BILL NUMBER: AB 88	CHAPTERED  07/22/03

	CHAPTER  77
	FILED WITH SECRETARY OF STATE  JULY 22, 2003
	APPROVED BY GOVERNOR  JULY 21, 2003
	PASSED THE SENATE  JULY 7, 2003
	PASSED THE ASSEMBLY  MARCH 17, 2003
	AMENDED IN ASSEMBLY  MARCH 13, 2003
	AMENDED IN ASSEMBLY  FEBRUARY 27, 2003

INTRODUCED BY   Assembly Members Corbett and Steinberg
   (Coauthors:  Assembly Members Dutra, Hancock, Jackson, Laird,
Lieber, Longville, and Vargas)

                        JANUARY 7, 2003

   An act to add Section 1670.6 to the Civil Code, relating to
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 88, Corbett.  Contracts:  telemarketing.
   The federal Telemarketing Sales Rule prohibits a seller or
telemarketer, as defined, from engaging in deceptive or abusive
telemarketing acts or practices, including, but not limited to, (1)
causing billing information to be submitted for payment, directly or
indirectly, without the express informed consent of the customer or
donor, as specified, and (2) keeping, for 24 months, certain
authorizations or records.
   Existing state law provides that certain contracts are unlawful.
   This bill would provide that any contract with a consumer located
in California that is made in connection with a telephone
solicitation for the purchase of certain goods or services is
unlawful if the telemarketer fails to comply with the provisions of
the Telemarketing Sales Rule described above, except as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1670.6 is added to the Civil Code, to read:
   1670.6.  A contract with a consumer located in California for the
purchase of a good or service that is made in connection with a
telephone solicitation made in or from outside of California and is
primarily for personal, family, or household use, is unlawful if,
with respect to that telephone solicitation, the telemarketer is in
violation of Section 310.4(a)(6)(i) of, or has not complied with
Section 310.5(a)(5) of, the Federal Trade Commission's Telemarketing
Sales Rule (16 C.F.R. Part 310), as published in the Federal
Register, Volume 68, Number 19, on January 29, 2003. This section
shall apply only to those entities subject to, and does not apply to
any transaction exempted under Section 310.6 of, the Telemarketing
Sales Rule (16 C.F.R. Part 310), as published in the Federal
Register, Volume 68, Number 19, on January 29, 2003.