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.  Not later

2-17     than September 1, 1998, the caller identification information

2-18     displayed must contain a telephone number at which the telephone

2-19     solicitor may receive telephone calls if the telephone solicitor

2-20     leaves a message on a telephone answering device or uses an ADAD

2-21     that plays a recorded message when a connection is completed to a

2-22     telephone number.  A telephone solicitor who violates this

2-23     subsection is subject to an administrative penalty not to exceed

2-24     $1,000 for each day or portion of a day in which the person uses a

2-25     method prohibited by this subsection.  Sections 3.656(b)-(e) of

2-26     this Act apply to the imposition of a penalty under this

2-27     subsection.  In this subsection, "telephone solicitor" and

 3-1     "consumer telephone call" have the meanings assigned by Section

 3-2     37.01, Business & Commerce Code.

 3-3           (e-1)  Not later than January 1, 1998, from each line used

 3-4     for consumer telephone calls, a telephone solicitor shall remove

 3-5     per-line blocking  and any other method prohibited by Subsection

 3-6     (e) of this section.  This subsection expires January 31, 1998.

 3-7           (f)  The commission may only prescribe in relation to

 3-8     blocking the requirements prescribed by Subsections (c), [and] (d),

 3-9     and (e) of this section.

3-10           (g) [(f)]  A person may not use a caller identification

3-11     service to compile and sell specific local call information without

3-12     the affirmative consent and approval of the originating telephone

3-13     customer.  This subsection does not prohibit the provider from:

3-14                 (1)  verifying network performance or from testing the

3-15     provision of caller identification service;

3-16                 (2)  compiling, using, and disclosing aggregate caller

3-17     identification information;  or

3-18                 (3)  complying with applicable law or legal process.

3-19           (h) [(g)]  This section does not apply to:

3-20                 (1)  an identification service that is used within the

3-21     same limited system, including a central office based PBX-type

3-22     system;

3-23                 (2)  information that is used on a public agency's

3-24     emergency telephone line or on a line that receives the primary

3-25     emergency telephone number (9-1-1);

3-26                 (3)  information passed between telecommunications

3-27     utilities, enhanced service providers, or other entities that is

 4-1     necessary for the set-up, processing, transmission, or billing of

 4-2     telecommunications or related services;

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

 4-4     law or legal process;  or

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

 4-6     with a "700," "800," or "900" access code telecommunications

 4-7     service.

 4-8           (i) [(h)]  In this section:

 4-9                 (1)  "Caller identification information" means:

4-10                       (A)  the telephone listing number and/or name of

4-11     the customer from whose telephone instrument a telephone number is

4-12     dialed;  or

4-13                       (B)  other information that may be used to

4-14     identify the specific originating number or originating location of

4-15     a wire or electronic communication transmitted by a telephone

4-16     instrument.

4-17                 (2)  "Caller identification service" means a service

4-18     offered by a telecommunications utility that provides caller

4-19     identification information to a device capable of displaying the

4-20     information.

4-21                 (3)  "Per-call blocking" means a telecommunications

4-22     service that prevents the transmission of caller identification

4-23     information to a called party on an individual call if the calling

4-24     party acts affirmatively to prevent the transmission of the caller

4-25     identification information.

4-26                 (4)  "Per-line blocking" means a telecommunications

4-27     service that prevents the transmission of caller identification

 5-1     information to a called party on every call unless the calling

 5-2     party acts affirmatively to release the caller identification

 5-3     information.

 5-4           (j) [(i)]  A commercial mobile service provider may offer

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

 5-6     provided by Subsections (c)-(g) [(f)] of this section.

 5-7           SECTION 2.  Section 3.653(a), Public Utility Regulatory Act

 5-8     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 5-9     amended to read as follows:

5-10           (a)  A person may not operate an ADAD to make a telephone

5-11     call if the device plays a recorded message when a connection is

5-12     completed to a telephone number unless:

5-13                 (1)  the person has obtained a permit from the

5-14     commission and given written notice specifying the type of device

5-15     to each telecommunications utility over whose system the device is

5-16     to be used;

5-17                 (2)  the device is not used for random number dialing

5-18     or to dial numbers determined by successively increasing or

5-19     decreasing integers;

5-20                 (3)  the message states during the first 30 seconds of

5-21     the call the nature of the call, the identity of the person,

5-22     company, or organization making the call, and the telephone number

5-23     from which the call was made, provided, however, that if an ADAD is

5-24     used for debt collection purposes and the use complies with

5-25     applicable federal law and regulations, and the ADAD is used by a

5-26     live operator for automatic dialing or hold announcement purposes,

5-27     the use complies with this subdivision;

 6-1                 (4)  the device disconnects from the called person's

 6-2     line not later than 30 seconds after the call is terminated by

 6-3     either party or, if the device cannot disconnect within that

 6-4     period, a live operator introduces the call and receives the oral

 6-5     consent of the called person before beginning a prerecorded or

 6-6     synthesized voice message;

 6-7                 (5)  the device, when used for solicitation purposes,

 6-8     has a message shorter than 30 seconds [one minute] or has the

 6-9     technical capacity to recognize a telephone answering device on the

6-10     called person's line and terminates the call within 30 seconds [one

6-11     minute]; and

6-12                 (6)  for calls terminating in this state, the device is

6-13     not used to make a call:

6-14                       (A)  before noon or after 9 p.m. on a Sunday or

6-15     before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the

6-16     device is used for solicitation; or

6-17                       (B)  at an hour at which collection calls would

6-18     be prohibited under the federal Fair Debt Collection Practices Act

6-19     (15 U.S.C. Section 1692 et seq.), if the device is used for

6-20     collection purposes.

6-21           SECTION 3.  Section 3.656(e), Public Utility Regulatory Act

6-22     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

6-23     amended to read as follows:

6-24           (e)  The proceeds of administrative penalties collected under

6-25     this section shall be deposited to the credit of the commission and

6-26     shall be used by the commission to enforce this subtitle [general

6-27     revenue fund].

 7-1           SECTION 4.  Subtitle O, Public Utility Regulatory Act of 1995

 7-2     (Article 1446c-0, Vernon's Texas Civil Statutes), is amended by

 7-3     adding Section 3.661 to read as follows:

 7-4           Sec. 3.661.  EDUCATIONAL PROGRAM.  In addition to the notice

 7-5     required by Section 3.660, the commission shall conduct an

 7-6     educational program designed to inform the public of their rights

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

 7-8     Commerce Code.  The educational program shall be directed to all

 7-9     residential telephone subscribers and shall be conducted no less

7-10     frequently than annually if funds are available.

7-11           SECTION 5.  (a)  The change in law made to Section 3.653(a),

7-12     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

7-13     Texas Civil Statutes), by this Act applies only to a violation

7-14     committed on or after Septmber 1, 1997.  For the purposes of this

7-15     section, a violation is committed before September 1, 1997, if any

7-16     element of the violation occurs before that date.

7-17           (b)  A violation committed before September 1, 1997, is

7-18     covered by the law in effect when the violation was committed, and

7-19     the former law is continued in effect for this purpose.

7-20           SECTION 6.  This Act takes effect September 1, 1997.

7-21           SECTION 7.  The importance of this legislation and the

7-22     crowded condition of the calendars in both houses create an

7-23     emergency and an imperative public necessity that the

7-24     constitutional rule requiring bills to be read on three several

7-25     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2128 was passed by the House on May

         13, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 2128 on May 28, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2128 was passed by the Senate, with

         amendments, on May 23, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor