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  Harrisburg, PA 17111

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Communications 

Do Not Mail 
Fax 
FTC Oversight of Nonprofits?
Telemarketing

Do Not Mail

8/8/08 On May 20, 2008, State Representative Micozzie introduced the Do-not-mail Act HB2551 in the House to prohibit unwanted mail solicitation similar to do-not-call laws.  A Do-not-mail registry would be created and enforced by the State Office of Attorney General. HB2551 was referred to the House Consumer Affairs Committee. Do Not Mail legislation began in 2007 and has been working its way across the country.  12 States now have some kind of do not mail legislation pending. Since then, the legislation has been defeated or is dying in a number of states: RI, TN, VT, WA, NY and NH (defeated); MI (carried over), IL (referred to Committee), AR and CO (withdrawn). This legislation is disfavored by Associations, fundraisers, and would probably reduce US Postal Service revenue.  On the bright side it’s beatable.  

FTC Oversight of Nonprofits?

4/8/08 Bill would give FTC oversight over Nonprofits. On April 8, 2008, Senators Daniel Inouye (D-HI) and Byron Dorgan (D-ND) introduced the Federal Trade Commission Reauthorization Act of 2008.  This would be the first reauthorization of the FTC since 1996.  Encouraged by congressional hearings on nonprofit governance, the bill’s adds a section 6 which grants sweeping FTC authority to police alleged abuse by charities. Unlike the last FTC Reauthorization bill introduced in 2005 which merely sought to increase the FTC’s budget, this new bill, [S.2831] would expanded the FTC’s oversight authority to 501(c)(3) and 501(c)(4) nonprofits. S.2831. This oversight is currently the authority of the Internal Revenue Service. Granting another federal agency sweeping investigatory authority over nonprofits would create additional federal “red tape” for nonprofits, many of whom have small staffs and budgets and would be adversely impacted. The FTC is attempting to regulate organizations that operate beyond the scope of the FTC’s expertise. Section 501(c)(3) organizations include hospitals, educational institutions, charitable trusts, religious congregations, amateur sports leagues, foundations, and disease cure organizations, many of whom do not engage in “trade” as is commonly regulated by the FTC.  Essentially charities and telecommunications firms differ significantly and can not be regulated in the same manner. Uniformity is not an adequate justification. The FTC has insufficient staff experienced in nonprofit governance. The bill was referred to the Senate Committee on, Commerce Science, and Transportation on 4/8/08.

Federal Trade Commission Reauthorization Act of 2008: S. 2831: http://capwiz.com/pano/webreturn/?url=http://thomas.loc.gov/cgi-bin/query/z?c110:S.2831:

 

Fax

Bill 714, the “Junk Fax Prevention Act of 2005.”  (6/2005)

On June 28, the US House of Representatives passed Senate Bill 714, the “Junk Fax Prevention Act of 2005”.  Senate Bill 714, passed the Senate on June 24 and is expected to reach the President’s desk soon.  SB 714 represents a comprehensive effort to amend the “do-not–fax rule” of 2003. This bill was in direct response to an FCC ruling which was scheduled to take effect on July 1.  The FCC ruling would have required prior permission from ALL recipients of the faxed solicitations.  The FCC stayed the implementation of this ruling until 2006.  By that time, it is expected that the president will sign SB 714 into law, and the FCC ruling will be moot. Generally, SB 714 prevents businesses or individuals from using fax machines to send out mass solicitations.  Unfortunately, the prior version of SB 714 would have prevented most faxed solicitations.  The newest version of SB 714 restores the “established business relationship” exception.  With this exception, businesses, associations and charities, may send faxed advertisements to their members, donors, or others without having first obtained written permission, so long as they have an “established business relationship”.  The new SB 714 still requires the organization to include a means for the recipient to opt out from receiving future faxed solicitations.   For more information on this or other legislation, please contact David A. Ross, PANO Public Policy Analyst.

Fax Bill Update (11/2004)

The Senate has not yet voted on the fax bill (S. 2603). As reported earlier new rules governing business-to-business and association-to-member fax communications were due to go into effect January 1, 2005, but the Federal Communications Commission (FCC) granted a six-month stay of these regulations, until July 1, 2005. Legislation reinstating the "established business relationship" language to rules governing fax communications has found bipartisan support in both chambers, with the Senate Commerce, Science and Transportation Committee passing S. 2603 in July, and the House passing the companion bill, H.R. 4600, on July 20. During the lame-duck session after the elections, it does not look like the fax bill will be discussed

Telemarketing

5/4/07 Telemarketing Bills would Prohibit Automated Political Solicitations. Two recently introduced State bills HB1195 and its companion bill SB820 would restrict under the State Charitable Solicitations Act, telemarketing solicitations that use pre-recorded political messages or automatic dialing-announcing devices.  Some limited exclusions would still apply for established business relationships.  The Senate version of the bill would increase civil penalties to between $500 and $5,000 per violation.  Both bills were referred to Committee and are not currently scheduled.

HB1195 (PN1498) Calling for restrictions on telemarketing solicitation even on behalf of a charity.  Specifically expands the scope of the act to cover prerecorded political messages.  A limited exclusion applies for call made to a residential or cell phone consumer with whom the telemarketer has an established business relationship within 12 months before the call.  The bill was introduced in the House on May 4, 2007 and was referred to the Committee on Consumer Affairs.   

 SB820 (PN954) amends telemarketing laws to limit use of "automatic dialing-announcing device" and other telephone solicitation calls. Civil penalties on individuals can range from $500 to $5,000 per violation.  A limited exclusion applies for call made to a residential or cell phone consumer with whom the telemarketer has an established business relationship within 12 months before the call. The bill was introduced in the Senate on May 2, 2007 and referred to the Committee on State Government. 

For the essential Telemarketing solicitations laws in Pennsylvania go to http://www.attorneygeneral.gov/consumers.aspx?id=404

HB1195 http://capwiz.com/pano/issues/bills/?bill=9828026
SB820 http://capwiz.com/pano/issues/bills/?bill=9828071 

Click here for our index of legislative issues.

PANO Capwiz Site: This page includes links to legislation PANO is tracking, information on elected officials, government agencies, media contacts, voter registration and more.

FTC Document: Complying with the Telemarketing Sales Rule.


None of the information on the PANO Website should be deemed legal advice or should be acted upon without prior consultation with appropriate professional advisors.

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