```

[House Report 110-485]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-485

======================================================================
 
             DO-NOT-CALL REGISTRY FEE EXTENSION ACT OF 2007

                                _______
                                

               December 11, 2007.--Ordered to be printed

                                _______
                                

 Mr. Dingell, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2601]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2601) to extend the authority of the Federal 
Trade Commission to collect fees to administer and enforce the 
provisions relating to the ``Do-not-call'' registry of the 
Telemarketing Sales Rule, 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.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
Statement of General Performance Goals and Objectives............     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Earmarks and Tax and Tariff Benefits.............................     6
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Constitutional Authority Statement...............................     8
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    11

                               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 ``Do-Not-Call Registry Fee Extension Act 
of 2007''.

SEC. 2. FEES FOR ACCESS TO REGISTRY.

  Section 2, of the Do-Not-Call Implementation Act (15 U.S.C. 6101 
note) is amended to read as follows:

``SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.

  ``(a) In General.--The Federal Trade Commission shall assess and 
collect an annual fee pursuant to this section in order to implement 
and enforce the `do-not-call' registry as provided for in section 
310.4(b)(1)(iii) of title 16, Code of Federal Regulations, or any other 
regulation issued by the Commission under section 3 of the 
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 
6102).
  ``(b) Annual Fees.--
          ``(1) In general.--The Commission shall charge each person 
        who accesses the `do-not-call' registry an annual fee that is 
        equal to the lesser of--
                  ``(A) $54 for each area code of data accessed from 
                the registry; or
                  ``(B) $14,850 for access to every area code of data 
                contained in the registry.
          ``(2) Exception.--The Commission shall not charge a fee to 
        any person--
                  ``(A) for accessing the first 5 area codes of data; 
                or
                  ``(B) for accessing area codes of data in the 
                registry if the person is permitted to access, but is 
                not required to access, the `do-not-call' registry 
                under section 310 of title 16, Code of Federal 
                Regulations, section 64.1200 of title 47, Code of 
                Federal Regulations, or any other Federal regulation or 
                law.
          ``(3) Duration of access.--
                  ``(A) In general.--The Commission shall allow each 
                person who pays the annual fee described in paragraph 
                (1), each person excepted under paragraph (2) from 
                paying the annual fee, and each person excepted from 
                paying an annual fee under section 310.4(b)(1)(iii)(B) 
                of title 16, Code of Federal Regulations, to access the 
                area codes of data in the `do-not-call' registry for 
                which the person has paid during that person's annual 
                period.
                  ``(B) Annual period.--In this paragraph, the term 
                `annual period' means the 12-month period beginning on 
                the first day of the month in which a person pays the 
                fee described in paragraph (1).
  ``(c) Additional Fees.--
          ``(1) In general.--The Commission shall charge a person 
        required to pay an annual fee under subsection (b) an 
        additional fee for each additional area code of data the person 
        wishes to access during that person's annual period.
          ``(2) Rates.--For each additional area code of data to be 
        accessed during the person's annual period, the Commission 
        shall charge--
                  ``(A) $54 for access to such data if access to the 
                area code of data is first requested during the first 6 
                months of the person's annual period; or
                  ``(B) $27 for access to such data if access to the 
                area code of data is first requested after the first 6 
                months of the person's annual period.
  ``(d) Adjustment of Fees.--
          ``(1) In general.--
                  ``(A) Fiscal year 2009.--The dollar amount described 
                in subsection (b) or (c) is the amount to be charged 
                for fiscal year 2009.
                  ``(B) Fiscal years after 2009.--For each fiscal year 
                beginning after fiscal year 2009, each dollar amount in 
                subsection (b)(1) and (c)(2) shall be increased by an 
                amount equal to--
                          ``(i) the dollar amount in paragraph (b)(1) 
                        or (c)(2), whichever is applicable, multiplied 
                        by
                          ``(ii) the percentage (if any) by which the 
                        CPI for the most recently ended 12-month period 
                        ending on June 30 exceeds the baseline CPI.
          ``(2) Rounding.--Any increase under subparagraph (B) shall be 
        rounded to the nearest dollar.
          ``(3) Changes less than 1 percent.--The Commission shall not 
        adjust the fees under this section if the change in the CPI is 
        less than 1 percent.
          ``(4) Publication.--Not later than September 1 of each year 
        the Commission shall publish in the Federal Register the 
        adjustments to the applicable fees, if any, made under this 
        subsection.
          ``(5) Definitions.--In this subsection:
                  ``(A) CPI.--The term `CPI' means the average of the 
                monthly consumer price index (for all urban consumers 
                published by the Department of Labor).
                  ``(B) Baseline cpi.--The term `baseline CPI' means 
                the CPI for the 12-month period ending June 30, 2008.
  ``(e) Prohibition Against Fee Sharing.--No person may enter into or 
participate in an arrangement (as such term is used in section 310.8(c) 
of the Commission's regulations (16 C.F.R. 310.8(c))) to share any fee 
required by subsection (b) or (c), including any arrangement to divide 
the costs to access the registry among various clients of a 
telemarketer or service provider.
  ``(f) Handling of Fees.--
          ``(1) In general.--The commission shall deposit and credit as 
        offsetting collections any fee collected under this section in 
        the account `Federal Trade Commission--Salaries and Expenses', 
        and such sums shall remain available until expended.
          ``(2) Limitation.--No amount shall be collected as a fee 
        under this section for any fiscal year except to the extent 
        provided in advance by appropriations Acts.''.

SEC. 3. REPORT.

  Section 4 of the Do-Not-Call Implementation Act (15 U.S.C. 6101 note) 
is amended to read as follows:

``SEC. 4. REPORTING REQUIREMENTS.

  ``(a) Biennial Reports.--Not later than December 31, 2009, and 
biennially thereafter, the Federal Trade Commission, in consultation 
with the Federal Communications Commission, shall transmit a report to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Energy and Commerce that 
includes--
          ``(1) the number of consumers who have placed their telephone 
        numbers on the registry;
          ``(2) the number of persons paying fees for access to the 
        registry and the amount of such fees;
          ``(3) the impact on the `do-not-call' registry of--
                  ``(A) the 5-year reregistration requirement;
                  ``(B) new telecommunications technology; and
                  ``(C) number portability and abandoned telephone 
                numbers; and
          ``(4) the impact of the established business relationship 
        exception on businesses and consumers.
  ``(b) Additional Report.--Not later than December 31, 2009, the 
Federal Trade Commission, in consultation with the Federal 
Communications Commission, shall transmit a report to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Energy and Commerce that includes--
          ``(1) the effectiveness of do-not-call outreach and 
        enforcement efforts with regard to senior citizens and 
        immigrant communities;
          ``(2) the impact of the exceptions to the do-not-call 
        registry on businesses and consumers, including an analysis of 
        the effectiveness of the registry and consumer perceptions of 
        the registry's effectiveness; and
          ``(3) the impact of abandoned calls made by predictive 
        dialing devices on do-not-call enforcement.''.

SEC. 4. RULEMAKING.

  The Federal Trade Commission may issue rules, in accordance with 
section 553 of title 5, United States Code, as necessary and 
appropriate to carry out the amendments to the Do-Not-Call 
Implementation Act (15 U.S.C. 6101 note) made by this Act.

                          Purpose and Summary

    The purpose of H.R. 2601, the Do-Not-Call Registry Fee 
Extension Act of 2007, is to authorize the Federal Trade 
Commission (FTC) to continue to collect and spend fees to 
operate and enforce the National Do-Not-Call Registry 
(Registry), contingent on approval of the fees in annual 
appropriations acts. The authority to collect those fees 
expired at the end of fiscal year 2007. The bill also would 
require the FTC to prepare two reports about the use and 
effectiveness of the Registry.

                  Background and Need for Legislation

    In 1994, Congress enhanced the enforcement arsenal of the 
FTC by enacting the Telemarketing and Consumer Fraud and Abuse 
Prevention Act (the Telemarketing Act), 15 U.S.C. secs. 6101-
6108. This legislation directed the FTC to issue a trade 
regulation rule defining and prohibiting deceptive or abusive 
telemarketing acts or practices. The FTC promulgated the 
Telemarketing Sales Rule (TSR) in 1995. The Telemarketing Act 
mandated that the TSR include prohibitions against any pattern 
of unsolicited telemarketing calls ``which the reasonable 
consumer would consider coercive or abusive of such consumer's 
right to privacy,'' as well as restrictions on the hours that 
unsolicited telephone calls may be made to consumers.
    In 2003, the FTC amended its TSR to, among other things, 
establish the Registry. The Registry, which allows consumers to 
express their wish not to receive telemarketing calls by 
entering their numbers in the Registry, currently includes more 
than 145 million telephone numbers and enjoys a reputation of 
being one of the most popular Federal programs in history.
    Pursuant to this program, consumers can register their 
telephone numbers by calling a toll-free number from the 
telephone number that they wish to register, or over the 
Internet. Telemarketers and sellers can access registered 
telephone numbers through an Internet web site dedicated to 
that purpose, in order to remove those numbers from their call 
lists, and to pay the applicable fees for such access. 
Consumers who receive unwanted telemarketing calls can register 
a complaint via either a toll-free telephone number or the 
Internet. To conduct investigations, law enforcement officials 
also can access data in the Registry, including consumer 
registration information, telemarketer access information, and 
consumer complaints. Such access is provided through Consumer 
Sentinel, a secure Internet web site maintained by the FTC, to 
the law enforcement community throughout the United States, 
Canada, and Australia.
    The Do-Not-Call Implementation Act, passed by Congress in 
2003, gave the FTC specific authority to ``promulgate 
regulations establishing fees sufficient to implement and 
enforce the provisions relating to the `Do-Not-Call' Registry 
of the TSR.'' The Implementation Act further stated that 
``[f]ees may be collected pursuant to this section for fiscal 
years 2003 through 2007, and shall be deposited and credited as 
offsetting collections to the account, Federal Trade 
Commission--Salaries and Expenses, and shall remain available 
until expended.'' It also provided that ``[n]o amounts shall be 
collected as fees pursuant to this section for such fiscal 
years except to the extent provided in advance in 
appropriations Acts. Such amounts shall be available . . . to 
offset the costs of activities and services related to the 
implementation and enforcement of the [TSR], and other 
activities resulting from such implementation and 
enforcement.'' Pursuant to the Implementation Act and 
appropriations Acts, the FTC has conducted annual rulemaking 
proceedings to establish the appropriate level of fees to 
charge telemarketers for access to the Registry.
    The fees collected are intended to offset costs in three 
areas. First, funds are required for direct operation of the 
Registry. Second, funds are required for law enforcement 
efforts, including identifying targets, coordinating domestic 
and international initiatives, challenging alleged violators, 
and engaging in consumer and business education efforts, which 
are critical to securing compliance with the TSR. The FTC 
testified in October 2007 that, to date, it had initiated 27 
cases alleging Do Not Call violations, that have resulted in 
orders totaling $8.8 million in civil penalties and $8.6 
million in redress or disgorgement. Third, funds are required 
to cover ongoing FTC costs associated with the operation and 
enforcement of the Registry, including substantial investments 
in technology and infrastructure in response to the 
significantly increased capacity required by the Registry.
    Under the current fee structure, telemarketers are charged 
$62 per area code of data, starting with the sixth area code, 
up to a maximum of $17,050 for the entire Registry. 
Telemarketers receive the first five area codes of data at no 
cost. The FTC allows such free access to limit the burden on 
small businesses that only require access to a small portion of 
the Registry. The Registry also allows organizations exempt 
from the Registry requirements to access the Registry 
voluntarily at no cost in order to avoid calling consumers who 
have expressed a preference not to receive telemarketing calls. 
These organizations include entities that make telephone calls 
to consumers to induce charitable contributions, for political 
fund raising, or to conduct surveys. They also include entities 
making calls to persons with whom they have an established 
business relationship or from whom they have obtained express 
written consent, as defined by the TSR, and who do not access 
the Registry for any other purpose. While the Committee is 
aware of consumer complaints regarding alleged abuses by this 
latter group, see e.g., ``Marketers Use Trickery To Evade No-
Call Lists,'' Wall Street Journal, Friday, October 26, 2007, it 
intends to address these matters separately after an 
appropriate inquiry.
    As discussed above, the FTC's Do-Not-Call fee-setting 
authority expired on September 30, 2007. The Committee believes 
that it is imperative that this authority be reauthorized in 
order to continue protecting consumers from unwanted intrusions 
into the privacy of their homes. To that end, this legislation 
will make permanent the authority of the FTC to collect fees in 
an amount sufficient to enable the FTC to adequately implement 
and enforce the TSR on an ongoing basis.

                                Hearings

    The Subcommittee on Commerce, Trade, and Consumer 
Protection held a hearing on Tuesday, October 23, 2007, 
entitled ``Enhancing FTC Consumer Protection in Financial 
Dealings, with Telemarketers, and on the Internet,'' which 
examined 3 bills: H.R. 2601, H.R. 3461, and H.R. 3526. 
Testimony was received from Ms. Lydia B. Parnes, Director, 
Bureau of Consumer Protection, U.S. Federal Trade Commission.

                        Committee Consideration

    On Tuesday, October 23, 2007, the Subcommittee on Commerce, 
Trade, and Consumer Protection met in open markup session and 
favorably forwarded H.R. 2601, amended, to the full Committee 
for consideration, by a voice vote. On Tuesday, October 30, 
2007, the full Committee met in open markup session and ordered 
H.R. 2601 favorably reported to the House, as amended by the 
Subcommittee, by a voice vote. No amendments were adopted 
during full Committee consideration.

                            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 on amendments or in connection 
with ordering H.R. 2601 reported. A motion by Mr. Dingell to 
order H.R. 2601 favorably reported to the House, amended, was 
agreed to by a voice vote.

                      Committee Oversight Findings

    Regarding clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the oversight findings of the 
Committee on H.R. 2601 are reflected in this report.

         Statement of General Performance Goals and Objectives

    The purpose of H.R. 2601 is to reduce the harm to 
individuals from telemarketing fraud and abuse by authorizing 
the FTC to continue to collect fees to enable the agency to 
operate and enforce the popular ``do-not-call'' registry.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Regarding compliance with clause 3(c)(2) of rule XXI of the 
Rules of the House of Representatives, the Committee finds that 
H.R. 2601 would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Earmarks and Tax and Tariff Benefits

    Regarding compliance with clause 9 of rule XXI of the Rules 
of the House of Representatives, H.R. 2601 does not contain any 
Congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
2601 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 on 
H.R. 2601 provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:

                                                 November 28, 2007.
Hon. John D. Dingell,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2601, the Do-Not-
Call Registry Fee Extension Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 2601--Do-Not-Call Registry Fee Extension Act of 2007

    Summary: H.R. 2601 would authorize the Federal Trade 
Commission (FTC) to continue to collect and spend fees to 
operate and enforce the ``do-not-call'' registry. The registry 
contains a list of consumers whom telemarketers are prohibited 
from calling. The bill also would require FTC to prepare two 
reports for the Congress about the use and effectiveness of the 
registry.
    Based on information from the FTC, CBO estimates that the 
agency would collect a total of $107 million under the bill 
over the 2008-2012 period and spend $105 million over that 
period, assuming appropriation actions consistent with the 
bill. Over the five-year period, CBO estimates that 
implementing H.R. 2601 would decrease net spending subject to 
appropriation by $2 million. Enacting H.R. 2601 would not 
affect direct spending or revenues.
    H.R. 2601 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 2601 would impose a private-sector mandate, as defined 
in UMRA, by making permanent the authority of the FTC to 
collect fees from telemarketers. CBO expects that the cost of 
that mandate would fall below the annual threshold established 
in UMRA for private-sector mandates ($131 million, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2601 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

FTC Spending for the Do-Not-Call Registry:
    Estimated Authorization Level..................................       21       21       21       22       22
    Estimated Outlays..............................................       19       21       21       22       22
Offsetting Collections from Telemarketers:
    Estimated Authorization Level..................................      -21      -21      -21      -22      -22
    Estimated Outlays..............................................      -21      -21      -21      -22      -22
Net Changes to FTC Spending:
    Estimated Authorization Level..................................        0        0        0        0        0
    Estimated Outlays..............................................       -2        0        0        0        0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: H.R. 2601 would authorize the FTC to 
collect fees sufficient to operate and enforce the ``do-not-
call'' registry, contingent on approval of the fees in annual 
appropriation acts. For this estimate, CBO assumes that H.R. 
2601 and the necessary appropriation provisions will be enacted 
near the beginning of fiscal year 2008. In fiscal year 2007, 
the FTC incurred costs of about $25 million and collected fees 
of approximately $22 million to operate and enforce the ``do-
not-call'' registry.
    The bill would set fees for firms that subscribe to the 
registry at rates lower than the FTC is currently charging. 
Based on information from the commission, CBO expects that the 
lower fees authorized by the bill would still be sufficient to 
cover the costs of operating the registry. CBO estimates that 
the FTC would collect $107 million and spend $105 million over 
the 2008-2012 period, assuming the necessary appropriation 
actions. Thus, over the five-year period, implementing H.R. 
2601 would result in a reduction of $2 million in net spending 
subject to appropriation.
    CBO estimates that the cost of preparing two reports for 
the Congress regarding the effectiveness of the registry would 
be less than $500,000, subject to the availability of 
appropriated funds.
    Estimated impact on state, local, and tribal governments: 
H.R. 2601 contains no intergovernmental mandates as defined in 
UMRA and would not affect the budgets of state, local, or 
tribal governments.
    Estimated impact on the private sector: The requirement 
that telemarketers pay fees to use the ``do-not-call'' registry 
would constitute a private-sector mandate as defined in UMRA. 
CBO estimates that those fees would amount to $107 million over 
the next five years. Consequently, the cost of the mandate 
would fall below the annual threshold established in UMRA ($131 
million, adjusted annually for inflation).
    Previous CBO estimate: On September 27, 2007, CBO 
transmitted an estimate for S. 781, the Do-Not-Call Registry 
Fee Extension Act of 2007, as ordered reported by the Senate 
Committee on Commerce, Science, and Transportation on August 2, 
2007. H.R. 2601 and S. 781 are identical, as are the cost 
estimates.
    Estimate prepared by: Federal costs: Susan Willie; Impact 
on state, local, and tribal governments: Elizabeth Cove; Impact 
on the private sector: MarDestinee Perez.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 2601 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 H.R. 
2601.

                   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, and in the provisions of 
Article I, section 8, clause 1, that relate to expending funds 
to provide for the general welfare of the United States.

                  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 of 1995.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 establishes the short title of the bill as the 
``Do-Not-Call Registry Fee Extension Act of 2007''.

Section 2. Fees for access to registry

    Section 2(a) provides that the Federal Trade Commission 
shall assess and collect an annual fee pursuant to this section 
in order to implement and enforce the Registry.
    Section 2(b) mandates that the FTC charge each person who 
accesses the Registry an annual fee that is equal to the lesser 
of (A) $54 for each area code of data accessed from the 
Registry, or (B) $14,850 for access to every area code of data 
contained in the Registry.
    Additionally, Section 2(b) contains two exceptions from 
this requirement. The FTC may not charge a fee to any person 
for accessing the first five area codes of data. The FTC also 
may not charge a fee to any person for accessing area codes of 
data in the Registry if the person is permitted access, but is 
not required to access, the Registry. This maintains the 
current treatment for small businesses and for charitable, 
political, and other organizations expressly exempted from the 
Registry. Section 2(b) would require the FTC to allow each 
person who pays the annual fee and each person excepted from 
paying the annual fee either under paragraph (2) of this 
subsection or under section 310.4(b)(1)(iii)(B) of title 16, 
Code of Federal Regulations, to access the area codes of data 
in the Registry for which the person has paid during that 
person's annual period. The term ``annual period'' means the 
12-month period beginning on the first day of the month in 
which a person pays the fee described above.
    Section 2(c) provides that the FTC shall charge a person 
required to pay an annual fee under subsection (b) an 
additional fee for each additional area code of data that the 
person wishes to access during that person's annual period. The 
rates for each additional area code of data to be accessed 
during the person's annual period shall be (A) $54 for access 
to such data if access to the area code of data is first 
requested during the first 6 months of the person's annual 
period, or (B) $27 for access to such data if access to the 
area code of data is first requested after the first 6 months 
of the person's annual period.
    Section 2(d) addresses adjustment of the fees. The bill 
indicates that the dollar amount described in subsection (b) or 
(c) is the amount to be charged for fiscal year 2009. For each 
fiscal year beginning after fiscal year 2009, each dollar 
amount in subsection (b)(1) and (c)(2) shall be increased by an 
amount equal to the applicable dollar amount multiplied by the 
percentage, if any, by which the consumer price index (CPI) for 
the most recently ended 12-month period ending on June 30 
exceeds the baseline CPI. The bill provides that any such 
increase shall be rounded to the nearest dollar, and that the 
FTC shall not adjust the fees under this section if the change 
in the CPI is less than 1 percent. To foster transparency and 
accountability, the legislation requires the FTC, not later 
than September 1 of each year, to publish in the Federal 
Register the adjustments to the applicable fees, if any, made 
under this section. Section 2(d) defines ``CPI'' as the average 
of the monthly consumer price index for all urban consumers 
published by the Department of Labor. The term ``baseline CPI'' 
means the CPI for the 12-month period ending June 30, 2008.
    Section 2(e) prohibits fee sharing arrangements, including 
any arrangement to divide the costs to access the Registry 
among various clients of a telemarketer or service provider.
    Section 2(f) requires the FTC to deposit and credit as 
offsetting collections any fee collected under the section in 
the account ``Federal Trade Commission--Salaries and 
Expenses'', and provides that such sums shall remain available 
until expended. The bill further provides that no amount shall 
be collected as a fee under this section for any fiscal year 
except to the extent provided in advance by appropriations 
Acts.

Section 3. Reports

    Section 3 requires the FTC, in consultation with the 
Federal Communications Commission, to submit two reports to 
Congress not later than December 31, 2009, and biennially 
thereafter. The first report shall include (1) the number of 
consumers who have placed their telephone numbers on the 
registry; (2) the number of persons paying fees for access to 
the registry and the amount of such fees; (3) the impact on the 
Registry of the five-year registration requirement, new 
telecommunications technology, and number portability and 
abandoned telephone numbers; and (4) the impact of the 
established business relationship exception on businesses and 
consumers.
    The second report shall include (1) the effectiveness of 
the Do-Not-Call outreach and enforcement efforts with regard to 
senior citizens and immigrant communities; (2) the impact of 
the exceptions to the Registry on businesses and consumers, 
including an analysis of the effectiveness of the Registry and 
consumer perceptions of the Registry's effectiveness; and (3) 
the impact of abandoned calls made by predictive dialing 
devices on Do-Not-Call enforcement. This report should, among 
other things, calculate and discuss the complaints received 
from consumers since the inception of the Registry. The 
Committee is concerned about allegations of abuses surrounding 
the exceptions, particularly recent reports regarding so-called 
``lead generators''--unsolicited advertisements used to 
establish business relationships or trick recipients, mostly 
seniors, into waiving their do-not-call rights. State 
regulators indicate that insurers are using lead generator 
cards to peddle investments unsuitable for seniors, including 
living trusts that may provide no benefit and come with steep 
surrender charges and lengthy payout deferrals.
    The reports shall include recommendations, if any, for any 
legislation or regulatory actions necessary for the protection 
of consumers.

Section 4. Rulemaking

    Section 4 would authorize the FTC to issue rules, in 
accordance with section 553 of title 5, United States Code, as 
necessary and appropriate to carry out the amendments to the 
Implementation Act (15 U.S.C. 6101 note) made by this Act.

         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):

DO-NOT-CALL IMPLEMENTATION ACT

           *       *       *       *       *       *       *

[SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.

  [The Federal Trade Commission may promulgate regulations 
establishing fees sufficient to implement and enforce the 
provisions relating to the ``do-not-call'' registry of the 
Telemarketing Sales Rule (16 CFR 310.4(b)(1)(iii)), promulgated 
under the Telemarketing and Consumer Fraud and Abuse Prevention 
Act (15 U.S.C. 6101 et seq.). Such regulations shall be 
promulgated in accordance with section 553 of title 5, United 
States Code. Fees may be collected pursuant to this section for 
fiscal years 2003 through 2007, and shall be deposited and 
credited as offsetting collections to the account, Federal 
Trade Commission--Salaries and Expenses, and shall remain 
available until expended. No amounts shall be collected as fees 
pursuant to this section for such fiscal years except to the 
extent provided in advance in appropriations Acts. Such amounts 
shall be available for expenditure only to offset the costs of 
activities and services related to the implementation and 
enforcement of the Telemarketing Sales Rule, and other 
activities resulting from such implementation and enforcement.]

SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES.

  (a) In General.--The Federal Trade Commission shall assess 
and collect an annual fee pursuant to this section in order to 
implement and enforce the ``do-not-call'' registry as provided 
for in section 310.4(b)(1)(iii) of title 16, Code of Federal 
Regulations, or any other regulation issued by the Commission 
under section 3 of the Telemarketing and Consumer Fraud and 
Abuse Prevention Act (15 U.S.C. 6102).
  (b) Annual Fees.--
          (1) In general.--The Commission shall charge each 
        person who accesses the ``do-not-call'' registry an 
        annual fee that is equal to the lesser of--
                  (A) $54 for each area code of data accessed 
                from the registry; or
                  (B) $14,850 for access to every area code of 
                data contained in the registry.
          (2) Exception.--The Commission shall not charge a fee 
        to any person--
                  (A) for accessing the first 5 area codes of 
                data; or
                  (B) for accessing area codes of data in the 
                registry if the person is permitted to access, 
                but is not required to access, the ``do-not-
                call'' registry under section 310 of title 16, 
                Code of Federal Regulations, section 64.1200 of 
                title 47, Code of Federal Regulations, or any 
                other Federal regulation or law.
          (3) Duration of access.--
                  (A) In general.--The Commission shall allow 
                each person who pays the annual fee described 
                in paragraph (1), each person excepted under 
                paragraph (2) from paying the annual fee, and 
                each person excepted from paying an annual fee 
                under section 310.4(b)(1)(iii)(B) of title 16, 
                Code of Federal Regulations, to access the area 
                codes of data in the ``do-not-call'' registry 
                for which the person has paid during that 
                person's annual period.
                  (B) Annual period.--In this paragraph, the 
                term ``annual period'' means the 12-month 
                period beginning on the first day of the month 
                in which a person pays the fee described in 
                paragraph (1).
  (c) Additional Fees.--
          (1) In general.--The Commission shall charge a person 
        required to pay an annual fee under subsection (b) an 
        additional fee for each additional area code of data 
        the person wishes to access during that person's annual 
        period.
          (2) Rates.--For each additional area code of data to 
        be accessed during the person's annual period, the 
        Commission shall charge--
                  (A) $54 for access to such data if access to 
                the area code of data is first requested during 
                the first 6 months of the person's annual 
                period; or
                  (B) $27 for access to such data if access to 
                the area code of data is first requested after 
                the first 6 months of the person's annual 
                period.
  (d) Adjustment of Fees.--
          (1) In general.--
                  (A) Fiscal year 2009.--The dollar amount 
                described in subsection (b) or (c) is the 
                amount to be charged for fiscal year 2009.
                  (B) Fiscal years after 2009.--For each fiscal 
                year beginning after fiscal year 2009, each 
                dollar amount in subsection (b)(1) and (c)(2) 
                shall be increased by an amount equal to--
                          (i) the dollar amount in paragraph 
                        (b)(1) or (c)(2), whichever is 
                        applicable, multiplied by
                          (ii) the percentage (if any) by which 
                        the CPI for the most recently ended 12-
                        month period ending on June 30 exceeds 
                        the baseline CPI.
          (2) Rounding.--Any increase under subparagraph (B) 
        shall be rounded to the nearest dollar.
          (3) Changes less than 1 percent.--The Commission 
        shall not adjust the fees under this section if the 
        change in the CPI is less than 1 percent.
          (4) Publication.--Not later than September 1 of each 
        year the Commission shall publish in the Federal 
        Register the adjustments to the applicable fees, if 
        any, made under this subsection.
          (5) Definitions.--In this subsection:
                  (A) CPI.--The term ``CPI'' means the average 
                of the monthly consumer price index (for all 
                urban consumers published by the Department of 
                Labor).
                  (B) Baseline cpi.--The term ``baseline CPI'' 
                means the CPI for the 12-month period ending 
                June 30, 2008.
  (e) Prohibition Against Fee Sharing.--No person may enter 
into or participate in an arrangement (as such term is used in 
section 310.8(c) of the Commission's regulations (16 C.F.R. 
310.8(c))) to share any fee required by subsection (b) or (c), 
including any arrangement to divide the costs to access the 
registry among various clients of a telemarketer or service 
provider.
  (f) Handling of Fees.--
          (1) In general.--The commission shall deposit and 
        credit as offsetting collections any fee collected 
        under this section in the account ``Federal Trade 
        Commission--Salaries and Expenses'', and such sums 
        shall remain available until expended.
          (2) Limitation.--No amount shall be collected as a 
        fee under this section for any fiscal year except to 
        the extent provided in advance by appropriations Acts.

           *       *       *       *       *       *       *

[SEC. 4. REPORTING REQUIREMENTS.

  [(a) Report on Regulatory Coordination.--Within 45 days after 
the promulgation of a final rule by the Federal Communications 
Commission as required by section 3, the Federal Trade 
Commission and the Federal Communications Commission shall each 
transmit to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report which shall include--
          [(1) an analysis of the telemarketing rules 
        promulgated by both the Federal Trade Commission and 
        the Federal Communications Commission;
          [(2) any inconsistencies between the rules 
        promulgated by each such Commission and the effect of 
        any such inconsistencies on consumers, and persons 
        paying for access to the registry; and
          [(3) proposals to remedy any such inconsistencies.
  [(b) Annual Report.--For each of fiscal years 2003 through 
2007, the Federal Trade Commission and the Federal 
Communications Commission shall each transmit an annual report 
to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report which shall include--
          [(1) an analysis of the effectiveness of the ``do-
        not-call'' registry as a national registry;
          [(2) the number of consumers who have placed their 
        telephone numbers on the registry;
          [(3) the number of persons paying fees for access to 
        the registry and the amount of such fees;
          [(4) an analysis of the progress of coordinating the 
        operation and enforcement of the ``do-not-call'' 
        registry with similar registries established and 
        maintained by the various States;
          [(5) an analysis of the progress of coordinating the 
        operation and enforcement of the ``do-not-call'' 
        registry with the enforcement activities of the Federal 
        Communications Commission pursuant to the Telephone 
        Consumer Protection Act (47 U.S.C. 227 et seq.); and
          [(6) a review of the enforcement proceedings under 
        the Telemarketing Sales Rule (16 CFR 310), in the case 
        of the Federal Trade Commission, and under the 
        Telephone Consumer Protection Act (47 U.S.C. 227 et 
        seq.), in the case of the Federal Communications 
        Commission.]

SEC. 4. REPORTING REQUIREMENTS.

  (a) Biennial Reports.--Not later than December 31, 2009, and 
biennially thereafter, the Federal Trade Commission, in 
consultation with the Federal Communications Commission, shall 
transmit a report to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee 
on Energy and Commerce that includes--
          (1) the number of consumers who have placed their 
        telephone numbers on the registry;
          (2) the number of persons paying fees for access to 
        the registry and the amount of such fees;
          (3) the impact on the ``do-not-call'' registry of--
                  (A) the 5-year reregistration requirement;
                  (B) new telecommunications technology; and
                  (C) number portability and abandoned 
                telephone numbers; and
          (4) the impact of the established business 
        relationship exception on businesses and consumers.
  (b) Additional Report.--Not later than December 31, 2009, the 
Federal Trade Commission, in consultation with the Federal 
Communications Commission, shall transmit a report to the 
Senate Committee on Commerce, Science, and Transportation and 
the House of Representatives Committee on Energy and Commerce 
that includes--
          (1) the effectiveness of do-not-call outreach and 
        enforcement efforts with regard to senior citizens and 
        immigrant communities;
          (2) the impact of the exceptions to the do-not-call 
        registry on businesses and consumers, including an 
        analysis of the effectiveness of the registry and 
        consumer perceptions of the registry's effectiveness; 
        and
          (3) the impact of abandoned calls made by predictive 
        dialing devices on do-not-call enforcement.

           *       *       *       *       *       *       *

                                  

```