By Giddings                                           H.B. No. 3174

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to telephone solicitation using automated dial announcing

 1-3     devices.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 3.653(a), Public Utility Regulatory Act

 1-6     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 1-7     amended to read as follows:

 1-8           (a)  A person may not operate an ADAD to make a telephone

 1-9     call if the device plays a recorded message when a connection is

1-10     completed to a telephone number unless:

1-11                 (1)  the person has obtained a permit from the

1-12     commission and given written notice specifying the type of device

1-13     to each telecommunications utility over whose system the device is

1-14     to be used;

1-15                 (2)  the device is not used for random number dialing

1-16     or to dial numbers determined by successively increasing or

1-17     decreasing integers;

1-18                 (3)  the message states during the first 30 seconds of

1-19     the call the nature of the call, the identity of the person,

1-20     company, or organization making the call, and the telephone number

1-21     from which the call was made, provided, however, that if an ADAD is

1-22     used for debt collection purposes and the use complies with

1-23     applicable federal law and regulations, and the ADAD is used by a

1-24     live operator for automatic dialing or hold announcement purposes,

 2-1     the use complies with this subdivision;

 2-2                 (4)  the device disconnects from the called person's

 2-3     line not later than 30 seconds after the call is terminated by

 2-4     either party or, if the device cannot disconnect within that

 2-5     period, a live operator introduces the call and receives the oral

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

 2-7     synthesized voice message;

 2-8                 (5)  the device, when used for solicitation purposes,

 2-9     has a message shorter than 30 seconds [one minute]  or has the

2-10     technical capacity to recognize a telephone answering device on the

2-11     called person's line and terminates the call within 30 seconds [one

2-12     minute]; and

2-13                 (6)  for calls terminating in this state, the device is

2-14     not used to make a call:

2-15                       (A)  before noon or after 9 p.m. on a Sunday or

2-16     before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the

2-17     device is used for solicitation; or

2-18                       (B)  at an hour at which collection calls would

2-19     be prohibited under the federal Fair Debt Collection Practices Act

2-20     (15 U.S.C. Section 1692 et seq.), if the device is used for

2-21     collection purposes.

2-22           SECTION 2.  Section 3.656(e), Public Utility Regulatory Act

2-23     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

2-24     amended to read as follows:

2-25           (e)  The proceeds of administrative penalties collected under

2-26     this section shall be deposited to the credit of the commission and

2-27     shall be used by the commission to enforce this subtitle [general

 3-1     revenue fund].

 3-2           SECTION 3.  Subtitle O, Public Utility Regulatory Act of 1995

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

 3-4     adding Section 3.661 to read as follows:

 3-5           Sec. 3.661.  In addition to the notice required by Section

 3-6     3.660, the commission shall conduct an educational program designed

 3-7     to inform the public of their rights under Section 3.659 of this

 3-8     code, and Section 37.02 of the Business and Commerce Code.  The

 3-9     educational program shall be directed to all residential telephone

3-10     subscribers and shall be conducted no less frequently than annually

3-11     if funds are available.

3-12           SECTION 4.  This Act takes effect September 1, 1997.

3-13           SECTION 5.  (a)  The change in law made to Section 3.653(a),

3-14     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

3-15     Texas Civil Statutes), by this Act applies only to a violation

3-16     committed on or after September 1, 1997.  For the purposes of this

3-17     section, a violation is committed before September 1, 1997, if any

3-18     element of the violation occurs before that date.

3-19           (b)  A violation committed before September 1, 1997, is

3-20     covered by the law in effect when the violation was committed, and

3-21     the former law is continued in effect for this purpose.

3-22           SECTION 6.  The importance of this legislation and the

3-23     crowded condition of the calendars in both houses create an

3-24     emergency and an imperative public necessity that the

3-25     constitutional rule requiring bills to be read on three several

3-26     days in each house be suspended, and this rule is hereby suspended.

3-27                          COMMITTEE AMENDMENT NO. 1

 4-1           Amend H.B. No. 3174 as follows:

 4-2           (1)  On page 2, line 8, strike "within 30 seconds [one

 4-3     minute]" and substitute "immediately, except that a person may

 4-4     operate a device that does not have the technical capacity to

 4-5     recognize a telephone answering device on the called person's line

 4-6     and terminate the call within 30 seconds if the person pays an

 4-7     annual fee of $50 dollars [within one minute]".

 4-8           (2)  On page 2, line 24, after the period, insert "A fee

 4-9     under Section 3.653(a)(5) of this Act shall be collected by the

4-10     commission and deposited in the general revenue fund.  The fee may

4-11     be used only for carrying out the education program under Section

4-12     3.661 of this Act.".

4-13                                                                   Dukes