[House Report 106-872]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-872

======================================================================



 
                      KNOW YOUR CALLER ACT OF 2000

                                _______
                                

 September 20, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 3100]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 3100) to amend the Communications Act of 1934 to prohibit 
telemarketers from interfering with the caller identification 
service of any person to whom a telephone solicitation is made, 
and for other purposes, 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.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     5
Committee on Government Reform Oversight Findings................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Committee Cost Estimate..........................................     5
Congressional Budget Office Estimate.............................     5
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     8

                               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 ``Know Your Caller Act of 2000''.

SEC. 2. PROHIBITION OF INTERFERENCE WITH CALLER IDENTIFICATION 
                    SERVICES.

  Section 227 of the Communications Act of 1934 (47 U.S.C. 227) is 
amended--
          (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
          (2) by inserting after subsection (d) the following new 
        subsection:
  ``(e) Prohibition on Interference With Caller Identification 
Services.--
          ``(1) In general.--It shall be unlawful for any person within 
        the United States, in making any telephone solicitation--
                  ``(A) to interfere with or circumvent the capability 
                of a caller identification service to access or provide 
                to the recipient of the telephone callinvolved in the 
solicitation any information regarding the call that such service is 
capable of providing; and
                  ``(B) to fail to provide caller identification 
                information in a manner that is accessible by a caller 
                identification service, if such person has capability 
                to provide such information in such a manner.
        For purposes of this section, the use of a telecommunications 
        service or equipment that is incapable of transmitting caller 
        identification information shall not, of itself, constitute 
        interference with or circumvention of the capability of a 
        caller identification service to access or provide such 
        information.
          ``(2) Regulations.--Not later than 6 months after the 
        enactment of the Know Your Caller Act of 2000, the Commission 
        shall prescribe regulations to implement this subsection, which 
        shall--
                  ``(A) specify that the information regarding a call 
                that the prohibition under paragraph (1) applies to 
                includes----
                          ``(i) the name of the person or entity who 
                        makes the telephone call involved in the 
                        solicitation;
                          ``(ii) the name of the person or entity on 
                        whose behalf the solicitation is made; and
                          ``(iii) a valid and working telephone number 
                        at which the person or entity on whose behalf 
                        the telephone solicitation is made may be 
                        reached during regular business hours for the 
                        purpose of requesting that the recipient of the 
                        solicitation be placed on the do-not-call list 
                        required under section 64.1200 of the 
                        Commission's regulations (47 CFR 64.1200) to be 
                        maintained by such person or entity; and
                  ``(B) provide that any person or entity who receives 
                a request from a person to be placed on such do-not-
                call list may not use such person's name and telephone 
                number for telemarketing, mail marketing, or other 
                marketing purpose (including transfer or sale to any 
                other entity for marketing use) other than enforcement 
                of such list.
          ``(3) Private right of action.--A person or entity may, if 
        otherwise permitted by the laws or rules of court of a State, 
        bring in an appropriate court of that State--
                  ``(A) an action based on a violation of this 
                subsection or the regulations prescribed under this 
                subsection to enjoin such violation;
                  ``(B) an action to recover for actual monetary loss 
                from such a violation, or to receive $500 in damages 
                for each such violation, whichever is greater; or
                  ``(C) both such actions.
        If the court finds that the defendant willfully or knowingly 
        violated this subsection or the regulations prescribed under 
        this subsection, the court may, in its discretion, increase the 
        amount of the award to an amount equal to not more than 3 times 
        the amount available under subparagraph (B) of this paragraph.
          ``(4) Definitions.--For purposes of this subsection:
                  ``(A) Caller identification service.--The term 
                `caller identification service' means any service or 
                device designed to provide the user of the service or 
                device with the telephone number of an incoming 
                telephone call.
                  ``(B) Telephone call.--The term `telephone call' 
                means any telephone call or other transmission which is 
                made to or received at a telephone number of any type 
                of telephone service and includes telephone calls made 
                using the Internet (irrespective of the type of 
                customer premises equipment used in connection with 
                such services). Such term also includes calls made by 
                an automatic telephone dialing system, an integrated 
                services digital network, and a commercial mobile radio 
                source.''.

SEC. 3. EFFECT ON STATE LAW AND STATE ACTIONS.

  (a) Effect on State Law.--Subsection (f)(1) of section 227 of the 
Communications Act of 1934 (47 U.S.C. 227(f)(1)), as so redesignated by 
section 2(1) of this Act, is further amended by inserting after 
``subsection (d)'' the following: ``and the prohibition under 
paragraphs (1) and (2) of subsection (e),''.
  (b) Actions by States.--The first sentence of subsection (g)(1) of 
section 227 of the Communications Act of 1934 (47 U.S.C. 227(g)(1)), as 
so redesignated by section 2(1) of this Act, is further amended by 
striking ``telephone calls'' and inserting ``telephone solicitations, 
telephone calls, or''.

SEC. 4. STUDY REGARDING TRANSMISSION OF CALLER IDENTIFICATION 
                    INFORMATION.

  The Federal Communications Commission shall conduct a study to 
determine--
          (1) the extent of the capability of the public switched 
        network to transmit the information that can be accessed by 
        caller identification services;
          (2) the types of telecommunications equipment being used in 
        the telemarketing industry, the extent of such use, and the 
        capabilities of such types of equipment to transmit the 
        information that can be accessed by caller identification 
        services; and
          (3) the changes to the public switched network and to the 
        types of telecommunications equipment commonly being used in 
        the telemarketing industry that would be necessary to provide 
        for the public switched network to be able to transmit caller 
        identification information on all telephone calls, and the 
        costs (including costs to the telemarketing industry) to 
        implement such changes.
The Commission shall complete the study and submit a report to the 
Congress on the results of the study, not later than one year after the 
date of the enactment of this Act.

                          Purpose and Summary

    The purpose of this bill is to prevent telemarketers from 
interfering with or circumventing caller identification 
information from being transmitted to consumers. This bill 
specifically prevents telemarketers from blocking caller 
identification information and requires telemarketers to 
provide that information when they have the capability to do 
so. If a telemarketer's telecommunications service or equipment 
is incapable of transmitting caller identification information, 
it will not constitute a violation of the bill if that 
information is not transmitted. The bill also prohibits 
telemarketers from using information on ``do-not-call'' lists 
for any marketing purpose.

                  Background and Need for Legislation

    Telemarketing has been, and continues to be, a 
controversial marketing practice. Telemarketing can provide 
huge benefits for consumers. In many instances, consumers are 
introduced to new opportunities or products through 
telemarketing. Telemarketing can also promote the availability 
of competitive alternatives to incumbent providers and thus 
help facilitate a competitive marketplace. Unfortunately, 
certain telemarketing practices can be a significant and 
intrusive nuisance for consumers, as well as a source of 
consumer confusion. In some instances, rogue telemarketers can 
take advantage of this confusion to commit fraud against 
consumers.
    To protect against these abuses, Congress enacted the 
Telephone Consumer Protection Act of 1991 (P.L. 102-243; 47 
U.S.C. Sec. 227). Regulated by the FCC, the TCPA, among other 
things, requires telemarketers to follow ``do not call'' 
requests from consumers, restricts telemarketing calling hours 
to 8:00 a.m.-9:00 p.m., mandates that telemarketers provide the 
name of the solicitor, name of the entity calling, and the 
telephone number or address where that person may be contacted, 
and includes a private right of action. Exemptions exist for 
established business relationships and tax-exempt non-profit 
organizations.
    The FTC has also implemented the Telemarketing Sales Rule 
which requires telemarketers to make certain disclosures and 
prohibits certain misrepresentations. These rules give the 
consumer the power to stop unwanted telemarketing calls, 
requires solicitors to identify the seller, their purpose and 
the nature of what is being sold, limits commercial telephone 
solicitations to between 8:00 a.m. and 9:00 p.m., and gives 
State law enforcement officers the authority to prosecute 
fraudulent telemarketers who operate across State lines.
    Despite these restrictions, complaints regarding 
telemarketing practices continue to rise. According to the FTC, 
telemarketing complaints have increased significantly from 
1997-1999. In 1997, the FTC received 2,260 complaints, in 1998 
complaints rose to 8,667, and in 1999 complaints totaled 
17,423. In light of these concerns, H.R. 3100 was drafted to 
create additional consumer protections.

                                Hearings

    The Subcommittee on Telecommunications, Trade, and Consumer 
Protection held a legislative hearing on H.R. 3100 on June 13, 
2000. The Subcommittee received testimony from: The Honorable 
Matt Salmon, M.C.; The Honorable Rodney Frelinghuysen, M.C.; 
Ms. Eileen Harrington, Assistant Director of Marketing 
Practices, Federal Trade Commission; The Honorable Jeff Hatch-
Miller, Arizona House of Representatives; Ms. Virginia Tierney, 
on behalf of the American Association of Retired Persons; and 
Mr. Steven R. Brubaker, Senior Vice President of Operations, 
InfoCision Management Corp. on behalf of the American 
Teleservices Association.

                        Committee Consideration

    On September 14, 2000, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection was 
discharged from the further consideration of H.R. 3100.
    The Full Committee met in open markup session on September 
14, 2000, and ordered H.R. 3100 reported to the House, with 
amendment, by a voice vote, a quorum being present.

                            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 in connection with ordering 
H.R. 3100 reported. A motion by Mr. Bliley to order H.R. 3100 
reported to the House, with an amendment, was agreed to by a 
voice vote.
    The following amendments were agreed to by a voice vote:
    An amendment in the nature of a substitute by Mr. Tauzin, 
No. 1, prohibiting telemarketers from blocking caller 
identification information, preempting State law relating to 
such violations, and requiring a FCC study to investigate the 
current state of transmission of caller identification 
information; and,
    An amendment to the amendment in the nature of a substitute 
by Mr. Stearns, No. 1b, including Internet telephony as a 
communication governed under the bill.
    The following amendment was withdrawn by unanimous consent:
    An amendment to the amendment in the nature of a substitute 
by Mr. Wynn, No. 1a, to require a live operator when using 
automatic dialing or predictive dialing equipment.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3100, the Know Your Caller Act of 2000, would result in no new 
or increased budget authority, entitlement authority, or tax 
expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate 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 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 20, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3100, the Know 
Your Caller Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Ken Johnson 
(for federal costs), Shelley Finlayson (for the state and local 
impact), and Jean Wooster (for the private-sector impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3100--Know Your Caller Act of 2000

    CBO estimates that implementing H.R. 3100 would have a 
negligible impact on the federal budget. H.R. 3100 would 
prohibit telephone solicitors from purposefully blocking their 
contact information so that it does not appear on caller 
identification systems. The contact information that must be 
transmitted consists of the name of the person or entity that 
is placing the call, the organization on whose behalf the call 
is being made, and a return phone number. The bill would 
require the Federal Communications Commission (FCC) to issue 
regulations to implement the bill within six months of 
enactment. In addition, H.R. 3100 would establish a private 
right of action in state courts to punish violations of these 
provisions. Finally, the bill would require the FCC to study 
issues surrounding the transmission of caller identification 
information and report to the Congress within one year of the 
bill's enactment.
    Based on information from the FCC, CBO estimates that the 
FCC would spend less than $500,000 annually to implement H.R. 
3100, assuming the availability of appropriated funds. Because 
the commission is authorized under current law to collect fees 
from the telecommunications industry sufficient to offset the 
cost of its enforcement programs, CBO assumes that those 
additional costs would be offset by an increase in collections 
credited to annual appropriations for the FCC.
    H.R. 3100 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA) because it would 
preempt certain provisions of state telemarketing statutes, 
which could affect the associated fines and penalties. Because 
states vary significantly in their regulation of telephone 
solicitors, CBO cannot determine precisely the total revenue 
loss they would experience as a result of this bill. However, 
based on our estimate of the number of states regulating in 
this area, the size of the fines assessed, and the amount of 
revenues generated from fines, CBO estimates that revenue 
losses to states would not exceed the threshold established by 
UMRA ($55 million in 2000, adjusted annually for inflation).
    H.R. 3100 would also impose private-sector mandates, as 
defined by UMRA, on telephone solicitors. A company that has 
telecommunication services or equipment that is capable of 
transmitting its name and phone number would be required to do 
so. The bill also would prohibit those companies from using a 
person's name and number for telemarketing, mail marketing, or 
any other marketing purposes when that person has requested to 
be placed on a ``do-not-call'' list.
    Based on information from the FCC and industry 
representatives, CBO estimates that the cost of the mandates 
would be well below the threshold established by UMRA for 
private-sector mandates ($109 million in 2000, adjusted 
annually for inflation).
    The CBO staff contacts for this estimate are Ken Johnson 
(for federal costs), Shelley Finlayson (for the state and local 
impact), and Jean Wooster (for the private-sector impact). This 
estimate was approved by Robert A. Sunshine, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates 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 this 
legislation.

                   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.

                  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.

             Section-by-Section Analysis of the Legislation


Sec. 1. Short title

    This section establishes the short title of the 
legislation, the ``Know Your Caller Act of 2000''.

Sec. 2. Prohibition of interference with caller identification services

    This section amends section 227 of the Communications Act 
of 1934 (47 U.S.C. Sec. 227) by making it unlawful for any 
person making a telephone solicitation to interfere with or 
circumvent the transmission of caller identification 
information. If a person making a telephone solicitation has 
the ability to provide caller identification information, that 
person must provide such information. The use of 
telecommunications service or equipment that is incapable of 
transmitting such information does not constitute interference 
or circumvention pursuant to the bill.
    This section also directs the Federal Communications 
Commission to prescribe regulations implementing the 
subsection. The regulations must direct the person making the 
telemarketing call to disclose the following caller 
identification information: the name of the person placing the 
telephone solicitation, the name of the person on whose behalf 
the solicitation is being made, and a valid working telephone 
number of the person or entity on whose behalf the telephone 
solicitation is being made. This section also provides that the 
names and telephone numbers complied as part of a ``do-not-
call'' list must not be used for any marketing purpose.
    This section further allows a person or entity to bring a 
private right of action for an injunction, actual monetary 
damages or $500 per violation, or both. If a court finds the 
defendant acted willfully or knowingly, the court may award 
treble damages.
    This section also defines a ``caller identification 
service'' and ``telephone call.''

Sec. 3. Effect on State law and State actions

    This section makes it clear that any State may bring an 
action for blocking caller identification information during a 
telephone solicitation or telephone call. This section also 
preempts State laws that deal with the same subject matter, 
although it allows States to set fines higher than the $500 
fine set forth in section 2(e)(3)(B).

Sec. 4. Study regarding transmission of caller identification 
        information

    This section requires that the FCC, within one year, 
conduct a study to determine the capability of the public 
switched network to transmit caller identification information; 
the types of equipment being used by the telemarketing industry 
and the capability of such equipment to transmit caller 
identification information; the changes necessary to the public 
switched network and telemarketing equipment to allow for the 
transmission of caller identification information in all 
instances; and the cost related to those changes.

         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):

             SECTION 227 OF THE COMMUNICATIONS ACT OF 1934


SEC. 227. RESTRICTIONS ON THE USE OF TELEPHONE EQUIPMENT.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Prohibition on Interference With Caller Identification 
Services.--
          (1) In general.--It shall be unlawful for any person 
        within the United States, in making any telephone 
        solicitation--
                  (A) to interfere with or circumvent the 
                capability of a caller identification service 
                to access or provide to the recipient of the 
                telephone call involved in the solicitation any 
                information regarding the call that such 
                service is capable of providing; and
                  (B) to fail to provide caller identification 
                information in a manner that is accessible by a 
                caller identification service, if such person 
                has capability to provide such information in 
                such a manner.
        For purposes of this section, the use of a 
        telecommunications service or equipment that is 
        incapable of transmitting caller identification 
        information shall not, of itself, constitute 
        interference with or circumvention of the capability of 
        a caller identification service to access or provide 
        such information.
          (2) Regulations.--Not later than 6 months after the 
        enactment of the Know Your Caller Act of 2000, the 
        Commission shall prescribe regulations to implement 
        this subsection, which shall--
                  (A) specify that the information regarding a 
                call that the prohibition under paragraph (1) 
                applies to includes--
                          (i) the name of the person or entity 
                        who makes the telephone call involved 
                        in the solicitation;
                          (ii) the name of the person or entity 
                        on whose behalf the solicitation is 
                        made; and
                          (iii) a valid and working telephone 
                        number at which the person or entity on 
                        whose behalf the telephone solicitation 
                        is made may be reached during regular 
                        business hours for the purpose of 
                        requesting that the recipient of the 
                        solicitation be placed on the do-not-
                        call list required under section 
                        64.1200 of the Commission's regulations 
                        (47 CFR 64.1200) to be maintained by 
                        such person or entity; and
                  (B) provide that any person or entity who 
                receives a request from a person to be placed 
                on such do-not-call list may not use such 
                person's name and telephone number for 
                telemarketing, mail marketing, or other 
                marketing purpose (including transfer or sale 
                to any other entity for marketing use) other 
                than enforcement of such list.
          (3) Private right of action.--A person or entity may, 
        if otherwise permitted by the laws or rules of court of 
        a State, bring in an appropriate court of that State--
                  (A) an action based on a violation of this 
                subsection or the regulations prescribed under 
                this subsection to enjoin such violation;
                  (B) an action to recover for actual monetary 
                loss from such a violation, or to receive $500 
                in damages for each such violation, whichever 
                is greater; or
                  (C) both such actions.
        If the court finds that the defendant willfully or 
        knowingly violated this subsection or the regulations 
        prescribed under this subsection, the court may, in its 
        discretion, increase the amount of the award to an 
        amount equal to not more than 3 times the amount 
        available under subparagraph (B) of this paragraph.
          (4) Definitions.--For purposes of this subsection:
                  (A) Caller identification service.--The term 
                ``caller identification service'' means any 
                service or device designed to provide the user 
                of the service or device with the telephone 
                number of an incoming telephone call.
                  (B) Telephone call.--The term ``telephone 
                call'' means any telephone call or other 
                transmission which is made to or received at a 
                telephone number of any type of telephone 
                service and includes telephone calls made using 
                the Internet (irrespective of the type of 
                customer premises equipment used in connection 
                with such services). Such term also includes 
                calls made by an automatic telephone dialing 
                system, an integrated services digital network, 
                and a commercial mobile radio source.
  [(e)] (f) Effect on State Law.--
          (1) State law not preempted.--Except for the 
        standards prescribed under subsection (d) and the 
        prohibition under paragraphs (1) and (2) of subsection 
        (e), and subject to paragraph (2) of this subsection, 
        nothing in this section or in the regulations 
        prescribed under this section shall preempt any State 
        law that imposes more restrictive intrastate 
        requirements or regulations on, or which prohibits--
                  (A) * * *

           *       *       *       *       *       *       *

  [(f)] (g) Actions by States.--
          (1) Authority of states.--Whenever the attorney 
        general of a State, or an official or agency designated 
        by a State, has reason to believe that any person has 
        engaged or is engaging in a pattern or practice of 
        [telephone calls] telephone solicitations, telephone 
        calls, or or other transmissions to residents of that 
        State in violation of this section or the regulations 
        prescribed under this section, the State may bring a 
        civil action on behalf of its residents to enjoin such 
        calls, an action to recover for actual monetary loss or 
        receive $500 in damages for each violation, or both 
        such actions. If the court finds the defendant 
        willfully or knowingly violated such regulations, the 
        court may, in its discretion, increase the amount of 
        the award to an amount equal to not more than 3 times 
        the amount available under the preceding sentence.

           *       *       *       *       *       *       *


                                  
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