GEC H.B. 3174 75(R)BILL ANALYSIS BUSINESS & INDUSTRY H.B. 3174 By: Giddings 4-9-97 Committee Report (Amended) BACKGROUND For many people, telephone marketing calls provide value and convenience. Yet, national direct marketing companies recognize that while some citizens would like to reduce the volume of national advertising calls they receive, others would opt not to receive any telephone solicitation at home, especially those operated by an automated dial announcing device (ADAD) used for random number dialing that deliver prerecorded messages. PURPOSE As proposed, H.B. 3174, creates public awareness of ADAD telephone solicitation through an educational program developed by the PUC, and sharpens PUC enforcement provisions. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 3.653(a), Public Utility Regulatory Act of 1995, Article 1446-c, Vernon's Texas Civil Statutes as follows: (a) prohibits a person from operating an automated dial announcing device to make a telephone call if the device plays a recorded message when a connection is completed to a telephone number unless (1) the person has a permit, (2) does not use the device for random number dialing, (3) the message states the nature of the call during the first 30 seconds, (4) the device disconnects no later than 30 seconds after the call is terminated by either party, (5) the device has a message shorter than 30 seconds and terminates within 30 seconds, and (6) for calls terminating in this state within the guidelines stated in this act. SECTION 2. Amends Section3.656(e), Public Utility Regulatory Act of 1995, Article 1446-c, Vernon's Texas Civil Statutes as follows: (e) requires that proceeds of administrative penalties be collected and be deposited to the credit of the PUC and must be used by the PUC to enforce this subtitle. SECTION 3. Amends Subtitle O, Public Utility Regulatory Act of 1995, Article 1446-c, Vernon's Texas Civil Statutes, by adding Section 3.661 as follows: Sec. 3.661. Requires the PUC to conduct an educational program designed to inform the public of their rights, and requires that the program be directed to all residential telephone subscribers and must be conducted at least one year if funds are available. SECTION 4. Effective September 1, 1997. SECTION 5. The change in the act applies only on or after the effective date; a violation committed prior to September 1, 1997, is governed by current law. SECTION 6. Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment #1 amends H.B. No. 3174 as follows: (1) On page 2, line 8, strike "within 30 seconds {one minute}" and substitute "immediately, except that a person may operate a device that does not have the technical capacity to recognize a telephone answering device on the called person's line and terminate that call within 30 seconds if the person pays an annual fee of $50 dollars [within one minute]". (2) On page 2, line 24, after that period, insert "A fee under Section 3.653(a)(5) of this Act shall be collected by the commission and deposited in the general revenue fund. The fee may be used only for carrying out the education program under Section 3.661 of this Act.".