By Janek                                              H.B. No. 2128

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of telephone caller identification services and

 1-3     automated dial announcing devices by telephone solicitors;

 1-4     providing an administrative penalty.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 3.302, Public Utility Regulatory Act of

 1-7     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

 1-8     to read as follows:

 1-9           Sec. 3.302.  CALLER IDENTIFICATION SERVICES.  (a) This

1-10     section applies only to the provision of caller identification

1-11     service.

1-12           (b)  A person may not offer a caller identification service

1-13     unless the person obtains written authorization from the

1-14     commission.

1-15           (c)  Except as provided by Subsection (e) of this section,

1-16     the [The] commission shall require that a provider of caller

1-17     identification service offer per-call blocking at no charge to each

1-18     telephone subscriber in the specific area in which the service is

1-19     offered.

1-20           (d)  Except as provided by Subsection (e) of this section,

1-21     the [The] commission shall require that a provider offer per-line

1-22     blocking at no charge to a particular customer if the commission

1-23     receives from the customer written certification that the customer

1-24     has a compelling need for per-line blocking.  If a customer later

 2-1     removes the per-line block, the provider may assess a service order

 2-2     charge relating to administrative costs in an amount approved by

 2-3     the commission to reinstate the per-line block.  The commission may

 2-4     prescribe and assess fees and assessments from providers of caller

 2-5     identification service in an amount sufficient to cover the

 2-6     additional expenses incurred by the commission in implementing the

 2-7     customer certification provisions of this subsection.  Reports,

 2-8     records, and information received under this subsection by the

 2-9     commission or by a provider of caller identification service are

2-10     confidential and may be used only for the purposes of administering

2-11     this subsection.

2-12           (e)  A telephone solicitor may not use any method, including

2-13     per-call blocking or per-line blocking, that prevents caller

2-14     identification information for the telephone solicitor's lines used

2-15     to make consumer telephone calls from being shown by a device

2-16     capable of displaying caller identification information.  The

2-17     caller identification information displayed must contain a

2-18     telephone number at which the telephone solicitor may receive

2-19     telephone calls.  A telephone solicitor who violates this

2-20     subsection is subject to an administrative penalty not to exceed

2-21     $1,000 for each day or portion of a day in which the person uses a

2-22     method prohibited by this subsection.  Sections 3.656(b)-(e) of

2-23     this Act apply to the imposition of a penalty under this

2-24     subsection.  In this subsection, "telephone solicitor" and

2-25     "consumer telephone call" have the meanings assigned by Section

2-26     37.01, Business & Commerce Code.

2-27           (e-1)  Not later than January 1, 1998, from each line used

 3-1     for consumer telephone calls, a telephone solicitor shall remove

 3-2     per-line blocking  and any other method prohibited by Subsection

 3-3     (e) of this section.  This subsection expires January 31, 1998.

 3-4           (f)  The commission may only prescribe in relation to

 3-5     blocking the requirements prescribed by Subsections (c), [and] (d),

 3-6     and (e) of this section.

 3-7           (g) [(f)]  A person may not use a caller identification

 3-8     service to compile and sell specific local call information without

 3-9     the affirmative consent and approval of the originating telephone

3-10     customer.  This subsection does not prohibit the provider from:

3-11                 (1)  verifying network performance or from testing the

3-12     provision of caller identification service;

3-13                 (2)  compiling, using, and disclosing aggregate caller

3-14     identification information;  or

3-15                 (3)  complying with applicable law or legal process.

3-16           (h) [(g)]  This section does not apply to:

3-17                 (1)  an identification service that is used within the

3-18     same limited system, including a central office based PBX-type

3-19     system;

3-20                 (2)  information that is used on a public agency's

3-21     emergency telephone line or on a line that receives the primary

3-22     emergency telephone number (9-1-1);

3-23                 (3)  information passed between telecommunications

3-24     utilities, enhanced service providers, or other entities that is

3-25     necessary for the set-up, processing, transmission, or billing of

3-26     telecommunications or related services;

3-27                 (4)  information provided in compliance with applicable

 4-1     law or legal process;  or

 4-2                 (5)  an identification service provided in connection

 4-3     with a "700," "800," or "900" access code telecommunications

 4-4     service.

 4-5           (i) [(h)]  In this section:

 4-6                 (1)  "Caller identification information" means:

 4-7                       (A)  the telephone listing number and/or name of

 4-8     the customer from whose telephone instrument a telephone number is

 4-9     dialed;  or

4-10                       (B)  other information that may be used to

4-11     identify the specific originating number or originating location of

4-12     a wire or electronic communication transmitted by a telephone

4-13     instrument.

4-14                 (2)  "Caller identification service" means a service

4-15     offered by a telecommunications utility that provides caller

4-16     identification information to a device capable of displaying the

4-17     information.

4-18                 (3)  "Per-call blocking" means a telecommunications

4-19     service that prevents the transmission of caller identification

4-20     information to a called party on an individual call if the calling

4-21     party acts affirmatively to prevent the transmission of the caller

4-22     identification information.

4-23                 (4)  "Per-line blocking" means a telecommunications

4-24     service that prevents the transmission of caller identification

4-25     information to a called party on every call unless the calling

4-26     party acts affirmatively to release the caller identification

4-27     information.

 5-1           (j) [(i)]  A commercial mobile service provider may offer

 5-2     caller identification services under the same terms and conditions

 5-3     provided by Subsections (c)-(g) [(f)] of this section.

 5-4           SECTION 2.  Section 3.653(a), Public Utility Regulatory Act

 5-5     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 5-6     amended to read as follows:

 5-7           (a)  A person may not operate an ADAD to make a telephone

 5-8     call if the device plays a recorded message when a connection is

 5-9     completed to a telephone number unless:

5-10                 (1)  the person has obtained a permit from the

5-11     commission and given written notice specifying the type of device

5-12     to each telecommunications utility over whose system the device is

5-13     to be used;

5-14                 (2)  the device is not used for random number dialing

5-15     or to dial numbers determined by successively increasing or

5-16     decreasing integers;

5-17                 (3)  the message states during the first 30 seconds of

5-18     the call the nature of the call, the identity of the person,

5-19     company, or organization making the call, and the telephone number

5-20     from which the call was made, provided, however, that if an ADAD is

5-21     used for debt collection purposes and the use complies with

5-22     applicable federal law and regulations, and the ADAD is used by a

5-23     live operator for automatic dialing or hold announcement purposes,

5-24     the use complies with this subdivision;

5-25                 (4)  the device disconnects from the called person's

5-26     line not later than 30 seconds after the call is terminated by

5-27     either party or, if the device cannot disconnect within that

 6-1     period, a live operator introduces the call and receives the oral

 6-2     consent of the called person before beginning a prerecorded or

 6-3     synthesized voice message;

 6-4                 (5)  the device, when used for solicitation purposes,

 6-5     has a message shorter than 30 seconds [one minute] or has the

 6-6     technical capacity to recognize a telephone answering device on the

 6-7     called person's line and terminates the call within 30 seconds [one

 6-8     minute]; and

 6-9                 (6)  for calls terminating in this state, the device is

6-10     not used to make a call:

6-11                       (A)  before noon or after 9 p.m. on a Sunday or

6-12     before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the

6-13     device is used for solicitation; or

6-14                       (B)  at an hour at which collection calls would

6-15     be prohibited under the federal Fair Debt Collection Practices Act

6-16     (15 U.S.C. Section 1692 et seq.), if the device is used for

6-17     collection purposes.

6-18           SECTION 3.  Section 3.656(e), Public Utility Regulatory Act

6-19     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

6-20     amended to read as follows:

6-21           (e)  The proceeds of administrative penalties collected under

6-22     this section shall be deposited to the credit of the commission and

6-23     shall be used by the commission to enforce this subtitle [general

6-24     revenue fund].

6-25           SECTION 4.  Subtitle O, Public Utility Regulatory Act of 1995

6-26     (Article 1446c-0, Vernon's Texas Civil Statutes), is amended by

6-27     adding Section 3.661 to read as follows:

 7-1           Sec. 3.661.  EDUCATIONAL PROGRAM.  In addition to the notice

 7-2     required by Section 3.660, the commission shall conduct an

 7-3     educational program designed to inform the public of their rights

 7-4     under Section 3.659 of this Act and Section 37.02, Business &

 7-5     Commerce Code.  The educational program shall be directed to all

 7-6     residential telephone subscribers and shall be conducted no less

 7-7     frequently than annually if funds are available.

 7-8           SECTION 5.  (a)  The change in law made to Section 3.653(a),

 7-9     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

7-10     Texas Civil Statutes), by this Act applies only to a violation

7-11     committed on or after Septmber 1, 1997.  For the purposes of this

7-12     section, a violation is committed before September 1, 1997, if any

7-13     element of the violation occurs before that date.

7-14           (b)  A violation committed before September 1, 1997, is

7-15     covered by the law in effect when the violation was committed, and

7-16     the former law is continued in effect for this purpose.

7-17           SECTION 6.  This Act takes effect September 1, 1997.

7-18           SECTION 7.  The importance of this legislation and the

7-19     crowded condition of the calendars in both houses create an

7-20     emergency and an imperative public necessity that the

7-21     constitutional rule requiring bills to be read on three several

7-22     days in each house be suspended, and this rule is hereby suspended.