Fax Bill Clears Committee

Fax Bill Clears Committee

NADA Pushing for Passage this Year

Before closing up shop for the July 4th recess, the House Energy and Commerce committee voted unanimously in favor of H.R. 4600, the Junk Fax Prevention Act of 2004, legislation aiming to restore the –established business relationship” provision governing fax communications. The measure would block pending Federal Communications Commission (FCC) rules, scheduled to take effect January 1, 2005, that will require anyone who sends a business fax to get written permission in advance from all recipients.

A coalition of organizations, including NADA, American Society of Association Executives (ASAE) and the National Federation of Independent Business, has been working on this issue for well over a year now.

In earlier testimony to the committee, NADA President Phil Brady called the FCC’s rule –unworkable” and urged Congress to rescind it before it takes effect Jan. 1. Without legislative action, Brady said –there will be severe disruption to trade associations in communications with their members and businesses responding to their customers’ needs.”

NADA says the FCC rules would create impossible record-keeping burdens for businesses. Anyone who violates the rules would be subject to lawsuits and FCC fines of as much as $11,000 per incident, according to Automotive News.

Dawn P. Latham, ASAE director of public policy, pointed out that H.R. 4600, as it comes out of Committee, reestablishes the established business relationship provision.

–The bill also requires a mandatory •opt-out, for unsolicited faxes,” said Latham. –However, the legislation does allow for the FCC to make the decision to waive the opt-out provision for tax-exempt organizations faxing members on issues related to their exempt purpose.

–The Committee also agreed to allow the FCC, after three years time, to reevaluate whether a time limit on the EBR provision is needed,” she said.

Following the committeeês vote, the bill will now move onto the floor of the House, and a similar bill is expected to be introduced in the Senate. Lawmakers on both sides of the aisle show support for the bill. NADA is optimistic that the billês bipartisan backing means the measure has a good chance of becoming law this year, despite election-year politics that keeps most legislation bottled up. WANADA President Gerry Murphy serves on the ASAE Public Policy Committee, which, as mentioned, works closely with NADA on this issue.