HB506 Alabama 2017 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2017

Title

Telemarketing, exemption for newspapers and magazines, further provided for, Sec. 8-19A-4 am'd.

Summary

HB506 clarifies and expands exemptions in Alabama's Telemarketing Act for newspaper and magazine sales, including magazine memberships and IRS-related income deferral status.

What This Bill Does

It clarifies that including a gift package or offering a magazine as part of a membership does not remove the solicitation from being exempt. It specifies that a magazine solicitation remains exempt if the magazine is approved for income deferral under the Internal Revenue Code Section 455 and the IRS accepts the election. It reinforces that the exemption covers those primarily soliciting the sale of newspapers, periodicals, or magazines, including when soliciting on behalf of the publisher.

Who It Affects

• Publishers and sellers of newspapers, periodicals, and magazines, and their telemarketing staff, who may continue to qualify for exemption under the clarified rules.
• Telemarketing firms and campaigns that solicit sales or memberships for newspapers or magazines, subject to the amended exemption criteria.

Key Provisions

• The gift package or magazine included as part of a membership does not preclude the solicitation from being considered primarily soliciting the sale of a newspaper, periodical, or magazine.
• A magazine solicitation is exempt if the magazine has an IRS-approved election to defer income under IRC Section 455 and the IRS accepts that election.
• The exemption applies to those primarily soliciting the sale of newspapers, periodicals, or magazines, including when soliciting on behalf of a publisher.
• The act becomes effective immediately after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telemarketing