By Danburg H.B. No. 552
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the protection of telecommunications and electric
1-3 services customers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11.002, Utilities Code, is amended by
1-6 adding Subsection (c) to read as follows:
1-7 (c) Significant changes have occurred in the
1-8 telecommunications and electric power industries since the Public
1-9 Utility Regulatory Act was originally adopted. Changes in
1-10 technology and market structure have increased the need for minimum
1-11 standards of service quality, customer service, and fair business
1-12 practices to ensure high-quality service to customers and a healthy
1-13 marketplace where competition is permitted by law. It is the
1-14 purpose of this title to grant the Public Utility Commission of
1-15 Texas authority to make and enforce rules necessary to protect
1-16 customers of telecommunications and electric services consistent
1-17 with the public interest.
1-18 SECTION 2. Section 15.024, Utilities Code, is amended to
1-19 read as follows:
1-20 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
1-21 (a) If the executive director determines that a violation has
2-1 occurred, the executive director may issue to the commission a
2-2 report that states the facts on which the determination is based
2-3 and the executive director's recommendation on the imposition of an
2-4 administrative penalty, including a recommendation on the amount of
2-5 the penalty.
2-6 (b) Not later that the 14th day after the date the report is
2-7 issued, the executive director shall give written notice of the
2-8 report to the person against whom the penalty may be assessed. The
2-9 notice may be given by certified mail. The notice must:
2-10 (1) include a brief summary of the alleged violation;
2-11 (2) state the amount of the recommended penalty; and
2-12 (3) inform the person that the person has a right to a
2-13 hearing on the occurrence of the violation, the amount of the
2-14 penalty, or both the occurrence of the violation and the amount of
2-15 the penalty.
2-16 (c) [A penalty may not be assessed under this section if the
2-17 person against whom the penalty may be assessed remedies the
2-18 violation before the 31st day after the date the person receives
2-19 the notice under Subsection (b). A person who claims to have
2-20 remedied an alleged violation has the burden of proving to the
2-21 commission that the alleged violation was remedied and was
2-22 accidental or inadvertent.]
2-23 [(d)] Not later than the 20th day after the date the person
2-24 receives the notice, the person may accept the determination and
2-25 recommended penalty of the executive director in writing or may
3-1 make a written request for a hearing on the occurrence of the
3-2 violation, the amount of the penalty, or both the occurrence of the
3-3 violation and the amount of the penalty.
3-4 (d) [(e)] If the person accepts the executive director's
3-5 determination and recommended penalty, the commission by order
3-6 shall approve the determination and impose the recommended penalty.
3-7 (e) [(f)] If the person requests a hearing or fails to
3-8 timely respond to the notice, the executive director shall set a
3-9 hearing and give notice of the hearing to the person. The hearing
3-10 shall be held by an administrative law judge of the State Office of
3-11 Administrative Hearings. The administrative law judge shall make
3-12 findings of fact and conclusions of law and promptly issue to the
3-13 commission a proposal for a decision about the occurrence of the
3-14 violation and the amount of a proposed penalty. Based on the
3-15 findings of fact, conclusions of law, and proposal for a decision,
3-16 the commission by order may find that a violation has occurred and
3-17 impose a penalty or may find that no violation occurred.
3-18 (f) [(g)] The notice of the commission's order shall be
3-19 given to the person as provided by Chapter 2001, Government Code,
3-20 and must include a statement of the right of the person to judicial
3-21 review of the order.
3-22 SECTION 3. Subtitle A, Title 2, Utilities Code, is amended
3-23 by adding Chapter 17 to read as follows:
3-24 CHAPTER 17. CUSTOMER PROTECTION
3-25 SUBCHAPTER A. GENERAL PROVISIONS
4-1 Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The
4-2 legislature finds that new developments in telecommunications
4-3 services and the production and delivery of electricity, as well as
4-4 changes in market structure, marketing techniques, and technology,
4-5 make it essential that customers have safeguards against
4-6 fraudulent, misleading, or deceptive business practices and against
4-7 businesses that do not have the technical and financial resources
4-8 to provide adequate service.
4-9 (b) The purpose of this chapter is to establish customer
4-10 protection standards and confer on the commission authority to
4-11 adopt and enforce rules to protect customers from unfair,
4-12 deceptive, or anticompetitive practices.
4-13 Sec. 17.002. DEFINITIONS. In this chapter:
4-14 (1) "Billing agent" means any entity that submits
4-15 charges to the billing utility on behalf of itself or any provider
4-16 of a product or service.
4-17 (2) "Billing utility" means any telecommunications or
4-18 electric utility that issues a bill directly to a customer for any
4-19 telecommunications or electric product or service.
4-20 (3) "Certificated telecommunications utility" means a
4-21 telecommunications utility that has been granted either a
4-22 certificate of convenience and necessity, a certificate of
4-23 operating authority, or a service provider certificate of operating
4-24 authority.
4-25 (4) "Customer" means any person in whose name
5-1 telephone or electric service is billed.
5-2 (5) "Electric utility" has the meaning assigned by
5-3 Section 31.002.
5-4 (6) "Telecommunications utility" has the meaning
5-5 assigned by Section 51.002.
5-6 Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall
5-7 promote public awareness of changes in the electric and
5-8 telecommunications markets, provide customers with information
5-9 necessary to make informed choices about available options, and
5-10 ensure that customers have an adequate understanding of their
5-11 rights.
5-12 (b) The commission shall compile a report on customer
5-13 service at least once each year showing such comparative customer
5-14 information from reports given to the commission as it deems
5-15 necessary.
5-16 (c) The commission shall make and enforce rules to require a
5-17 certificated telecommunications utility or an electric utility to
5-18 give clear, uniform, and understandable information to customers
5-19 about rates, terms, services, customer rights, and other necessary
5-20 information as determined by the commission.
5-21 (d) Customer awareness efforts shall be conducted in English
5-22 and Spanish and any other language as necessary.
5-23 Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
5-24 of telecommunications and electric services have the right to:
5-25 (1) protection from unfair, misleading, or deceptive
6-1 practices, including protection from being billed for services
6-2 that were not authorized or provided;
6-3 (2) choice of a certificated telecommunications
6-4 utility or an electric utility, where such choice is permitted by
6-5 law, and to have that choice honored;
6-6 (3) information in English and Spanish and any other
6-7 language as necessary concerning rates, key terms and conditions,
6-8 and the environmental impact of certain production facilities;
6-9 (4) protection from discrimination on the basis of
6-10 race, color, sex, nationality, religion, or marital status;
6-11 (5) impartial and prompt resolution of disputes with a
6-12 certificated telecommunications utility or an electric utility;
6-13 (6) privacy of customer consumption and credit
6-14 information;
6-15 (7) accuracy of metering and billing;
6-16 (8) bills presented in a clear, readable format and
6-17 easy-to-understand language;
6-18 (9) information in English and Spanish and any other
6-19 language as necessary concerning low-income assistance programs and
6-20 deferred payment plans; and
6-21 (10) other information or protections necessary to
6-22 ensure high-quality service to customers.
6-23 (b) The commission shall adopt and enforce such rules as may
6-24 be necessary or appropriate to carry out this section, including
6-25 but not limited to rules for minimum service standards for a
7-1 certificated telecommunications utility or an electric utility
7-2 relating to customer deposits and the extension of credit,
7-3 switching fees, levelized billing programs, termination of service,
7-4 and quality of service.
7-5 SUBCHAPTER B. LICENSING, CERTIFICATION, REGISTRATION,
7-6 AND REPORTING REQUIREMENTS
7-7 Sec. 17.051. ADOPTION OF RULES. (a) The commission shall
7-8 adopt rules relating to licensing, certification, registration, and
7-9 reporting requirements for a certificated telecommunications
7-10 utility or an electric utility, as well as all telecommunications
7-11 utilities that are not dominant carriers, pay telephone providers,
7-12 qualifying facilities, exempt wholesale generators, and power
7-13 marketers.
7-14 (b) The rules adopted under Subsection (a) shall be
7-15 consistent with and no less effective than federal law.
7-16 Sec. 17.052. SCOPE OF RULES. The commission shall have
7-17 authority to make and enforce rules to:
7-18 (1) require licensing by or certification or
7-19 registration with the commission as a condition of doing business
7-20 in this state;
7-21 (2) amend licenses, certificates, or registrations to
7-22 reflect changed terms and conditions of service or ownership;
7-23 (3) establish service quality and reliability
7-24 standards and rules for customer service and protection;
7-25 (4) suspend or revoke licenses, certificates, or
8-1 registrations for repeated violations of this chapter or commission
8-2 rules; and
8-3 (5) order disconnection of a pay telephone service
8-4 provider's pay telephones or revocation of licensing,
8-5 certification, or registration for repeated violations of this
8-6 chapter or commission rules.
8-7 Sec. 17.053. REPORTS. The commission may require a
8-8 certificated telecommunications utility or an electric utility to
8-9 submit reports to the commission concerning any matter over which
8-10 it has authority under this chapter.
8-11 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
8-12 Sec. 17.101 POLICY. It is the policy of this state that all
8-13 customers are protected from the unauthorized switching of a
8-14 certificated telecommunications utility or an electric utility
8-15 selected by the customer to provide service.
8-16 Sec. 17.102. RULES RELATING TO CHOICE. The commission shall
8-17 adopt and enforce rules that:
8-18 (1) ensure that customers are protected from deceptive
8-19 practices to obtain authorizations of service and in the
8-20 verification of provider-initiated change orders, including but not
8-21 limited to negative option marketing, sweepstakes, and contests
8-22 that cause customers to unknowingly change their certificated
8-23 telecommunications utility or electric utility;
8-24 (2) provide for clear, easily understandable
8-25 identification on the first page of each bill sent to a customer of
9-1 all certificated telecommunications utilities or electric utilities
9-2 submitting charges on the bill;
9-3 (3) ensure that every person, corporation, or
9-4 telecommunications or electric utility submitting charges on the
9-5 bill is clearly and easily identified on the bill along with its
9-6 services, products, and charges;
9-7 (4) require a certificated telecommunications utility
9-8 or an electric utility to maintain records of nonpublic
9-9 customer-specific information that may be used to establish that
9-10 the customer authorized a change in service;
9-11 (5) provide that unauthorized changes in service be
9-12 remedied at no cost to the customer within a period established by
9-13 the commission;
9-14 (6) require funds or compensation to the customer in
9-15 the event of an unauthorized change; and
9-16 (7) provide for penalties, including but not limited
9-17 to fines and revocation of licenses, certificates, or
9-18 registrations, thereby denying the certificated telecommunications
9-19 utility or the electric utility the right to provide service in
9-20 this state.
9-21 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
9-22 Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
9-23 person, corporation, telecommunications or electric utility, or
9-24 billing agent may submit charges for any product or service to be
9-25 billed on any customer's telephone or electric bill only if:
10-1 (1) the person, corporation, or telecommunications or
10-2 electric utility offering the product or service has thoroughly
10-3 informed the customer of the product or service being offered,
10-4 including all associated charges, and has explicitly informed the
10-5 customer that the associated charges for the product or service
10-6 will appear on the customer's telephone or electric bill;
10-7 (2) the customer has clearly and explicitly consented
10-8 to obtain the product or service offered and to have the associated
10-9 charges appear on the customer's telephone or electric bill and the
10-10 consent has been verified and recorded as provided by Subsection
10-11 (b); and
10-12 (3) the person, corporation, or telecommunications or
10-13 electric utility offering the product or service and any billing
10-14 agent for such person, corporation, or telecommunications or
10-15 electric utility:
10-16 (A) has provided the customer with a toll-free
10-17 telephone number the customer may call and an address to which the
10-18 customer may write to resolve any billing dispute and to answer
10-19 questions;
10-20 (B) has provided the billing utility with its
10-21 name, business address, business telephone number, and a list with
10-22 accurate descriptions of the products and services for which it
10-23 intends to charge on any customer's telephone or electric bill so
10-24 that any product or service being billed can clearly and easily be
10-25 identified and explained; and
11-1 (C) has obtained the billing utility's written
11-2 consent to bill for a product or service on the billing utility's
11-3 bill, which written consent shall be maintained as provided by
11-4 Subsection (c).
11-5 (b) The customer consent required by Subsection (a) (2) must
11-6 be verified by the person, corporation, or telecommunications or
11-7 electric utility offering the product or service by authorization
11-8 from the customer in the manner prescribed by the commission. A
11-9 record of the customer consent, including verification, must be
11-10 maintained by the person, corporation, or telecommunications or
11-11 electric utility offering the product or service and any billing
11-12 agent for such person, corporation, or telecommunications or
11-13 electric utility for a period of at least 12 months immediately
11-14 after the consent and verification have been obtained.
11-15 (c) The record of the billing utility's written consent
11-16 required by Subsection (a)(3)(C) shall be maintained by:
11-17 (1) the person, corporation, or telecommunications or
11-18 electric utility offering the product or service;
11-19 (2) any billing agent for the person, corporation, or
11-20 telecommunications or electric utility under Subdivision (1); and
11-21 (3) the billing utility for as long as the billing for
11-22 such product or service continues and for the 12 months immediately
11-23 following the permanent discontinuation for such billing.
11-24 (d) A person, corporation, or telecommunications or electric
11-25 utility, other than the billing utility, offering a product or
12-1 service to be charged on a customer's telephone or electric bill
12-2 and any billing agent for such person, corporation, or
12-3 telecommunications or electric utility shall not use any negative
12-4 option marketing, sweepstakes, contests, or other techniques that
12-5 cause customers to unknowingly subscribe to a service or purchase a
12-6 product.
12-7 Sec. 17.152. RESPONSIBILITIES OF A BILLING UTILITY. (a) If
12-8 a customer's telephone or electric bill is charged for any product
12-9 or service without proper customer consent or verification, the
12-10 billing utility, upon its knowledge or notification of any
12-11 unauthorized charge, shall promptly, but in no event later than 45
12-12 days after such knowledge or notification of such charge:
12-13 (1) cease to charge the customer for such unauthorized
12-14 product or service;
12-15 (2) remove any unauthorized charge from the customer's
12-16 bill;
12-17 (3) refund or credit to the customer, with interest,
12-18 all money that has been paid by the customer for any unauthorized
12-19 charge;
12-20 (4) upon the customer's request, provide the customer
12-21 with all billing records related to any unauthorized charge within
12-22 10 business days of the removal of the unauthorized charge from the
12-23 customer's bill; and
12-24 (5) maintain for at least 12 months a record of every
12-25 customer who has experienced any unauthorized charge for a product
13-1 or service on the customer's telephone or electric bill.
13-2 (b) A record required by Subsection (a)(5) shall contain for
13-3 each unauthorized charge:
13-4 (1) the name of the person, corporation, or
13-5 telecommunications or electric utility that offered the product or
13-6 service;
13-7 (2) any affected telephone numbers or addresses;
13-8 (3) the date the customer requested that the billing
13-9 utility remove the unauthorized charge;
13-10 (4) the date the unauthorized charge was removed from
13-11 the customer's telephone or electric bill; and
13-12 (5) the date any money that the customer paid for the
13-13 unauthorized charges was refunded or credited to the customer.
13-14 (c) A billing utility shall not:
13-15 (1) disconnect or terminate telecommunications or
13-16 electric service to any customer who disputes a billing charge
13-17 pursuant to this section; or
13-18 (2) file an unfavorable credit report against a
13-19 customer who has disputed charges under this section unless the
13-20 dispute is ultimately resolved against the customer.
13-21 Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every
13-22 person, corporation, or telecommunications or electric utility
13-23 shall maintain a record of every disputed charge for a product or
13-24 service placed on a customer's bill.
13-25 (b) The record required under Subsection (a) shall contain
14-1 for every disputed charge:
14-2 (1) any affected telephone numbers or addresses;
14-3 (2) the date the customer requested that the billing
14-4 utility remove the unauthorized charge;
14-5 (3) the date the unauthorized charge was removed from
14-6 the customer's telephone or electric bill; and
14-7 (4) the date any money that the customer paid for the
14-8 unauthorized charges was refunded or credited to the customer.
14-9 (c) The record required by Subsection (a) shall be
14-10 maintained for at least 12 months following the completion of all
14-11 steps required by Section 17.152(a).
14-12 Sec. 17.154. NOTICE. (a) A billing utility shall provide
14-13 notice of a customer's rights under this section in the manner
14-14 prescribed by the commission.
14-15 (b) Notice of a customer's rights must be provided by mail
14-16 to each residential and business customer within 60 days of the
14-17 effective date of this section. In addition, each billing utility
14-18 shall send the notice to new customers at the time service is
14-19 initiated or to any customer at that customer's request.
14-20 Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility
14-21 shall provide a copy of records maintained under the requirements
14-22 of Sections 17.152, 17.153, and 17.154 to the commission staff upon
14-23 request.
14-24 Sec. 17.156. VIOLATIONS. (a) If the commission finds that
14-25 a billing utility has engaged in a violation of this subchapter,
15-1 the commission has the authority to implement penalties and other
15-2 enforcement actions pursuant to Chapter 15.
15-3 (b) If the commission finds that any other person,
15-4 corporation, entity, or billing agent subject to the provisions of
15-5 this subchapter has engaged in violations of this subchapter or has
15-6 knowingly provided false information to the commission on matters
15-7 subject to this subchapter, the commission may enforce the
15-8 provisions of Chapter 15 against the person, corporation, entity,
15-9 or billing agent as if it were regulated by the commission.
15-10 (c) Neither the authority granted under this section nor any
15-11 other provision of this subchapter shall be construed to grant the
15-12 commission jurisdiction to regulate persons, corporations,
15-13 entities, or billing agents who are not otherwise subject to
15-14 commission regulation, other than as specifically provided by this
15-15 chapter.
15-16 (d) If the commission finds that a billing utility
15-17 repeatedly violates this subchapter, the commission may, if such
15-18 action is consistent with the public interest, suspend, restrict,
15-19 or revoke the registration or certificate of the telecommunications
15-20 or electric utility, thereby denying the telecommunications or
15-21 electric utility the right to provide service in this state.
15-22 (e) If the commission finds that a person, corporation,
15-23 entity, or billing agent has repeatedly violated any provision of
15-24 this subchapter, the commission may order the billing utility to
15-25 terminate billing and collection services for that person,
16-1 corporation, entity, or billing agent.
16-2 (f) Nothing in this subchapter shall be construed to
16-3 preclude a billing utility from taking action on its own to
16-4 terminate or restrict its billing and collection services in order
16-5 to protect its customers from abuse.
16-6 Sec. 17.157. DISPUTES. (a) The commission is authorized to
16-7 resolve disputes between a customer and a certificated
16-8 telecommunications utility or an electric utility.
16-9 (b) In exercising its authority under Subsection (a), the
16-10 commission may:
16-11 (1) order a certificated telecommunications utility or
16-12 an electric utility to produce information or records;
16-13 (2) require that all contracts, bills, and other
16-14 communications from a certificated telecommunications utility or an
16-15 electric utility display a working toll-free telephone number that
16-16 customers may call with complaints and inquiries;
16-17 (3) require a certificated telecommunications utility
16-18 or an electric utility to refund overcharges or unauthorized
16-19 charges or make other restitution where the certificated
16-20 telecommunications utility or the electric utility has failed to
16-21 comply with commission rules or a contract with the customer;
16-22 (4) order appropriate relief to ensure that a
16-23 customer's choice of a certificated telecommunications utility or
16-24 an electric utility that encompasses a geographic area in which
16-25 more than one provider has been certified is honored and to
17-1 compensate the customer for any financial loss that results from a
17-2 failure to honor the customer's selection of a certificated
17-3 telecommunications utility or an electric utility; and
17-4 (5) require the continuation of service to a
17-5 residential or small commercial customer while a dispute is
17-6 pending.
17-7 SECTION 4. The importance of this legislation and the
17-8 crowded condition of the calendars in both houses create an
17-9 emergency and an imperative public necessity that the
17-10 constitutional rule requiring bills to be read on three several
17-11 days in each house be suspended, and this rule is hereby suspended,
17-12 and that this Act take effect and be in force from and after its
17-13 passage, and it is so enacted.