BILL ANALYSIS
AB 2721
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Date of Hearing: May 2, 2000
ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL
EFFICIENCY, AND ECONOMIC DEVELOPMENT
Susan Davis, Chair
AB 2721 (Wesson) - As Amended: April 5, 2000
SUBJECT : Automatic dialing-announcing devices.
SUMMARY : Prohibits the leaving of a prerecorded message without
receiving authorization from a live person, except in specified
situations. Specifically, this bill :
1)Prohibits a prerecorded message from being left on an
answering machine, voicemail, or other message-recording
device.
2)Prohibits, after July 1, 2001, the use of automatic calling
equipment to make telephone connections where no person is
available to contact the person called.
3)Exempts the use of automatic dialing-announcing devices
(ADADs) to contact persons having an established business
relationship with the person or organization making the call
to ensure that the call is in furtherance of an existing
business relationship and not related to a new commercial
relationship.
4)Establishes as an additional exemption from the provisions of
this bill any calls that are made for noncommercial purposes.
5)Specifies that certain delineated situations are exempt from
the requirement that an automatic dialing announcement message
be preceded by an unrecorded natural voice message and adds
fraud protection as one of those situations.
6)State legislative intent that enaction of this bill will
balance privacy rights and public safety concerns with
commercial free speech rights.
EXISTING LAW :
1)Authorizes the California Public Utilities Commission (CPUC)
to control and regulate the use of ADADs and specifies the
hours during which the devices may not be operated.
AB 2721
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2)Requires that a live person introduce all prerecorded
telephone messages with specified exemptions including
government agencies in case of an emergency, school conveying
student attendance information, and cable companies for the
purpose of arranging installation.
3)Provides for exemptions from regulation and time of use
limitations in various situations, including having an
established relationship with the person using the ADAD.
FISCAL EFFECT : Potential absorbable costs, offset by revenue
from fines, to the Public Utitilties Commission and the Attorney
General for enforcement of the bill's provisions.
COMMENTS :
1)Intent and Background of the Bill
According to the author, California consumers are being
subjected to numerous and repeated "abandoned" telephone
calls. The purpose of this bill is to reduce the number of
abandoned calls to zero after July 1, 2001, which is a
reduction from the current industry standard of 5%. The
author reports that one predictive dialer may dial up to 1,600
telephone numbers per hour resulting in up to 80 abandoned
calls per hour.
AB 2721 addresses a growing problem in the telemarketing field
relating to the use of predictive dialers. Predictive dialing
is a form of automated dialing where a computer dials phone
numbers from a database while telemarketers converse with
potential customers. Predictive dialers use a computer
algorithm to establish a dialing rate based upon the estimated
time it takes to complete a call and the estimated percentage
of busy signals, wrong numbers, answering machines and other
factors. Because predictive dialers dial more numbers than
there are actual telemarketers to speak with, sometimes a
connection is made and the telemarketer is not yet available.
Thus, when an individual answers the telephone, there is no
one on the other end.
The author notes that AB 2721 does not create any new penalties.
Under existing penalty provisions, violators of the Public
Utilities Code would be subject to a maximum fine of $500
AB 2721
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and/or disconnection of the automatic dialing system.
Violators of the Civil Code will be subject to a maximum fine
of $1000 and any other relief that the court deems proper.
2)Amendments to be Offered in Committee
The author intends to offer the following amendments in
committee to address concerns previously raised with the bill:
a) On page 5, lines 31 & 32 and on page 8, lines 6 & 7,
delete "including, but not limited to, the sale of a new
product" and instead insert "which is unrelated to any
product or service currently within the scope of the
established relationship.";
b) Page 10, line 2, "is available to contact" and insert
"or a prerecorded message, as set forth in subdivision (d)
of Section 2872, is available for"; and
c) Add Senator Murray as a co-author.
REGISTERED SUPPORT / OPPOSITION :
Support
Privacy Rights Clearinghouse
The Utility Reform Network
Utility Consumer Action Network
Opposition
None on file
Analysis Prepared by : Robin Hartley / C.P., G.E. & E.D. / (916)
319-2089