HCS HB 511 -- TELEMARKETING PRACTICES DEFINITIONS

SPONSOR:  Harlan (Johnson, 90)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Critical
Issues, Consumer Protection and Housing by a vote of 14 to 5.

This substitute adds "current business relationship" to the
defined terms relating to the telemarketing no-call list.  A
current business relationship is characterized by a reciprocal
communication or transaction between the person calling and the
residential subscriber within the last 180 days.  The substitute
also modifies the definition of the term "telephone
solicitation."  In current law, communications made by or on
behalf of an entity with whom the residential subscriber has had
a business contact within the past 180 days or a current
business or personal relationship are not considered telephone
solicitations.  In the substitute, only communications made by
or on behalf of an entity with whom the residential subscriber
has a current business or personal relationship are not
considered telephone solicitations.

In current law, the definition of "telephone solicitation" also
excludes communications made by or on behalf of entities
organized under Internal Revenue Service Code 501(c)(3) as long
as a bona fide member of the exempt organization makes the
communication.  The substitute broadens the exemption to IRS
Code 501(c) organizations and removes the requirement that the
communication be made by a bona fide member of the organization.

Also, in current law, the definition of the term "telephone
solicitation" also excludes communications made by or on behalf
of entities regulated by federal agencies so long as (1) the
entity is licensed or certificated to sell the merchandise being
offered; and (2) the entity is required by law or rule to
maintain a no-call list.  The substitute eliminates this
exclusion.

The substitute also eliminates exclusions for communications by
a natural person responding to a referral or working from his or
her primary residence; or by a person licensed by the state in a
trade, occupation, or profession who is trying to make an
appointment relating to that licensed activity.

The substitute has an emergency clause.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the loopholes in the statute
need to be tightened and that the public needs to have clear
expectations of which types of calls are not allowed.

Testifying for the bill were Representatives Johnson (90) and
Byrd; Office of the Attorney General; and AARP.

OPPONENTS:  Those who oppose the bill say that not all
telemarketers are thieving people who are bent on interrupting
dinner and intruding on family time.  The Federal Trade
Commission and Federal Communications Commission both regulate
business practices and that being on this list will prevent
consumers from knowing about opportunities.  Professional
charitable fund-raising companies will be put out of business by
requiring bona fide members to make the calls.

Testifying against the bill were Shane Fox; Missouri Funeral
Directors Association; Missouri Association of Realtors;
Missouri Telecommunications Industry Association; Missouri
Securities Industry Association; Missouri Association of Life
Underwriters; Missouri Retailers Association; and RoseAnn Munson
Productions Telemarketing Services for Non-Profit Organizations.

Donna Schlosser, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am