Introduced Version






HOUSE BILL No. 1134

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 24-5-12-8 ; IC 24-5-12-9 ; IC 24-5-12.5.

Synopsis: Telemarketing. Requires telephone solicitors doing business in Indiana to register with the office of the attorney general. Requires the consumer protection division of the office of the attorney general to establish and maintain a data base of telephone numbers of residential telephone service subscribers who do not wish to be solicited by telephone. Establishes a $500 annual fee for a person or entity that makes telephone solicitations to access the names in the data base. Requires a telephone solicitor to state the solicitor's identity at the beginning of a telephone solicitation call. Appropriates a sum of money from the state general fund sufficient to carry out the program for the period beginning July 1, 2000, and ending June 30, 2001. Establishes other requirements for telephone solicitations.

Effective: July 1, 2000.





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    January 10, 2000, read first time and referred to Committee on Commerce and Economic Development.







Introduced

Second Regular Session 111th General Assembly (2000)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 1999 General Assembly.

HOUSE BILL No. 1134



    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulations and to make an appropriation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 24-5-12-8; (00)IN1134.1.1. -->     SECTION 1. IC 24-5-12-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 8. As used in this chapter, "seller" means a person who, personally, through salespersons, or through the use of an automated dialing and answering device, makes a solicitation if in the solicitation any one (1) of the following occurs:
        (1) There is a false representation or implication that a prospect will receive a gift, prize, or the value of a gift or prize.
        (2) There is an offer of a vacation at a reduced price if the vacation involves the prospect attending a presentation in which the prospect is solicited to purchase a time share or camping club membership and if the seller does not own the time share or camping club, does not represent the owner of the time share or camping club, or misrepresents the value of the vacation. Terms in this subdivision have the meaning set forth in IC 24-5-9.
        (3) There is a representation or implication that a prospect who buys office equipment or supplies will, because of some unusual

event or imminent price increase, be able to buy these items at prices that are below those that are usually charged or will be charged for the items if the price advantage for the prospect does not exist.
        (4) There is a false representation or implication as to the identity of the person making the solicitation.
        (5) There is a representation or implication that the items for sale are manufactured or supplied by a person other than the actual manufacturer or supplier.
        (6) There is an offer to sell the prospect precious metals, precious stones, coal, or other minerals, or any interest in oil, gas, or mineral fields, wells, or exploration sites, if the seller does not own the items, does not represent the owner, or misrepresents the value of the items. an individual, a firm, an organization, a partnership, an association, or a corporation, including affiliates and subsidiaries, doing business in Indiana, except those subject to 47 CFR parts 64 and 68, that makes or causes to be made a telephonic sales call, including calls made by use of automated dialing or recorded message devices.

SOURCE: IC 24-5-12-9; (00)IN1134.1.2. -->     SECTION 2. IC 24-5-12-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 9. As used in this chapter, "solicitation" means a telephone conversation or attempted telephone conversation in which the seller offers, or attempts to offer, an item to another person in exchange for money or other consideration. voice communication over a telephone line to encourage the purchase of, rental of, or investment in property, goods, or services.
SOURCE: IC 24-5-12.5; (00)IN1134.1.3. -->     SECTION 3. IC 24-5-12.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]:
     Chapter 12.5. No Sales Solicitation List
    Sec. 1. As used in this chapter, "caller identification service" means a type of telephone service that permits a telephone subscriber to see the telephone number of an incoming telephone call.
    Sec. 2. As used in this chapter, "division" refers to the consumer protection division of the office of the attorney general.
    Sec. 3. As used in this chapter, "residential subscriber" means a person who subscribes to residential telephone service from a local exchange telephone company. The term includes other persons living or residing with the residential telephone service subscriber.
    Sec. 4. As used in this chapter, "telephone solicitation" means a voice communication over a telephone line for the purpose of encouraging the purchase of, rental of, or investment in property, goods, or services. A telephone solicitation includes a communication from a live operator, through the use of an automatic dialing-announcing device (as defined in IC 24-5-14-1 ), or by other means. Telephone solicitation does not include a communication:
        (1) in response to an express request of the person called;
        (2) by or on behalf of a person or entity with whom a residential subscriber has a prior or current business or personal relationship;
        (3) primarily in connection with an existing debt or contract for which payment or performance has not been completed at the time of the call;
        (4) on behalf of a charitable organization; or
        (5) on behalf of a political candidate or political party.
    Sec. 5. (a) This section does not apply to a person licensed under IC 25-34.1 who calls an actual or prospective seller or lessor of property when the call is made in response to a yard sign or other form of advertisement placed by the seller or lessor.
    (b) A person or entity shall not make or cause to be made a telephone solicitation to the telephone line of a residential subscriber in Indiana if the residential subscriber has given notice to the division, in accordance with section 6 of this chapter, of the subscriber's objection to receiving telephone solicitations.
    Sec. 6. (a) The division shall establish and maintain a data base of telephone numbers of residential subscribers who object to receiving telephone solicitations.
    (b) The data base may be operated by the division or by another entity under contract with the division.
    (c) The division shall adopt rules under IC 4-22-2 to do the following:
        (1) Require each local exchange telephone company to inform the company's residential subscribers of the opportunity to provide notification to the division or the division's contractor that the subscriber objects to receiving telephone solicitations.
        (2) Specify the methods by which a residential subscriber may give notice to the division or the division's contractor of the subscriber's objection to receiving solicitations or the method by which a subscriber may revoke the notice of objection.
        (3) Specify the length of time for which a subscriber's notice of objection is effective and how the change of a subscriber's

telephone number would affect the notice.
        (4) Specify the methods by which an objection and revocation must be collected and added to the data base.
        (5) Specify the methods by which a person or entity that makes telephone solicitations may obtain access to the data base as required by this chapter.
        (6) Other actions necessary to implement this chapter.
    (d) If, under 47 U.S.C. 227(c)(3), the Federal Communications Commission establishes a single national data base of telephone numbers of subscribers who object to receiving telephone solicitations, the division shall include the part of the single national data base that relates to Indiana in the data base established by this chapter.
    Sec. 7. (a) A person or entity that makes a telephone solicitation shall be charged a fee of five hundred dollars ($500) per year, payable to the division, for access to or for paper or electronic copies of the data base established by this chapter.
    (b) A fee imposed under this section must be deposited in the consumer protection division solicitation fund established by section 8 of this chapter.
    Sec. 8. (a) The consumer protection division solicitation fund is established for the purpose of the administration of this chapter.
    (b) The fund shall be administered by the consumer protection division of the office of the attorney general.
    (c) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 9. Information contained in the data base established by this chapter shall be used only for the purpose of compliance with this chapter or in a proceeding or action under section 13 or 14 of this chapter and is not subject to public inspection or disclosure under IC 5-14-3.
    Sec. 10. (a) A person or entity that makes a telephone solicitation to the telephone line of a residential subscriber in Indiana shall, at the beginning of the call, state clearly the identity of the person or entity initiating the call.
    (b) A person or entity that makes a telephone solicitation to the telephone line of a residential subscriber in Indiana shall not knowingly use a method to block or otherwise circumvent a subscriber's use of a caller identification service.
    Sec. 11. The division shall investigate complaints received concerning violations of this chapter.
    Sec. 12. A person who receives a telephone solicitation by or on behalf of a person or entity in violation of section 5 or 10 of this

chapter may request the attorney general's office to take action.
    Sec. 13. Upon petition by any person that a person or entity that makes telephone solicitations has failed to comply with this chapter, the circuit or superior court with jurisdiction in the county of residence of the petitioner may enjoin the person or entity that makes the telephone solicitations from further violations.
    Sec. 14. A person or entity that makes telephone solicitations and fails to comply with any provision of this chapter commits a deceptive act that is actionable by the attorney general under IC 24-5-0.5-4 (c) and is subject to the penalties set forth in IC 24-5-0.5. In addition, the attorney general may bring an action to receive two thousand dollars ($2,000) in damages for each knowing violation. An action by the attorney general for a violation of this chapter may be brought in the jurisdiction where the offense occurred.
    Sec. 15. It is a defense in any action or proceeding brought under section 13 or 14 of this chapter that the defendant had established and implemented, with due care, reasonable practices and procedures to effectively prevent telephone solicitations in violation of this chapter.
    Sec. 16. An action or proceeding may not be brought under section 13 or 14 of this chapter more than two (2) years after the later of:
        (1) the occurrence of the alleged violation; or
        (2) the termination of any proceeding or action by the attorney general.
    Sec. 17. A provider of a telephone caller identification service is not liable for violations of this chapter committed by another person or entity.
    Sec. 18. This chapter does not relieve a person from complying with any other statute or ordinance.

SOURCE: ; (00)IN1134.1.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2000] (a) Notwithstanding IC 24-5-12.5-6 , as added by this act, the consumer protection division of the office of the attorney general shall have the data base described in IC 24-5-12.5-6 (a), as added by this act, in operation before January 1, 2001.
    (b) This SECTION expires January 1, 2002.

SOURCE: ; (00)IN1134.1.5. -->     SECTION 5. [EFFECTIVE JULY 1, 2000] (a) There is appropriated from the state general fund to the consumer protection division solicitation fund created by IC 24-5-12.5-8 , as added by this act, a sum sufficient to carry out the purposes of IC 24-5-12.5 , as added by this act, for the period beginning July 1,

2000, and ending June 30, 2001.
    (b) This SECTION expires July 1, 2001.