Report - 2022 02 24 A29905 D244659 Bill Report 1497 S E Sbr Bfst Ta 22

Summary

A Senate Bill Report on ESHB 1497, an act relating to commercial telephone solicitation, prepared by non-partisan staff of the Senate Committee on Business, Financial Services & Trade as of February 22, 2022. It records that the bill passed the House on February 10, 2022 by a vote of 90-5. The report compares Washington's Telephone Solicitation Act of 1986 and Commercial Telephone Solicitation Regulation Act of 1989 on scope, identification, call termination, list removal, registration, penalties and enforcement. It summarizes the bill as aligning the two acts, requiring identification within the first 30 seconds, ending calls within 10 seconds on request, barring calls between 8 p.m. and 8 a.m., and setting a $1,000 fine per violation. It closes with a staff summary of public testimony for and against the bill.

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                             SENATE BILL REPORT
                                  ESHB 1497

                                      As of February 22, 2022

Title: An act relating to commercial telephone solicitation.

Brief Description: Concerning commercial telephone solicitation.

Sponsors: House Committee on Consumer Protection & Business (originally sponsored by
    Representatives Mosbrucker, Chandler, Peterson, Dent, Schmick, Steele, Pollet, Eslick and
    Young).

Brief History: Passed House: 2/10/22, 90-5.
     Committee Activity: Business, Financial Services & Trade: 2/22/22.


                                      Brief Summary of Bill
           • Restricts telephone solicitation to the hours of 8:00 a.m. to 8:00 p.m.
           • Requires telephone solicitors to provide identifying information within
             the first 30 seconds of a call, and to end the call within 10 seconds of the
             called party indicating they want to end the call.
           • Requires telephone solicitors requesting a donation or gift of money to
             provide a specific list of options to the called party.
           • Expands the definition of telephone solicitation to include calls to non-
             residential telephone customers.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: Telephone solicitation in Washington is primarily regulated by two
     overlapping statutes: the Telephone Solicitation Act of 1986 (TSA) and the Commercial
     Telephone Solicitation Regulation Act of 1989 (CTSRA). These acts contain both similar




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

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     and distinct provisions.

     Scope and Exceptions. Telephone Solicitation Act. The TSA defines "telephone
     solicitation" as the unsolicited initiation of a telephone call by a commercial or nonprofit
     company or organization to a residential telephone customer and conversation for the
     purpose of encouraging a person to purchase property, goods, or services or soliciting
     donations of money, property, goods, or services.

     Telephone solicitation does not include:
        • calls made in response to a request or inquiry by the called party;
        • calls made by a not-for-profit organization to its own list of bona fide or active
          members of the organization;
        • calls limited to polling or soliciting the expression of ideas, opinions, or votes; or
        • business-to-business contacts.

     The TSA does not cover calls from political parties.

     Commercial Telephone Solicitation Regulation Act. The CTSRA defines commercial
     telephone solicitation as:
         • an unsolicited telephone call to a person initiated by a salesperson, and conversation
           for the purpose of inducing the person to purchase or invest in property, goods, or
           services;
         • other communication with a person where a free gift, award, or prize is offered to a
           purchaser who has not previously purchased from the person initiating the
           communication; a telephone call response is invited; and the salesperson intends to
           complete a sale or enter into an agreement to purchase during the course of the
           telephone call; or
         • other communication with a person which misrepresents the price, quality, or
           availability of property, goods, or services and which invites a response by telephone
           or which is followed by a call to the person by a salesperson.

     Commercial telephone solicitor means any person who engages in commercial telephone
     solicitation, including service bureaus.

     The CTSRA exempts a number of specific industries and activities, for example, isolated
     solicitations; calls by charities and collection agencies; the sale of certain securities, cable
     television, fish, and so on.

     Identification Requirements. Telephone Solicitation Act. Within the first 30 seconds of the
     call, a person making a telephone solicitation must identify themself; the company or
     organization on whose behalf the solicitation is being made; and the purpose of the call.

     Commercial Telephone Solicitation Regulation Act. Within the first minute of the call, a
     commercial telephone solicitor or salesperson must identify themself; the company on


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     whose behalf the solicitation is being made; and the property, goods, or services being sold.

     Call Termination. Telephone Solicitation Act. There is no provision for call termination.

     Commercial Telephone Solicitation Regulation Act. Within the first minute of the call, a
     commercial telephone solicitor or salesperson must terminate the call within 10 seconds if
     the purchaser indicates they do not wish to continue the conversation.

     List Removal. Telephone Solicitation Act. At any point during the call, if the called party
     states or indicates they do not want to be called again or want to have their contact
     information removed from the solicitor's telephone lists, the solicitor must not:
         • make any additional telephone solicitation of the called party at that telephone
            number for at least one year; and
         • sell or give the called party's name and telephone number to another company or
            organization.

     Commercial Telephone Solicitation Regulation Act. At any point during the call, if the
     purchaser states or indicates they do not want to be called again or want to have their
     contact information removed from the solicitor's telephone lists, the solicitor must not:
        • make any additional commercial telephone solicitation of the called party at that
           telephone number for at least one year; and
        • sell or give the called party's name and telephone number to another commercial
           telephone solicitor.

     Registration. Telephone Solicitation Act. There is no provision for registration.

     Commercial Telephone Solicitation Regulation Act. Commercial telephone solicitors must
     register with the Department of Licensing to do business in Washington. Doing business
     includes both commercial telephone solicitation from a location in Washington and
     solicitation of purchasers located in Washington.

     Disciplinary Action. Telephone Solicitation Act. There is no provision for disciplinary
     action.

     Commercial Telephone Solicitation Regulation Act. The Department of Licensing may take
     disciplinary action when a commercial telephone solicitor engages in unprofessional
     conduct under the Uniform Regulation of Business and Professions Act, or engages in any
     unfair or deceptive commercial telephone solicitation; places calls to a residence that will be
     received before 8:00 a.m. or after 9:00 p.m.; or engages in conduct to harass, intimidate, or
     torment any person.

     Enforcement by the Attorney General. The Attorney General may bring an action to
     enforce compliance in both the Telephone Solicitation Act and the Commercial Telephone
     Solicitation Regulation Act.


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     Fines and Civil Penalties. Telephone Solicitation Act. Violation of the identification and
     list removal requirements is punishable by a fine up to $1,000 per violation.

     Commercial Telephone Solicitation Regulation Act. A civil penalty of $500 to $2,000 must
     be imposed by the court for each violation.

     Private Civil Actions. Telephone Solicitation Act. Individuals subject to repeated violations
     may bring a civil action to enjoin violations and recover damages, including at least $100
     per violation. A prevailing plaintiff is entitled to attorneys’ fees and costs.

     Commercial Telephone Solicitation Regulation Act. A person who is injured by a violation
     may bring an action for recovery of actual damages, attorneys’ fees, and costs.

     A violation is an unfair or deceptive act in trade or commerce for the purposes of the
     Consumer Protection Act.

     Criminal Prosecution. Telephone Solicitation Act. There is no provision for criminal
     prosecution.

     Commercial Telephone Solicitation Regulation Act. A knowing violation or the knowing
     employment of any device, scheme, or artifice to deceive in connection with an offer or sale
     by a commercial telephone solicitor is punishable as a misdemeanor, gross misdemeanor, or
     class C felony depending on the value of the transaction.

     Solicitation without registration is a misdemeanor.

     Summary of Bill: A telephone solicitor is defined as an entity that can be a for profit or a
     non-profit company or organization engaged in telephone solicitation.

     Definition of a Telephone Solicitor Under the Telephone Solicitation Act. A telephone
     solicitor is defined as an entity that can be a for profit or a non-profit company or
     organization engaged in telephone solicitation.

     Expanding the Definition of a Target for a Telephone Solicitation Under the Telephone
     Solicitation Act. The target of a telephone solicitation is expanded from a residential
     telephone customer to a person more generally.

     Normalizing Statutes between the Commercial Telephone Solicitation Regulation Act and
     the Telephone Solicitation Act. CTSRA and the TSA are amended to have the same
     following characteristics:
         • a telephone solicitor isobligated to identify themself and the organizations they
           represent within the first 30 seconds;
         • a telephone solicitor must end a phone call within 10 seconds if the called party states


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           or indicates they want to end the call;
         • a telephone solicitor must promptly implement the recipients statement or indication
           that they do not want to be called again or be removed from a solicitation list;
         • if a recipient requests removal from a solicitor's list, they must be removed for one
           year; and
         • a solicitor must not place a solicitation call between 8 p.m. and 8 a.m.

     Violations Under the Telephone Solicitation Act. Violations of the call time restrictions or
     identification and opt-out, call termination, or list removal requirements are subject to a
     $1,000 fine for each violation under the TSA.

     Outreach. The Washington State Attorney General is directed to provide and maintain a
     web page informing the public of the laws and regulations that pertain to telephone
     solicitation.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This bill started in 2021. Spam calls are
     being made more and more. Seniors and businesses are being targeted. This bill gets closer
     and closer to separating the good and the bad. A concern is that it is ambiguous that text
     messages and calls are covered in the bill. A lot of spammers will attack and be shielded
     because the statute would apply to only the calls themselves. More scammers are going
     more and more to text messages. This statutory change is critical to protect the people of
     Washington. The broader and more protection you can give to the people of Washington,
     the better. Calls are being designed to be warnings and urgent which target our senior
     citizen population.

     OTHER: This bill has a fatal flaw. It will legalize thousands of calls. On page one in the
     definition of "telephone solicitation", the word "conversations" needs to be eliminated.

     Persons Testifying: PRO: Representative Gina Mosbrucker, Prime Sponsor; Peter Leon;
     Jim Wertheim, LawHQ PC; Adrian Bradford; Thomas Alvord, LawHQ.

     OTHER: Mark Hoffman.

     Persons Signed In To Testify But Not Testifying: No one.




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