By: Nelson S.B. No. 86
99S0018/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the protection of telecommunications and electric
1-2 services customers.
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. Section 15.024, Utilities Code, is amended to
1-18 read as follows:
1-19 Sec. 15.024. ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
1-20 (a) If the executive director determines that a violation has
1-21 occurred, the executive director may issue to the commission a
1-22 report that states the facts on which the determination is based
1-23 and the executive director's recommendation on the imposition of an
1-24 administrative penalty, including a recommendation on the amount of
2-1 the penalty.
2-2 (b) Not later than the 14th day after the date the report is
2-3 issued, the executive director shall give written notice of the
2-4 report to the person against whom the penalty may be assessed. The
2-5 notice may be given by certified mail. The notice must:
2-6 (1) include a brief summary of the alleged violation;
2-7 (2) state the amount of the recommended penalty; and
2-8 (3) inform the person that the person has a right to a
2-9 hearing on the occurrence of the violation, the amount of the
2-10 penalty, or both the occurrence of the violation and the amount of
2-11 the penalty.
2-12 (c) [A penalty may not be assessed under this section if the
2-13 person against whom the penalty may be assessed remedies the
2-14 violation before the 31st day after the date the person receives
2-15 the notice under Subsection (b). A person who claims to have
2-16 remedied an alleged violation has the burden of proving to the
2-17 commission that the alleged violation was remedied and was
2-18 accidental or inadvertent.]
2-19 [(d)] Not later than the 20th day after the date the person
2-20 receives the notice, the person may accept the determination and
2-21 recommended penalty of the executive director in writing or may
2-22 make a written request for a hearing on the occurrence of the
2-23 violation, the amount of the penalty, or both the occurrence of the
2-24 violation and the amount of the penalty.
2-25 (d) [(e)] If the person accepts the executive director's
2-26 determination and recommended penalty, the commission by order
3-1 shall approve the determination and impose the recommended penalty.
3-2 (e) [(f)] If the person requests a hearing or fails to
3-3 timely respond to the notice, the executive director shall set a
3-4 hearing and give notice of the hearing to the person. The hearing
3-5 shall be held by an administrative law judge of the State Office of
3-6 Administrative Hearings. The administrative law judge shall make
3-7 findings of fact and conclusions of law and promptly issue to the
3-8 commission a proposal for a decision about the occurrence of the
3-9 violation and the amount of a proposed penalty. Based on the
3-10 findings of fact, conclusions of law, and proposal for a decision,
3-11 the commission by order may find that a violation has occurred and
3-12 impose a penalty or may find that no violation occurred.
3-13 (f) [(g)] The notice of the commission's order shall be
3-14 given to the person as provided by Chapter 2001, Government Code,
3-15 and must include a statement of the right of the person to judicial
3-16 review of the order.
3-17 SECTION 3. Subtitle A, Title 2, Utilities Code, is amended
3-18 by adding Chapter 17 to read as follows:
3-19 CHAPTER 17. CUSTOMER PROTECTION
3-20 SUBCHAPTER A. GENERAL PROVISIONS
3-21 Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The
3-22 legislature finds that new developments in telecommunications
3-23 services and the production and delivery of electricity, as well as
3-24 changes in market structure, marketing techniques, and technology,
3-25 make it essential that customers have safeguards against
3-26 fraudulent, misleading, or deceptive business practices and against
4-1 businesses that do not have the technical and financial resources
4-2 to provide adequate service.
4-3 (b) The purpose of this chapter is to establish customer
4-4 protection standards and confer on the commission authority to
4-5 adopt and enforce rules to protect customers from unfair,
4-6 deceptive, or anticompetitive practices.
4-7 Sec. 17.002. DEFINITIONS. In this chapter:
4-8 (1) "Billing agent" means any entity that submits
4-9 charges to the billing utility on behalf of itself or any provider
4-10 of a product or service.
4-11 (2) "Billing utility" means any telecommunications or
4-12 electric utility that issues a bill directly to a customer for any
4-13 telecommunications or electric product or service.
4-14 (3) "Certificated telecommunications utility" means a
4-15 telecommunications utility that has been granted either a
4-16 certificate of convenience and necessity, a certificate of
4-17 operating authority, or a service provider certificate of operating
4-18 authority.
4-19 (4) "Customer" means any person in whose name
4-20 telephone or electric service is billed.
4-21 (5) "Electric utility" has the meaning assigned by
4-22 Section 31.002.
4-23 (6) "Telecommunications utility" has the meaning
4-24 assigned by Section 51.002.
4-25 Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall
4-26 promote public awareness of changes in the electric and
5-1 telecommunications markets, provide customers with information
5-2 necessary to make informed choices about available options, and
5-3 ensure that customers have an adequate understanding of their
5-4 rights.
5-5 (b) The commission shall compile a report on customer
5-6 service at least once each year showing such comparative customer
5-7 information from reports given to the commission as it deems
5-8 necessary.
5-9 (c) The commission shall make and enforce rules to require a
5-10 certificated telecommunications utility or an electric utility to
5-11 give clear, uniform, and understandable information to customers
5-12 about rates, terms, services, customer rights, and other necessary
5-13 information as determined by the commission.
5-14 (d) Customer awareness efforts shall be conducted in English
5-15 and Spanish and any other language as necessary.
5-16 Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
5-17 of telecommunications and electric services have the right to:
5-18 (1) protection from unfair, misleading, or deceptive
5-19 practices, including protection from being billed for services that
5-20 were not authorized or provided;
5-21 (2) choice of a certificated telecommunications
5-22 utility or an electric utility, where such choice is permitted by
5-23 law, and to have that choice honored;
5-24 (3) information in English and Spanish and any other
5-25 language as necessary concerning rates, key terms and conditions,
5-26 and the environmental impact of certain production facilities;
6-1 (4) protection from discrimination on the basis of
6-2 race, color, sex, nationality, religion, or marital status;
6-3 (5) impartial and prompt resolution of disputes with a
6-4 certificated telecommunications utility or an electric utility;
6-5 (6) privacy of customer consumption and credit
6-6 information;
6-7 (7) accuracy of metering and billing;
6-8 (8) bills presented in a clear, readable format and
6-9 easy-to-understand language;
6-10 (9) information in English and Spanish and any other
6-11 language as necessary concerning low-income assistance programs and
6-12 deferred payment plans; and
6-13 (10) other information or protections necessary to
6-14 ensure high-quality service to customers.
6-15 (b) The commission shall adopt and enforce such rules as may
6-16 be necessary or appropriate to carry out this section, including
6-17 but not limited to rules for minimum service standards for a
6-18 certificated telecommunications utility or an electric utility
6-19 relating to customer deposits and the extension of credit,
6-20 switching fees, levelized billing programs, termination of service,
6-21 and quality of service.
6-22 SUBCHAPTER B. LICENSING, CERTIFICATION, REGISTRATION,
6-23 AND REPORTING REQUIREMENTS
6-24 Sec. 17.051. ADOPTION OF RULES. (a) The commission shall
6-25 adopt rules relating to licensing, certification, registration, and
6-26 reporting requirements for a certificated telecommunications
7-1 utility or an electric utility, as well as all telecommunications
7-2 utilities that are not dominant carriers, pay telephone providers,
7-3 qualifying facilities, exempt wholesale generators, and power
7-4 marketers.
7-5 (b) The rules adopted under Subsection (a) shall be
7-6 consistent with and no less effective than federal law.
7-7 Sec. 17.052. SCOPE OF RULES. The commission shall have
7-8 authority to make and enforce rules to:
7-9 (1) require licensing by or certification or
7-10 registration with the commission as a condition of doing business
7-11 in this state;
7-12 (2) amend licenses, certificates, or registrations to
7-13 reflect changed terms and conditions of service or ownership;
7-14 (3) establish service quality and reliability
7-15 standards and rules for customer service and protection;
7-16 (4) suspend or revoke licenses, certificates, or
7-17 registrations for repeated violations of this chapter or commission
7-18 rules; and
7-19 (5) order disconnection of a pay telephone service
7-20 provider's pay telephones or revocation of licensing,
7-21 certification, or registration for repeated violations of this
7-22 chapter or commission rules.
7-23 Sec. 17.053. REPORTS. The commission may require a
7-24 certificated telecommunications utility or an electric utility to
7-25 submit reports to the commission concerning any matter over which
7-26 it has authority under this chapter.
8-1 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
8-2 Sec. 17.101. POLICY. It is the policy of this state that
8-3 all customers are protected from the unauthorized switching of a
8-4 certificated telecommunications utility or an electric utility
8-5 selected by the customer to provide service.
8-6 Sec. 17.102. RULES RELATING TO CHOICE. The commission shall
8-7 adopt and enforce rules that:
8-8 (1) ensure that customers are protected from deceptive
8-9 practices to obtain authorizations of service and in the
8-10 verification of provider-initiated change orders, including but not
8-11 limited to negative option marketing, sweepstakes, and contests
8-12 that cause customers to unknowingly change their certificated
8-13 telecommunications utility or electric utility;
8-14 (2) provide for clear, easily understandable
8-15 identification on the first page of each bill sent to a customer of
8-16 all certificated telecommunications utilities or electric utilities
8-17 submitting charges on the bill;
8-18 (3) ensure that every person, corporation, or
8-19 telecommunications or electric utility submitting charges on the
8-20 bill is clearly and easily identified on the bill along with its
8-21 services, products, and charges;
8-22 (4) require a certificated telecommunications utility
8-23 or an electric utility to maintain records of nonpublic
8-24 customer-specific information that may be used to establish that
8-25 the customer authorized a change in service;
8-26 (5) provide that unauthorized changes in service be
9-1 remedied at no cost to the customer within a period established by
9-2 the commission;
9-3 (6) require refunds or compensation to the customer in
9-4 the event of an unauthorized change; and
9-5 (7) provide for penalties, including but not limited
9-6 to fines and revocation of licenses, certificates, or
9-7 registrations, thereby denying the certificated telecommunications
9-8 utility or the electric utility the right to provide service in
9-9 this state.
9-10 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
9-11 Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
9-12 person, corporation, telecommunications or electric utility, or
9-13 billing agent may submit charges for any product or service to be
9-14 billed on any customer's telephone or electric bill only if:
9-15 (1) the person, corporation, or telecommunications or
9-16 electric utility offering the product or service has thoroughly
9-17 informed the customer of the product or service being offered,
9-18 including all associated charges, and has explicitly informed the
9-19 customer that the associated charges for the product or service
9-20 will appear on the customer's telephone or electric bill;
9-21 (2) the customer has clearly and explicitly consented
9-22 to obtain the product or service offered and to have the associated
9-23 charges appear on the customer's telephone or electric bill and the
9-24 consent has been verified and recorded as provided by Subsection
9-25 (b); and
9-26 (3) the person, corporation, or telecommunications or
10-1 electric utility offering the product or service and any billing
10-2 agent for such person, corporation, or telecommunications or
10-3 electric utility:
10-4 (A) has provided the customer with a toll-free
10-5 telephone number the customer may call and an address to which the
10-6 customer may write to resolve any billing dispute and to answer
10-7 questions;
10-8 (B) has provided the billing utility with its
10-9 name, business address, business telephone number, and a list with
10-10 accurate descriptions of the products and services for which it
10-11 intends to charge on any customer's telephone or electric bill so
10-12 that any product or service being billed can clearly and easily be
10-13 identified and explained; and
10-14 (C) has obtained the billing utility's written
10-15 consent to bill for a product or service on the billing utility's
10-16 bill, which written consent shall be maintained as provided by
10-17 Subsection (c).
10-18 (b) The customer consent required by Subsection (a)(2) must
10-19 be verified by the person, corporation, or telecommunications or
10-20 electric utility offering the product or service by authorization
10-21 from the customer in the manner prescribed by the commission. A
10-22 record of the customer consent, including verification, must be
10-23 maintained by the person, corporation, or telecommunications or
10-24 electric utility offering the product or service and any billing
10-25 agent for such person, corporation, or telecommunications or
10-26 electric utility for a period of at least 12 months immediately
11-1 after the consent and verification have been obtained.
11-2 (c) The record of the billing utility's written consent
11-3 required by Subsection (a)(3)(C) shall be maintained by:
11-4 (1) the person, corporation, or telecommunications or
11-5 electric utility offering the product or service;
11-6 (2) any billing agent for the person, corporation, or
11-7 telecommunications or electric utility under Subdivision (1); and
11-8 (3) the billing utility for as long as the billing for
11-9 such product or service continues and for the 12 months immediately
11-10 following the permanent discontinuation for such billing.
11-11 (d) A person, corporation, or telecommunications or electric
11-12 utility, other than the billing utility, offering a product or
11-13 service to be charged on a customer's telephone or electric bill
11-14 and any billing agent for such person, corporation, or
11-15 telecommunications or electric utility shall not use any negative
11-16 option marketing, sweepstakes, contests, or other techniques that
11-17 cause customers to unknowingly subscribe to a service or purchase a
11-18 product.
11-19 Sec. 17.152. RESPONSIBILITIES OF A BILLING UTILITY. (a) If
11-20 a customer's telephone or electric bill is charged for any product
11-21 or service without proper customer consent or verification, the
11-22 billing utility, upon its knowledge or notification of any
11-23 unauthorized charge, shall promptly, but in no event later than 45
11-24 days after such knowledge or notification of such charge:
11-25 (1) cease to charge the customer for such unauthorized
11-26 product or service;
12-1 (2) remove any unauthorized charge from the customer's
12-2 bill;
12-3 (3) refund or credit to the customer, with interest,
12-4 all money that has been paid by the customer for any unauthorized
12-5 charge;
12-6 (4) upon the customer's request, provide the customer
12-7 with all billing records related to any unauthorized charge within
12-8 10 business days of the removal of the unauthorized charge from the
12-9 customer's bill; and
12-10 (5) maintain for at least 12 months a record of every
12-11 customer who has experienced any unauthorized charge for a product
12-12 or service on the customer's telephone or electric bill.
12-13 (b) A record required by Subsection (a)(5) shall contain for
12-14 each unauthorized charge:
12-15 (1) the name of the person, corporation, or
12-16 telecommunications or electric utility that offered the product or
12-17 service;
12-18 (2) any affected telephone numbers or addresses;
12-19 (3) the date the customer requested that the billing
12-20 utility remove the unauthorized charge;
12-21 (4) the date the unauthorized charge was removed from
12-22 the customer's telephone or electric bill; and
12-23 (5) the date any money that the customer paid for the
12-24 unauthorized charges was refunded or credited to the customer.
12-25 (c) A billing utility shall not:
12-26 (1) disconnect or terminate telecommunications or
13-1 electric service to any customer who disputes a billing charge
13-2 pursuant to this section; or
13-3 (2) file an unfavorable credit report against a
13-4 customer who has disputed charges under this section unless the
13-5 dispute is ultimately resolved against the customer.
13-6 Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every
13-7 person, corporation, or telecommunications or electric utility
13-8 shall maintain a record of every disputed charge for a product or
13-9 service placed on a customer's bill.
13-10 (b) The record required under Subsection (a) shall contain
13-11 for every disputed charge:
13-12 (1) any affected telephone numbers or addresses;
13-13 (2) the date the customer requested that the billing
13-14 utility remove the unauthorized charge;
13-15 (3) the date the unauthorized charge was removed from
13-16 the customer's telephone or electric bill; and
13-17 (4) the date any money that the customer paid for the
13-18 unauthorized charges was refunded or credited to the customer.
13-19 (c) The record required by Subsection (a) shall be
13-20 maintained for at least 12 months following the completion of all
13-21 steps required by Section 17.152(a).
13-22 Sec. 17.154. NOTICE. (a) A billing utility shall provide
13-23 notice of a customer's rights under this section in the manner
13-24 prescribed by the commission.
13-25 (b) Notice of a customer's rights must be provided by mail
13-26 to each residential and business customer within 60 days of the
14-1 effective date of this section. In addition, each billing utility
14-2 shall send the notice to new customers at the time service is
14-3 initiated or to any customer at that customer's request.
14-4 Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility
14-5 shall provide a copy of records maintained under the requirements
14-6 of Sections 17.152, 17.153, and 17.154 to the commission staff upon
14-7 request.
14-8 Sec. 17.156. VIOLATIONS. (a) If the commission finds that
14-9 a billing utility has engaged in a violation of this subchapter,
14-10 the commission has the authority to implement penalties and other
14-11 enforcement actions pursuant to Chapter 15.
14-12 (b) If the commission finds that any other person,
14-13 corporation, entity, or billing agent subject to the provisions of
14-14 this subchapter has engaged in violations of this subchapter or has
14-15 knowingly provided false information to the commission on matters
14-16 subject to this subchapter, the commission may enforce the
14-17 provisions of Chapter 15 against the person, corporation, entity,
14-18 or billing agent as if it were regulated by the commission.
14-19 (c) Neither the authority granted under this section nor any
14-20 other provision of this subchapter shall be construed to grant the
14-21 commission jurisdiction to regulate persons, corporations,
14-22 entities, or billing agents who are not otherwise subject to
14-23 commission regulation, other than as specifically provided by this
14-24 chapter.
14-25 (d) If the commission finds that a billing utility
14-26 repeatedly violates this subchapter, the commission may, if such
15-1 action is consistent with the public interest, suspend, restrict,
15-2 or revoke the registration or certificate of the telecommunications
15-3 or electric utility, thereby denying the telecommunications or
15-4 electric utility the right to provide service in this state.
15-5 (e) If the commission finds that a person, corporation,
15-6 entity, or billing agent has repeatedly violated any provision of
15-7 this subchapter, the commission may order the billing utility to
15-8 terminate billing and collection services for that person,
15-9 corporation, entity, or billing agent.
15-10 (f) Nothing in this subchapter shall be construed to
15-11 preclude a billing utility from taking action on its own to
15-12 terminate or restrict its billing and collection services in order
15-13 to protect its customers from abuse.
15-14 Sec. 17.157. DISPUTES. (a) The commission is authorized to
15-15 resolve disputes between a customer and a certificated
15-16 telecommunications utility or an electric utility.
15-17 (b) In exercising its authority under Subsection (a), the
15-18 commission may:
15-19 (1) order a certificated telecommunications utility or
15-20 an electric utility to produce information or records;
15-21 (2) require that all contracts, bills, and other
15-22 communications from a certificated telecommunications utility or an
15-23 electric utility display a working toll-free telephone number that
15-24 customers may call with complaints and inquiries;
15-25 (3) require a certificated telecommunications utility
15-26 or an electric utility to refund overcharges or unauthorized
16-1 charges or make other restitution where the certificated
16-2 telecommunications utility or the electric utility has failed to
16-3 comply with commission rules or a contract with the customer;
16-4 (4) order appropriate relief to ensure that a
16-5 customer's choice of a certificated telecommunications utility or
16-6 an electric utility that encompasses a geographic area in which
16-7 more than one provider has been certified is honored and to
16-8 compensate the customer for any financial loss that results from a
16-9 failure to honor the customer's selection of a certificated
16-10 telecommunications utility or an electric utility; and
16-11 (5) require the continuation of service to a
16-12 residential or small commercial customer while a dispute is
16-13 pending.
16-14 SECTION 4. The importance of this legislation and the
16-15 crowded condition of the calendars in both houses create an
16-16 emergency and an imperative public necessity that the
16-17 constitutional rule requiring bills to be read on three several
16-18 days in each house be suspended, and this rule is hereby suspended,
16-19 and that this Act take effect and be in force from and after its
16-20 passage, and it is so enacted.