[House Report 110-485]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-485
======================================================================
DO-NOT-CALL REGISTRY FEE EXTENSION ACT OF 2007
_______
December 11, 2007.--Ordered to be printed
_______
Mr. Dingell, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 2601]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 2601) to extend the authority of the Federal
Trade Commission to collect fees to administer and enforce the
provisions relating to the ``Do-not-call'' registry of the
Telemarketing Sales Rule, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 5
Committee Consideration.......................................... 5
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 6
Statement of General Performance Goals and Objectives............ 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Earmarks and Tax and Tariff Benefits............................. 6
Committee Cost Estimate.......................................... 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 8
Advisory Committee Statement..................................... 8
Constitutional Authority Statement............................... 8
Applicability to Legislative Branch.............................. 9
Section-by-Section Analysis of the Legislation................... 9
Changes in Existing Law Made by the Bill, as Reported............ 11
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Do-Not-Call Registry Fee Extension Act
of 2007''.
SEC. 2. FEES FOR ACCESS TO REGISTRY.
Section 2, of the Do-Not-Call Implementation Act (15 U.S.C. 6101
note) is amended to read as follows:
``SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.
``(a) In General.--The Federal Trade Commission shall assess and
collect an annual fee pursuant to this section in order to implement
and enforce the `do-not-call' registry as provided for in section
310.4(b)(1)(iii) of title 16, Code of Federal Regulations, or any other
regulation issued by the Commission under section 3 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C.
6102).
``(b) Annual Fees.--
``(1) In general.--The Commission shall charge each person
who accesses the `do-not-call' registry an annual fee that is
equal to the lesser of--
``(A) $54 for each area code of data accessed from
the registry; or
``(B) $14,850 for access to every area code of data
contained in the registry.
``(2) Exception.--The Commission shall not charge a fee to
any person--
``(A) for accessing the first 5 area codes of data;
or
``(B) for accessing area codes of data in the
registry if the person is permitted to access, but is
not required to access, the `do-not-call' registry
under section 310 of title 16, Code of Federal
Regulations, section 64.1200 of title 47, Code of
Federal Regulations, or any other Federal regulation or
law.
``(3) Duration of access.--
``(A) In general.--The Commission shall allow each
person who pays the annual fee described in paragraph
(1), each person excepted under paragraph (2) from
paying the annual fee, and each person excepted from
paying an annual fee under section 310.4(b)(1)(iii)(B)
of title 16, Code of Federal Regulations, to access the
area codes of data in the `do-not-call' registry for
which the person has paid during that person's annual
period.
``(B) Annual period.--In this paragraph, the term
`annual period' means the 12-month period beginning on
the first day of the month in which a person pays the
fee described in paragraph (1).
``(c) Additional Fees.--
``(1) In general.--The Commission shall charge a person
required to pay an annual fee under subsection (b) an
additional fee for each additional area code of data the person
wishes to access during that person's annual period.
``(2) Rates.--For each additional area code of data to be
accessed during the person's annual period, the Commission
shall charge--
``(A) $54 for access to such data if access to the
area code of data is first requested during the first 6
months of the person's annual period; or
``(B) $27 for access to such data if access to the
area code of data is first requested after the first 6
months of the person's annual period.
``(d) Adjustment of Fees.--
``(1) In general.--
``(A) Fiscal year 2009.--The dollar amount described
in subsection (b) or (c) is the amount to be charged
for fiscal year 2009.
``(B) Fiscal years after 2009.--For each fiscal year
beginning after fiscal year 2009, each dollar amount in
subsection (b)(1) and (c)(2) shall be increased by an
amount equal to--
``(i) the dollar amount in paragraph (b)(1)
or (c)(2), whichever is applicable, multiplied
by
``(ii) the percentage (if any) by which the
CPI for the most recently ended 12-month period
ending on June 30 exceeds the baseline CPI.
``(2) Rounding.--Any increase under subparagraph (B) shall be
rounded to the nearest dollar.
``(3) Changes less than 1 percent.--The Commission shall not
adjust the fees under this section if the change in the CPI is
less than 1 percent.
``(4) Publication.--Not later than September 1 of each year
the Commission shall publish in the Federal Register the
adjustments to the applicable fees, if any, made under this
subsection.
``(5) Definitions.--In this subsection:
``(A) CPI.--The term `CPI' means the average of the
monthly consumer price index (for all urban consumers
published by the Department of Labor).
``(B) Baseline cpi.--The term `baseline CPI' means
the CPI for the 12-month period ending June 30, 2008.
``(e) Prohibition Against Fee Sharing.--No person may enter into or
participate in an arrangement (as such term is used in section 310.8(c)
of the Commission's regulations (16 C.F.R. 310.8(c))) to share any fee
required by subsection (b) or (c), including any arrangement to divide
the costs to access the registry among various clients of a
telemarketer or service provider.
``(f) Handling of Fees.--
``(1) In general.--The commission shall deposit and credit as
offsetting collections any fee collected under this section in
the account `Federal Trade Commission--Salaries and Expenses',
and such sums shall remain available until expended.
``(2) Limitation.--No amount shall be collected as a fee
under this section for any fiscal year except to the extent
provided in advance by appropriations Acts.''.
SEC. 3. REPORT.
Section 4 of the Do-Not-Call Implementation Act (15 U.S.C. 6101 note)
is amended to read as follows:
``SEC. 4. REPORTING REQUIREMENTS.
``(a) Biennial Reports.--Not later than December 31, 2009, and
biennially thereafter, the Federal Trade Commission, in consultation
with the Federal Communications Commission, shall transmit a report to
the Senate Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Energy and Commerce that
includes--
``(1) the number of consumers who have placed their telephone
numbers on the registry;
``(2) the number of persons paying fees for access to the
registry and the amount of such fees;
``(3) the impact on the `do-not-call' registry of--
``(A) the 5-year reregistration requirement;
``(B) new telecommunications technology; and
``(C) number portability and abandoned telephone
numbers; and
``(4) the impact of the established business relationship
exception on businesses and consumers.
``(b) Additional Report.--Not later than December 31, 2009, the
Federal Trade Commission, in consultation with the Federal
Communications Commission, shall transmit a report to the Senate
Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce that includes--
``(1) the effectiveness of do-not-call outreach and
enforcement efforts with regard to senior citizens and
immigrant communities;
``(2) the impact of the exceptions to the do-not-call
registry on businesses and consumers, including an analysis of
the effectiveness of the registry and consumer perceptions of
the registry's effectiveness; and
``(3) the impact of abandoned calls made by predictive
dialing devices on do-not-call enforcement.''.
SEC. 4. RULEMAKING.
The Federal Trade Commission may issue rules, in accordance with
section 553 of title 5, United States Code, as necessary and
appropriate to carry out the amendments to the Do-Not-Call
Implementation Act (15 U.S.C. 6101 note) made by this Act.
Purpose and Summary
The purpose of H.R. 2601, the Do-Not-Call Registry Fee
Extension Act of 2007, is to authorize the Federal Trade
Commission (FTC) to continue to collect and spend fees to
operate and enforce the National Do-Not-Call Registry
(Registry), contingent on approval of the fees in annual
appropriations acts. The authority to collect those fees
expired at the end of fiscal year 2007. The bill also would
require the FTC to prepare two reports about the use and
effectiveness of the Registry.
Background and Need for Legislation
In 1994, Congress enhanced the enforcement arsenal of the
FTC by enacting the Telemarketing and Consumer Fraud and Abuse
Prevention Act (the Telemarketing Act), 15 U.S.C. secs. 6101-
6108. This legislation directed the FTC to issue a trade
regulation rule defining and prohibiting deceptive or abusive
telemarketing acts or practices. The FTC promulgated the
Telemarketing Sales Rule (TSR) in 1995. The Telemarketing Act
mandated that the TSR include prohibitions against any pattern
of unsolicited telemarketing calls ``which the reasonable
consumer would consider coercive or abusive of such consumer's
right to privacy,'' as well as restrictions on the hours that
unsolicited telephone calls may be made to consumers.
In 2003, the FTC amended its TSR to, among other things,
establish the Registry. The Registry, which allows consumers to
express their wish not to receive telemarketing calls by
entering their numbers in the Registry, currently includes more
than 145 million telephone numbers and enjoys a reputation of
being one of the most popular Federal programs in history.
Pursuant to this program, consumers can register their
telephone numbers by calling a toll-free number from the
telephone number that they wish to register, or over the
Internet. Telemarketers and sellers can access registered
telephone numbers through an Internet web site dedicated to
that purpose, in order to remove those numbers from their call
lists, and to pay the applicable fees for such access.
Consumers who receive unwanted telemarketing calls can register
a complaint via either a toll-free telephone number or the
Internet. To conduct investigations, law enforcement officials
also can access data in the Registry, including consumer
registration information, telemarketer access information, and
consumer complaints. Such access is provided through Consumer
Sentinel, a secure Internet web site maintained by the FTC, to
the law enforcement community throughout the United States,
Canada, and Australia.
The Do-Not-Call Implementation Act, passed by Congress in
2003, gave the FTC specific authority to ``promulgate
regulations establishing fees sufficient to implement and
enforce the provisions relating to the `Do-Not-Call' Registry
of the TSR.'' The Implementation Act further stated that
``[f]ees may be collected pursuant to this section for fiscal
years 2003 through 2007, and shall be deposited and credited as
offsetting collections to the account, Federal Trade
Commission--Salaries and Expenses, and shall remain available
until expended.'' It also provided that ``[n]o amounts shall be
collected as fees pursuant to this section for such fiscal
years except to the extent provided in advance in
appropriations Acts. Such amounts shall be available . . . to
offset the costs of activities and services related to the
implementation and enforcement of the [TSR], and other
activities resulting from such implementation and
enforcement.'' Pursuant to the Implementation Act and
appropriations Acts, the FTC has conducted annual rulemaking
proceedings to establish the appropriate level of fees to
charge telemarketers for access to the Registry.
The fees collected are intended to offset costs in three
areas. First, funds are required for direct operation of the
Registry. Second, funds are required for law enforcement
efforts, including identifying targets, coordinating domestic
and international initiatives, challenging alleged violators,
and engaging in consumer and business education efforts, which
are critical to securing compliance with the TSR. The FTC
testified in October 2007 that, to date, it had initiated 27
cases alleging Do Not Call violations, that have resulted in
orders totaling $8.8 million in civil penalties and $8.6
million in redress or disgorgement. Third, funds are required
to cover ongoing FTC costs associated with the operation and
enforcement of the Registry, including substantial investments
in technology and infrastructure in response to the
significantly increased capacity required by the Registry.
Under the current fee structure, telemarketers are charged
$62 per area code of data, starting with the sixth area code,
up to a maximum of $17,050 for the entire Registry.
Telemarketers receive the first five area codes of data at no
cost. The FTC allows such free access to limit the burden on
small businesses that only require access to a small portion of
the Registry. The Registry also allows organizations exempt
from the Registry requirements to access the Registry
voluntarily at no cost in order to avoid calling consumers who
have expressed a preference not to receive telemarketing calls.
These organizations include entities that make telephone calls
to consumers to induce charitable contributions, for political
fund raising, or to conduct surveys. They also include entities
making calls to persons with whom they have an established
business relationship or from whom they have obtained express
written consent, as defined by the TSR, and who do not access
the Registry for any other purpose. While the Committee is
aware of consumer complaints regarding alleged abuses by this
latter group, see e.g., ``Marketers Use Trickery To Evade No-
Call Lists,'' Wall Street Journal, Friday, October 26, 2007, it
intends to address these matters separately after an
appropriate inquiry.
As discussed above, the FTC's Do-Not-Call fee-setting
authority expired on September 30, 2007. The Committee believes
that it is imperative that this authority be reauthorized in
order to continue protecting consumers from unwanted intrusions
into the privacy of their homes. To that end, this legislation
will make permanent the authority of the FTC to collect fees in
an amount sufficient to enable the FTC to adequately implement
and enforce the TSR on an ongoing basis.
Hearings
The Subcommittee on Commerce, Trade, and Consumer
Protection held a hearing on Tuesday, October 23, 2007,
entitled ``Enhancing FTC Consumer Protection in Financial
Dealings, with Telemarketers, and on the Internet,'' which
examined 3 bills: H.R. 2601, H.R. 3461, and H.R. 3526.
Testimony was received from Ms. Lydia B. Parnes, Director,
Bureau of Consumer Protection, U.S. Federal Trade Commission.
Committee Consideration
On Tuesday, October 23, 2007, the Subcommittee on Commerce,
Trade, and Consumer Protection met in open markup session and
favorably forwarded H.R. 2601, amended, to the full Committee
for consideration, by a voice vote. On Tuesday, October 30,
2007, the full Committee met in open markup session and ordered
H.R. 2601 favorably reported to the House, as amended by the
Subcommittee, by a voice vote. No amendments were adopted
during full Committee consideration.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken on amendments or in connection
with ordering H.R. 2601 reported. A motion by Mr. Dingell to
order H.R. 2601 favorably reported to the House, amended, was
agreed to by a voice vote.
Committee Oversight Findings
Regarding clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the oversight findings of the
Committee on H.R. 2601 are reflected in this report.
Statement of General Performance Goals and Objectives
The purpose of H.R. 2601 is to reduce the harm to
individuals from telemarketing fraud and abuse by authorizing
the FTC to continue to collect fees to enable the agency to
operate and enforce the popular ``do-not-call'' registry.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Regarding compliance with clause 3(c)(2) of rule XXI of the
Rules of the House of Representatives, the Committee finds that
H.R. 2601 would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Earmarks and Tax and Tariff Benefits
Regarding compliance with clause 9 of rule XXI of the Rules
of the House of Representatives, H.R. 2601 does not contain any
Congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
2601 prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate on
H.R. 2601 provided by the Congressional Budget Office pursuant
to section 402 of the Congressional Budget Act of 1974:
November 28, 2007.
Hon. John D. Dingell,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2601, the Do-Not-
Call Registry Fee Extension Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 2601--Do-Not-Call Registry Fee Extension Act of 2007
Summary: H.R. 2601 would authorize the Federal Trade
Commission (FTC) to continue to collect and spend fees to
operate and enforce the ``do-not-call'' registry. The registry
contains a list of consumers whom telemarketers are prohibited
from calling. The bill also would require FTC to prepare two
reports for the Congress about the use and effectiveness of the
registry.
Based on information from the FTC, CBO estimates that the
agency would collect a total of $107 million under the bill
over the 2008-2012 period and spend $105 million over that
period, assuming appropriation actions consistent with the
bill. Over the five-year period, CBO estimates that
implementing H.R. 2601 would decrease net spending subject to
appropriation by $2 million. Enacting H.R. 2601 would not
affect direct spending or revenues.
H.R. 2601 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments.
H.R. 2601 would impose a private-sector mandate, as defined
in UMRA, by making permanent the authority of the FTC to
collect fees from telemarketers. CBO expects that the cost of
that mandate would fall below the annual threshold established
in UMRA for private-sector mandates ($131 million, adjusted
annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2601 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
FTC Spending for the Do-Not-Call Registry:
Estimated Authorization Level.................................. 21 21 21 22 22
Estimated Outlays.............................................. 19 21 21 22 22
Offsetting Collections from Telemarketers:
Estimated Authorization Level.................................. -21 -21 -21 -22 -22
Estimated Outlays.............................................. -21 -21 -21 -22 -22
Net Changes to FTC Spending:
Estimated Authorization Level.................................. 0 0 0 0 0
Estimated Outlays.............................................. -2 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Basis of estimate: H.R. 2601 would authorize the FTC to
collect fees sufficient to operate and enforce the ``do-not-
call'' registry, contingent on approval of the fees in annual
appropriation acts. For this estimate, CBO assumes that H.R.
2601 and the necessary appropriation provisions will be enacted
near the beginning of fiscal year 2008. In fiscal year 2007,
the FTC incurred costs of about $25 million and collected fees
of approximately $22 million to operate and enforce the ``do-
not-call'' registry.
The bill would set fees for firms that subscribe to the
registry at rates lower than the FTC is currently charging.
Based on information from the commission, CBO expects that the
lower fees authorized by the bill would still be sufficient to
cover the costs of operating the registry. CBO estimates that
the FTC would collect $107 million and spend $105 million over
the 2008-2012 period, assuming the necessary appropriation
actions. Thus, over the five-year period, implementing H.R.
2601 would result in a reduction of $2 million in net spending
subject to appropriation.
CBO estimates that the cost of preparing two reports for
the Congress regarding the effectiveness of the registry would
be less than $500,000, subject to the availability of
appropriated funds.
Estimated impact on state, local, and tribal governments:
H.R. 2601 contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments.
Estimated impact on the private sector: The requirement
that telemarketers pay fees to use the ``do-not-call'' registry
would constitute a private-sector mandate as defined in UMRA.
CBO estimates that those fees would amount to $107 million over
the next five years. Consequently, the cost of the mandate
would fall below the annual threshold established in UMRA ($131
million, adjusted annually for inflation).
Previous CBO estimate: On September 27, 2007, CBO
transmitted an estimate for S. 781, the Do-Not-Call Registry
Fee Extension Act of 2007, as ordered reported by the Senate
Committee on Commerce, Science, and Transportation on August 2,
2007. H.R. 2601 and S. 781 are identical, as are the cost
estimates.
Estimate prepared by: Federal costs: Susan Willie; Impact
on state, local, and tribal governments: Elizabeth Cove; Impact
on the private sector: MarDestinee Perez.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2601 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by H.R.
2601.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes, and in the provisions of
Article I, section 8, clause 1, that relate to expending funds
to provide for the general welfare of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act of 1995.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 establishes the short title of the bill as the
``Do-Not-Call Registry Fee Extension Act of 2007''.
Section 2. Fees for access to registry
Section 2(a) provides that the Federal Trade Commission
shall assess and collect an annual fee pursuant to this section
in order to implement and enforce the Registry.
Section 2(b) mandates that the FTC charge each person who
accesses the Registry an annual fee that is equal to the lesser
of (A) $54 for each area code of data accessed from the
Registry, or (B) $14,850 for access to every area code of data
contained in the Registry.
Additionally, Section 2(b) contains two exceptions from
this requirement. The FTC may not charge a fee to any person
for accessing the first five area codes of data. The FTC also
may not charge a fee to any person for accessing area codes of
data in the Registry if the person is permitted access, but is
not required to access, the Registry. This maintains the
current treatment for small businesses and for charitable,
political, and other organizations expressly exempted from the
Registry. Section 2(b) would require the FTC to allow each
person who pays the annual fee and each person excepted from
paying the annual fee either under paragraph (2) of this
subsection or under section 310.4(b)(1)(iii)(B) of title 16,
Code of Federal Regulations, to access the area codes of data
in the Registry for which the person has paid during that
person's annual period. The term ``annual period'' means the
12-month period beginning on the first day of the month in
which a person pays the fee described above.
Section 2(c) provides that the FTC shall charge a person
required to pay an annual fee under subsection (b) an
additional fee for each additional area code of data that the
person wishes to access during that person's annual period. The
rates for each additional area code of data to be accessed
during the person's annual period shall be (A) $54 for access
to such data if access to the area code of data is first
requested during the first 6 months of the person's annual
period, or (B) $27 for access to such data if access to the
area code of data is first requested after the first 6 months
of the person's annual period.
Section 2(d) addresses adjustment of the fees. The bill
indicates that the dollar amount described in subsection (b) or
(c) is the amount to be charged for fiscal year 2009. For each
fiscal year beginning after fiscal year 2009, each dollar
amount in subsection (b)(1) and (c)(2) shall be increased by an
amount equal to the applicable dollar amount multiplied by the
percentage, if any, by which the consumer price index (CPI) for
the most recently ended 12-month period ending on June 30
exceeds the baseline CPI. The bill provides that any such
increase shall be rounded to the nearest dollar, and that the
FTC shall not adjust the fees under this section if the change
in the CPI is less than 1 percent. To foster transparency and
accountability, the legislation requires the FTC, not later
than September 1 of each year, to publish in the Federal
Register the adjustments to the applicable fees, if any, made
under this section. Section 2(d) defines ``CPI'' as the average
of the monthly consumer price index for all urban consumers
published by the Department of Labor. The term ``baseline CPI''
means the CPI for the 12-month period ending June 30, 2008.
Section 2(e) prohibits fee sharing arrangements, including
any arrangement to divide the costs to access the Registry
among various clients of a telemarketer or service provider.
Section 2(f) requires the FTC to deposit and credit as
offsetting collections any fee collected under the section in
the account ``Federal Trade Commission--Salaries and
Expenses'', and provides that such sums shall remain available
until expended. The bill further provides that no amount shall
be collected as a fee under this section for any fiscal year
except to the extent provided in advance by appropriations
Acts.
Section 3. Reports
Section 3 requires the FTC, in consultation with the
Federal Communications Commission, to submit two reports to
Congress not later than December 31, 2009, and biennially
thereafter. The first report shall include (1) the number of
consumers who have placed their telephone numbers on the
registry; (2) the number of persons paying fees for access to
the registry and the amount of such fees; (3) the impact on the
Registry of the five-year registration requirement, new
telecommunications technology, and number portability and
abandoned telephone numbers; and (4) the impact of the
established business relationship exception on businesses and
consumers.
The second report shall include (1) the effectiveness of
the Do-Not-Call outreach and enforcement efforts with regard to
senior citizens and immigrant communities; (2) the impact of
the exceptions to the Registry on businesses and consumers,
including an analysis of the effectiveness of the Registry and
consumer perceptions of the Registry's effectiveness; and (3)
the impact of abandoned calls made by predictive dialing
devices on Do-Not-Call enforcement. This report should, among
other things, calculate and discuss the complaints received
from consumers since the inception of the Registry. The
Committee is concerned about allegations of abuses surrounding
the exceptions, particularly recent reports regarding so-called
``lead generators''--unsolicited advertisements used to
establish business relationships or trick recipients, mostly
seniors, into waiving their do-not-call rights. State
regulators indicate that insurers are using lead generator
cards to peddle investments unsuitable for seniors, including
living trusts that may provide no benefit and come with steep
surrender charges and lengthy payout deferrals.
The reports shall include recommendations, if any, for any
legislation or regulatory actions necessary for the protection
of consumers.
Section 4. Rulemaking
Section 4 would authorize the FTC to issue rules, in
accordance with section 553 of title 5, United States Code, as
necessary and appropriate to carry out the amendments to the
Implementation Act (15 U.S.C. 6101 note) made by this Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
DO-NOT-CALL IMPLEMENTATION ACT
* * * * * * *
[SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.
[The Federal Trade Commission may promulgate regulations
establishing fees sufficient to implement and enforce the
provisions relating to the ``do-not-call'' registry of the
Telemarketing Sales Rule (16 CFR 310.4(b)(1)(iii)), promulgated
under the Telemarketing and Consumer Fraud and Abuse Prevention
Act (15 U.S.C. 6101 et seq.). Such regulations shall be
promulgated in accordance with section 553 of title 5, United
States Code. Fees may be collected pursuant to this section for
fiscal years 2003 through 2007, and shall be deposited and
credited as offsetting collections to the account, Federal
Trade Commission--Salaries and Expenses, and shall remain
available until expended. No amounts shall be collected as fees
pursuant to this section for such fiscal years except to the
extent provided in advance in appropriations Acts. Such amounts
shall be available for expenditure only to offset the costs of
activities and services related to the implementation and
enforcement of the Telemarketing Sales Rule, and other
activities resulting from such implementation and enforcement.]
SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.
(a) In General.--The Federal Trade Commission shall assess
and collect an annual fee pursuant to this section in order to
implement and enforce the ``do-not-call'' registry as provided
for in section 310.4(b)(1)(iii) of title 16, Code of Federal
Regulations, or any other regulation issued by the Commission
under section 3 of the Telemarketing and Consumer Fraud and
Abuse Prevention Act (15 U.S.C. 6102).
(b) Annual Fees.--
(1) In general.--The Commission shall charge each
person who accesses the ``do-not-call'' registry an
annual fee that is equal to the lesser of--
(A) $54 for each area code of data accessed
from the registry; or
(B) $14,850 for access to every area code of
data contained in the registry.
(2) Exception.--The Commission shall not charge a fee
to any person--
(A) for accessing the first 5 area codes of
data; or
(B) for accessing area codes of data in the
registry if the person is permitted to access,
but is not required to access, the ``do-not-
call'' registry under section 310 of title 16,
Code of Federal Regulations, section 64.1200 of
title 47, Code of Federal Regulations, or any
other Federal regulation or law.
(3) Duration of access.--
(A) In general.--The Commission shall allow
each person who pays the annual fee described
in paragraph (1), each person excepted under
paragraph (2) from paying the annual fee, and
each person excepted from paying an annual fee
under section 310.4(b)(1)(iii)(B) of title 16,
Code of Federal Regulations, to access the area
codes of data in the ``do-not-call'' registry
for which the person has paid during that
person's annual period.
(B) Annual period.--In this paragraph, the
term ``annual period'' means the 12-month
period beginning on the first day of the month
in which a person pays the fee described in
paragraph (1).
(c) Additional Fees.--
(1) In general.--The Commission shall charge a person
required to pay an annual fee under subsection (b) an
additional fee for each additional area code of data
the person wishes to access during that person's annual
period.
(2) Rates.--For each additional area code of data to
be accessed during the person's annual period, the
Commission shall charge--
(A) $54 for access to such data if access to
the area code of data is first requested during
the first 6 months of the person's annual
period; or
(B) $27 for access to such data if access to
the area code of data is first requested after
the first 6 months of the person's annual
period.
(d) Adjustment of Fees.--
(1) In general.--
(A) Fiscal year 2009.--The dollar amount
described in subsection (b) or (c) is the
amount to be charged for fiscal year 2009.
(B) Fiscal years after 2009.--For each fiscal
year beginning after fiscal year 2009, each
dollar amount in subsection (b)(1) and (c)(2)
shall be increased by an amount equal to--
(i) the dollar amount in paragraph
(b)(1) or (c)(2), whichever is
applicable, multiplied by
(ii) the percentage (if any) by which
the CPI for the most recently ended 12-
month period ending on June 30 exceeds
the baseline CPI.
(2) Rounding.--Any increase under subparagraph (B)
shall be rounded to the nearest dollar.
(3) Changes less than 1 percent.--The Commission
shall not adjust the fees under this section if the
change in the CPI is less than 1 percent.
(4) Publication.--Not later than September 1 of each
year the Commission shall publish in the Federal
Register the adjustments to the applicable fees, if
any, made under this subsection.
(5) Definitions.--In this subsection:
(A) CPI.--The term ``CPI'' means the average
of the monthly consumer price index (for all
urban consumers published by the Department of
Labor).
(B) Baseline cpi.--The term ``baseline CPI''
means the CPI for the 12-month period ending
June 30, 2008.
(e) Prohibition Against Fee Sharing.--No person may enter
into or participate in an arrangement (as such term is used in
section 310.8(c) of the Commission's regulations (16 C.F.R.
310.8(c))) to share any fee required by subsection (b) or (c),
including any arrangement to divide the costs to access the
registry among various clients of a telemarketer or service
provider.
(f) Handling of Fees.--
(1) In general.--The commission shall deposit and
credit as offsetting collections any fee collected
under this section in the account ``Federal Trade
Commission--Salaries and Expenses'', and such sums
shall remain available until expended.
(2) Limitation.--No amount shall be collected as a
fee under this section for any fiscal year except to
the extent provided in advance by appropriations Acts.
* * * * * * *
[SEC. 4. REPORTING REQUIREMENTS.
[(a) Report on Regulatory Coordination.--Within 45 days after
the promulgation of a final rule by the Federal Communications
Commission as required by section 3, the Federal Trade
Commission and the Federal Communications Commission shall each
transmit to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report which shall include--
[(1) an analysis of the telemarketing rules
promulgated by both the Federal Trade Commission and
the Federal Communications Commission;
[(2) any inconsistencies between the rules
promulgated by each such Commission and the effect of
any such inconsistencies on consumers, and persons
paying for access to the registry; and
[(3) proposals to remedy any such inconsistencies.
[(b) Annual Report.--For each of fiscal years 2003 through
2007, the Federal Trade Commission and the Federal
Communications Commission shall each transmit an annual report
to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report which shall include--
[(1) an analysis of the effectiveness of the ``do-
not-call'' registry as a national registry;
[(2) the number of consumers who have placed their
telephone numbers on the registry;
[(3) the number of persons paying fees for access to
the registry and the amount of such fees;
[(4) an analysis of the progress of coordinating the
operation and enforcement of the ``do-not-call''
registry with similar registries established and
maintained by the various States;
[(5) an analysis of the progress of coordinating the
operation and enforcement of the ``do-not-call''
registry with the enforcement activities of the Federal
Communications Commission pursuant to the Telephone
Consumer Protection Act (47 U.S.C. 227 et seq.); and
[(6) a review of the enforcement proceedings under
the Telemarketing Sales Rule (16 CFR 310), in the case
of the Federal Trade Commission, and under the
Telephone Consumer Protection Act (47 U.S.C. 227 et
seq.), in the case of the Federal Communications
Commission.]
SEC. 4. REPORTING REQUIREMENTS.
(a) Biennial Reports.--Not later than December 31, 2009, and
biennially thereafter, the Federal Trade Commission, in
consultation with the Federal Communications Commission, shall
transmit a report to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Energy and Commerce that includes--
(1) the number of consumers who have placed their
telephone numbers on the registry;
(2) the number of persons paying fees for access to
the registry and the amount of such fees;
(3) the impact on the ``do-not-call'' registry of--
(A) the 5-year reregistration requirement;
(B) new telecommunications technology; and
(C) number portability and abandoned
telephone numbers; and
(4) the impact of the established business
relationship exception on businesses and consumers.
(b) Additional Report.--Not later than December 31, 2009, the
Federal Trade Commission, in consultation with the Federal
Communications Commission, shall transmit a report to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Energy and Commerce
that includes--
(1) the effectiveness of do-not-call outreach and
enforcement efforts with regard to senior citizens and
immigrant communities;
(2) the impact of the exceptions to the do-not-call
registry on businesses and consumers, including an
analysis of the effectiveness of the registry and
consumer perceptions of the registry's effectiveness;
and
(3) the impact of abandoned calls made by predictive
dialing devices on do-not-call enforcement.
* * * * * * *