AN ACT
1-1 relating to the protection of telecommunications and electric
1-2 services customers; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 11.002, Utilities Code, is amended by
1-5 adding Subsection (c) to read as follows:
1-6 (c) Significant changes have occurred in the
1-7 telecommunications and electric power industries since the Public
1-8 Utility Regulatory Act was originally adopted. Changes in
1-9 technology and market structure have increased the need for minimum
1-10 standards of service quality, customer service, and fair business
1-11 practices to ensure high-quality service to customers and a healthy
1-12 marketplace where competition is permitted by law. It is the
1-13 purpose of this title to grant the Public Utility Commission of
1-14 Texas authority to make and enforce rules necessary to protect
1-15 customers of telecommunications and electric services consistent
1-16 with the public interest.
1-17 SECTION 2. Subsection (c), Section 15.024, Utilities Code,
1-18 is amended to read as follows:
1-19 (c) A penalty may not be assessed under this section if the
1-20 person against whom the penalty may be assessed remedies the
1-21 violation before the 31st day after the date the person receives
1-22 the notice under Subsection (b). A person who claims to have
1-23 remedied an alleged violation has the burden of proving to the
1-24 commission that the alleged violation was remedied and was
2-1 accidental or inadvertent. This subsection does not apply to a
2-2 violation of Chapter 17 or 55.
2-3 SECTION 3. Subtitle A, Title 2, Utilities Code, is amended
2-4 by adding Chapter 17 to read as follows:
2-5 CHAPTER 17. CUSTOMER PROTECTION
2-6 SUBCHAPTER A. GENERAL PROVISIONS
2-7 Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The
2-8 legislature finds that new developments in telecommunications
2-9 services and the production and delivery of electricity, as well as
2-10 changes in market structure, marketing techniques, and technology,
2-11 make it essential that customers have safeguards against
2-12 fraudulent, unfair, misleading, deceptive, or anticompetitive
2-13 business practices and against businesses that do not have the
2-14 technical and financial resources to provide adequate service.
2-15 (b) The purpose of this chapter is to establish retail
2-16 customer protection standards and confer on the commission
2-17 authority to adopt and enforce rules to protect retail customers
2-18 from fraudulent, unfair, misleading, deceptive, or anticompetitive
2-19 practices.
2-20 (c) Nothing in this section shall be construed to abridge
2-21 customer rights set forth in commission rules in effect at the time
2-22 of the enactment of this chapter.
2-23 (d) This chapter does not limit the constitutional,
2-24 statutory, and common law authority of the office of the attorney
2-25 general.
2-26 (e) Nothing in this chapter authorizes a customer to receive
3-1 retail electric service from a person other than a certificated
3-2 retail electric utility.
3-3 Sec. 17.002. DEFINITIONS. In this chapter:
3-4 (1) "Billing agent" means any entity that submits
3-5 charges to the billing utility on behalf of itself or any provider
3-6 of a product or service.
3-7 (2) "Billing utility" means any telecommunications
3-8 provider, as defined by Section 51.002, retail electric provider,
3-9 or electric utility that issues a bill directly to a customer for
3-10 any telecommunications or electric product or service.
3-11 (3) "Certificated telecommunications utility" means a
3-12 telecommunications utility that has been granted either a
3-13 certificate of convenience and necessity, a certificate of
3-14 operating authority, or a service provider certificate of operating
3-15 authority.
3-16 (4) "Customer" means any person in whose name
3-17 telephone or retail electric service is billed, including
3-18 individuals, governmental units at all levels of government,
3-19 corporate entities, and any other entity with legal capacity to be
3-20 billed for telephone or retail electric service.
3-21 (5) "Electric utility" has the meaning assigned by
3-22 Section 31.002.
3-23 (6) "Retail electric provider" means a person that
3-24 sells electric energy to retail customers in this state after the
3-25 legislature authorizes a customer to receive retail electric
3-26 service from a person other than a certificated retail electric
4-1 utility.
4-2 (7) "Service provider" means any entity that offers a
4-3 product or service to a customer and that directly or indirectly
4-4 charges to or collects from a customer's bill an amount for the
4-5 product or service on a customer's bill received from a billing
4-6 utility.
4-7 (8) "Telecommunications utility" has the meaning
4-8 assigned by Section 51.002.
4-9 Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall
4-10 promote public awareness of changes in the electric and
4-11 telecommunications markets, provide customers with information
4-12 necessary to make informed choices about available options, and
4-13 ensure that customers have an adequate understanding of their
4-14 rights.
4-15 (b) The commission shall compile a report on customer
4-16 service at least once each year showing the comparative customer
4-17 information from reports given to the commission it deems
4-18 necessary.
4-19 (c) The commission shall adopt and enforce rules to require
4-20 a certificated telecommunications utility, a retail electric
4-21 provider, or an electric utility to give clear, uniform, and
4-22 understandable information to customers about rates, terms,
4-23 services, customer rights, and other necessary information as
4-24 determined by the commission.
4-25 (d) Customer awareness efforts by the commission shall be
4-26 conducted in English and Spanish and any other language as
5-1 necessary.
5-2 Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
5-3 of telecommunications and retail electric services are entitled to:
5-4 (1) protection from fraudulent, unfair, misleading,
5-5 deceptive, or anticompetitive practices, including protection from
5-6 being billed for services that were not authorized or provided;
5-7 (2) choice of a telecommunications service provider, a
5-8 retail electric provider, or an electric utility, where that choice
5-9 is permitted by law, and to have that choice honored;
5-10 (3) information in English and Spanish and any other
5-11 language as the commission deems necessary concerning rates, key
5-12 terms and conditions, and the basis for any claim of environmental
5-13 benefits of certain production facilities;
5-14 (4) protection from discrimination on the basis of
5-15 race, color, sex, nationality, religion, marital status, income
5-16 level, or source of income and from unreasonable discrimination on
5-17 the basis of geographic location;
5-18 (5) impartial and prompt resolution of disputes with a
5-19 certificated telecommunications utility, a retail electric
5-20 provider, or an electric utility and disputes with a
5-21 telecommunications service provider related to unauthorized charges
5-22 and switching of service;
5-23 (6) privacy of customer consumption and credit
5-24 information;
5-25 (7) accuracy of metering and billing;
5-26 (8) bills presented in a clear, readable format and
6-1 easy-to-understand language;
6-2 (9) information in English and Spanish and any other
6-3 language as the commission deems necessary concerning low-income
6-4 assistance programs and deferred payment plans;
6-5 (10) all consumer protections and disclosures
6-6 established by the Fair Credit Reporting Act (15 U.S.C. Section
6-7 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601
6-8 et seq.); and
6-9 (11) after retail competition begins as authorized by
6-10 the legislature, programs provided by retail electric providers
6-11 that offer eligible low-income customers energy efficiency
6-12 programs, an affordable rate package, and bill payment assistance
6-13 programs designed to reduce uncollectible accounts.
6-14 (b) The commission may adopt and enforce rules as necessary
6-15 or appropriate to carry out this section, including rules for
6-16 minimum service standards for a certificated telecommunications
6-17 utility, a retail electric provider, or an electric utility
6-18 relating to customer deposits and the extension of credit,
6-19 switching fees, levelized billing programs, and termination of
6-20 service and to energy efficiency programs, an affordable rate
6-21 package, and bill payment assistance programs for low-income
6-22 customers. The commission may waive language requirements for good
6-23 cause.
6-24 (c) The commission shall request the comments of the office
6-25 of the attorney general in developing the rules that may be
6-26 necessary or appropriate to carry out this section.
7-1 (d) The commission shall coordinate its enforcement efforts
7-2 regarding the prosecution of fraudulent, misleading, deceptive, and
7-3 anticompetitive business practices with the office of the attorney
7-4 general in order to ensure consistent treatment of specific alleged
7-5 violations.
7-6 (e) Nothing in this section shall be construed to abridge
7-7 customer rights set forth in commission rules or to abridge the
7-8 rights of low-income customers to receive benefits through pending
7-9 or operating programs in effect at the time of the enactment of
7-10 this chapter.
7-11 (f) The commission shall adopt rules to provide automatic
7-12 enrollment of eligible utility customers for lifeline telephone
7-13 service and reduced electric rates available to low-income
7-14 households. Each state agency, on the request of the commission,
7-15 shall assist in the adoption and implementation of those rules.
7-16 (g) Notwithstanding any other provision of this title, the
7-17 rules adopted under Subsection (b) shall provide full, concurrent
7-18 reimbursement for the costs of any programs provided under
7-19 Subsection (a)(11) and for reimbursement for the difference between
7-20 any affordable rate package provided under Subsection (a)(11) and
7-21 any rates otherwise applicable.
7-22 Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED
7-23 UTILITIES. A municipally owned utility may not be deemed to be a
7-24 "service provider" or "billing agent" for purposes of Sections
7-25 17.156(b) and (e). The governing body of a municipally owned
7-26 utility shall adopt, implement, and enforce rules that shall have
8-1 the effect of accomplishing the objectives set out in Sections
8-2 17.004(a) and (b) and 17.102, as to the municipally owned utility
8-3 within its certificated service area. The governing body of a
8-4 municipally owned utility or its designee shall perform the dispute
8-5 resolution function provided for by Section 17.157 for disputes
8-6 arising from services provided by the municipally owned utility to
8-7 electric customers served within the municipally owned utility's
8-8 certificated service area. With respect to electric customers
8-9 served by a municipally owned utility outside its certificated
8-10 service area or otherwise served through others' distribution
8-11 facilities, after retail competition begins as authorized by the
8-12 legislature, the provisions of this chapter as administered by the
8-13 commission apply. Nothing in this chapter shall be deemed to apply
8-14 to a wholesale customer of a municipally owned utility.
8-15 Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC
8-16 COOPERATIVES. An electric cooperative shall not be deemed to be a
8-17 "service provider" or "billing agent" for purposes of Sections
8-18 17.156(b) and (e). The electric cooperative shall adopt,
8-19 implement, and enforce rules that shall have the effect of
8-20 accomplishing the objectives set out in Sections 17.004(a) and (b)
8-21 and 17.102. The board of directors of the electric cooperative or
8-22 its designee shall perform the dispute resolution function provided
8-23 for by Section 17.157 for electric customers served by the electric
8-24 cooperative within its certificated service area. With respect to
8-25 electric customers served by an electric cooperative outside its
8-26 certificated service area or otherwise served through others'
9-1 distribution facilities, after the legislature authorizes retail
9-2 competition, the provisions of this chapter as administered by the
9-3 commission shall apply. Nothing in this chapter shall be deemed to
9-4 apply to a wholesale customer of an electric cooperative.
9-5 SUBCHAPTER B. CERTIFICATION, REGISTRATION,
9-6 AND REPORTING REQUIREMENTS
9-7 Sec. 17.051. ADOPTION OF RULES. (a) The commission shall
9-8 adopt rules relating to certification, registration, and reporting
9-9 requirements for a certificated telecommunications utility, a
9-10 retail electric provider, or an electric utility, as well as all
9-11 telecommunications utilities that are not dominant carriers, pay
9-12 telephone providers, qualifying facilities that are selling
9-13 capacity into the wholesale or retail market, exempt wholesale
9-14 generators, and power marketers.
9-15 (b) The rules adopted under Subsection (a) shall be
9-16 consistent with and no less effective than federal law and may not
9-17 require the disclosure of highly sensitive competitive or trade
9-18 secret information.
9-19 Sec. 17.052. SCOPE OF RULES. The commission may adopt and
9-20 enforce rules to:
9-21 (1) require certification or registration with the
9-22 commission as a condition of doing business in this state, except
9-23 that this requirement does not apply to municipally owned
9-24 utilities;
9-25 (2) amend certificates or registrations to reflect
9-26 changed ownership and control;
10-1 (3) establish rules for customer service and
10-2 protection;
10-3 (4) suspend or revoke certificates or registrations
10-4 for repeated violations of this chapter or commission rules, except
10-5 that the commission may not revoke a certificate of convenience and
10-6 necessity of an electric utility except as provided by Section
10-7 37.059 or a certificate of convenience and necessity of a
10-8 telecommunications utility except as provided by Section 54.008;
10-9 and
10-10 (5) order disconnection of a pay telephone service
10-11 provider's pay telephones or revocation of certification or
10-12 registration for repeated violations of this chapter or commission
10-13 rules.
10-14 Sec. 17.053. REPORTS. The commission may require a
10-15 telecommunications service provider, a retail electric provider, or
10-16 an electric utility to submit reports to the commission concerning
10-17 any matter over which it has authority under this chapter.
10-18 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
10-19 Sec. 17.101. POLICY. It is the policy of this state that
10-20 all customers be protected from the unauthorized switching of a
10-21 telecommunications service provider, a retail electric provider, or
10-22 an electric utility selected by the customer to provide service,
10-23 where choice is permitted by law.
10-24 Sec. 17.102. RULES RELATING TO CHOICE. The commission shall
10-25 adopt and enforce rules that:
10-26 (1) ensure that customers are protected from deceptive
11-1 practices employed in obtaining authorizations of service and in
11-2 the verification of change orders, including negative option
11-3 marketing, sweepstakes, and contests that cause customers to
11-4 unknowingly change their telecommunications service provider,
11-5 retail electric provider, or electric utility, where choice is
11-6 permitted by law;
11-7 (2) provide for clear, easily understandable
11-8 identification, in each bill sent to a customer, of all
11-9 telecommunications service providers, retail electric providers, or
11-10 electric utilities submitting charges on the bill;
11-11 (3) ensure that every service provider submitting
11-12 charges on the bill is clearly and easily identified on the bill
11-13 along with its services, products, and charges;
11-14 (4) provide that unauthorized changes in service be
11-15 remedied at no cost to the customer within a period established by
11-16 the commission;
11-17 (5) require refunds or credits to the customer in the
11-18 event of an unauthorized change; and
11-19 (6) provide for penalties for violations of commission
11-20 rules adopted under this section, including fines and revocation of
11-21 certificates or registrations, by this action denying the
11-22 certificated telecommunications utility, the retail electric
11-23 provider, or the electric utility the right to provide service in
11-24 this state, except that the commission may not revoke a certificate
11-25 of convenience and necessity of an electric utility except as
11-26 provided by Section 37.059 or a certificate of convenience and
12-1 necessity of a telecommunications utility except as provided by
12-2 Section 54.008.
12-3 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
12-4 Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
12-5 service provider, retail electric provider, or billing agent may
12-6 submit charges for a new product or service to be billed on a
12-7 customer's telephone or retail electric bill on or after the
12-8 effective date of this section only if:
12-9 (1) the service provider offering the product or
12-10 service has thoroughly informed the customer of the product or
12-11 service being offered, including all associated charges, and has
12-12 explicitly informed the customer that the associated charges for
12-13 the product or service will appear on the customer's telephone or
12-14 electric bill;
12-15 (2) the customer has clearly and explicitly consented
12-16 to obtain the product or service offered and to have the associated
12-17 charges appear on the customer's telephone or electric bill and the
12-18 consent has been verified as provided by Subsection (b); and
12-19 (3) the service provider offering the product or
12-20 service and any billing agent for the service provider:
12-21 (A) has provided the customer with a toll-free
12-22 telephone number the customer may call and an address to which the
12-23 customer may write to resolve any billing dispute and to answer
12-24 questions; and
12-25 (B) has contracted with the billing utility to
12-26 bill for products and services on the billing utility's bill as
13-1 provided by Subsection (c).
13-2 (b) The customer consent required by Subsection (a)(2) must
13-3 be verified by the service provider offering the product or service
13-4 by authorization from the customer. A record of the customer
13-5 consent, including verification, must be maintained by the service
13-6 provider offering the product or service for a period of at least
13-7 24 months immediately after the consent and verification have been
13-8 obtained. The method of obtaining customer consent and
13-9 verification must include one or more of the following:
13-10 (1) written authorization from the customer;
13-11 (2) toll-free electronic authorization placed from the
13-12 telephone number that is the subject of the product or service;
13-13 (3) oral authorization obtained by an independent
13-14 third party; or
13-15 (4) any other method of authorization approved by the
13-16 commission or the Federal Communications Commission.
13-17 (c) The contract required by Subsection (a)(3)(B) must
13-18 include the service provider's name, business address, and business
13-19 telephone number and shall be maintained by the billing utility for
13-20 as long as the billing for the products and services continues and
13-21 for the 24 months immediately following the permanent
13-22 discontinuation of the billing.
13-23 (d) A service provider offering a product or service to be
13-24 charged on a customer's telephone or electric bill and any billing
13-25 agent for the service provider may not use any fraudulent, unfair,
13-26 misleading, deceptive, or anticompetitive marketing practice to
14-1 obtain customers, including the use of negative option marketing,
14-2 sweepstakes, and contests.
14-3 (e) Unless verification is required by federal law or rules
14-4 implementing federal law, Subsection (b) does not apply to
14-5 customer-initiated transactions with a certificated
14-6 telecommunications provider or an electric utility for which the
14-7 service provider has the appropriate documentation.
14-8 (f) If a service provider is notified by a billing utility
14-9 that a customer has reported to the billing utility that a charge
14-10 made by the service provider is unauthorized, the service provider
14-11 shall cease to charge the customer for the unauthorized product or
14-12 service.
14-13 (g) This section does not apply to message
14-14 telecommunications services charges that are initiated by dialing
14-15 1+, 0+, 0-, 1010XXX, or collect calls and charges for video
14-16 services if the service provider has the necessary call detail
14-17 record to establish the billing for the call or service.
14-18 Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a
14-19 customer's telephone or retail electric bill is charged for any
14-20 product or service without proper customer consent or verification,
14-21 the billing utility, on its knowledge or notification of any
14-22 unauthorized charge, shall promptly, not later than 45 days after
14-23 the date of knowledge or notification of the charge:
14-24 (1) notify the service provider to cease charging the
14-25 customer for the unauthorized product or service;
14-26 (2) remove any unauthorized charge from the customer's
15-1 bill;
15-2 (3) refund or credit to the customer all money that
15-3 has been paid by the customer for any unauthorized charge, and if
15-4 the unauthorized charge is not adjusted within three billing
15-5 cycles, shall pay interest on the amount of the unauthorized
15-6 charge;
15-7 (4) on the customer's request, provide the customer
15-8 with all billing records under its control related to any
15-9 unauthorized charge within 15 business days after the date of the
15-10 removal of the unauthorized charge from the customer's bill; and
15-11 (5) maintain for at least 24 months a record of every
15-12 customer who has experienced any unauthorized charge for a product
15-13 or service on the customer's telephone or electric bill and who has
15-14 notified the billing utility of the unauthorized charge.
15-15 (b) A record required by Subsection (a)(5) shall contain for
15-16 each unauthorized charge:
15-17 (1) the name of the service provider that offered the
15-18 product or service;
15-19 (2) any affected telephone numbers or addresses;
15-20 (3) the date the customer requested that the billing
15-21 utility remove the unauthorized charge;
15-22 (4) the date the unauthorized charge was removed from
15-23 the customer's telephone or electric bill; and
15-24 (5) the date any money that the customer paid for the
15-25 unauthorized charges was refunded or credited to the customer.
15-26 (c) A billing utility may not:
16-1 (1) disconnect or terminate telecommunications or
16-2 electric service to any customer for nonpayment of an unauthorized
16-3 charge; or
16-4 (2) file an unfavorable credit report against a
16-5 customer who has not paid charges the customer has alleged were
16-6 unauthorized unless the dispute regarding the unauthorized charge
16-7 is ultimately resolved against the customer, except that the
16-8 customer shall remain obligated to pay any charges that are not in
16-9 dispute, and this subsection does not apply to those undisputed
16-10 charges.
16-11 Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every
16-12 service provider shall maintain a record of every disputed charge
16-13 for a product or service placed on a customer's bill.
16-14 (b) The record required under Subsection (a) shall contain
16-15 for every disputed charge:
16-16 (1) any affected telephone numbers or addresses;
16-17 (2) the date the customer requested that the billing
16-18 utility remove the unauthorized charge;
16-19 (3) the date the unauthorized charge was removed from
16-20 the customer's telephone or retail electric bill; and
16-21 (4) the date action was taken to refund or credit to
16-22 the customer any money that the customer paid for the unauthorized
16-23 charges.
16-24 (c) The record required by Subsection (a) shall be
16-25 maintained for at least 24 months following the completion of all
16-26 steps required by Section 17.152(a).
17-1 Sec. 17.154. NOTICE. (a) A billing utility shall provide
17-2 notice of a customer's rights under this section in the manner
17-3 prescribed by the commission.
17-4 (b) Notice of a customer's rights must be provided by mail
17-5 to each residential and retail business customer within 60 days of
17-6 the effective date of this section or by inclusion in the
17-7 publication of the telephone directory next following the effective
17-8 date of this section. In addition, each billing utility shall send
17-9 the notice to new customers at the time service is initiated or to
17-10 any customer at that customer's request.
17-11 Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility
17-12 shall provide a copy of records maintained under Sections
17-13 17.151(c), 17.152, and 17.154 to the commission staff on request.
17-14 A service provider shall provide a copy of records maintained under
17-15 Sections 17.151(b) and 17.153 to the commission on request.
17-16 Sec. 17.156. VIOLATIONS. (a) If the commission finds that
17-17 a billing utility violated this subchapter, the commission may
17-18 implement penalties and other enforcement actions under Chapter 15.
17-19 (b) If the commission finds that any other service provider
17-20 or billing agent subject to this subchapter has violated this
17-21 subchapter or has knowingly provided false information to the
17-22 commission on matters subject to this subchapter, the commission
17-23 may enforce the provisions of Chapter 15 against the service
17-24 provider or billing agent as if it were regulated by the
17-25 commission.
17-26 (c) Neither the authority granted under this section nor any
18-1 other provision of this subchapter shall be construed to grant the
18-2 commission jurisdiction to regulate service providers or billing
18-3 agents who are not otherwise subject to commission regulation,
18-4 other than as specifically provided by this chapter.
18-5 (d) If the commission finds that a billing utility or
18-6 service provider repeatedly violates this subchapter, the
18-7 commission may, if the action is consistent with the public
18-8 interest, suspend, restrict, or revoke the registration or
18-9 certificate of the telecommunications service provider, retail
18-10 electric provider, or electric utility, by this action denying the
18-11 telecommunications service provider, retail electric provider, or
18-12 electric utility the right to provide service in this state, except
18-13 that the commission may not revoke a certificate of convenience and
18-14 necessity of an electric utility except as provided by Section
18-15 37.059 or a certificate of convenience and necessity of a
18-16 telecommunications utility except as provided by Section 54.008.
18-17 (e) If the commission finds that a service provider or
18-18 billing agent has repeatedly violated any provision of this
18-19 subchapter, the commission may order the billing utility to
18-20 terminate billing and collection services for that service provider
18-21 or billing agent.
18-22 (f) Nothing in this subchapter shall be construed to
18-23 preclude a billing utility from taking action on its own to
18-24 terminate or restrict its billing and collection services.
18-25 Sec. 17.157. DISPUTES. (a) The commission may resolve
18-26 disputes between a retail customer and a billing utility, service
19-1 provider, telecommunications utility, retail electric provider, or
19-2 electric utility.
19-3 (b) In exercising its authority under Subsection (a), the
19-4 commission may:
19-5 (1) order a billing utility, service provider, retail
19-6 electric provider, or electric utility to produce information or
19-7 records;
19-8 (2) require that all contracts, bills, and other
19-9 communications from a billing utility, service provider, retail
19-10 electric provider, or electric utility display a working toll-free
19-11 telephone number that customers may call with complaints and
19-12 inquiries;
19-13 (3) require a billing utility, service provider,
19-14 retail electric provider, or electric utility to refund or credit
19-15 overcharges or unauthorized charges with interest if the billing
19-16 utility, service provider, retail electric provider, or electric
19-17 utility has failed to comply with commission rules or a contract
19-18 with the customer;
19-19 (4) order appropriate relief to ensure that a
19-20 customer's choice of a telecommunications service provider, a
19-21 retail electric provider, or an electric utility that encompasses a
19-22 geographic area in which more than one provider has been
19-23 certificated is honored;
19-24 (5) require the continuation of service to a
19-25 residential or small commercial customer while a dispute is pending
19-26 regarding charges the customer has alleged were unauthorized; and
20-1 (6) investigate an alleged violation.
20-2 (c) The commission shall adopt procedures for the resolution
20-3 of disputes in a timely manner, which in no event shall exceed 60
20-4 days.
20-5 Sec. 17.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by
20-6 the commission under this subchapter shall be consistent with and
20-7 not more burdensome than applicable federal laws and rules.
20-8 SECTION 4. Subdivision (10), Section 51.002, Utilities Code,
20-9 is amended to read as follows:
20-10 (10) "Telecommunications provider":
20-11 (A) means:
20-12 (i) a certificated telecommunications
20-13 utility;
20-14 (ii) a shared tenant service provider;
20-15 (iii) a nondominant carrier of
20-16 telecommunications services;
20-17 (iv) a provider of commercial mobile
20-18 service as defined by Section 332(d), Communications Act of 1934
20-19 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
20-20 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
20-21 Law 103-66), except that the term does not include these entities
20-22 for the purposes of Chapter 17 or 55;
20-23 (v) a telecommunications entity that
20-24 provides central office based PBX-type sharing or resale
20-25 arrangements;
20-26 (vi) an interexchange telecommunications
21-1 carrier;
21-2 (vii) a specialized common carrier;
21-3 (viii) a reseller of communications;
21-4 (ix) a provider of operator services;
21-5 (x) a provider of customer-owned pay
21-6 telephone service; or
21-7 (xi) another person or entity determined
21-8 by the commission to provide telecommunications services to
21-9 customers in this state; and
21-10 (B) does not mean:
21-11 (i) a provider of enhanced or information
21-12 services, or another user of telecommunications services, who does
21-13 not also provide telecommunications services; or
21-14 (ii) a state agency or state institution
21-15 of higher education, or a service provided by a state agency or
21-16 state institution of higher education.
21-17 SECTION 5. Subchapter A, Chapter 55, Utilities Code, is
21-18 amended by adding Section 55.012 to read as follows:
21-19 Sec. 55.012. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL
21-20 TELECOMMUNICATIONS SERVICE. (a) A provider of basic local
21-21 telecommunications service may not discontinue that service because
21-22 of nonpayment by a residential customer of charges for long
21-23 distance service. Payment shall first be allocated to basic local
21-24 telecommunications service.
21-25 (b) For purposes of allocating payment in this section, if
21-26 the provider of basic local telecommunications service bundles its
22-1 basic local telecommunications service with long distance service
22-2 or any other service and provides a discount for the basic local
22-3 telecommunications service because of that bundling, the rate of
22-4 basic local telecommunications service shall be the rate the
22-5 provider charges for stand-alone basic local telecommunications
22-6 service.
22-7 (c) Notwithstanding Subsection (a), the commission shall
22-8 adopt and implement rules, not later than January 1, 2000, to
22-9 prevent customer abuse of the protections afforded by this section.
22-10 The rules must include:
22-11 (1) provisions requiring a provider of basic local
22-12 telecommunications service to offer and implement, at the request
22-13 and expense of a long distance service provider, toll blocking
22-14 capability to limit a customer's ability to incur additional
22-15 charges for long distance services after nonpayment for long
22-16 distance services; and
22-17 (2) provisions regarding fraudulent activity in
22-18 response to which a provider may discontinue a residential
22-19 customer's basic local telecommunications service.
22-20 (d) Notwithstanding any other provision of this title, the
22-21 commission has all jurisdiction necessary to establish a maximum
22-22 price that an incumbent local exchange company may charge a long
22-23 distance service provider to initiate the toll blocking capability
22-24 required to be offered under the rules adopted under Subsection
22-25 (c). The maximum price established under this subsection shall be
22-26 observed by all providers of basic local telecommunications service
23-1 in the incumbent local exchange company's certificated service
23-2 area. Notwithstanding Sections 52.102 and 52.152, the commission
23-3 has all jurisdiction necessary to enforce this section.
23-4 SECTION 6. Section 3.312, Public Utility Regulatory Act of
23-5 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as added by
23-6 Section 1, Chapter 919, Acts of the 75th Legislature, Regular
23-7 Session, 1997, is codified as Subchapter K, Chapter 55, Utilities
23-8 Code, and amended to read as follows:
23-9 SUBCHAPTER K. SELECTION OF TELECOMMUNICATIONS UTILITIES
23-10 Sec. 55.301. STATE POLICY. It is the policy of this state
23-11 to ensure that all customers are protected from the unauthorized
23-12 switching of a telecommunications utility selected by the customer
23-13 to provide telecommunications service.
23-14 Sec. 55.302. COMMISSION RULES. (a) The commission shall
23-15 adopt nondiscriminatory and competitively neutral rules to
23-16 implement this subchapter, including rules that:
23-17 (1) ensure that customers are protected from deceptive
23-18 practices in the obtaining of authorizations and verifications
23-19 required by this subchapter;
23-20 (2) are applicable to all local exchange telephone
23-21 services, interexchange telecommunications service, and other
23-22 telecommunications service provided by telecommunications utilities
23-23 in this state;
23-24 (3) are consistent with the rules and regulations
23-25 prescribed by the Federal Communications Commission for the
23-26 selection of telecommunications utilities;
24-1 (4) permit telecommunications utilities to select any
24-2 method of verification of a [carrier-initiated] change order
24-3 authorized by Section 55.303;
24-4 (5) [require telecommunications utilities to maintain
24-5 records relating to a customer-initiated change in accordance with
24-6 Section 55.304;]
24-7 [(6)] require the reversal of certain changes in the
24-8 selection of a customer's telecommunications utility in accordance
24-9 with Section 55.304(a) [55.305(a)];
24-10 (6) [(7)] prescribe, in accordance with Section
24-11 55.304(b) [55.305(b)], the duties of a telecommunications utility
24-12 that initiates an unauthorized customer change; and
24-13 (7) [(8)] provide for corrective action and the
24-14 imposition of penalties in accordance with Sections 55.305 [55.306]
24-15 and 55.306 [55.307].
24-16 (b) The commission is granted all necessary jurisdiction to
24-17 adopt rules required by this subchapter and to enforce those rules
24-18 and this subchapter.
24-19 (c) The commission may notify customers of their rights
24-20 under the rules.
24-21 Sec. 55.303. VERIFICATION OF [CARRIER-INITIATED] CHANGE.
24-22 [(a)] A telecommunications utility may verify a
24-23 [carrier-initiated] change order by:
24-24 (1) obtaining written authorization from the customer;
24-25 (2) obtaining a toll-free electronic authorization
24-26 placed from the telephone number that is the subject of the change
25-1 order; or
25-2 (3) an oral authorization obtained by an independent
25-3 third party.
25-4 [(b) In addition to the methods provided by Subsection (a),
25-5 a telecommunications utility may verify a carrier-initiated change
25-6 order by mailing to the customer an information package that is
25-7 consistent with the requirements of 47 C.F.R. Section 64.1100(d)
25-8 and that contains a postage-prepaid postcard or mailer. The change
25-9 is considered verified if the telecommunications utility does not
25-10 receive a cancellation of the change order from the customer within
25-11 14 days after the date of the mailing.]
25-12 [Sec. 55.304. CUSTOMER-INITIATED CHANGE. (a) A
25-13 telecommunications utility to whom a customer has changed its
25-14 service on the initiative of the customer shall maintain a record
25-15 of nonpublic customer-specific information that could be used to
25-16 establish that the customer authorized the change.]
25-17 [(b) Notwithstanding Subsection (a), if the Federal
25-18 Communications Commission requires verification, the
25-19 telecommunications utility shall use the verification methods
25-20 required by the Federal Communications Commission.]
25-21 Sec. 55.304 [55.305]. UNAUTHORIZED CHANGE. (a) If a change
25-22 in the selection of a customer's telecommunications utility is not
25-23 made or verified in accordance with this subchapter, the change, on
25-24 request by the customer, shall be reversed within a period
25-25 established by commission ruling.
25-26 (b) A telecommunications utility that initiates an
26-1 unauthorized customer change shall:
26-2 (1) pay all usual and customary charges associated
26-3 with returning the customer to its original telecommunications
26-4 utility;
26-5 (2) pay the telecommunications utility from which the
26-6 customer was changed any amount paid by the customer that would
26-7 have been paid to that telecommunications utility if the
26-8 unauthorized change had not been made;
26-9 (3) return to the customer any amount paid by the
26-10 customer that exceeds the charges that would have been imposed for
26-11 identical services by the telecommunications utility from which the
26-12 customer was changed if the unauthorized change had not been made;
26-13 and
26-14 (4) provide to the original telecommunications utility
26-15 from which the customer was changed all billing records to enable
26-16 that telecommunications utility to comply with this subchapter.
26-17 (c) The telecommunications utility from which the customer
26-18 was changed shall provide to the customer all benefits associated
26-19 with the service on receipt of payment for service provided during
26-20 the unauthorized change.
26-21 (d) A customer is not liable for charges incurred during the
26-22 first 30 days after the date of an unauthorized carrier change.
26-23 Sec. 55.305 [55.306]. CORRECTIVE ACTION AND PENALTIES.
26-24 (a) If the commission finds that a telecommunications utility has
26-25 repeatedly violated the commission's telecommunications utility
26-26 selection rules, the commission shall order the utility to take
27-1 corrective action as necessary. In addition, the utility may be
27-2 subject to administrative penalties under Sections 15.023-15.027.
27-3 (b) An administrative penalty collected under this section
27-4 shall be used to enforce this subchapter.
27-5 Sec. 55.306 [55.307]. REPEATED AND RECKLESS VIOLATION. If
27-6 the commission finds that a telecommunications utility has
27-7 repeatedly and recklessly violated the commission's
27-8 telecommunications utility selection rules, the commission may, if
27-9 consistent with the public interest, suspend, restrict, deny, or
27-10 revoke the registration or certificate, including an amended
27-11 certificate, of the telecommunications utility and, by taking that
27-12 action, deny the telecommunications utility the right to provide
27-13 service in this state.
27-14 Sec. 55.307. DECEPTIVE OR FRAUDULENT PRACTICE. The
27-15 commission may prohibit a utility from engaging in a deceptive or
27-16 fraudulent practice, including a marketing practice, involving the
27-17 selection of a customer's telecommunications utility. The
27-18 commission may define deceptive and fraudulent practices to which
27-19 this section applies.
27-20 SECTION 7. The importance of this legislation and the
27-21 crowded condition of the calendars in both houses create an
27-22 emergency and an imperative public necessity that the
27-23 constitutional rule requiring bills to be read on three several
27-24 days in each house be suspended, and this rule is hereby suspended,
27-25 and that this Act take effect and be in force from and after its
27-26 passage, and it is so enacted.
S.B. No. 86
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 86 passed the Senate on
March 3, 1999, by the following vote: Yeas 31, Nays 0;
May 28, 1999, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 29, 1999, House
granted request of the Senate; May 30, 1999, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 86 passed the House, with
amendments, on May 22, 1999, by a non-record vote; May 29, 1999,
House granted request of the Senate for appointment of Conference
Committee; May 30, 1999, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor