Currently, department rules, Chapter
ATCP 127, Wis. Admin. Code, enacted in August 1999 prohibits a telemarketer from soliciting a consumer who has asked the telemarketer to place them on a "do not call" list. The rules also require a telemarketer to maintain systems for ensuring consumers on this list are not called. Under these new rules, DATCP will create a list and registered telemarketers will combine this list into their systems.
Based on experience, and the Department projects that a majority of Wisconsin households will register under this new law. Other states of equal population report nearly one million households are registered on their lists.
The Department assumes consumer registration will be made available through a toll-free telephone system as well as on-line forms. Because of the magnitude of the project, the Department is preparing requests for bids from outside sources. This estimate is based on an assumption that those bids will result in costs of approximately $400,000 annually.
The Department estimates a workload of 5,000 hours annually to intake and process consumer complaints administer the contracts with the vender to create and distribute the lists. To accomplish this, the Department will require 2.5 positions.
Complaints regarding telemarketing will double to approximately 1000 per year. The Department estimates 100 complaints per year will require assignment to investigative staff for detailed investigation. Typically, these investigations will involve multiple victims and multiple jurisdictions. The Department will require 2.0 FTE investigators for enforcement activities. The Department estimates the additional annual workload to oversee and administer the program and enforce the law will also require 1.0 FTE consumer complaint supervisor.
Based on these assumptions, the department estimates there will be a one-time cost of $53,400. Ongoing annual costs of $658,600 would be offset through license fees.
The Department is authorized to set initial registration fees to generate the funding necessary to create the list and renewal fees necessary to administer this program. The Department is proposing an initial registration fee of $800 plus a supplemental fee of $100 per each phone line if a business uses more than 3 lines to telemarket. The Department proposes a renewal fee of $600 plus a supplemental fee of $100 per each phone line if a business uses more than 3 lines to telemarket.
The Department assumes 375 (62%) telemarketers to register in year one, which will generate $564,000. An additional 225 new registrations as well as renewals in year two will generate $731,000. Year three will stabilize at 600 renewals and generate $677,000. In the first two years the program will create a deficit of $21,000. In year three the registration fees should begin to generate a small surplus, and if this continues through year 4, the department will have a surplus of $17,000 which it is assumed will be consumed by inflationary pressures.
Long – Range Fiscal Implications
Registration fees paid by telemarketing firms will offset the annual cost. The Department assumes the annual renewal to generate $664,000 to offset estimated costs of $658,600. If these estimates generate a small surplus, the Department proposes to hold the surplus to offset future registration price increases.
Initial Regulatory Flexibility Analysis
Rule Description
This rule regulates “telephone solicitations" to persons located in this state, regardless of where the calls originate. This rule requires telemarketers to register annually with DATCP. Registered telemarketers will be provided a list that is compiled by DATCP containing the telephone numbers of consumers who do not want to be solicited by telephone. Telemarketers will be prohibited from soliciting by phone any consumer who is on the “no call" list.
“Telephone Solicitations" Covered
A “telephone solicitation" means an unsolicited telephone call for the purpose of encouraging the call recipient to buy property, goods or services, or that is part of a plan or scheme to encourage the call recipient to buy property, goods or services. “Telephone solicitation" does not include any of the following:
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A telephone call encouraging the call recipient to buy property, goods or services from a “nonprofit organization" solely for the benefit of that organization.
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A telephone call made in response to the call recipient's request for that call.
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A telephone call made to a current client of the person selling the property, goods or services promoted by the telephone call.
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A telephone call made to a number listed in the current local business telephone directory.
Telemarketers Must Register
Registration expires on December 31 of each year. Under this rule:
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No person may employ or contract with any individual to make telephone solicitations to residential telephone customers unless that person is currently registered with DATCP.
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No individual may make a telephone solicitation to a residential telephone customer unless one of the following applies:
- The individual is employed by, or acting as the contract agent of, a person currently registered with DATCP.
- The individual is currently registered with DATCP.
Telemarketer Registration Form
To register with DATCP, a person must complete an annual registration form and pay annual fees. The registration form must include all the following:
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The registrant's correct legal name, and all trade names under which the registrant does business.
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The registrant's principal business address and telephone number. The business address must include street address, zip code, state and nation.
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The registrant's federal tax identification (FEIN) number.
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The name and address of the registrant's registered agent in this state, if any.
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The name and address of a person who will accept service of process on behalf of the registrant, if other than a registered agent in this state.
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The name, address and telephone number of a person who may respond, on behalf of the registrant, to DATCP notices and inquiries.
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The number of telephone lines used, by individuals acting as employees or agents of the registrant, to make telephone solicitations. The registrant must provide the telephone number associated with each of these lines.
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The number of individuals who make telephone solicitations as employees or agents of the registrant. The registrant must provide the names of the individuals if DATCP requests those names.
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A statement indicating the form in which the registrant wishes to receive “no-call" lists. A registrant may receive “no-call" lists in one or more of the following forms:
- By e-mail transmission to an e-mail address provided by the registrant.
- As a compact disc, mailed to an address provided by the registrant.
- In hard-copy printed form, mailed to an address provided by the registrant.
Telemarketer Registration Fees
A telemarketer registering with DATCP must pay the following annual fees:
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A basic annual registration fee of $800 for the first year of registration, and $600 for each year thereafter.
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A supplementary fee for each telephone line used by the registrant (or the registrant's employees or individual agents) to make telephone solicitations. The fee amount is $100 per telephone line if the registrant (and the registrant's employees and agents) use more than 3 lines.
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A supplementary fee of $25 for each additional e-mail address to which the registrant would like DATCP to send the “no-call" list (if more than one e-mail address).
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A supplementary fee of $25 for each additional copy of the list which the registrant would like DATCP to send in compact disc form.
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A supplementary fee of $1,000 for each address to which the registrant would like DATCP to send the “no-call" list in hard-copy print form.
Updating the List
DATCP must compile and distribute an updated “no-call" list every 3 months. DATCP must distribute updated lists in the same manner as the initial list. DATCP must delete a residential telephone customer from the “no-call" list 2 years after that customer last signed up for inclusion on the list. A customer may renew at any time.
Small Businesses Affected by this Rule
This rule affects businesses that solicit residential consumers for the purpose of encouraging the call recipient to buy property, goods or services. The rule will effect “professional" telemarketers who solicit on behalf of others as well as businesses that solicit on their own behalf. The bureau assumes approximately 600 businesses that offer to sell a wide variety of consumer products will be required to register. Many of these businesses are “small businesses" as defined in s.
227.114 (1) (a), Stats.
Effects on Small Business
This rule will have an impact on small business. Under current law, all businesses that telemarket must keep a no call list consisting of persons who inform the business that they do not want to be called again. Under this rule the business will have to add the telephone numbers compiled by the State to their no call list. The department will provide the consumer information in a format that is readable by all computer systems. Any Wisconsin business that telemarkets into one of the more than 20 States that currently have do not call laws will already have already implemented systems to fulfill the requirements contained in this rule. Others may have a one-time cost of reprogramming their systems. This one-time cost is expected to have a slight impact on small business.
The cost of administering the program is mandated by statute to be funded through registration fees for businesses that telemarket. The fees are based on the number of lines that are used to solicit so a small business will pay less than a large telemarketer with multiple lines.
Steps to Assist Small Business
The registration fees are based on the number of lines a telemarketer uses to solicit and the first three telephone lines are included under the base fee. The rules also have exceptions for businesses calling their own customers or responding to a request by a consumer for a call. Both of these exceptions should assist small business.
Conclusion
This rule will have a minor impact on small business. Small business will have one-time costs to upgrade existing systems to accept the lists and combine them with current lists. The long term impact of not telemarketing persons who do not wish to be telemarketed are expected to be minor. This rule will have the long term cost of annual fees for registration. The department has taken reasonable steps to share the costs of the program equitably among those who are regulated.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to s.
15.03, Stats., the Division of Hearings and Appeals will hold a public hearing to consider the repeal and recreation of ch.
HA 1 relating to the practice and procedure for contested cases conducted by the Division.
Hearing Information
The hearing will be held as follows:
April 26, 2002 Division of Hearings and Appeals
Friday Suite 201
9:30 a.m. 5005 University Avenue
Madison, WI
(Corner of University Ave. & Whitney Way)
The hearing site is fully accessible to people with disabilities. Parking for people with disabilities is available at the east end of the building.
The pubic record on this proposed rule making will be held open until close of business May 3, 2002 to permit the submission of written comments from persons unable to attend the public hearing or those who wish to supplement testimony offered at the hearing. Any such comments should be sent to Louis Dunlap, Division of Hearings and Appeals, P.O. Box 7875, Madison, WI 53707-7875.
Analysis Prepared by the Division of Hearings and Appeals
These proposed rules describe the requirements and process for those individuals and organizations bringing contested case proceedings before the Division of Hearings and Appeals.
Before government reorganization in 1996, the office of administrative hearings located in the department of health and social services, in addition to “fair hearings" for individual recipients of various benefit programs, conducted a variety of contested case proceedings under Wis. Stat. ch.
227 relating to actions taken by the department concerning licensure, Medicaid funds and many other topics. The division of hearings and appeals, in addition to probation and parole hearings, also was conducting contested case proceedings for the department of natural resources and other state agencies in accordance with its own rule, ch.
HA 1. In the course of reorganization, the office of administrative hearings merged with the division of hearings and appeals and the combined offices have since added more types of proceedings for other state departments. These changes, as well as the fact that ch.
HA 1 was outdated, create the need for a revised and expanded rule governing the hearing process for these types of cases.
The proposed rule:
• Describes the process, requirements and time limits for requesting a hearing.
• Describes the process for service of documents.
• Describes the requirements for notices of hearing.
• Defines the powers of the administrative law judge who conducts the hearing, the manner in which a hearing will be conducted and the consequences of failure to appear at a scheduled hearing.
• Defines the limits on preservation of evidence and discovery.
• Defines the application of the rules of evidence.
• Defines the circumstances under which transcripts may be made for parties.
• Describes the form of hearing decisions, defines the burden of proof, and the process for the issuance of proposed decisions.
• Provides the requirements for decisions regarding further review or appeal of a decision.
Initial Regulatory Flexibility Analysis
The proposed rules are not anticipated to have a fiscal effect on small businesses as defined under s.
227.114 (a), Stats.
Fiscal Estimate
There is no fiscal effect, as these rules regulate a process already performed.
Contact Person
To find out more about the hearing or to request a copy of the proposed rules, write or telephone:
Louis Dunlap
