SB 0742 - Fiscal Note

Fiscal Note - SB 0742 - Regulation of telephone solicitations and unauthorized changes of telecommunications company

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3066-01

BILL NO. SB 742

SUBJECT: Telecommunications: Merchandising Practices

TYPE: Original

DATE: January 26, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the State Public Defender, the Office of Prosecution Services, and the Department of Economic Development, Public Service Commission and Office of Public Counsel assume this proposal would not fiscally impact their agencies.

The Office of State Courts Administrator (CTS) states that there may be one or more cases challenging the parameters of this legislation. However, after a period of adjustment, CTS assumes significant compliance and no fiscal impact on the courts.

Officials of the Attorney General's Office assumes any costs resulting from this proposal could be absorbed using existing resources.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Small Business

Certain small businesses would be impacted by this proposal, as it would regulate the manner in which telephone sales and changes in telecommunications companies are handled.

DESCRIPTION

This proposal regulates telephone solicitations and change of telephone service. It prohibits telephone solicitations before 8 am, between 5 pm and 6 pm, and after 10 pm. Solicitors must also establish a "do-not-call" list, and keep records of subscriber's request to be put on it. The Public Service Commission is to seek orders enjoining suspected violators of the solicitation hours or the "do-not-call" requirements. Violation of those provisions is an infraction.

This proposal also requires changes of telecommunications companies to be verified according to this section. Companies initiating the call must verify a change in companies by one of three DESCRIPTION (continued)

means, including independent, third-party verification of the customer's oral agreement to the change, electronic authorization from the customer's home phone, or written letter of agency from the customer. If a change is made by oral agreement or electronic authorization, the company is required to send a verification package to the customer within three business days. If a customer denies that a change was authorized, the burden of proof will be on the company making the change. Companies making an unlawful change will be liable to the previous company for any charges incurred after the change and the customer will not be liable for such charges. The Public Service Commission may require all changes to habitual violators to be verified by signed letter of agency for a period of up to two years, and if a company falsifies a signature to authorize a change, the Public Service Commission may revoke the company's certification to provide telephone service.

This legislation is not federally mandated, would not duplicate any other program, and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development

Public Service Commission

Office of Public Counsel

Attorney General's Office

Office of Prosecution Services

State Public Defender

Office of State Courts Administrator

Jeanne Jarrett, CPA

Director

January 26, 1998