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92nd General Assembly

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Public Act 92-0795

SB1830 Enrolled                                LRB9215936WHcs

    AN ACT concerning telephone solicitation.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.  This  Act may be cited as the
Restricted Call Registry Act.

    Section 5.  Definitions. As used in this Act:
    (a)  "Residential subscriber" means a  person  or  spouse
who  has  subscribed  to either residential telephone service
from a local exchange company or public mobile  services,  as
defined  by  Section  13-214  of  the Public Utilities Act, a
guardian  of  the  person  or  the  person's  spouse,  or  an
individual who has power of attorney from  or  an  authorized
agent of the person or the person's spouse.
    (b)  "Established   business   relationship"   means  the
existence of  an  oral  or  written  transaction,  agreement,
contract,  or other legal state of affairs involving a person
or entity and an existing customer under which  both  parties
have  a  course of conduct or established pattern of activity
for commercial or mercantile purposes and for the benefit  or
profit  of  both  parties.  A  pattern  of  activity does not
necessarily mean multiple previous contacts. The  established
business   relationship   must  exist  between  the  existing
customer and the person or  entity  directly,  and  does  not
extend  to  any  related  business  entity  or other business
organization of the person or entity or related to the person
or entity or the person or entity's agent including  but  not
limited  to  a  parent  corporation,  subsidiary partnership,
company or other corporation or affiliate.
    (c)  "Existing customer"  means  an  individual  who  has
either:
         (1)  entered    into   a   transaction,   agreement,
    contract, or other  legal  state  of  affairs  between  a
    person or entity and a residential subscriber under which
    the payment or exchange of consideration for any goods or
    services  has  taken place within the preceding 18 months
    or has been arranged to take place at a future time; or
         (2)  opened or maintained a  debit  account,  credit
    card account, or other credit or discount program offered
    by  or  in  conjunction with the person or entity and has
    not requested the person or entity to close such  account
    or terminate such program.
    (d)  "Registry"   means   the  Restricted  Call  Registry
established under this Act.
    (e)  "Telephone    solicitation"    means    any    voice
communication over a telephone line  from  a  live  operator,
through  the  use  of  an autodialer or autodialer system, as
defined in Section 5 of the Automatic Telephone Dialers  Act,
or by other means for the purpose of encouraging the purchase
or rental of, or investment in, property, goods, or services,
or  for  the  purposes of soliciting charitable contributions
but does not include communications:
         (1)  to  any  residential   subscriber   with   that
    subscriber's  prior express invitation or permission when
    a voluntary  2-way  communication  between  a  person  or
    entity  and a residential subscriber has occurred with or
    without  an  exchange  of  consideration.   A   telephone
    solicitation  is  presumed  not to be made at the express
    request of a subscriber if one of the  following  occurs,
    as applicable:
              (A)  The  telephone  solicitation  is  made  30
         business  days  after  the  last  date  on which the
         subscriber contacted a business with the purpose  of
         inquiring  about  the potential purchase of goods or
         services.
              (B)  The  telephone  solicitation  is  made  30
         business days after  the  last  date  on  which  the
         subscriber consented to be contacted.
              (C)  The  telephone  solicitation  is  made  30
         business  days  after  a  product or service becomes
         available where the subscriber has made a request to
         the business for that product or service that is not
         then available, and requests a call when the product
         or service becomes available;
         (2)  by or on behalf of any person  or  entity  with
    whom a residential subscriber has an established business
    relationship  which has not been terminated in writing by
    either party and which is related to the  nature  of  the
    established business relationship;
         (3)  by  or  on  behalf of any person or entity with
    whom a residential subscriber is  an  existing  customer,
    unless the customer has stated to the person or entity or
    the  person  or  entity's  agent that he or she no longer
    wishes to receive the telemarketing sales  calls  of  the
    person  or  entity,  or  unless the nature of the call is
    unrelated to the established business  relationship  with
    the existing customer;
         (4)  by  or  on  behalf  of  an organization that is
    exempt from federal income taxation under Section  501(c)
    of  the  Internal  Revenue  Code,  but only if the person
    making the telephone solicitation  immediately  discloses
    all of the following information upon making contact with
    the consumer:
              (A)  the caller's true first and last name; and
              (B)  the name, address, and telephone number of
         the organization;
         (5)  by or on behalf of an individual licensed under
    the  Real  Estate  License Act of 2000 or as an insurance
    producer under the Illinois Insurance Code who either:
              (A)  is setting or attempting to set a face  to
         face   appointment  for  actions  relating  to  that
         individual's real estate or insurance business; or
              (B)  is encouraging or attempting to  encourage
         the   purchase  or  rental  of,  or  investment  in,
         property,  goods,  or  services,  which  cannot   be
         completed, and for which payment or authorization of
         payment  is  not  required, until after a written or
         electronic agreement is signed  by  the  residential
         subscriber; or
         (6)  until  July  1,  2005,  by  or on behalf of any
    entity over which the Federal  Communications  Commission
    or   the  Illinois  Commerce  Commission  has  regulatory
    authority to the extent that, subject to that  authority,
    the  entity is required to maintain a license, permit, or
    certificate  to  sell   or   provide   telecommunications
    service,  as  defined  in  Section  13-203  of the Public
    Utilities Act, while the entity is engaged  in  telephone
    solicitation    for   inter-exchange   telecommunications
    service, as defined  in  Section  13-205  of  the  Public
    Utilities   Act,  or  local  exchange  telecommunications
    service, as defined  in  Section  13-204  of  the  Public
    Utilities Act or to the extent, subject to the regulatory
    authority  of  the Federal Communications Commission, the
    entity is defined by  Title  47  Section  522(5)  of  the
    United  States Code, or providers of information services
    as defined by Title 47  Section  153(20)  of  the  United
    States Code.

    Section  10.  Prohibited  calls.  Beginning July 1, 2003,
no person or  entity  may  make  or  cause  to  be  made  any
telephone  solicitation  calls  to any residential subscriber
more  than  45  days  after  the   residential   subscriber's
telephone number or numbers first appear on the Registry.
    Section 15.  Complaints. The Illinois Commerce Commission
shall   receive   telephone   solicitation   complaints  from
residential subscribers to object to such  calls.  Complaints
shall  be  taken  by  any  means  deemed  appropriate  by the
Illinois Commerce Commission.

    Section 20.  Registry; establishment and maintenance.
    (a)  The Illinois Commerce Commission shall establish and
provide for the operation  of  a  Restricted  Call  Registry,
which  shall  contain  a  list  of  the  telephone numbers of
residential subscribers who do not wish to receive  telephone
solicitation  calls.  The  Illinois  Commerce  Commission may
contract with a private vendor to establish and maintain  the
Registry  if  the contract requires the vendor to provide the
Registry in a printed hard  copy  format,  in  an  electronic
format,  and  in  any other format prescribed by the Illinois
Commerce  Commission.  Any  person   or   entity   conducting
telephone  solicitation  calls  as defined by Section 5(e) of
this Act within the State  of  Illinois  shall  purchase  the
Restricted  Call  Registry  and  updates exclusively from the
Illinois Commerce Commission.  Failure  to  do  so  prior  to
conducting   telephone  solicitation  calls  is  a  violation
subject to the penalties provided for in Section 35  of  this
Act.
    (b)  No later than January 1, 2003, the Illinois Commerce
Commission  shall  adopt  rules consistent with this Act that
the  Illinois  Commerce  Commission   deems   necessary   and
appropriate  to  fully  implement  this  Act. The rules shall
include, at a minimum, methods by which any person or  entity
desiring  to  make  telephone  solicitation  calls may obtain
access to the Registry to avoid calling the telephone numbers
of residential subscribers included in the Registry.
    (c)  The fee for obtaining the Registry and updates shall
be set forth  in  rules  adopted  by  the  Illinois  Commerce
Commission.  The  fee  may not exceed $1,000 annually and may
not exceed the  costs  incurred  by  the  Commission  in  the
preparation, maintenance, production, and distribution of the
Registry.  All copies requested in a printed hard copy format
shall be assessed a per page fee to be  determined  by  rules
adopted by the Illinois Commerce Commission.
    (d)  The  Illinois  Commerce  Commission shall update the
Registry and make information in the Registry available on  a
quarterly basis in an electronic format that can be sorted by
individual  fields and, if deemed appropriate by the Illinois
Commerce Commission, in one or more other formats.
    (e)  If the Federal Communications Commission or  Federal
Trade  Commission  establishes  a single national database of
telephone numbers of  subscribers  who  object  to  receiving
telephone solicitations, which restricts both inter-state and
intra-state  calls  and  at  a  minimum  covers all telephone
solicitations  covered  by  this  Act,   this   State   shall
discontinue the Registry.
    (f)  Information  in  the  Registry  is  confidential and
shall be afforded reasonable  privacy  protection  except  as
necessary  for  compliance  with  Sections 10 and 25 and this
Section or in a proceeding or action under Section 35 or  40.
The  information  is not a public record under the Freedom of
Information Act.
    (g)  The Illinois Commerce Commission shall  periodically
obtain  subscription  listings  of residential subscribers in
this State who have arranged to be included in  any  national
do-not-call list and add those names to the Registry.
    (h)  A  person  or entity that obtains the Registry shall
not use the Registry for any purpose  other  than  to  comply
with  this  Act. These unlawful purposes include, but are not
limited to, causing a subscriber to  participate  in  and  be
included  in  the Registry without the subscriber's knowledge
or consent, selling or leasing the Registry to a person other
than a telephone solicitor, selling or leasing by a telephone
solicitor of the Registry, and a telephone solicitor,  either
directly  or indirectly, persuading a subscriber with whom it
has an established business relationship to place his or  her
telephone number in the Registry, if the solicitation has the
effect   of   preventing  competitors  from  contacting  that
solicitor's customers.
    (i)  No person or entity that sells,  leases,  exchanges,
or  rents  telephone solicitation lists, except for directory
assistance  and  telephone  directories  sold  by   telephone
companies  or  their affiliates, shall include in those lists
those telephone numbers that appear in the current Registry.

    Section 25.  Enrollment.
    (a)  The  Illinois  Commerce  Commission  shall   provide
notice to residential subscribers of the establishment of the
Registry.
    (b)  The Illinois Commerce Commission shall establish any
method  deemed  appropriate  for  a residential subscriber to
notify the Illinois Commerce Commission that the  residential
subscriber wishes to have its telephone number included in or
remain on the Registry.
    (c)  The  Commission  may,  by  rule,  set an initial fee
which shall not exceed  $5  per  residential  subscriber  for
inclusion  on  the  Restricted Call Registry.  The Commission
shall review the revenues and expenditures of the  Restricted
Call  Registry on a biennial basis and shall, by rule, reduce
the fee accordingly  if  revenues  exceed  expenditures.  The
Commission  may  adopt  rules  and  procedures  governing the
acceptance of payment by credit card and may enter into  such
agreements as necessary to accept payment by credit card.
    (d)  A residential subscriber's telephone number shall be
deleted  from  the Registry upon the residential subscriber's
written request.
    (e)  Enrollment in the Registry  is  effective  from  the
start  of  the quarter following the date of enrollment for a
term  of  5  years  or  until  the   residential   subscriber
disconnects  or  changes  his or her telephone number, unless
the subscriber complies with the notice  provision  contained
in  this  Section,  whichever  occurs first.  The residential
subscriber shall be permitted to extend their enrollment  for
additional 5 year periods and shall not be subject to any fee
for   this   extension.    The   residential   subscriber  is
responsible for notifying the Illinois Commerce Commission of
any changes in his or  her  telephone  number.  The  Illinois
Commerce  Commission  shall  use  its  best efforts to notify
enrolled residential subscribers before the end of the 5-year
enrollment term of the option  to  extend  their  enrollment.
Residential  subscribers  who do not indicate their desire to
extend their enrollment before the end  of  the  5-year  term
shall  be  given  a  one  quarter  grace  period before being
removed from the Registry.

    Section 30.  Public notification. The  Illinois  Commerce
Commission  shall work with local exchange telecommunications
companies to disseminate to their customers information about
the  availability  of   and   instructions   for   requesting
educational literature from the Illinois Commerce Commission.
The  Illinois  Commerce  Commission may enter into agreements
with those companies for the dissemination of the educational
literature. Telecommunications  companies  shall  disseminate
the  educational  literature  at  least  once  per  year in a
message contained in customers' bills  or  a  notice  in  the
information  section of all telephone directories distributed
to customers and shall include on their website a link to the
ICC's web  page  for  the  Registry.  The  Illinois  Commerce
Commission   shall   include,   on  its  Internet  web  site,
information to customers regarding their right to be included
in the Registry and the various methods, including notice  to
the  Illinois  Commerce  Commission, of being included in the
Registry. The Illinois Commerce Commission  shall  have  this
literature developed for dissemination to the public no later
than March 1, 2003.

    Section 35.  Violation; relief.
    (a)  The   Illinois   Commerce  Commission  may  initiate
administrative proceedings in accordance with  rules  adopted
under this Act relating to a knowing and willful violation of
Section 10.
    (b)  If  it  is  determined after a hearing that a person
has knowingly and willfully violated one or  more  provisions
of  this Section, the Illinois Commerce Commission may assess
a fine not to exceed $1,000 for the first violation  and  not
to  exceed  $2,500 for a second or subsequent violation. Each
individual violation of Section 10 of this  Act  shall  be  a
separate   and  distinct  offense  under  this  Section.   In
imposing a penalty under this Section, the Commission  shall,
at a minimum, consider the following factors:
         (1)  whether the offense was knowing or willful;
         (2)  whether the entity committing the offense has a
    prior history of non-compliance with this Act;
         (3)  the   offender's  relative  ability  to  pay  a
    penalty;
         (4)  whether the offender has or has not  cooperated
    with the Commission in pursuing the investigation; and
         (5)  such  other  special, mitigating or aggravating
    circumstances as the Commission may find to exist.
    (c)  Any  proceeding  conducted  under  this  Section  is
subject to the Illinois Administrative Procedure Act.
    (d)  Nothing in this Section may be construed to restrict
any right that any person may have under any other law or  at
common law.
    (e)  No  action  or  proceeding may be brought under this
Section:
         (1)  more than one year after  the  person  bringing
    the action knew or should have known of the occurrence of
    the alleged violation; or
         (2)  more than one year after the termination of any
    proceeding or action arising out of the same violation or
    violations by the State of Illinois, whichever is later.
    (f)  The remedies, duties, prohibitions, and penalties in
this  Act  are not exclusive and are in addition to all other
causes of action, remedies, and penalties provided by law.
    (g)  There is created in the  State  Treasury  a  special
fund  to  be  known as the Restricted Call Registry Fund. All
fees  and  fines  collected   in   the   administration   and
enforcement  of  this  Act  shall be deposited into the Fund.
Moneys in the Fund shall, subject to appropriation,  be  used
by  the  Illinois  Commerce  Commission  for  implementation,
administration, and enforcement of this Act.

    Section 40.  Exemption.
    (a)  A  person  or  entity  may  not  be  held liable for
violating this Act if:
         (1)  the person or entity has obtained copies of the
    Registry and each  updated  Registry  from  the  Illinois
    Commerce  Commission  and has established and implemented
    written  policies   and   procedures   related   to   the
    requirements of this Act;
         (2)  the  person or entity has trained its personnel
    in the requirements of this Act;
         (3)  the  person   or   entity   maintains   records
    demonstrating compliance with subdivisions (1) and (2) of
    this Section and the requirements of this Act; and
         (4)  any  subsequent  telephone  solicitation is the
    result of unintentional error.
    (b)  A person or entity that has entered into a  contract
with another person or entity to make telephone solicitations
on  its  behalf  is not liable for a violation of this Act by
the person or entity making telephone solicitations under the
contract  if  the  person  or  entity  on  whose  behalf  the
telephone  solicitations  were  made  has  provided   written
notification   to  the  person  or  entity  making  telephone
solicitations under the contract  that  it  is  necessary  to
comply  with the provisions of this Act when making telephone
solicitations.

    Section 90.  The State Finance Act is amended  by  adding
Section 5.570 as follows:

    (30 ILCS 105/5.570 new)
    Sec. 5.570.  The Restricted Call Registry Fund.

    Section  99.  Effective  date. This Act takes effect upon
becoming law.
    Passed in the General Assembly May 14, 2002.
    Approved August 09, 2002.
    Effective August 09, 2002.

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