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F I S C A L I M P A C T R E P O R T

SPONSOR Wirth

ORIGINAL DATE

LAST UPDATED

2/13/07

HB 700

SHORT TITLE Phone Directory and Unsolicited Mail Delivery

SB

ANALYST Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

SUMMARY

Synopsis of Bill

House Bill 700 prohibits a for-profit business from distributing a local telephone directory or

unsolicited mailing to a resident who notifies the business that the resident no longer wishes to

receive the directory or mailing. The Act requires a for-profit business that publishes and

delivers local telephone directories or unsolicited mailings to residents to conspicuously print on

the directory or mailing a toll-free number and a mailing address that residents may use to

provide verbal or written notice to the business that the resident no longer wishes to receive the

directory or mailing. The Act provides that the attorney general (AG) or appropriate district

attorney (DA) may institute a civil action in district court against a violator or to prevent a

violation of the Act. Under the Act, a civil penalty of $500 may be assessed for each violation.

The Act further provides that in any action brought by the AG or a DA, distribution in error shall

be a defense.

House Bill 700 – Page

2

SIGNIFICANT ISSUES

HB 700 regulates for-profit businesses that publish and deliver unsolicited local telephone

directories and mail to any resident. HB 700 defines a "resident" as any person or entity that has

a mailing address in this state.

HB 700 A(1) requires for-profit businesses that publish and deliver unsolicited directories and

mailings to conspicuously print the following statement:

"IF YOU NO LONGER WISH TO RECEIVE THIS MAILING, PLEASE CALL THE

FOLLOWING NUMBER OR WRITE TO THE FOLLOWING ADDRESS:"

Section A(2) requires the disclosure of information. The information required is for the

businesses to provide a toll-free number and a mailing address for the business that residents

may use to provide verbal or written notice to the business that the resident no longer wishes to

receive the directory or mailing.

Section B prohibits distribution upon resident’s verbal or written notification of wish to no

longer receive the directory or mailing. HB 700 appears to allow unsolicited local telephone

directories and unsolicited mailing until the for-profit business receives notice from a resident

that the resident no longer wishes to continue to receive the unsolicited directory or mail or both.

A for-profit business violates this act if the resident notifies the business that the resident no

longer wishes to receive the directory or mailing and the business non-erroneously delivers the

unsolicited directory or mailing to a resident.

Section C contains the enforcement and penalty provision. Section C permits the attorney

general or appropriate district attorney to institute a civil action in district court. A $500.00 per

violation penalty may be assessed.

Section D contains an affirmative defense for the erroneous distribution of unsolicited telephone

directory or mailing to a resident. HB 700 D may require proof of some type of intent to

distribute or perhaps some type of knowledge.

Section E defines: “delivery;" “local telephone directory;" “resident;" and “unsolicited mailing."

Unsolicited mailing is defined to mean a communication delivered to a resident without the

resident’s prior express invitation or permission. The term “communication" may be over broad

and is not defined or limited.

U.S. constitution may also limit HB 700. See commercial speech e.g. the government can ban

deceptive or illegal commercial speech; any other regulation must be supported by a substantial

interest to be achieved by restrictions, regulations in proportion to that interest, and a limitation

on expression designed carefully to achieve the state's goal.

ADMINISTRATIVE IMPLICATIONS

HB 700 permits the Attorney General to investigate and prosecute all violations of this act,

which may result in staff time dedicated to additional prosecutions a year.

TECHNICAL ISSUES

House Bill 700 – Page

3

HB 700 “person," “entity" and “communication" may need further definition.

EO/mt