1-1     By:  Janek (Senate Sponsor - Barrientos)              H.B. No. 2128

 1-2           (In the Senate - Received from the House May 14, 1997;

 1-3     May 15, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 18, 1997, reported favorably by the following

 1-5     vote:  Yeas 11, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the use of telephone caller identification services and

 1-9     automated dial announcing devices by telephone solicitors;

1-10     providing an administrative penalty.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 3.302, Public Utility Regulatory Act of

1-13     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

1-14     to read as follows:

1-15           Sec. 3.302.  CALLER IDENTIFICATION SERVICES.  (a) This

1-16     section applies only to the provision of caller identification

1-17     service.

1-18           (b)  A person may not offer a caller identification service

1-19     unless the person obtains written authorization from the

1-20     commission.

1-21           (c)  Except as provided by Subsection (e) of this section,

1-22     the [The] commission shall require that a provider of caller

1-23     identification service offer per-call blocking at no charge to each

1-24     telephone subscriber in the specific area in which the service is

1-25     offered.

1-26           (d)  Except as provided by Subsection (e) of this section,

1-27     the [The] commission shall require that a provider offer per-line

1-28     blocking at no charge to a particular customer if the commission

1-29     receives from the customer written certification that the customer

1-30     has a compelling need for per-line blocking.  If a customer later

1-31     removes the per-line block, the provider may assess a service order

1-32     charge relating to administrative costs in an amount approved by

1-33     the commission to reinstate the per-line block.  The commission may

1-34     prescribe and assess fees and assessments from providers of caller

1-35     identification service in an amount sufficient to cover the

1-36     additional expenses incurred by the commission in implementing the

1-37     customer certification provisions of this subsection.  Reports,

1-38     records, and information received under this subsection by the

1-39     commission or by a provider of caller identification service are

1-40     confidential and may be used only for the purposes of administering

1-41     this subsection.

1-42           (e)  A telephone solicitor may not use any method, including

1-43     per-call blocking or per-line blocking, that prevents caller

1-44     identification information for the telephone solicitor's lines used

1-45     to make consumer telephone calls from being shown by a device

1-46     capable of displaying caller identification information.  The

1-47     caller identification information displayed must contain a

1-48     telephone number at which the telephone solicitor may receive

1-49     telephone calls.  A telephone solicitor who violates this

1-50     subsection is subject to an administrative penalty not to exceed

1-51     $1,000 for each day or portion of a day in which the person uses a

1-52     method prohibited by this subsection.  Sections 3.656(b)-(e) of

1-53     this Act apply to the imposition of a penalty under this

1-54     subsection.  In this subsection, "telephone solicitor" and

1-55     "consumer telephone call" have the meanings assigned by Section

1-56     37.01, Business & Commerce Code.

1-57           (e-1)  Not later than January 1, 1998, from each line used

1-58     for consumer telephone calls, a telephone solicitor shall remove

1-59     per-line blocking  and any other method prohibited by Subsection

1-60     (e) of this section.  This subsection expires January 31, 1998.

1-61           (f)  The commission may only prescribe in relation to

1-62     blocking the requirements prescribed by Subsections (c), [and] (d),

1-63     and (e) of this section.

1-64           (g) [(f)]  A person may not use a caller identification

 2-1     service to compile and sell specific local call information without

 2-2     the affirmative consent and approval of the originating telephone

 2-3     customer.  This subsection does not prohibit the provider from:

 2-4                 (1)  verifying network performance or from testing the

 2-5     provision of caller identification service;

 2-6                 (2)  compiling, using, and disclosing aggregate caller

 2-7     identification information;  or

 2-8                 (3)  complying with applicable law or legal process.

 2-9           (h) [(g)]  This section does not apply to:

2-10                 (1)  an identification service that is used within the

2-11     same limited system, including a central office based PBX-type

2-12     system;

2-13                 (2)  information that is used on a public agency's

2-14     emergency telephone line or on a line that receives the primary

2-15     emergency telephone number (9-1-1);

2-16                 (3)  information passed between telecommunications

2-17     utilities, enhanced service providers, or other entities that is

2-18     necessary for the set-up, processing, transmission, or billing of

2-19     telecommunications or related services;

2-20                 (4)  information provided in compliance with applicable

2-21     law or legal process;  or

2-22                 (5)  an identification service provided in connection

2-23     with a "700," "800," or "900" access code telecommunications

2-24     service.

2-25           (i) [(h)]  In this section:

2-26                 (1)  "Caller identification information" means:

2-27                       (A)  the telephone listing number and/or name of

2-28     the customer from whose telephone instrument a telephone number is

2-29     dialed;  or

2-30                       (B)  other information that may be used to

2-31     identify the specific originating number or originating location of

2-32     a wire or electronic communication transmitted by a telephone

2-33     instrument.

2-34                 (2)  "Caller identification service" means a service

2-35     offered by a telecommunications utility that provides caller

2-36     identification information to a device capable of displaying the

2-37     information.

2-38                 (3)  "Per-call blocking" means a telecommunications

2-39     service that prevents the transmission of caller identification

2-40     information to a called party on an individual call if the calling

2-41     party acts affirmatively to prevent the transmission of the caller

2-42     identification information.

2-43                 (4)  "Per-line blocking" means a telecommunications

2-44     service that prevents the transmission of caller identification

2-45     information to a called party on every call unless the calling

2-46     party acts affirmatively to release the caller identification

2-47     information.

2-48           (j) [(i)]  A commercial mobile service provider may offer

2-49     caller identification services under the same terms and conditions

2-50     provided by Subsections (c)-(g) [(f)] of this section.

2-51           SECTION 2.  Section 3.653(a), Public Utility Regulatory Act

2-52     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

2-53     amended to read as follows:

2-54           (a)  A person may not operate an ADAD to make a telephone

2-55     call if the device plays a recorded message when a connection is

2-56     completed to a telephone number unless:

2-57                 (1)  the person has obtained a permit from the

2-58     commission and given written notice specifying the type of device

2-59     to each telecommunications utility over whose system the device is

2-60     to be used;

2-61                 (2)  the device is not used for random number dialing

2-62     or to dial numbers determined by successively increasing or

2-63     decreasing integers;

2-64                 (3)  the message states during the first 30 seconds of

2-65     the call the nature of the call, the identity of the person,

2-66     company, or organization making the call, and the telephone number

2-67     from which the call was made, provided, however, that if an ADAD is

2-68     used for debt collection purposes and the use complies with

2-69     applicable federal law and regulations, and the ADAD is used by a

 3-1     live operator for automatic dialing or hold announcement purposes,

 3-2     the use complies with this subdivision;

 3-3                 (4)  the device disconnects from the called person's

 3-4     line not later than 30 seconds after the call is terminated by

 3-5     either party or, if the device cannot disconnect within that

 3-6     period, a live operator introduces the call and receives the oral

 3-7     consent of the called person before beginning a prerecorded or

 3-8     synthesized voice message;

 3-9                 (5)  the device, when used for solicitation purposes,

3-10     has a message shorter than 30 seconds [one minute] or has the

3-11     technical capacity to recognize a telephone answering device on the

3-12     called person's line and terminates the call within 30 seconds [one

3-13     minute]; and

3-14                 (6)  for calls terminating in this state, the device is

3-15     not used to make a call:

3-16                       (A)  before noon or after 9 p.m. on a Sunday or

3-17     before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the

3-18     device is used for solicitation; or

3-19                       (B)  at an hour at which collection calls would

3-20     be prohibited under the federal Fair Debt Collection Practices Act

3-21     (15 U.S.C. Section 1692 et seq.), if the device is used for

3-22     collection purposes.

3-23           SECTION 3.  Section 3.656(e), Public Utility Regulatory Act

3-24     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

3-25     amended to read as follows:

3-26           (e)  The proceeds of administrative penalties collected under

3-27     this section shall be deposited to the credit of the commission and

3-28     shall be used by the commission to enforce this subtitle [general

3-29     revenue fund].

3-30           SECTION 4.  Subtitle O, Public Utility Regulatory Act of 1995

3-31     (Article 1446c-0, Vernon's Texas Civil Statutes), is amended by

3-32     adding Section 3.661 to read as follows:

3-33           Sec. 3.661.  EDUCATIONAL PROGRAM.  In addition to the notice

3-34     required by Section 3.660, the commission shall conduct an

3-35     educational program designed to inform the public of their rights

3-36     under Section 3.659 of this Act and Section 37.02, Business &

3-37     Commerce Code.  The educational program shall be directed to all

3-38     residential telephone subscribers and shall be conducted no less

3-39     frequently than annually if funds are available.

3-40           SECTION 5.  (a)  The change in law made to Section 3.653(a),

3-41     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

3-42     Texas Civil Statutes), by this Act applies only to a violation

3-43     committed on or after September 1, 1997.  For the purposes of this

3-44     section, a violation is committed before September 1, 1997, if any

3-45     element of the violation occurs before that date.

3-46           (b)  A violation committed before September 1, 1997, is

3-47     covered by the law in effect when the violation was committed, and

3-48     the former law is continued in effect for this purpose.

3-49           SECTION 6.  This Act takes effect September 1, 1997.

3-50           SECTION 7.  The importance of this legislation and the

3-51     crowded condition of the calendars in both houses create an

3-52     emergency and an imperative public necessity that the

3-53     constitutional rule requiring bills to be read on three several

3-54     days in each house be suspended, and this rule is hereby suspended.

3-55                                  * * * * *