BILL NUMBER: S412

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
unsolicited telemarketing sales calls during certain declared states of
emergency

 
PURPOSE:

To clarify that the prohibition on knowingly making an unsolicited tele-
marketing call applies only when the declaration of a state of emergency
includes a finding that unsolicited calls would impair actions taken to
limit, control, or mitigate the emergency.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 399-z of the general business law
to clarify that the prohibition on knowingly making an unsolicited tele-
marketing call applies only when the declaration of a state of emergency
includes a finding that unsolicited telemarketing calls would impair
              

actions taken to limit, control, or mitigate the emergency. Any prohibi-
tion on unsolicited telemarketing calls is valid for a period of two
weeks and can be renewed for additional two-week periods upon further
findings that unsolicited telemarketing calls would impair actions taken
to limit, control, or mitigate the emergency.

Section 2 amends section 399-pp of the general business law to clarify
that the prohibition on knowingly making an unsolicited telemarketing
call applies only when the declaration of a state of emergency includes
a finding that unsolicited telemarketing calls would impair actions
taken to limit, control, or mitigate the emergency. Any prohibition on
unsolicited telemarketing calls is valid for a period of two weeks and
can be renewed for additional two-week periods upon further findings
that unsolicited telemarketing calls would impair actions taken to
limit, control, or mitigate the emergency.

Section 3 of the bill states the effective date.

 
JUSTIFICATION:

Currently, General Business Law Section 399-z (5-a) prohibits telemar-
keting calls from being made to New Yorkers who reside in locations
affected by a state of emergency declared by the Governor.  As a result,
this law has prohibited telemarketing from taking place anywhere in the
State since March 2020, because the Governor declared a statewide emer-
gency due to the Covid-19 pandemic as well as successive subsequent
statewide emergencies related to other matters.

When Subdivision (5-a) was enacted in 2019, it was intended to take a
targeted approach to restricting telemarketing activities during a
declared emergency, as traditionally, state of emergency disasters are
short term and geographically limited to areas that experience a public
emergency, such as a storm or public safety event, a civil disturbance
or terrorism-related activity. With respect to Covid-19 and the ensuing
gun violence emergency declaration, these states of emergency pronounce-
ments have encompassed the entire state and have been longterm events.

An unforeseen consequence of this law is that an important tool utilized
by legitimate businesses to reach customers to help educate them regard-
ing products or services that may be valuable to their businesses,
employees or their own families, has been eliminated.

This bill would correct the unanticipated consequences unleashed by the
current law's enactment by limiting the telemarketing prohibition to
only emergency declarations where it is determined that unsolicited
telemarketing sales calls would impair actions taken to limit, control,
or mitigate the emergency and explains the basis of such finding. In the
event the State determines telemarketing calls would impair such
actions, this bill would mandate such prohibition be in place for a
period of two weeks.

The two-week review period allows businesses to move forward with their
normal business-related functions, including those encompassing telemar-
keting activities, in circumstances under which a declared state of
emergency extends beyond two weeks but problems or impairments from
unsolicited telemarketing calls have been resolved within a shortened
period. This serves the binary goals of avoiding an unnecessary
disruption of essential business activities, while keeping a broader
state of emergency in place, if necessary.

 
LEGISLATIVE HISTORY:

2021-22: S.7656 (Thomas) / A.8662 (Cusick) - Referred to Consumer
Protection.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.