By Danburg H.B. No. 1729
76R7111 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to telecommunications bills.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter A, Chapter 55, Utilities Code, is
1-5 amended by adding Section 55.011 to read as follows:
1-6 Sec. 55.011. TELECOMMUNICATIONS BILLING. (a) It is the
1-7 policy of this state to ensure that consumers are given adequate
1-8 and sufficient information about the services and products that
1-9 they receive in order to make informed choices, eliminate
1-10 confusion, and protect themselves against fraudulent and deceptive
1-11 business practices.
1-12 (b) A bill for telecommunications products or services must
1-13 include an account summary at the beginning of the bill, and a
1-14 following summary page for each provider must separately identify
1-15 basic service, optional services and features, toll service, and
1-16 long-distance service. The provider summary pages must also
1-17 include the current status of the customer's services, including
1-18 the customer's presubscribed interstate carrier, intrastate toll
1-19 carrier, and local exchange carrier, and whether carrier freezes or
1-20 other blocking mechanisms have been implemented. The provider
1-21 summary pages may not include an advertisement or charge for a
1-22 product or service other than a telecommunications product or
1-23 service. The account summary page at the beginning of the bill
1-24 must notify customers of any changes or additions to products or
2-1 services appearing in the bill. The provider of a
2-2 telecommunications product or service shall notify the billing
2-3 telephone company of a change or addition to a customer's bill.
2-4 The commission shall allow a billing telephone company to recover
2-5 from a service provider or billing agent the cost of providing
2-6 notice of changes or additions to a customer's bill under this
2-7 section. In this subsection, "billing agent" and "billing
2-8 telephone company" have the meanings assigned by Section 55.321.
2-9 (c) Each product or service for which a charge is included
2-10 on the bill must be described using plain and unambiguous language.
2-11 A charge may not be identified as "miscellaneous" or described in
2-12 misleading terms. For each of the products or services, the bill
2-13 must include the name of the provider of the product or service,
2-14 the name of any underlying carrier, and a toll-free number for
2-15 resolving complaints.
2-16 (d) A provider of a product or service for which a charge is
2-17 included on the bill may not engage in negative option billing or
2-18 negative enrollment of services.
2-19 (e) A surcharge or line item not specifically authorized by
2-20 federal or state law may not be included on the bill.
2-21 (f) The commission is granted all necessary jurisdiction to
2-22 adopt rules required by this section and to enforce those rules and
2-23 this section. The commission may notify or require another person
2-24 to notify customers of their rights under this section.
2-25 SECTION 2. Section 3.312, Public Utility Regulatory Act of
2-26 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as added by
2-27 Section 1, Chapter 919, Acts of the 75th Legislature, Regular
3-1 Session, 1997, is codified as Subchapter K, Chapter 55, Utilities
3-2 Code, and amended to read as follows:
3-3 SUBCHAPTER K. SELECTION OF TELECOMMUNICATIONS UTILITIES
3-4 Sec. 55.301. STATE POLICY. It is the policy of this state
3-5 to ensure that all customers are protected from the unauthorized
3-6 switching of a telecommunications utility selected by the customer
3-7 to provide telecommunications service.
3-8 Sec. 55.302. COMMISSION RULES. (a) The commission shall
3-9 adopt nondiscriminatory and competitively neutral rules to
3-10 implement this subchapter, including rules that:
3-11 (1) ensure that customers are protected from deceptive
3-12 practices in the obtaining of authorizations and verifications
3-13 required by this subchapter;
3-14 (2) are applicable to all local exchange telephone
3-15 services, interexchange telecommunications service, and other
3-16 telecommunications service provided by telecommunications utilities
3-17 in this state;
3-18 (3) are consistent with the rules and regulations
3-19 prescribed by the Federal Communications Commission for the
3-20 selection of telecommunications utilities;
3-21 (4) permit telecommunications utilities to select any
3-22 method of verification of a carrier-initiated change order
3-23 authorized by Section 55.303;
3-24 (5) require telecommunications utilities to maintain
3-25 records relating to a customer-initiated change in accordance with
3-26 Section 55.304;
3-27 (6) require the reversal of certain changes in the
4-1 selection of a customer's telecommunications utility in accordance
4-2 with Section 55.305(a);
4-3 (7) prescribe, in accordance with Section 55.305(b),
4-4 the duties of a telecommunications utility that initiates an
4-5 unauthorized customer change; and
4-6 (8) provide for corrective action and the imposition
4-7 of penalties in accordance with Sections 55.306 and 55.307.
4-8 (b) The commission is granted all necessary jurisdiction to
4-9 adopt rules required by this subchapter and to enforce those rules
4-10 and this subchapter.
4-11 (c) The commission may notify customers of their rights
4-12 under the rules.
4-13 Sec. 55.303. VERIFICATION OF CARRIER-INITIATED CHANGE. (a)
4-14 A telecommunications utility may verify a carrier-initiated change
4-15 order by:
4-16 (1) obtaining written authorization from the customer;
4-17 (2) obtaining a toll-free electronic authorization
4-18 placed from the telephone number that is the subject of the change
4-19 order; or
4-20 (3) an oral authorization obtained by an independent
4-21 third party.
4-22 (b) In addition to the methods provided by Subsection (a), a
4-23 telecommunications utility may verify a carrier-initiated change
4-24 order by mailing to the customer an information package that is
4-25 consistent with the requirements of 47 C.F.R. Section 64.1100(d)
4-26 and that contains a postage-prepaid postcard or mailer. The change
4-27 is considered verified if the telecommunications utility does not
5-1 receive a cancellation of the change order from the customer within
5-2 14 days after the date of the mailing.
5-3 Sec. 55.304. CUSTOMER-INITIATED CHANGE. (a) A
5-4 telecommunications utility to whom a customer has changed its
5-5 service on the initiative of the customer shall maintain a record
5-6 of nonpublic customer-specific information that could be used to
5-7 establish that the customer authorized the change.
5-8 (b) Notwithstanding Subsection (a), if the Federal
5-9 Communications Commission requires verification, the
5-10 telecommunications utility shall use the verification methods
5-11 required by the Federal Communications Commission.
5-12 Sec. 55.305. UNAUTHORIZED CHANGE. (a) If a change in the
5-13 selection of a customer's telecommunications utility is not made or
5-14 verified in accordance with this subchapter, the change, on request
5-15 by the customer, shall be reversed within a period established by
5-16 commission ruling.
5-17 (b) A telecommunications utility that initiates an
5-18 unauthorized customer change shall:
5-19 (1) pay all usual and customary charges associated
5-20 with returning the customer to its original telecommunications
5-21 utility;
5-22 (2) pay the telecommunications utility from which the
5-23 customer was changed any amount paid by the customer that would
5-24 have been paid to that telecommunications utility if the
5-25 unauthorized change had not been made;
5-26 (3) return to the customer any amount paid by the
5-27 customer that exceeds the charges that would have been imposed for
6-1 identical services by the telecommunications utility from which the
6-2 customer was changed if the unauthorized change had not been made;
6-3 [and]
6-4 (4) provide to the original telecommunications utility
6-5 from which the customer was changed all billing records to enable
6-6 that telecommunications utility to comply with this subchapter; and
6-7 (5) if directed by the commission, pay the customer a
6-8 penalty of $25 for each violation.
6-9 (c) The telecommunications utility from which the customer
6-10 was changed shall provide to the customer all benefits associated
6-11 with the service on receipt of payment for service provided during
6-12 the unauthorized change.
6-13 Sec. 55.306. CORRECTIVE ACTION AND PENALTIES. (a) If the
6-14 commission finds that a telecommunications utility has repeatedly
6-15 violated the commission's telecommunications utility selection
6-16 rules, the commission shall order the utility to take corrective
6-17 action as necessary. In addition, the utility may be subject to
6-18 administrative penalties under Sections 15.023-15.027.
6-19 (b) An administrative penalty collected under this section
6-20 shall be used to enforce this subchapter.
6-21 Sec. 55.307. REPEATED AND RECKLESS VIOLATION. If the
6-22 commission finds that a telecommunications utility has repeatedly
6-23 and recklessly violated the commission's telecommunications utility
6-24 selection rules, the commission may, if consistent with the public
6-25 interest, suspend, restrict, deny, or revoke the registration or
6-26 certificate, including an amended certificate, of the
6-27 telecommunications utility and, by taking that action, deny the
7-1 telecommunications utility the right to provide service in this
7-2 state.
7-3 Sec. 55.308. DECEPTIVE OR FRAUDULENT PRACTICE. The
7-4 commission may prohibit a utility from engaging in a deceptive or
7-5 fraudulent practice, including a marketing practice, involving the
7-6 selection of a customer's telecommunications utility. The
7-7 commission may define deceptive and fraudulent practices to which
7-8 this section applies.
7-9 SECTION 3. Chapter 55, Utilities Code, is amended by adding
7-10 Subchapter L to read as follows:
7-11 SUBCHAPTER L. UNAUTHORIZED CHARGES ON TELEPHONE BILLS
7-12 Sec. 55.321. DEFINITIONS. In this subchapter:
7-13 (1) "Billing agent" means a person who submits charges
7-14 to a billing telephone company on behalf of a provider of a product
7-15 or service.
7-16 (2) "Billing telephone company" means a
7-17 telecommunications utility or telecommunications provider that
7-18 issues a bill directly to a customer for any telecommunications
7-19 product or service.
7-20 Sec. 55.322. PREVENTION OF UNAUTHORIZED CHARGES. (a) A
7-21 provider of a product or service, billing telephone company, or
7-22 billing agent may not charge for a product or service on a
7-23 customer's telephone bill or submit charges for a product or
7-24 service to a billing telephone company for inclusion on a
7-25 customer's telephone bill, unless:
7-26 (1) the provider, billing telephone company, or
7-27 billing agent has completely informed the customer of the product
8-1 or service being offered, including the associated charges, and has
8-2 explicitly informed the customer that the charge for the product or
8-3 service will appear on the customer's telephone bill;
8-4 (2) the customer has clearly and explicitly consented
8-5 to being charged for the product or service on the customer's
8-6 telephone bill;
8-7 (3) the consent is verified by:
8-8 (A) written authorization from the customer that
8-9 satisfies Subsection (e);
8-10 (B) toll-free electronic authorization placed
8-11 from the telephone number associated with the billing telephone
8-12 company customer's account;
8-13 (C) oral authorization obtained by an
8-14 independent third party; or
8-15 (D) another method of verification authorized by
8-16 the commission;
8-17 (4) the provider, billing telephone company, except a
8-18 billing telephone company billing for its own product or service on
8-19 the bills it issues, or billing agent offering the product or
8-20 service has provided the customer with a toll-free telephone number
8-21 for the customer to call to resolve any billing dispute and to
8-22 receive answers to questions;
8-23 (5) the provider has obtained written consent from the
8-24 billing telephone company or billing agent to bill for the product
8-25 or service on the billing telephone company's bill; and
8-26 (6) the provider, billing telephone company, or
8-27 billing agent offering the product or service has submitted with
9-1 the charge for the product or service sufficient information so the
9-2 provider, billing telephone company, or billing agent can be
9-3 clearly identified on the customer's telephone bill.
9-4 (b) The provider shall retain records of the customer's
9-5 consent until the first anniversary of the date of the consent and
9-6 shall, on request, provide a copy of a record to the customer to
9-7 whom the record relates, the telephone billing company, the
9-8 commission, and the office of public utility counsel.
9-9 (c) The provider shall maintain records under Subsection
9-10 (a)(5) until the first anniversary of the date of permanent
9-11 discontinuation of the billing arrangement.
9-12 (d) The customer is entitled to an adjustment on the bill,
9-13 including interest if the customer paid an unauthorized charge, or
9-14 the removal of the charges if the provider, billing telephone
9-15 company, or billing agent cannot provide evidence of the customer's
9-16 consent as required by this section. Telephone service may not be
9-17 interrupted or terminated while the charges are under dispute by
9-18 the customer if the undisputed portion of the bill is paid. Local
9-19 exchange telephone service may not be interrupted or terminated if
9-20 charges for local exchange service are paid.
9-21 (e) A written authorization must be a separate document from
9-22 any solicitation material, and the sole purpose of the consent or
9-23 order must be to explain the nature and extent of the transaction.
9-24 The authorization document materials must be unambiguous, legible,
9-25 and in a minimum of 10-point type. Written or oral solicitation
9-26 materials must be in the same language as the written order or
9-27 written consent. The authorization document may not be used as an
10-1 entry form for a sweepstakes, contest, or any other program that
10-2 offers prizes or gifts.
10-3 Sec. 55.323. MISREPRESENTATION OF ASSOCIATION OR
10-4 AFFILIATION. A provider of a product or service may not
10-5 misrepresent its association or affiliation with a billing
10-6 telephone company when soliciting, inducing, or otherwise
10-7 implementing the customer's agreement to purchase the product or
10-8 service.
10-9 Sec. 55.324. ENFORCEMENT. The commission may implement
10-10 penalties and other enforcement actions against a
10-11 telecommunications utility or telecommunications provider under
10-12 Subchapter B, Chapter 15, if the commission finds that the
10-13 telecommunications utility or telecommunications provider has
10-14 violated this subchapter. The commission may enforce Sections
10-15 15.021, 15.022, 15.023, 15.024, 15.025, 15.026, 15.027, 15.028,
10-16 15.030, 15.031, 15.032, and 15.033 against a provider of a product
10-17 or service or billing agent, as if the provider or billing agent
10-18 were regulated by the commission, if the commission finds that the
10-19 provider or billing agent has violated this subchapter or knowingly
10-20 provided false information to the commission on a matter subject to
10-21 this subchapter. This subchapter does not grant the commission
10-22 jurisdiction to regulate a provider or billing agent that is not
10-23 otherwise subject to commission regulation, other than as specified
10-24 by this subchapter.
10-25 Sec. 55.325. TERMINATION OF SERVICES. The commission may
10-26 order a billing telephone company to terminate the billing and
10-27 collection services for a provider of a product or service or
11-1 billing agent if the commission finds that the provider or billing
11-2 agent has violated this subchapter, including failure to respond to
11-3 a request for information by the commission or the office. A
11-4 billing telephone company may act on its own to terminate billing
11-5 and collection services.
11-6 Sec. 55.326. REPORT OF COMPLAINTS; COOPERATION. (a) The
11-7 commission shall establish rules that require each provider of a
11-8 product or service, billing telephone company, and billing agent to
11-9 provide the commission and the office with reports of complaints
11-10 made by customers regarding the charges for products and services
11-11 that appear on telephone bills.
11-12 (b) Each provider, billing telephone company, and billing
11-13 agent shall cooperate with the commission in the commission's
11-14 efforts to enforce this subchapter.
11-15 Sec. 55.327. LIMITATION ON EFFECT OF SUBCHAPTER. (a) This
11-16 subchapter does not apply to customer-initiated services, operator
11-17 services, or other services carried over a telecommunications
11-18 network if the actual dialed digits are displayed on the customer's
11-19 telephone bill, except that recurring charges that arise from use
11-20 of a customer-initiated service are subject to this subchapter.
11-21 (b) This subchapter does not obligate a billing telephone
11-22 company to provide billing and collection services to a provider of
11-23 a product or service or billing agent.
11-24 Sec. 55.328. RULES. The commission shall adopt rules and
11-25 issue orders as necessary to safeguard the rights of consumers and
11-26 to enforce this subchapter, including rules to ensure that charges
11-27 are clearly described on telephone bills.
12-1 SECTION 4. Section 52.102, Utilities Code, is amended to
12-2 read as follows:
12-3 Sec. 52.102. LIMITED REGULATORY AUTHORITY. Except as
12-4 otherwise provided by this subchapter, Subchapters D, [and] K, and
12-5 L, Chapter 55, and Section 55.011, the commission has only the
12-6 following jurisdiction over a telecommunications utility subject to
12-7 this subchapter:
12-8 (1) to require registration under Section 52.103;
12-9 (2) to conduct an investigation under Section 52.104;
12-10 (3) to require the filing of reports as the commission
12-11 periodically directs;
12-12 (4) to require the maintenance of statewide average
12-13 rates or prices of telecommunications service;
12-14 (5) to require access to telecommunications service
12-15 under Section 52.105; and
12-16 (6) to require the quality of telecommunications
12-17 service provided to be adequate under Section 52.106.
12-18 SECTION 5. Section 15.024(c), Utilities Code, is amended to
12-19 read as follows:
12-20 (c) A penalty may not be assessed under this section if the
12-21 person against whom the penalty may be assessed remedies the
12-22 violation before the 31st day after the date the person receives
12-23 the notice under Subsection (b). A person who claims to have
12-24 remedied an alleged violation has the burden of proving to the
12-25 commission that the alleged violation was remedied and was
12-26 accidental or inadvertent. This subsection does not apply to a
12-27 violation of Subchapter K or L, Chapter 55.
13-1 SECTION 6. Nothing in this Act limits the authority of the
13-2 attorney general.
13-3 SECTION 7. Not later than November 1, 1999, the Public
13-4 Utility Commission of Texas shall adopt nondiscriminatory and
13-5 competitively neutral rules to implement the changes in law made by
13-6 Section 2 of this Act.
13-7 SECTION 8. (a) In accordance with Section 311.031(c),
13-8 Government Code, which gives effect to a substantive amendment
13-9 enacted by the same legislature that codifies the amended statute,
13-10 the text of Section 52.102, Utilities Code, and Subchapter K,
13-11 Chapter 55, Utilities Code, as set out in this Act, gives effect to
13-12 changes made by Chapter 919, Acts of the 75th Legislature, Regular
13-13 Session, 1997.
13-14 (b) To the extent of any conflict, this Act controls over
13-15 another Act of the 76th Legislature, Regular Session, 1999,
13-16 relating to nonsubstantive additions and corrections in enacted
13-17 codes.
13-18 SECTION 9. This Act takes effect September 1, 1999.
13-19 SECTION 10. The importance of this legislation and the
13-20 crowded condition of the calendars in both houses create an
13-21 emergency and an imperative public necessity that the
13-22 constitutional rule requiring bills to be read on three several
13-23 days in each house be suspended, and this rule is hereby suspended.