A BILL TO BE ENTITLED
AN ACT to require telephone solicitors, when the telephone solicitor has previously obtained an account number, to obtain written or verbal consent before causing a new charge to the account.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 1 of Chapter 75 of the General Statutes is amended by adding a new section to read:
"§ 75-30.2.  Telephone solicitations; consent required for new charges to previously obtained accounts.
(a)	A telephone solicitor shall not charge or cause a charge to an account holder's account as a result of a previously obtained account number telephone solicitation unless the telephone solicitor first obtains authorization from the account holder for the specific charge discussed during the call.
(b)	Authorization under subsection (a) of this section is not effective until the account holder has been advised, clearly and conspicuously, of all of the following information:
(1)	That the telephone solicitor has the account holder's account number.
(2)	That the telephone solicitor is going to charge the account holder's account.
(3)	The specific account that will be charged.
(4)	The specific amount that the account holder's account will be charged.
(5)	The name, address, and telephone number of the person who will be charging the account holder's account.
(c)	An account holder's authorization may be in writing or may be given verbally. If the telephone solicitor uses written authorization, the telephone solicitor shall not charge the account holder's account until the account holder's written authorization is received by the telephone solicitor. If the telephone solicitor uses verbal authorization, either the authorization must be audiotaped by the telephone solicitor and the telephone solicitor must advise the account holder that the authorization is being recorded; or the account holder must disclose the last four digits of the account holder's account number so long as the telephone solicitor has reasonable procedures in effect to verify that such digits as provided by the account holder match the last four digits of the account to be charged. Telephone solicitors shall keep and maintain authorizations under this subsection for a period of two years and shall make them available to the account holder upon written request.
(d)	When a telephone solicitor utilizes a voice response unit, whether inbound or outbound, an account holder may give verbal authorization by providing the last four digits of the account holder's account number, an account number previously assigned to the account holder by the telephone solicitor, or an alternate unique identifier that enables the telephone solicitor to verify or confirm the account holder's authorization, so long as the information required under subsection (b) of this section is clearly and conspicuously disclosed to the account holder before the authorization is given. As used in this subsection, 'voice response unit' means a device that allows a user to provide or obtain information from a computer system using Touch-Tone input or speech input.
(e)	The following definitions apply in this section:
(1)	'Account' means a credit card, debit card, checking account, savings account, loan account, telephone service account, utility account, or other similar account.
(2)	'Account holder' means a consumer who owns an account or a consumer who has authority to cause a charge or debit to an account.
(3)	 'Authorization' means an account holder providing express consent to a telephone solicitor or person acting on behalf of the telephone solicitor to charge or cause to be charged the account holder's account for the purchase of goods or services.
(4)	'Charge' means a charge or debit, or an attempt to charge or debit, an account, whether by electronic or any other means, if that account can be charged without the express written authorization of the account holder to each specific charge or debit. Charge does not include a charge or debit, or an attempt to charge or debit, a telephone service account for local or long distance telecommunications services.
(5)	'Goods' or 'services' means goods or services that are normally used for personal, household, or family purposes.
(6)	'Previously obtained account number telephone solicitation' means a telephone call in which the telephone solicitor attempts to obtain account holder authorization for a current or future charge without obtaining the account number from the account holder during the call. 'Previously obtained account number telephone solicitation' does not include the sale of securities through a telephone call, if the telephone solicitor is a licensed securities agent or broker in the State. 'Previously obtained account number telephone solicitation' does not include a telephone call initiated by an account holder during which the person receiving the telephone call attempts to sell, offer for sale, or otherwise induce the account holder to purchase goods or services. 'Previously obtained account number telephone solicitation' does not include a call to or from a current customer of the telephone solicitor to renew or extend, inquire about or add goods or services if the customer has previously provided account information for billing purposes to the telephone solicitor and the telephone solicitor clearly and conspicuously discloses that such renewal or extension, or additional goods or services, will be debited to the same account.
(7)	'Telephone solicitor' has the same meaning as defined in G.S. 75‑30.1."
SECTION 2.  This act becomes effective October 1, 2003, and applies to telephone solicitations, as defined in G.S. 75‑30.1, made on or after that date.