Sweepstakes Toll-Free Option Protection Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sweepstakes Toll-Free Option 
Protection Act of 1999''.

SEC. 2. REQUIREMENTS OF PROMOTERS OF SKILL CONTESTS OR SWEEPSTAKES 
              MAILINGS.

    (a) In General.--Chapter 30 of title 39, United States Code, is 
amended by adding after section 3015 the following:
``Sec. 3016. Nonmailable skill contests or sweepstakes matter; 
              notification to prohibit mailings
    ``(a) Definitions.--In this section, the term--
            ``(1) `promoter' means any person who originates and causes 
        to be mailed any skill contest or sweepstakes;
            ``(2) `removal request form' means a written form stating 
        that an individual--
                    ``(A) does not consent to the name and address of 
                such individual being included on any list used by a 
                promoter for mailing skill contests or sweepstakes; and
                    ``(B) elects to have such name and address excluded 
                from any such list;
            ``(3) `skill contest' means a puzzle, game, competition, or 
        other contest in which--
                    ``(A) a prize is awarded or offered;
                    ``(B) the outcome depends predominately on the 
                skill of the contestant; and
                    ``(C) a purchase, payment, or donation is required 
                or implied to be required to enter the contest; and
            ``(4) `sweepstakes' means a game of chance for which no 
        consideration is required to enter.
    ``(b) Nonmailable Matter.--
            ``(1) In general.--Matter otherwise legally acceptable in 
        the mails described under paragraph (2)--
                    ``(A) is nonmailable matter;
                    ``(B) shall not be carried or delivered by mail; 
                and
                    ``(C) shall be disposed of as the Postal Service 
                directs.
            ``(2) Nonmailable matter described.--Matter that is 
        nonmailable matter referred to under paragraph (1) is any 
        matter that--
                    ``(A) is a skill contest or sweepstakes; and
                    ``(B) is addressed to an individual who made an 
                election to be excluded from lists under subsection 
                (e).
    ``(c) Requirements of Promoters.--
            ``(1) Notice to individuals.--Any promoter who mails a 
        skill contest or sweepstakes shall provide with each mailing a 
        clear and conspicuous statement that--
                    ``(A) includes the address and toll-free telephone 
                number of the notification system established under 
                paragraph (2); and
                    ``(B) states the system can be used to prohibit the 
                mailing of any skill contest or sweepstakes to such 
                individual.
            ``(2) Notification system.--Any promoter that mails a skill 
        contest or sweepstakes shall participate in the establishment 
        and maintenance of a uniform notification system that provides 
        for any individual (or other duly authorized person) to notify 
        the system of the individual's election to have the name and 
        address of the individual excluded from any list of names and 
        addresses used by any promoter to mail any skill contest or 
        sweepstakes; and
    ``(d) Notification System.--
            ``(1) Call to toll-free number.--If an individual contacts 
        the notification system through use of the toll-free telephone 
        number published under subsection (c)(2), the system shall--
                    ``(A) inform the individual of the information 
                described under subsection (c)(1)(B);
                    ``(B) inform the individual that a removal request 
                form shall be mailed within such 7 business days; and
                    ``(C) inform the individual that the election to 
                prohibit mailings of skill contests or sweepstakes to 
                that individual shall take effect 30 business days 
                after receipt by the system of the signed removal 
                request form or other signed written request by the 
                individual.
            ``(2) Removal request form.--Upon request of the 
        individual, the system shall mail a removal request form to the 
        individual not later than 7 business days after the date of the 
        telephone communication. A removal request form shall contain--
                    ``(A) a clear, concise statement to exclude a name 
                and address from the applicable mailing lists; and
                    ``(B) no matter other than the form and the address 
                of the notification system.
    ``(e) Election To Be Excluded From Lists.--
            ``(1) In general.--An individual may elect to exclude the 
        name and address of such individual from all mailing lists used 
        by promoters of skill contests or sweepstakes by mailing a 
removal request form to the notification system established under 
subsection (c).
            ``(2) Response after mailing form to the notification 
        system.--Not later than 30 business days after receipt of a 
        removal request form, all promoters who maintain lists 
        containing the individual's name or address for purposes of 
        mailing skill contests or sweepstakes shall exclude such 
        individual's name and address from all such lists.
            ``(3) Effectiveness of election.--An election under 
        paragraph (1) shall--
                    ``(A) be effective with respect to every promoter; 
                and
                    ``(B) remain in effect, unless an individual 
                notifies the system in writing that such individual--
                            ``(i) has changed the election; and
                            ``(ii) elects to receive skill contest or 
                        sweepstakes mailings.
    ``(f) Promoter Nonliability.--A promoter, or any other person 
maintaining the notification system established under this section, 
shall not have civil liability for the exclusion of an individual's 
name or address from any mailing list maintained by a promoter for 
mailing skill contests or sweepstakes, if--
            ``(1) a request for removal form is received by the 
        notification system; and
            ``(2) the promoter or person maintaining the system has a 
        good faith belief that the request is from--
                    ``(A) the individual whose name and address is to 
                be excluded; or
                    ``(B) another duly authorized person.
    ``(g) Prohibition on Commercial Use of Lists.--
            ``(1) In general.--
                    ``(A) Prohibition.--No person may provide any 
                information (including the sale or rental of any name 
                or address) in a list described under subparagraph (B) 
                to another person for commercial use.
                    ``(B) Lists.--A list referred to under subparagraph 
                (A) is any list of names and addresses (or other 
                related information) used, maintained, or created by 
                the system established by this Act.
            ``(2) Civil penalty.--Any person who violates paragraph (1) 
        shall be assessed a civil penalty by the Postal Service.
    ``(h) Civil Penalties.--
            ``(1) In general.--Any promoter--
                    ``(A) who recklessly mails nonmailable matter in 
                violation of subsection (b) shall be liable to the 
                United States in an amount of $10,000 per violation for 
                each mailing of nonmailable matter; or
                    ``(B) who fails to substantially comply with the 
                requirements of subsection (c)(2) shall be liable to 
                the United States.
            ``(2) Enforcement.--The Postal Service shall assess civil 
        penalties under this section.''.
    (b) Technical and Conforming Amendments.--The table of sections for 
chapter 30 of title 39, United States Code, is amended by adding after 
the item relating to section 3015 the following:

``3016. Nonmailable skill contests or sweepstakes matter; notification 
                            to prohibit mailings.''.

SEC. 3. STATE LAW NOT PREEMPTED.

    Nothing in this Act shall be construed to preempt any provision of 
State or local law.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 1 year after the 
date of enactment of this Act.

Summary: Requires any promoter who mails a skill contest or sweepstakes to: (1) provide with each mailing a clear and conspicuous statement that includes the address and toll-free telephone number of  such notification system and states that it can be used to prohibit the mailing of any skill contest or sweepstakes to such individual; and (2) participate in the establishment and maintenance of a uniform notification system that provides for any individual or other duly authorized person to notify the system of the individual's election to have his or her name and address excluded from all lists of names and address used by that promoter to mail such material.
Prohibits the commercial use of any list of names and addresses used, maintained, or created by the system.
Establishes civil penalties for: (1) persons who violate the prohibition; and (2) promoters who recklessly mail such nonmailable matter or fail to comply substantially with the notification system requirements.