ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
Purpose:
Modifies definitions pertaining to telephone solicitation, prohibits a seller from initiating a telephone call for the purpose of solicitation between the hours of 5:00 p.m. and 8:00 a.m. on weekdays, 4:00 p.m. and 10:00 a.m. on Saturday and anytime on Sunday, and requires the Secretary of State’s Office to establish guidelines for a “no call” list by December 31, 2001.
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. In addition to the “no
call” list maintained by individual sellers, the Secretary of State’s Office,
under S.B. 1254, would have to establish guidelines for a “no call” list by
December 31, 2001.
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. Under S.B. 1254, a seller will only be able to make soliciting phone calls from 8:00 a.m. to 5:00 p.m. on weekdays, 10:00 a.m. to 4:00 p.m. on Saturday and never on Sunday.
There is no estimated fiscal impact to the state general fund associated with this measure.
1. Prohibits a seller from making any outbound calls between the hours of 5:00 p.m. and 8:00 a.m. on weekdays, between 4:00 p.m. and 10:00 a.m. on Saturday and anytime on Sunday.
2. Requires the Secretary of State to collect data for the formation of guidelines to establish a “no call” list.
3. Stipulates that the guidelines must include the method of funding the list.
4. Stipulates that exemptions to the “no call” list must be made for nonprofit organizations, political campaigns and those businesses that have an established business relationship with a person on the list.
5. Requires the Secretary of State to establish the “no call” list guidelines by December 31, 2001.
6. 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.
7. Eliminates the current statutory requirement that each individual phone solicitor provide background information to the Secretary of State.
8. Specifies that the Secretary of State’s Office does not regulate solicitation calls made to consumers outside of Arizona.
9. Eliminates from the definition of “seller” the circumstances under which a person may attempt to sell something over the telephone and defines “seller” as someone who initiates or receives telephone calls to provide goods or services to consumers in exchange for payment.
10. 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.
11. Eliminates the definition of “telephone solicitation sale.”
12. Makes technical and conforming changes.
13. 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.
Senate Action
COM 2/7/01 DP 6-0-0-0
3rd Read 3/7/01 28-2-0-0
Prepared by Senate Staff
March 8, 2001