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.".