ARIZONA STATE SENATE
Phoenix, Arizona
Purpose:
Modifies definitions pertaining to telephone solicitation, prohibits a seller from initiating a telephone call for the purpose of solicitation between the hours of 9:00 p.m. and 8:00 a.m.
In response to growing concerns raised by consumers and businesses relating to unsolicited telephone solicitations, the United States Congress enacted the Telephone Consumer Protection Act (TCPA) on December 20, 1991 and the Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFAP) in August 1994. The Federal Trade Commission (FTC) implemented the TCFAP under the Telemarketing Sales Rule (rule), effective December 31, 1995, to restrict the number of times a consumer may be called and payment amounts for certain types of goods and services, prohibit misrepresentations and the calling of a consumer who has requested not to be called and require a two year bookkeeping practice. While the FTC, the states and any private person may bring a civil suit to federal court based on these legislative actions, the rule is not intended to affect any state or local telemarketing law and is only applicable to telemarketing sellers whose business crosses state lines.
In Arizona, telemarketing sellers are required to submit a full or limited registration with the Secretary of State. They are currently prohibited from using caller identification blocking devices, artificial or prerecorded voices and unsolicited telephone calls to any mobile or telephone paging system and are required to maintain a Ano call” list of consumers who have previously stated a desire to not receive outbound calls from, or on behalf of, the seller. The Ano-call” list requirement conforms to the TCFAP and FTC requirements and can be used to bring a civil suit in court.
According to the Secretary of State’s Office, the definition of seller as interpreted by some telemarketing sellers exempted them from these requirements and restrictions. S.B. 1254 clarifies and simplifies the definition of seller to include all telemarketing sellers.
Currently, federal restrictions prohibit telemarketing sellers from initiating outbound calls between the hours of 9:00 p.m. and 8:00 a.m., but these restrictions only apply to telemarketing sellers whose businesses cross state lines. S.B. 1254 applies this standard to calls within the state.
There is no estimated fiscal impact to the state general fund associated with this measure.
1. Prohibits any outbound calls between the hours of 9:00 p.m. and 8:00 a.m.
2. Prohibits any calls that do not conform to the federal code dealing with restrictions on telephone solicitation and abusive telemarketing acts or practices.
3. Prohibits the act of making reference to compliance with this article by a seller or solicitor or anyone acting on their behalf and broadens other prohibitions in statute to those acting on behalf of a solicitor or seller.
4. Clarifies information required of sellers and solicitors by the Secretary of State.
5. Stipulates that the Director of the Department of Insurance must include in the list of those licensed sellers required to register the name and address of an agent who is authorized to receive service of process on the seller’s behalf in Arizona.
6. Eliminates the definition of “telephone solicitation sale” and clarifies the definition of "seller."
7. Makes technical and conforming changes.
8. Provides for a general effective date.
Amendments Adopted by Committee of the Whole
1. Changes the hours that a seller can initiate a soliciting phone call to between 8:00 a.m. to 5:00 p.m. on weekdays and 10:00 a.m. to 4:00 p.m. on Saturday and never on Sunday.
2. Requires the Secretary of State’s Office to establish guidelines for a “no call” list by December 31, 2001. Specifies that the guidelines must include the method for funding the list and specific exemptions for nonprofit organizations, political campaigns and established business relationships.
3. Specifies that telephone solicitors must have the permission of the person being called in order to make calls at times other than between 8:00 a.m. and 9:00 p.m.
4. Eliminates the current statutory requirement that each individual phone solicitor provide background information to the Secretary of State.
5. Specifies that the Secretary of State’s Office does not regulate solicitation calls made to consumers outside of Arizona.
Amendments
Adopted by the House of Representatives
1. Changes the time restriction placed on telephone solicitations to conform to federal code, which states that calls cannot be made between the hours of 9:00 p.m. and 8:00 a.m. on any day of the week.
2. Prohibits any call that does not conform to the federal code dealing with restrictions on telephone solicitation and abusive telemarketing acts or practices.
3. Eliminates the provision requiring the Secretary of State to form guidelines to establish a no call list of persons who do not wish to receive outbound telephone solicitation calls by December 31, 2001.
4. Clarifies the definition of a seller.
5. Eliminates a seller or an employee of a seller from the definition of a solicitor.
6. Requires a seller to file a verified registration statement with the Secretary of State before the seller solicits any consumer from a location within Arizona.
7. Clarifies that a solicitor is required to file his or her personal information and a photo I.D. with the Secretary of State but that neither a solicitor or a seller is required to submit personal information or a photo I.D. to the Secretary of State for his or her employees.
8. Prohibits the act of making reference to compliance with this article by a seller or solicitor or anyone acting on their behalf and broadens other prohibitions in statute to those acting on behalf of a solicitor or seller.
Senate Action House Action
COM 2/7/01 DP 6-0-0-0 CED 4/2/01 DPA 10-0-0-0
3rd Read 3/7/01 28-2-0-0 3rd Read 4/18/01 56-0-4-0
Final Read 4/25/01 27-1-1-0
Signed by the Governor 4/30/01
Chapter 266
Prepared by Senate Staff
May 7, 2001