Brief ⁽¹⁾

HB 2580 includes three major provisions. First, the bill would address the practice of "predictive dialing," which occurs when businesses use computers to continually dial the numbers of prospective customers but lack available telemarketing representatives to handle each call that becomes connected. The customer answers the phone but the line is dead because of the unavailability of such representatives. Second, the bill would require the Kansas Corporation Commission to adopt rules and regulations governing information to residential subscribers and telephone solicitors about the Direct Marketing Association's Telephone Preference Service (TPS). Third, the bill would amend the definition of "unsolicited consumer telephone call" in the Kansas Consumer Protection Act.

Predictive Dialing. The bill would amend the Kansas Consumer Protection Act regarding unsolicited telephone calls to a residential number by requiring a live operator or an automated dialing announcing device to answer the line within five seconds of the beginning of the call. Any message relayed through predictive dialing would be limited to the telephone solicitor's identity and the business on whose behalf that telemarketer is soliciting. No unsolicited advertisement may be included in the message.

Information to Subscribers and Telephone Solicitors. The bill would require the Kansas Corporation Commission to adopt rules and regulations governing information to residential subscribers and telephone solicitors about the Direct Marketing Association's TPS. (When residential subscribers register with the TPS at no cost to them, their name, address, and telephone number are placed on a do-not-call file. This file is updated and distributed four times a year to subscribing industry members who use the TPS file to delete from their internal telemarketing lists telephone numbers of individuals who do not wish to be called.) The Commission's rules and regulations would also require all local telephone companies and long distance telephone companies to collectively develop a method or methods of annually notifying residential subscribers about the rights and remedies available to them under various state and federal telephone consumer protection laws, as well as about the availability of the TPS.

Definition of "Unsolicited Consumer Telephone Call." The bill would amend the definition of "unsolicited consumer telephone call" in the Kansas Consumer Protection Act to include calls made by a newspaper.

Background

The introduced version of HB 2580 dealt exclusively with the issue of predictive dialing. The legislative sponsor, Representative Doug Johnston, appeared in favor of the bill. Others who expressed general support for the measure included a representative from the Attorney General's Office, the Direct Marketing Association, and the American Association of Retired Persons. The House Committee on Business, Commerce, and Labor amended the bill to reduce from 15 seconds to 5 seconds the time allotted to a live operator or an automated dialing announcing device to answer a line. The House Committee further conditioned an authorized unsolicited call upon the ability of the telephone solicitor's service or equipment to answer the line within the five second time frame.

The Senate Committee on Commerce amended the bill to address a concern raised by the Deputy Attorney General, Consumer Protection Division, that the House Committee's amendment was not enforceable and would allow telephone solicitors to continue predictive dialing without abatement. The Senate Committee's amendment would retain the five-second requirement for the live operator or answering device to answer the line. However, the Senate Committee's amendment would restrict the telephone solicitor's message to his or her identity and business association and would delete reference to the ability of the service or equipment to support a five-second response.

The Senate Committee further amended the bill to require the Kansas Corporation Commission to adopt rules and regulations concerning information on the TPS, to be relayed to residential subscribers and telephone solicitors.

This amendment results from deliberations on 2000 SB 539 and 2000 HB 2891, which proposed different approaches to reducing the number of unsolicited calls made to consumers. SB 539 would amend the Kansas Consumer Protection Act to require telephone solicitors to consult the TPS and not use telephone numbers of consumers registered with the TPS. Violators may be punished by fines not exceeding $5,000 per violation. HB 2891, as amended by the House Committee of the Whole, would amend the Kansas Consumer Protection Act to subject telephone solicitors to penalties for violations under that Act if they called persons included in a do-not-call list authorized by the bill. HB 2891 would require the Attorney General to establish and provide for the operation of a do-not-call list. Consumers who would be eligible for inclusion in the do-not-call list, at no cost to them, are residential and business telephone subscribers. The Attorney General would assess a fee for telephone solicitors and trade associations to access the do-not-call database.

The Senate Committee of the Whole amended the bill to amend the definition of "unsolicited consumer telephone call" in the Kansas Consumer Protection Act.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html