GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 221

Short Title:  No Telephone Solicitation.	(Public)

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Sponsors: Senator Robinson.

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Referred to:  Information Technology.

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March 4, 1999

A BILL TO BE ENTITLED
AN ACT TO ALLOW RESIDENTIAL TELEPHONE SUBSCRIBERS TO BE PLACED ON A LIST OF PERSONS WHO OBJECT TO TELEPHONE SOLICITATIONS AND TO PROHIBIT TELEPHONE SOLICITORS FROM MAKING CALLS TO PERSONS ON THAT LIST.
The General Assembly of North Carolina enacts:
Section 1.  The General Assembly finds that:
(1)	The use of the telephone to market goods and services to consumers is increasingly pervasive now due to the availability of cost-effective telemarketing techniques.
(2)	Thousands of businesses actively telemarket goods and services to residential customers.
(3)	Telemarketing can be an intrusive and relentless invasion of the privacy and peacefulness of the home.
(4)	Many citizens of this State are upset at the proliferation of calls to their homes from telemarketers.
(5)	The rights to privacy and commercial speech can be balanced in a way that accommodates both the privacy of individuals and legitimate telemarketing practices.
(6)	The public interest requires the establishment of a mechanism under which the citizens of this State can decide whether or not they wish to receive telemarketing calls in their homes.
Section 2.  Chapter 75 of the General Statutes is amended by adding a new section to read:
"§ 75-30.1.  Restrictions on telephone solicitations.
(a)	For purposes of this section:
(1)	'Residential telephone subscriber' means a person who subscribes to residential telephone service from a local exchange company or the persons living or residing with that person.
(2)	'Telephone solicitation' means a voice communication over a telephone line for the purpose of soliciting or encouraging the purchase or rental of, or investment in, property, goods, or services, or for the purpose of obtaining information that will or may be used for that purpose, but does not include any of the following communications:
a.	In response to an express request of the person called.
b.	Primarily in connection with an existing debt or contract, the payment or performance of which has not been completed at the time of the call.
c.	To any person with whom the telephone solicitor has a prior or existing business relationship.
d.	By or on behalf of organizations described in section 501(c)(3) of the Internal Revenue Code.
(3)	'Telephone solicitor' means any legal entity doing business in this State that makes or causes to be made telephone solicitations.
(b)	The Attorney General shall establish and maintain a list of telephone numbers of residential, mobile, or telephonic paging device telephone subscribers who object to receiving telephone solicitations.   Any residential telephone subscriber who desires to be placed on this list may notify the Attorney General and be placed on the list upon receipt by the Attorney General of a fee of ten dollars ($10.00) for the initial listing charge.  The subscriber may renew the subscriber's listing for a year upon receipt of a renewal notice and a renewal fee of five dollars ($5.00) for each year.  The Attorney General shall update the list at least quarterly.  The Attorney General shall provide paper or electronic copies of the list to telephone solicitors upon request for a fee of ten dollars ($10.00) per year.  The fees collected under this section shall be credited to the General Fund and appropriated to the Attorney General to support the cost of implementing this section.
(c)	In the event that the Federal Communications Commission establishes a single national database of the telephone numbers of subscribers who object to receiving telephone solicitations pursuant to the provisions of 47 U.S.C. § 227(c)(3), the Attorney General shall include the portion of that national database covering subscribers in North Carolina within the list established under this section.
(d)	No telephone solicitor shall make or cause to be made any telephone solicitation to any telephone number that, at the time of the solicitation, appears on the listing published by the Attorney General pursuant to subsection (b) of this section.  Any person who offers for sale any consumer information that includes telephone numbers, other than persons providing directory assistance and telephone directories and organizations described in section 501(c)(3) of the Internal Revenue Code, shall screen and exclude the numbers appearing on the current listing published by the Attorney General pursuant to subsection (b) of this section.
(e)	Any telephone solicitor who makes a telephone solicitation to the telephone line of any residential telephone subscriber in this State shall, at the beginning of the call, state clearly the identity of the person or entity initiating the call.  Any telephone solicitor who makes a telephone solicitation to the telephone line of any residential telephone subscriber in this State shall, within 30 seconds after beginning the conversation, inquire whether the person being solicited is interested in listening to a sales presentation and immediately discontinue the solicitation if the person being solicited gives a negative response.
(f)	No telephone solicitor who makes a telephone solicitation to the telephone line of a residential telephone subscriber in this State shall knowingly use any method to block or otherwise circumvent that subscriber's use of a caller identification service.
(g)	Information contained in the list published under subsection (b) of this section shall be used only for the purpose of complying with this section or in a proceeding or action under subsection (h) or (i) of this section.  The information contained in the list published under subsection (b) of this section is not a public record under Chapter 132 of the General Statutes and shall not be subject to public inspection or disclosure.
(h)	The Attorney General shall investigate any complaints received alleging violations of any of subsections (c) through (e) of this section.  If, after investigating a complaint, the Attorney General finds that there has been a violation of subsections (c) through (e) of this section, the Attorney General may bring an action to impose a civil penalty and to seek any other appropriate relief, including equitable relief to restrain the violation.  The civil penalty imposed shall not exceed five thousand dollars ($5,000) per violation.  In determining the amount of the civil penalty, the court shall consider all relevant circumstances, including the extent of harm caused by the conduct constituting a violation, whether the defendant can demonstrate that the defendant has established and implemented reasonable practices and procedures and exercised due care to prevent telephone solicitations constituting violations, and whether the defendant has taken any other corrective action.
(i)	Any person who has received more than one telephone solicitation within any 12-month period by or on behalf of the same person or entity in violation of subsection (d) of this section may either bring an action to enjoin such violation; bring an action to recover for actual monetary loss from such knowing violation or to receive up to two thousand dollars ($2,000) in damages for each such knowing violation, whichever is greater; or bring both of these actions.
(j)	It shall be a defense in any action or proceeding brought under subsection (h) or (i) of this section that the defendant has established and implemented, with due care, reasonable practices and procedures to effectively prevent telephone solicitations in violation of this section.
(k)	The remedies available under this section are not exclusive and are in addition to all other remedies provided by law.
(l)	The Department of Justice shall adopt rules that:
(1)	Require each local exchange company to inform its residential telephone subscribers of the opportunity to provide notification to the Attorney General that the subscriber objects to receiving telephone solicitations.
(2)	Specify the methods by which each residential telephone subscriber may give notice to the Attorney General of the subscriber's objection to receiving telephone solicitations or revocation of that notice.
(3)	Specify the length of time for which a notice of objection shall be effective and the effect of a change of telephone number on that notice.
(4)	Specify the methods by which such objections and revocations shall be collected and added to the list under subsection (b) of this section.
(5)	Specify the methods by which any person or entity desiring to make telephone solicitations will obtain access to the list under subsection (b) of this section as required to avoid calling the telephone numbers of residential telephone subscribers included in the list under subsection (b) of this section.
(6)	Are necessary or desirable to implement this section."
Section 3.  Chapter 62 of the General Statutes is amended by adding a new section to read:
"§ 62-53.  Notification of opportunity to object to telephone solicitation.
The Commission shall by rule require each local exchange company to periodically notify all persons who subscribe to residential service from that company of the opportunity to be placed on the list of persons who object to receiving telephone solicitations established in G.S. 75-30.1.  This notification shall include at a minimum annual inserts in the billing statements mailed to customers."
Section 4.  This act becomes effective October 1, 1999.