers of consumers who object to receiving unsolicited consumer tel-
40       ephone calls. It shall be the duty of the commission attorney general
41       to have such data base in operation no later than July 1, 2001. Such data
42       base may be operated by the commission attorney general or by another
43       entity under contract with the commission attorney general.


4

  1             (b) No later than July 1, 2001, the commission attorney general
  2       shall adopt rules and regulations that:
  3             (1) Require each local exchange company to inform its residential
  4       carrier, each telecommunications carrier and each wireless tele-
  5       communications service provider to inform its subscribers that a con-
  6       sumer has the opportunity to give notice to the commission attorney
  7       general or its contractor that the consumer objects to receiving unsoli-
  8       cited consumer telephone calls;
  9             (2) specify one or more methods by which a consumer may give no-
10       tice to the commission or its attorney general or the attorney gen-
11       eral's contractor of the consumer's objection to receiving unsolicited con-
12       sumer telephone calls and one or more methods by which a consumer
13       may revoke that notice;
14             (3) specify the time period for which a notice of objection shall be
15       effective and the effect of a change of telephone number on such notice;
16             (4) specify the methods by which objections and revocations shall be
17       collected and added to the data base;
18             (5) specify one or more methods by which a telephone solicitor can
19       obtain access to the data base as required to avoid calling the telephone
20       numbers of consumers included in the data base; and
21             (6) specify such other matters relating to the data base that the com-
22       mission attorney general deems desirable.
23             (c) If the federal communications commission establishes a single na-
24       tional data base of telephone numbers of subscribers who object to re-
25       ceiving telephone solicitations, the commission attorney general shall
26       include the part of such single national data base that relates to Kansas
27       in the data base established under this section.
28             (d) A residential subscriber shall pay the commission attorney general
29       a fee of $5 for each notice for inclusion in the data base established under
30       this section. A telephone solicitor shall pay the commission a fee of $10
31       per year or qualified trade association shall pay the attorney gen-
32       eral a fee for access to or for paper or electronic copies of the data base
33       established under this section. Such fee shall be prescribed by rules
34       and regulations adopted by the attorney general in accordance
35       with K.S.A. 45-219, and amendments thereto. A qualified trade
36       association may make information obtained pursuant to this sec-
37       tion available to the association's members on any terms the as-
38       sociation and its members may impose, but use of such information
39       shall be subject to the restrictions imposed by subsection (e).
40             (e) Information contained in the data base established under this sec-
41       tion shall be used only for the purpose of compliance with this section or
42       in a proceeding or action under K.S.A. 50-670, and amendments thereto.
43       Such information shall not be subject to public inspection or disclosure


5

  1       under the open records act. 
  2        (f) All enforcement provisions of the Kansas consumer pro-
  3       tection act shall be deemed to apply to violations of K.S.A. 50-670,
  4       and amendments thereto, involving a person not included in the
  5       definition of ``consumer'' under K.S.A. 50-624, and amendments
  6       thereto, to the same extent as if the person were a consumer as
  7       defined in K.S.A. 50-624, and amendments thereto.
  8        Sec.  3. K.S.A. 1999 Supp. 50-670 is hereby repealed.
  9        Sec.  4. This act shall take effect and be in force from and after its
10       publication in the statute book.