A BILL TO BE ENTITLED
AN ACT to establish a program that provides postal patrons with the option to reject unsolicited commercial mailings.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 75 of the General Statutes is amended by adding a new Article to read:
"Article 6.
"Unsolicited Commercial Mailings.
"§ 75‑120.  Short title.
This Article may be cited as the "North Carolina Junk Mail Opt‑Out List Act".
"§ 75‑121.  Legislative findings.
The General Assembly makes the following findings:
(1)	Unsolicited bulk mail ("junk mail") now represents a major portion of the budget and workload of the United States Postal Service, with over 90 billion pieces delivered per year, and annually accounts for millions of pounds of trash in North Carolina and the destruction of 100 million trees nationwide for paper pulp.
(2)	The proliferation of junk mail has included a sharp rise in the number of deceptively packaged commercial solicitations, disguised as official government correspondence, that have been used to perpetrate fraud against the elderly and the unsophisticated.
(3)	Many citizens of this State view junk mail as an imposition on their time and an invasion of their privacy.
(4)	Junk mail is a large, unnecessary source of solid waste and imposes an unnecessary burden on the environment for which taxpayers bear the cost.
(5)	Individual rights and commercial freedom of speech should be balanced in a way that accommodates both individual choice and legitimate marketing practices.
(6)	Although political organizations and charitable organizations, as defined in G.S. 131F‑2, are exempt from this Article in order not to hamper the free flow of ideas in our democracy. The General Assembly encourages such organizations to voluntarily comply with this Article when possible.
(7)	It is in the public interest to establish a mechanism under which the individual citizens of this State can decide whether or not to receive unsolicited bulk mail.
"§ 75‑122.  Definitions.
As used in this Article, the following definitions apply:
(1)	Bulk mailer. – A person or entity that sends, on behalf of itself or another person or entity, substantially similar pieces of mail to 25 or more postal patrons.
(2)	Conforming consolidated junk mail opt‑out list. – Any database that includes addresses of postal patrons that do not wish to receive junk mail, if such database has been updated within the immediately preceding 30 days to include all of the addresses on the North Carolina Junk Mail Opt‑Out List.
(3)	Conforming list broker. – Any person or entity that provides lists for the purpose of bulk mailings, if such lists remove, at a minimum of every 30 days, any addresses that are included on the North Carolina Junk Mail Opt‑Out List.
(4)	Designated agent. – The party with which the North Carolina Utilities Commission contracts under G.S. 75‑124(b).
(5)	Established business relationship. – A relationship that satisfies all of the following conditions:
a.	Was formed, prior to the sending of junk mail, through a voluntary, two‑way communication between a seller or bulk mailer and a postal patron, with or without consideration, on the basis of an application, purchase, ongoing contractual agreement, or commercial transaction between the parties regarding products or services offered by such seller or bulk mailer.
b.	Has not been previously terminated by either party.
c.	Currently exists or has existed within the immediately preceding 18 months.
'Established business relationship', with respect to a financial institution or affiliate, as those terms are defined in section 527 of the federal Gramm‑Leach‑Bliley Financial Modernization Act, Pub. L. 106‑102, 113 Stat, 1388, includes any situation in which a financial institution or affiliate makes bulk mailings related to other financial services offered, if the financial institution or affiliate is subject to the requirements regarding privacy of Title V of the federal Gramm‑Leach‑Bliley Financial Modernization Act, Pub. L. 106‑102, 113 Stat, 1388, and the financial institution or affiliate regularly conducts business in North Carolina.
(6)	Junk mail. – Any printed matter sent by mail for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services. 'Junk mail' does not include any of the following communications:
a.	To any postal patron with that postal patron's prior express invitation or permission.
b.	By or on behalf of any person or entity with whom a postal patron has had a business contact within the past 180 days or a current business or personal relationships.
c.	By or on behalf of a charitable organization, as defined in G.S. 131F‑2.
d.	By or on behalf of any entity over which a federal agency has regulatory authority, to the extent that:
1.	Subject to authority, the entity is required to maintain a license, permit, or certificate to sell or provide the merchandise being offered through bulk mail; and
2.	The entity is required by law or rule to develop and maintain a no‑mail list.
e.	By a natural person responding to a referral, or working from his or her primary residence, or a person licensed or registered in North Carolina to carry on a trade, occupation, or profession who is setting or attempting to set an appointment for actions relating to that licensed trade, occupation, or profession within North Carolina or counties contiguous to North Carolina.
(7)	Postal patron. – Any person having a mailing address in North Carolina, as shown by records of the United States Postal Service.
"§ 75‑123.  Unlawful to send junk mail to postal patrons on the North Carolina Junk Mail Opt‑Out List; requirements for junk mail generally.
(a)	No person or entity shall send or cause to be sent any junk mail to the address of any postal patron who has added that address to the North Carolina Junk Mail Opt‑Out List in accordance with rules adapted under G.S. 75‑124.
(b)	Any person or entity that sends junk mail to the address of any postal patron in this State shall register in accordance with G.S. 75‑124(c)(2), shall provide a current business name, business address, e-mail address, if available, and telephone number when initially registering for the North Carolina Junk Mail Opt‑Out List, shall update this information when any change in this information occurs, and shall pay a registration fee in accordance with G.S. 75‑124(c)(2).
(c)	Any person or entity that desires to send junk mail shall update its copy of the North Carolina Junk Mail Opt‑Out List, or a list obtained from a conforming list broker within 30 days after the beginning of every calendar quarter no later than January 1, 2008, or upon the initial availability and accessibility of the North Carolina Junk Mail Opt‑Out List, whichever is earlier.
"§ 75‑124.  Establishment and operation of a North Carolina Junk Mail Opt‑Out List; rules. 
(a)	The North Carolina Junk Mail Opt‑Out List Program is created for the purpose of establishing a database to use when verifying whether a postal patron in this State has given notice, in accordance with rules adopted under subdivision (2) of subsection (c) of this section, of such postal patron's objection to receiving junk mail. The program shall be administered by the North Carolina Utilities Commission.
(b)	No later than January 1, 2008, the North Carolina Utilities Commission shall contract with a designated agent, which shall maintain an Internet Web site and database containing the North Carolina Junk Mail Opt‑Out List. If no more than one entity bids on the contract, the North Carolina Utilities Commission may award such contract at its discretion.
(c)	No later than January 1, 2008, the designated agent using the designated State Internet Web site shall develop and maintain the North Carolina Junk Mail Opt‑Out List database with information provided by postal patrons. The North Carolina Utilities Commission shall establish, by rule, guidelines for the designated agent for the development and maintenance of the North Carolina Junk Mail Opt‑Out List so that the Junk Mail Opt‑Out List can easily be accessed by any person or entity desiring to send junk mail, and by any State and local law enforcement agency. As soon as practicable, the North Carolina Utilities Commission shall adopt rules that provide for all of the following:
(1)	Specify that there shall be no cost for a postal patron to provide notification to the designated agent that such postal patron objects to receiving junk mail.
(2)	Specify that any person or entity that wishes to send junk mail or otherwise access the database of addresses contained in the North Carolina Junk Mail Opt‑Out List database shall pay an annual registration fee not to exceed five hundred dollars ($500.00). The North Carolina Utilities Commission shall determine such fee on a sliding scale so that any person or entity with more than 1,000 employees shall pay the maximum fee and any person or entity with fewer than five employees, any conforming list broker, or any nonprofit corporation shall pay no fee. Moneys collected from these fees shall be used to pay the direct and indirect costs related to the creation and operation of the North Carolina Junk Mail Opt‑Out List. Moneys from such fees shall be collected by and paid directly to the designated agent. The North Carolina Utilities Commission may reduce the fees annually based on the revenue history of the fees received by the designated agent. The designated agent shall provide a means for registering online and paying registration fees under this subdivision by credit card.
(3)	Specify that the method by which each postal patron may give notice to the designated agent of his or her objection to receiving junk mail, or may revoke such notice, shall be exclusively by entering the address of the postal patron directly into the database via the designated Internet Web site or by calling a designated statewide, toll‑free telephone number maintained by the designated agent as part of the North Carolina Junk Mail Opt‑Out List.
(4)	Specify that the date of every notice received in accordance with subdivision (3) of this subsection be recorded and included as part of the information in the North Carolina Junk Mail Opt‑Out List.
(5)	Require the designated agent to provide updated information about the Junk Mail Opt‑Out List Program on the designated Web site, subject to the supervision of the North Carolina Utilities Commission.
(6)	Prohibit the designated agent or any person or entity collecting information to be transmitted to the designated agent from making any use or distribution of names or addresses contained in the Junk Mail Opt‑Out List except as expressly authorized under this Article.
(7)	Specify the method by which any addition, deletion, change, and modification shall be made to the North Carolina Junk Mail Opt‑Out List database and how any update of the database shall be made available to a person or entity desiring such update. Any such method shall include provisions to remove from the North Carolina Junk Mail Opt‑Out List, on at least an annual basis, any address from which the original postal patron has moved away.
(8)	Require the designated agent to maintain an automated, online complaint system for a postal patron to report any suspected violation over the Internet Web site. The automated, online complaint system shall have the capability to collect, sort, and report a suspected violation to the appropriate State enforcement agency electronically for enforcement purposes.
(9)	Specify that the Junk Mail Opt‑Out List shall be available online at the Internet Web site to a person or entity desiring to send junk mail if the person or entity has registered and paid a registration fee in accordance with subsection (b) of G.S. 75‑123 and subdivision (2) of this subsection. The list shall be available in a text or other compatible format, at the discretion of the North Carolina Utilities Commission, but shall allow a bulk mailer to select and sort by specific zip codes.
(10)	Specify such other matters relating to the database as the North Carolina Utilities Commission deems necessary or desirable to implement this Article.
(d)	If the federal government establishes one or more official databases of postal patrons who object to receiving junk mail, the designated agent may provide appropriate data from the official North Carolina Junk Mail Opt‑Out List exclusively for inclusion in an official National Do‑Not‑Mail database. To the extent allowed by federal law, the designated agent shall ensure that the North Carolina Junk Mail Opt‑Out List includes that portion of an official National Do‑Not‑Mail database that relates to North Carolina.
(e)	The State shall not be liable to any person for gathering, managing, or using information in the North Carolina Junk Mail Opt‑Out List database pursuant to this Article and for enforcing the provisions of this Article.
(f)	The designated agent shall not be liable to any person for performing the duties of the designated agent under this Article unless, and only to the extent that, the designated agent commits a willful and wanton act or omission.
(g)	As soon as practicable, the designated agent shall update the database, on an ongoing basis, with information provided by postal patrons and the United States Postal Service.
(h)	No person shall place the address of another person on the North Carolina Junk Mail Opt‑Out List without the person's permission.
"§ 75‑125.  Enforcement; penalties; defenses.
(a)	A violation of any provision of this Article constitutes a deceptive trade practice under G.S. 75‑1.1. No State enforcement action under this Article may be brought against a person or entity for fewer than three violations per month.
(b)	Each of the following is a defense for a violation of this Article:
(1)	The person or entity has otherwise fully complied with this Article and has established and implemented, prior to the violation, written practices and procedures to effectively prevent the sending of junk mail in violation of this Article.
(2)	The violation resulted from an error in transcription or other technical defect, not the fault of the person or entity or equipment or software within its control, that caused the information in the North Carolina Junk Mail Opt‑Out List as received by the person or entity to differ from the information that was or should have been included in the Junk Mail Opt‑Out List as transmitted by the designated agent.
(c)	The remedies, duties, prohibitions, and penalties of this section are not exclusive and are in addition to any other cause of action, remedy, and penalty provided by law.
(d)	No provider of address information or address lists shall be held liable for violations of this Article committed by another person or entity.
"§ 75‑126.  Severability.
If any provision of this Article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Article that can be given effect without the invalid provision or application, and to this end the provisions of this Article are severable."
SECTION 2.  This act becomes effective January 1, 2008.