76R14486 E
By Nelson, et al. S.B. No. 86
Substitute the following for S.B. No. 86:
By Danburg C.S.S.B. No. 86
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the protection of telecommunications and electric
1-3 services customers; providing penalties.
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(c), Utilities Code, is amended to
1-19 read as follows:
1-20 (c) A penalty may not be assessed under this section if the
1-21 person against whom the penalty may be assessed remedies the
1-22 violation before the 31st day after the date the person receives
1-23 the notice under Subsection (b). A person who claims to have
1-24 remedied an alleged violation has the burden of proving to the
2-1 commission that the alleged violation was remedied and was
2-2 accidental or inadvertent. This subsection does not apply to a
2-3 violation of Chapter 17 or 55.
2-4 SECTION 3. Subtitle A, Title 2, Utilities Code, is amended
2-5 by adding Chapter 17 to read as follows:
2-6 CHAPTER 17. CUSTOMER PROTECTION
2-7 SUBCHAPTER A. GENERAL PROVISIONS
2-8 Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The
2-9 legislature finds that new developments in telecommunications
2-10 services and the production and delivery of electricity, as well as
2-11 changes in market structure, marketing techniques, and technology,
2-12 make it essential that customers have safeguards against
2-13 fraudulent, unfair, misleading, deceptive, or anticompetitive
2-14 business practices and against businesses that do not have the
2-15 technical and financial resources to provide adequate service.
2-16 (b) The purpose of this chapter is to establish retail
2-17 customer protection standards and confer on the commission
2-18 authority to adopt and enforce rules to protect retail customers
2-19 from fraudulent, unfair, misleading, deceptive, or anticompetitive
2-20 practices.
2-21 (c) Nothing in this section shall be construed to abridge
2-22 customer rights set forth in commission rules in effect at the time
2-23 of the enactment of this chapter.
2-24 (d) This chapter does not limit the constitutional,
2-25 statutory, and common law authority of the office of the attorney
2-26 general.
2-27 (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
3-27 utility.
4-1 (7) "Service provider" means any entity that offers a
4-2 product or service to a customer and that directly or indirectly
4-3 charges to or collects from a customer's bill an amount for the
4-4 product or service on a customer's bill received from a billing
4-5 utility.
4-6 (8) "Telecommunications utility" has the meaning
4-7 assigned by Section 51.002.
4-8 Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall
4-9 promote public awareness of changes in the electric and
4-10 telecommunications markets, provide customers with information
4-11 necessary to make informed choices about available options, and
4-12 ensure that customers have an adequate understanding of their
4-13 rights.
4-14 (b) The commission shall compile a report on customer
4-15 service at least once each year showing the comparative customer
4-16 information from reports given to the commission it deems
4-17 necessary.
4-18 (c) The commission shall adopt and enforce rules to require
4-19 a certificated telecommunications utility, a retail electric
4-20 provider, or an electric utility to give clear, uniform, and
4-21 understandable information to customers about rates, terms,
4-22 services, customer rights, and other necessary information as
4-23 determined by the commission.
4-24 (d) Customer awareness efforts by the commission shall be
4-25 conducted in English and Spanish and any other language as
4-26 necessary.
4-27 Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
5-1 of telecommunications and retail electric services are entitled to:
5-2 (1) protection from fraudulent, unfair, misleading,
5-3 deceptive, or anticompetitive practices, including protection from
5-4 being billed for services that were not authorized or provided;
5-5 (2) choice of a telecommunications service provider, a
5-6 retail electric provider, or an electric utility, where that choice
5-7 is permitted by law, and to have that choice honored;
5-8 (3) information in English and Spanish and any other
5-9 language as the commission deems necessary concerning rates, key
5-10 terms and conditions, and the basis for any claim of environmental
5-11 benefits of certain production facilities;
5-12 (4) protection from discrimination on the basis of
5-13 race, color, sex, nationality, religion, marital status, income
5-14 level, or source of income and from unreasonable discrimination on
5-15 the basis of geographic location;
5-16 (5) impartial and prompt resolution of disputes with a
5-17 certificated telecommunications utility, a retail electric
5-18 provider, or an electric utility and disputes with a
5-19 telecommunications service provider related to unauthorized charges
5-20 and switching of service;
5-21 (6) privacy of customer consumption and credit
5-22 information;
5-23 (7) accuracy of metering and billing;
5-24 (8) bills presented in a clear, readable format and
5-25 easy-to-understand language;
5-26 (9) information in English and Spanish and any other
5-27 language as the commission deems necessary concerning low-income
6-1 assistance programs and deferred payment plans;
6-2 (10) all consumer protections and disclosures
6-3 established by the Fair Credit Reporting Act (15 U.S.C. Section
6-4 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601
6-5 et seq.); and
6-6 (11) programs that offer eligible low-income customers
6-7 energy efficiency programs, an affordable rate package, and bill
6-8 payment assistance programs designed to reduce uncollectible
6-9 accounts.
6-10 (b) The commission may adopt and enforce rules as necessary
6-11 or appropriate to carry out this section, including rules for
6-12 minimum service standards for a certificated telecommunications
6-13 utility, a retail electric provider, or an electric utility
6-14 relating to customer deposits and the extension of credit,
6-15 switching fees, levelized billing programs, and termination of
6-16 service and to energy efficiency programs, an affordable rate
6-17 package, and bill payment assistance programs for low-income
6-18 customers. The commission may waive language requirements for good
6-19 cause.
6-20 (c) The commission shall request the comments of the office
6-21 of the attorney general in developing the rules that may be
6-22 necessary or appropriate to carry out this section.
6-23 (d) The commission shall coordinate its enforcement efforts
6-24 regarding the prosecution of fraudulent, misleading, deceptive, and
6-25 anticompetitive business practices with the office of the attorney
6-26 general in order to ensure consistent treatment of specific alleged
6-27 violations.
7-1 (e) Nothing in this section shall be construed to abridge
7-2 customer rights set forth in commission rules in effect at the time
7-3 of the enactment of this chapter.
7-4 Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED
7-5 UTILITIES. A municipally owned utility may not be deemed to be a
7-6 "service provider" or "billing agent" for purposes of Sections
7-7 17.156(b) and (e). For electric customers within a municipally
7-8 owned utility's certificated service area or otherwise served
7-9 through its distribution facilities, the governing body of a
7-10 municipally owned utility shall adopt, implement, and enforce rules
7-11 that shall have the effect of accomplishing the objectives set out
7-12 in Sections 17.004(a) and (b) and 17.102. The governing body of a
7-13 municipally owned utility or its designee shall perform the dispute
7-14 resolution function provided for by Section 17.157 for electric
7-15 customers served within the municipally owned utility's
7-16 certificated service area or otherwise served through its
7-17 distribution facilities. With respect to electric customers served
7-18 by a municipally owned utility outside its certificated service
7-19 area or otherwise served through others' distribution facilities,
7-20 after retail competition begins as authorized by the legislature,
7-21 the provisions of this chapter as administered by the commission
7-22 apply. Nothing in this chapter shall be deemed to apply to a
7-23 wholesale customer of a municipally owned utility.
7-24 SUBCHAPTER B. CERTIFICATION, REGISTRATION,
7-25 AND REPORTING REQUIREMENTS
7-26 Sec. 17.051. ADOPTION OF RULES. (a) The commission shall
7-27 adopt rules relating to certification, registration, and reporting
8-1 requirements for a certificated telecommunications utility, a
8-2 retail electric provider, or an electric utility, as well as all
8-3 telecommunications utilities that are not dominant carriers, pay
8-4 telephone providers, qualifying facilities that are selling
8-5 capacity into the wholesale or retail market, exempt wholesale
8-6 generators, and power marketers.
8-7 (b) The rules adopted under Subsection (a) shall be
8-8 consistent with and no less effective than federal law and may not
8-9 require the disclosure of highly sensitive competitive or trade
8-10 secret information.
8-11 Sec. 17.052. SCOPE OF RULES. The commission may adopt and
8-12 enforce rules to:
8-13 (1) require certification or registration with the
8-14 commission as a condition of doing business in this state, except
8-15 that this requirement does not apply to municipally owned
8-16 utilities;
8-17 (2) amend certificates or registrations to reflect
8-18 changed ownership and control;
8-19 (3) establish rules for customer service and
8-20 protection;
8-21 (4) suspend or revoke certificates or registrations
8-22 for repeated violations of this chapter or commission rules, except
8-23 that the commission may not revoke a certificate of convenience and
8-24 necessity of an electric utility except as provided by Section
8-25 37.059 or a certificate of convenience and necessity of a
8-26 telecommunications utility except as provided by Section 54.008;
8-27 and
9-1 (5) order disconnection of a pay telephone service
9-2 provider's pay telephones or revocation of certification or
9-3 registration for repeated violations of this chapter or commission
9-4 rules.
9-5 Sec. 17.053. REPORTS. The commission may require a
9-6 telecommunications service provider, a retail electric provider, or
9-7 an electric utility to submit reports to the commission concerning
9-8 any matter over which it has authority under this chapter.
9-9 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
9-10 Sec. 17.101. POLICY. It is the policy of this state that
9-11 all customers be protected from the unauthorized switching of a
9-12 telecommunications service provider, a retail electric provider, or
9-13 an electric utility selected by the customer to provide service,
9-14 where choice is permitted by law.
9-15 Sec. 17.102. RULES RELATING TO CHOICE. The commission shall
9-16 adopt and enforce rules that:
9-17 (1) ensure that customers are protected from deceptive
9-18 practices employed in obtaining authorizations of service and in
9-19 the verification of change orders, including negative option
9-20 marketing, sweepstakes, and contests that cause customers to
9-21 unknowingly change their telecommunications service provider,
9-22 retail electric provider, or electric utility, where choice is
9-23 permitted by law;
9-24 (2) provide for clear, easily understandable
9-25 identification, in each bill sent to a customer, of all
9-26 telecommunications service providers, retail electric providers, or
9-27 electric utilities submitting charges on the bill;
10-1 (3) ensure that every service provider submitting
10-2 charges on the bill is clearly and easily identified on the bill
10-3 along with its services, products, and charges;
10-4 (4) provide that unauthorized changes in service be
10-5 remedied at no cost to the customer within a period established by
10-6 the commission;
10-7 (5) require refunds or credits to the customer in the
10-8 event of an unauthorized change; and
10-9 (6) provide for penalties for violations of commission
10-10 rules adopted under this section, including fines and revocation of
10-11 certificates or registrations, by this action denying the
10-12 certificated telecommunications utility, the retail electric
10-13 provider, or the electric utility the right to provide service in
10-14 this state, except that the commission may not revoke a certificate
10-15 of convenience and necessity of an electric utility except as
10-16 provided by Section 37.059 or a certificate of convenience and
10-17 necessity of a telecommunications utility except as provided by
10-18 Section 54.008.
10-19 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
10-20 Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
10-21 service provider, retail electric provider, or billing agent may
10-22 submit charges for a new product or service to be billed on a
10-23 customer's telephone or retail electric bill on or after the
10-24 effective date of this section only if:
10-25 (1) the service provider offering the product or
10-26 service has thoroughly informed the customer of the product or
10-27 service being offered, including all associated charges, and has
11-1 explicitly informed the customer that the associated charges for
11-2 the product or service will appear on the customer's telephone or
11-3 electric bill;
11-4 (2) the customer has clearly and explicitly consented
11-5 to obtain the product or service offered and to have the associated
11-6 charges appear on the customer's telephone or electric bill and the
11-7 consent has been verified as provided by Subsection (b); and
11-8 (3) the service provider offering the product or
11-9 service and any billing agent for the service provider:
11-10 (A) has provided the customer with a toll-free
11-11 telephone number the customer may call and an address to which the
11-12 customer may write to resolve any billing dispute and to answer
11-13 questions; and
11-14 (B) has contracted with the billing utility to
11-15 bill for products and services on the billing utility's bill as
11-16 provided by Subsection (c).
11-17 (b) The customer consent required by Subsection (a)(2) must
11-18 be verified by the service provider offering the product or service
11-19 by authorization from the customer. A record of the customer
11-20 consent, including verification, must be maintained by the service
11-21 provider offering the product or service for a period of at least
11-22 24 months immediately after the consent and verification have been
11-23 obtained. The method of obtaining customer consent and
11-24 verification must include one or more of the following:
11-25 (1) written authorization from the customer;
11-26 (2) toll-free electronic authorization placed from the
11-27 telephone number that is the subject of the product or service;
12-1 (3) oral authorization obtained by an independent
12-2 third party; or
12-3 (4) any other method of authorization approved by the
12-4 commission or the Federal Communications Commission.
12-5 (c) The contract required by Subsection (a)(3)(B) must
12-6 include the service provider's name, business address, and business
12-7 telephone number and shall be maintained by the billing utility for
12-8 as long as the billing for the products and services continues and
12-9 for the 24 months immediately following the permanent
12-10 discontinuation of the billing.
12-11 (d) A service provider offering a product or service to be
12-12 charged on a customer's telephone or electric bill and any billing
12-13 agent for the service provider may not use any fraudulent, unfair,
12-14 misleading, deceptive, or anticompetitive marketing practice to
12-15 obtain customers, including the use of negative option marketing,
12-16 sweepstakes, and contests.
12-17 (e) Unless verification is required by federal law or rules
12-18 implementing federal law, Subsection (b) does not apply to
12-19 customer-initiated transactions with a certificated
12-20 telecommunications provider or an electric utility for which the
12-21 service provider has the appropriate documentation.
12-22 (f) If a service provider is notified by a billing utility
12-23 that a customer has reported to the billing utility that a charge
12-24 made by the service provider is unauthorized, the service provider
12-25 shall cease to charge the customer for the unauthorized product or
12-26 service.
12-27 (g) This section does not apply to message
13-1 telecommunications services charges that are initiated by dialing
13-2 1+, 0+, 0-, 1010XXX, or collect calls and charges for video
13-3 services if the service provider has the necessary call detail
13-4 record to establish the billing for the call or service.
13-5 Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a
13-6 customer's telephone or retail electric bill is charged for any
13-7 product or service without proper customer consent or verification,
13-8 the billing utility, on its knowledge or notification of any
13-9 unauthorized charge, shall promptly, not later than 45 days after
13-10 the date of knowledge or notification of the charge:
13-11 (1) notify the service provider to cease charging the
13-12 customer for the unauthorized product or service;
13-13 (2) remove any unauthorized charge from the customer's
13-14 bill;
13-15 (3) refund or credit to the customer all money that
13-16 has been paid by the customer for any unauthorized charge, and if
13-17 the unauthorized charge is not adjusted within three billing
13-18 cycles, shall pay interest on the amount of the unauthorized
13-19 charge;
13-20 (4) on the customer's request, provide the customer
13-21 with all billing records under its control related to any
13-22 unauthorized charge within 15 business days after the date of the
13-23 removal of the unauthorized charge from the customer's bill; and
13-24 (5) maintain for at least 24 months a record of every
13-25 customer who has experienced any unauthorized charge for a product
13-26 or service on the customer's telephone or electric bill and who has
13-27 notified the billing utility of the unauthorized charge.
14-1 (b) A record required by Subsection (a)(5) shall contain for
14-2 each unauthorized charge:
14-3 (1) the name of the service provider that offered the
14-4 product or service;
14-5 (2) any affected telephone numbers or addresses;
14-6 (3) the date the customer requested that the billing
14-7 utility remove the unauthorized charge;
14-8 (4) the date the unauthorized charge was removed from
14-9 the customer's telephone or electric bill; and
14-10 (5) the date any money that the customer paid for the
14-11 unauthorized charges was refunded or credited to the customer.
14-12 (c) A billing utility may not:
14-13 (1) disconnect or terminate telecommunications or
14-14 electric service to any customer for nonpayment of an unauthorized
14-15 charge;
14-16 (2) file an unfavorable credit report against a
14-17 customer who has not paid charges the customer has alleged were
14-18 unauthorized unless the dispute regarding the unauthorized charge
14-19 is ultimately resolved against the customer, except that the
14-20 customer shall remain obligated to pay any charges that are not in
14-21 dispute, and this subsection does not apply to those undisputed
14-22 charges; or
14-23 (3) interrupt or terminate local exchange service if
14-24 charges for local exchange service are paid, unless the customer's
14-25 local exchange service provider:
14-26 (A) offers to the customer prepaid local
14-27 telephone service in accordance with terms and conditions
15-1 established by the commission; and
15-2 (B) provides eligible customers with notice of
15-3 their eligibility for this service in accordance with commission
15-4 rules.
15-5 Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every
15-6 service provider shall maintain a record of every disputed charge
15-7 for a product or service placed on a customer's bill.
15-8 (b) The record required under Subsection (a) shall contain
15-9 for every disputed charge:
15-10 (1) any affected telephone numbers or addresses;
15-11 (2) the date the customer requested that the billing
15-12 utility remove the unauthorized charge;
15-13 (3) the date the unauthorized charge was removed from
15-14 the customer's telephone or retail electric bill; and
15-15 (4) the date action was taken to refund or credit to
15-16 the customer any money that the customer paid for the unauthorized
15-17 charges.
15-18 (c) The record required by Subsection (a) shall be
15-19 maintained for at least 24 months following the completion of all
15-20 steps required by Section 17.152(a).
15-21 Sec. 17.154. NOTICE. (a) A billing utility shall provide
15-22 notice of a customer's rights under this section in the manner
15-23 prescribed by the commission.
15-24 (b) Notice of a customer's rights must be provided by mail
15-25 to each residential and retail business customer within 60 days of
15-26 the effective date of this section or by inclusion in the
15-27 publication of the telephone directory next following the effective
16-1 date of this section. In addition, each billing utility shall send
16-2 the notice to new customers at the time service is initiated or to
16-3 any customer at that customer's request.
16-4 Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility
16-5 shall provide a copy of records maintained under Sections 17.152,
16-6 17.153, and 17.154 to the commission staff on request.
16-7 Sec. 17.156. VIOLATIONS. (a) If the commission finds that
16-8 a billing utility violated this subchapter, the commission may
16-9 implement penalties and other enforcement actions under Chapter 15.
16-10 (b) If the commission finds that any other service provider
16-11 or billing agent subject to this subchapter has violated this
16-12 subchapter or has knowingly provided false information to the
16-13 commission on matters subject to this subchapter, the commission
16-14 may enforce the provisions of Chapter 15 against the service
16-15 provider or billing agent as if it were regulated by the
16-16 commission.
16-17 (c) Neither the authority granted under this section nor any
16-18 other provision of this subchapter shall be construed to grant the
16-19 commission jurisdiction to regulate service providers or billing
16-20 agents who are not otherwise subject to commission regulation,
16-21 other than as specifically provided by this chapter.
16-22 (d) If the commission finds that a billing utility or
16-23 service provider repeatedly violates this subchapter, the
16-24 commission may, if the action is consistent with the public
16-25 interest, suspend, restrict, or revoke the registration or
16-26 certificate of the telecommunications service provider, retail
16-27 electric provider, or electric utility, by this action denying the
17-1 telecommunications service provider, retail electric provider, or
17-2 electric utility the right to provide service in this state, except
17-3 that the commission may not revoke a certificate of convenience and
17-4 necessity of an electric utility except as provided by Section
17-5 37.059 or a certificate of convenience and necessity of a
17-6 telecommunications utility except as provided by Section 54.008.
17-7 (e) If the commission finds that a service provider or
17-8 billing agent has repeatedly violated any provision of this
17-9 subchapter, the commission may order the billing utility to
17-10 terminate billing and collection services for that service provider
17-11 or billing agent.
17-12 (f) Nothing in this subchapter shall be construed to
17-13 preclude a billing utility from taking action on its own to
17-14 terminate or restrict its billing and collection services.
17-15 Sec. 17.157. DISPUTES. (a) The commission may resolve
17-16 disputes between a retail customer and a billing utility, service
17-17 provider, telecommunications utility, retail electric provider, or
17-18 electric utility.
17-19 (b) In exercising its authority under Subsection (a), the
17-20 commission may:
17-21 (1) order a billing utility, service provider, retail
17-22 electric provider, or electric utility to produce information or
17-23 records;
17-24 (2) require that all contracts, bills, and other
17-25 communications from a billing utility, service provider, retail
17-26 electric provider, or electric utility display a working toll-free
17-27 telephone number that customers may call with complaints and
18-1 inquiries;
18-2 (3) require a billing utility, service provider,
18-3 retail electric provider, or electric utility to refund or credit
18-4 overcharges or unauthorized charges with interest if the billing
18-5 utility, service provider, retail electric provider, or electric
18-6 utility has failed to comply with commission rules or a contract
18-7 with the customer;
18-8 (4) order appropriate relief to ensure that a
18-9 customer's choice of a telecommunications service provider, a
18-10 retail electric provider, or an electric utility that encompasses a
18-11 geographic area in which more than one provider has been
18-12 certificated is honored;
18-13 (5) require the continuation of service to a
18-14 residential or small commercial customer while a dispute is pending
18-15 regarding charges the customer has alleged were unauthorized; and
18-16 (6) investigate an alleged violation.
18-17 (c) The commission shall adopt procedures for the resolution
18-18 of disputes in a timely manner, which in no event shall exceed 60
18-19 days.
18-20 Sec. 17.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by
18-21 the commission under this subchapter shall be consistent with and
18-22 not more burdensome than applicable federal laws and rules.
18-23 SECTION 4. Section 51.002(10), Utilities Code, is amended to
18-24 read as follows:
18-25 (10) "Telecommunications provider":
18-26 (A) means:
18-27 (i) a certificated telecommunications
19-1 utility;
19-2 (ii) a shared tenant service provider;
19-3 (iii) a nondominant carrier of
19-4 telecommunications services;
19-5 (iv) a provider of commercial mobile
19-6 service as defined by Section 332(d), Communications Act of 1934
19-7 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
19-8 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
19-9 Law 103-66), except that the term does not include these entities
19-10 for the purposes of Chapter 17 or 55;
19-11 (v) a telecommunications entity that
19-12 provides central office based PBX-type sharing or resale
19-13 arrangements;
19-14 (vi) an interexchange telecommunications
19-15 carrier;
19-16 (vii) a specialized common carrier;
19-17 (viii) a reseller of communications;
19-18 (ix) a provider of operator services;
19-19 (x) a provider of customer-owned pay
19-20 telephone service; or
19-21 (xi) another person or entity determined
19-22 by the commission to provide telecommunications services to
19-23 customers in this state; and
19-24 (B) does not mean:
19-25 (i) a provider of enhanced or information
19-26 services, or another user of telecommunications services, who does
19-27 not also provide telecommunications services; or
20-1 (ii) a state agency or state institution
20-2 of higher education, or a service provided by a state agency or
20-3 state institution of higher education.
20-4 SECTION 5. Section 3.312, Public Utility Regulatory Act of
20-5 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as added by
20-6 Section 1, Chapter 919, Acts of the 75th Legislature, Regular
20-7 Session, 1997, is codified as Subchapter K, Chapter 55, Utilities
20-8 Code, and amended to read as follows:
20-9 SUBCHAPTER K. SELECTION OF TELECOMMUNICATIONS UTILITIES
20-10 Sec. 55.301. STATE POLICY. It is the policy of this state
20-11 to ensure that all customers are protected from the unauthorized
20-12 switching of a telecommunications utility selected by the customer
20-13 to provide telecommunications service.
20-14 Sec. 55.302. COMMISSION RULES. (a) The commission shall
20-15 adopt nondiscriminatory and competitively neutral rules to
20-16 implement this subchapter, including rules that:
20-17 (1) ensure that customers are protected from deceptive
20-18 practices in the obtaining of authorizations and verifications
20-19 required by this subchapter;
20-20 (2) are applicable to all local exchange telephone
20-21 services, interexchange telecommunications service, and other
20-22 telecommunications service provided by telecommunications utilities
20-23 in this state;
20-24 (3) are consistent with the rules and regulations
20-25 prescribed by the Federal Communications Commission for the
20-26 selection of telecommunications utilities;
20-27 (4) permit telecommunications utilities to select any
21-1 method of verification of a [carrier-initiated] change order
21-2 authorized by Section 55.303;
21-3 (5) [require telecommunications utilities to maintain
21-4 records relating to a customer-initiated change in accordance with
21-5 Section 55.304;]
21-6 [(6)] require the reversal of certain changes in the
21-7 selection of a customer's telecommunications utility in accordance
21-8 with Section 55.304(a) [55.305(a)];
21-9 (6) [(7)] prescribe, in accordance with Section
21-10 55.304(b) [55.305(b)], the duties of a telecommunications utility
21-11 that initiates an unauthorized customer change; and
21-12 (7) [(8)] provide for corrective action and the
21-13 imposition of penalties in accordance with Sections 55.305 [55.306]
21-14 and 55.306 [55.307].
21-15 (b) The commission is granted all necessary jurisdiction to
21-16 adopt rules required by this subchapter and to enforce those rules
21-17 and this subchapter.
21-18 (c) The commission may notify customers of their rights
21-19 under the rules.
21-20 Sec. 55.303. VERIFICATION OF [CARRIER-INITIATED] CHANGE.
21-21 [(a)] A telecommunications utility may verify a
21-22 [carrier-initiated] change order by:
21-23 (1) obtaining written authorization from the customer;
21-24 (2) obtaining a toll-free electronic authorization
21-25 placed from the telephone number that is the subject of the change
21-26 order; or
21-27 (3) an oral authorization obtained by an independent
22-1 third party.
22-2 [(b) In addition to the methods provided by Subsection (a),
22-3 a telecommunications utility may verify a carrier-initiated change
22-4 order by mailing to the customer an information package that is
22-5 consistent with the requirements of 47 C.F.R. Section 64.1100(d)
22-6 and that contains a postage-prepaid postcard or mailer. The change
22-7 is considered verified if the telecommunications utility does not
22-8 receive a cancellation of the change order from the customer within
22-9 14 days after the date of the mailing.]
22-10 [Sec. 55.304. CUSTOMER-INITIATED CHANGE. (a) A
22-11 telecommunications utility to whom a customer has changed its
22-12 service on the initiative of the customer shall maintain a record
22-13 of nonpublic customer-specific information that could be used to
22-14 establish that the customer authorized the change.]
22-15 [(b) Notwithstanding Subsection (a), if the Federal
22-16 Communications Commission requires verification, the
22-17 telecommunications utility shall use the verification methods
22-18 required by the Federal Communications Commission.]
22-19 Sec. 55.304 [55.305]. UNAUTHORIZED CHANGE. (a) If a change
22-20 in the selection of a customer's telecommunications utility is not
22-21 made or verified in accordance with this subchapter, the change, on
22-22 request by the customer, shall be reversed within a period
22-23 established by commission ruling.
22-24 (b) A telecommunications utility that initiates an
22-25 unauthorized customer change shall:
22-26 (1) pay all usual and customary charges associated
22-27 with returning the customer to its original telecommunications
23-1 utility;
23-2 (2) pay the telecommunications utility from which the
23-3 customer was changed any amount paid by the customer that would
23-4 have been paid to that telecommunications utility if the
23-5 unauthorized change had not been made;
23-6 (3) return to the customer any amount paid by the
23-7 customer that exceeds the charges that would have been imposed for
23-8 identical services by the telecommunications utility from which the
23-9 customer was changed if the unauthorized change had not been made;
23-10 and
23-11 (4) provide to the original telecommunications utility
23-12 from which the customer was changed all billing records to enable
23-13 that telecommunications utility to comply with this subchapter.
23-14 (c) The telecommunications utility from which the customer
23-15 was changed shall provide to the customer all benefits associated
23-16 with the service on receipt of payment for service provided during
23-17 the unauthorized change.
23-18 (d) A customer is not liable for charges incurred during the
23-19 first 30 days after the date of an unauthorized carrier change.
23-20 Sec. 55.305 [55.306]. CORRECTIVE ACTION AND PENALTIES. (a)
23-21 If the commission finds that a telecommunications utility has
23-22 repeatedly violated the commission's telecommunications utility
23-23 selection rules, the commission shall order the utility to take
23-24 corrective action as necessary. In addition, the utility may be
23-25 subject to administrative penalties under Sections 15.023-15.027.
23-26 (b) An administrative penalty collected under this section
23-27 shall be used to enforce this subchapter.
24-1 Sec. 55.306 [55.307]. REPEATED AND RECKLESS VIOLATION. If
24-2 the commission finds that a telecommunications utility has
24-3 repeatedly and recklessly violated the commission's
24-4 telecommunications utility selection rules, the commission may, if
24-5 consistent with the public interest, suspend, restrict, deny, or
24-6 revoke the registration or certificate, including an amended
24-7 certificate, of the telecommunications utility and, by taking that
24-8 action, deny the telecommunications utility the right to provide
24-9 service in this state.
24-10 Sec. 55.307. DECEPTIVE OR FRAUDULENT PRACTICE. The
24-11 commission may prohibit a utility from engaging in a deceptive or
24-12 fraudulent practice, including a marketing practice, involving the
24-13 selection of a customer's telecommunications utility. The
24-14 commission may define deceptive and fraudulent practices to which
24-15 this section applies.
24-16 SECTION 6. The importance of this legislation and the
24-17 crowded condition of the calendars in both houses create an
24-18 emergency and an imperative public necessity that the
24-19 constitutional rule requiring bills to be read on three several
24-20 days in each house be suspended, and this rule is hereby suspended,
24-21 and that this Act take effect and be in force from and after its
24-22 passage, and it is so enacted.