Thank you, Mr. Chairman, for holding this hearing today on a Committee Print of the Junk Fax Protection Act of 2004. I commend you for leading a strong, bipartisan Committee response on this matter.

We are here today because the Federal Communications Commission (FCC), as part of its Do-Not-Call order last year, reversed its existing business relationship (EBR) policy regarding junk faxes, and its new rule will take effect on January 1, 2005.

The FCC's new rule will create a requirement that permission to receive junk faxes must be in writing and include the recipient's signature. Despite the agency's intent, this new rule may quickly become an onerous burden, especially on small businesses and trade associations. For example, under the Commission's new policy, if I would like my favorite restaurant to fax me an updated menu, I must first deliver to it a signed waiver giving it permission to do so. Not surprisingly, commercial enterprises are extremely and justifiably concerned about the impact of the FCC's new junk fax rules.

The draft legislation primarily takes two corrective steps. First, it codifies a modified version of the FCC's current twelve-year-old junk fax EBR policy that is set to end this year. To provide further protection to consumers, however, that policy will be changed to permit recipients to opt out from receiving such faxes from a particular sender. Second, the legislation requires the Commission to report to the Congress each year on the number of junk fax complaints it has received and on the enforcement actions taken against those who violate the agency's rules. This report should assist the Commission in maintaining proper vigilance on those who fail to respect consumer privacy. In addition, the bill requires the General Accounting Office to study the junk fax issue and make recommendations to this Committee on additional enforcement measures that can be taken to protect consumers from unwanted junk faxes.

I am pleased that we have witnesses from many affected parties here today. It is unfortunate that no witness was available to testify today on behalf of consumers. As such, it is incumbent upon this Committee to make every effort to ensure that legitimate consumer concerns will continue to be addressed as this bill moves through the committee process.

Mr. Chairman, many consumers are fed up with unwanted junk faxes clogging up their fax machines and interfering with their lives. With your continued bipartisan leadership, we can help strengthen enforcement against those sending illegal junk faxes and strike a proper balance that protects consumers and permits legitimate business communications.