80R10384 CBH-D

By: King of Parker H.B. No. 3705

A BILL TO BE ENTITLED

AN ACT

relating to the consumer protection authority of the Public Utility Commission of Texas in relation to telecommunications and retail electric services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 17, Utilities Code, is amended by adding Section 17.010 to read as follows:

Sec. 17.010. PROTECTION AGAINST MISREPRESENTATION OF CHARGE. (a) The purpose of this section is to protect consumers against misleading information or misrepresentation regarding a separate charge or line item included on a bill for telecommunications or retail electric services.

(b) A billing utility may not include on a bill for telecommunications or retail electric service provided by the utility a separate charge or line item that is represented, directly or by implication, as a state-mandated charge, as full or partial reimbursement for the payment of a state tax, fee, or assessment, or as a pass-through of all or part of a state tax, fee, or assessment unless:

(1) the charge, tax, fee, or assessment is imposed by state law on the billed service or state law provides that the payment of the charge, tax, fee, or assessment is the responsibility of the purchaser of the billed service; or

(2) the separate charge or line item is otherwise authorized by state law, rule, or administrative ruling.

(c) A telecommunications provider or retail electric utility may not submit to a billing utility for inclusion on a bill a separate charge or line item that violates Subsection (b).

(d) If a separate charge or line item that is not prohibited by Subsection (b) is included on a bill, the charge or item may not be imposed in a manner that is unjust, unreasonable, or unreasonably discriminatory or preferential to a particular service or customer class.

(e) The commission may adopt rules as necessary or appropriate to carry out this section. The commission shall request the comments of the comptroller to assist the commission in developing the rules.

(f) The commission has all necessary jurisdiction to adopt rules under this section and to administer and enforce this section.

(g) If the commission finds that a billing utility has violated this section or a rule or order adopted under this section, the commission:

(1) may implement judicial review, penalties, and other enforcement actions under Chapter 15; and

(2) shall require the utility to promptly refund to customers any amounts collected in violation of this section.

(h) In addition to the remedies provided by Subsection (g), the commission shall require a billing utility that violates this section or a rule or order adopted under this section to include in each future bill that includes a separate charge or line item that is not prohibited by Subsection (b) a statement disclosing whether a state law, rule, or administrative ruling specifically requires or authorizes the inclusion of the separate charge or line item. If a state law, rule, or administrative ruling does not specifically require or authorize the separate charge or line item, the bill must include a statement to that effect. If a state law specifically requires or authorizes the separate charge or line item, the bill must include a citation to that state law. If a state rule or administrative ruling specifically requires or authorizes the separate charge or line item, the bill must include the name of the state agency that adopted the rule or made the ruling. The commission by rule shall prescribe the format, location, and specific language of the disclosure required by this subsection.

SECTION 2. Section 51.002(10), Utilities Code, is amended to read as follows:

(10) "Telecommunications provider":

(A) means:

(i) a certificated telecommunications utility;

(ii) a shared tenant service provider;

(iii) a nondominant carrier of telecommunications services;

(iv) a provider of commercial mobile service as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66), except that the term does not include these entities for the purposes of Chapter [17,] 55[, or 64];

(v) a telecommunications entity that provides central office based PBX-type sharing or resale arrangements;

(vi) an interexchange telecommunications carrier;

(vii) a specialized common carrier;

(viii) a reseller of communications;

(ix) a provider of operator services;

(x) a provider of customer-owned pay telephone service; or

(xi) a person or entity determined by the commission to provide telecommunications services to customers in this state; and

(B) does not mean:

(i) a provider of enhanced or information services, or another user of telecommunications services, who does not also provide telecommunications services; or

(ii) a state agency or state institution of higher education, or a service provided by a state agency or state institution of higher education.

SECTION 3. Chapter 52, Utilities Code, is amended by adding Subchapter D-1 to read as follows: SUBCHAPTER D-1. PROVIDERS OF COMMERCIAL MOBILE SERVICE

Sec. 52.171. APPLICABILITY. This subchapter applies only to a provider of commercial mobile service as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66).

Sec. 52.172. LIMITED REGULATORY AUTHORITY. The commission has the following authority over a provider of commercial mobile service:

(1) to apply and enforce the customer protection provisions of Chapters 17 and 64;

(2) to regulate the terms and conditions of commercial mobile service;

(3) to implement judicial review, penalties, and other enforcement actions under Chapter 15; and

(4) to require the provider to refund to customers amounts collected in violation of:

(A) Chapter 17 or 64; or

(B) a commission rule or order issued under Chapter 17 or 64 or under Subdivision (2).

SECTION 4. This Act applies only to a bill issued to a customer on or after the effective date of this Act. A bill issued before the effective date of this Act is governed by the law in effect on the date the bill was issued, and that law is continued in effect for that purpose.

SECTION 5. This Act takes effect on the first day of the first month beginning on or after the earliest date on which this Act may take effect if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for effect on that date, this Act takes effect September 1, 2007.