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1/15/2009
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The Associated Press State & Local Wire
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A Senate leader's bill for protecting consumers from unscrupulous telemarketers probably is unconstitutional on free speech grounds, the attorney general's office told legislators Thursday.
But Senate Majority Leader Derek Schmidt, an Independence Republican, said he remains confident that the state can enact new restrictions on telemarketers who solicit money for charities.
The Senate Judiciary Committee had a hearing on Schmidt's bill, which would force solicitors to disclose over the phone how much of the money they're raising actually would go to the charities. The committee expects to debate the measure Friday.
Schmidt's proposal already faced skepticism before Assistant Attorney General Lee Everett Urban told members it probably would violate telemarketers' free speech rights by directing them what to say over the phone. Urban oversees the enforcement of existing restrictions on charity fundraising.
Sen. Terry Bruce, who's an attorney, described the free speech issues as "compelling."
"Isn't it just easier for the public to ask questions?" said Bruce, a Hutchinson Republican, during the hearing. "Shouldn't, at some point, the buyer beware?"
But Schmidt's proposal has support from AARP, and he said he's trying to help elderly Kansans and others who may be vulnerable to aggressive telemarketers.
State law already requires many charities raising money in Kansas to register annually with the secretary of state's office. Professional fundraising firms also are required to register each year.
The charities must file annual reports or tax returns, disclosing how much they spend on administrative costs and their fundraising efforts. In soliciting contributions, the charities are supposed to provide a registration number to consumers. And if a professional fundraiser is doing the calling, it must provide its registration number as well.
But Schmidt said many Kansans still don't have the crucial information of how much money actually will go to the charity on hand when they're called.
"Kansans are really giving in a vacuum," he said. "The purpose of this is to put this information on the table."
Schmidt, who's also an attorney, is considered a potential GOP candidate for attorney general in 2010. Attorney General Steve Six, a Democrat, was appointed a year ago to fill a vacancy in that office and is expected to seek a full, four-year term.
Urban said Six shares Schmidt's goals. However, in 1988, Urban testified, the U.S. Supreme Court struck down a similar North Carolina law over free speech concerns.
Still, Urban's comments failed to persuade Schmidt. He said his proposal is less burdensome than the North Carolina law, which makes it acceptable.
"We're going to try to see if we can reach an agreement on distinguishing what we're proposing from what North Carolina did," Schmidt said. "I think we can."
The telemarketing measure is SB 6.
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