Text: HF00587 Text: HF00589 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 HOUSE FILE 588
1 2
1 3 AN ACT
1 4 PROHIBITING UNAUTHORIZED CHANGES IN TELECOMMUNICATIONS SERVICE,
1 5 PROHIBITING CERTAIN ACTS IN THE ADVERTISEMENT OR SOLICITA-
1 6 TION OF CHANGES IN TELECOMMUNICATIONS SERVICE, AND PROVIDING
1 7 REMEDIES AND PENALTIES.
1 8
1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 10
1 11 Section 1. NEW SECTION. 476.103 UNAUTHORIZED CHANGE IN
1 12 SERVICE – CIVIL PENALTY.
1 13 1. Notwithstanding the deregulation of a communications
1 14 service or facility under section 476.1D, the board may adopt
1 15 rules to protect consumers from unauthorized changes in
1 16 telecommunications service. Such rules shall not impose undue
1 17 restrictions upon competition in telecommunications markets.
1 18 2. As used in this section, unless the context otherwise
1 19 requires:
1 20 a. "Change in service" means the designation of a new
1 21 provider of a telecommunications service to a consumer,
1 22 including the initial selection of a service provider, and
1 23 includes the addition or deletion of a telecommunications
1 24 service for which a separate charge is made to a consumer
1 25 account.
1 26 b. "Consumer" means a person other than a service provider
1 27 who uses a telecommunications service.
1 28 c. "Executing service provider" means, with respect to any
1 29 change in telecommunications service, a service provider who
1 30 executes an order for a change in service received from
1 31 another service provider.
1 32 d. "Service provider" means a person providing a
1 33 telecommunications service.
1 34 e. "Submitting service provider" means a service provider
1 35 who requests another service provider to execute a change in
2 1 service.
2 2 f. "Telecommunications service" means a local exchange or
2 3 long distance telephone service other than commercial mobile
2 4 radio service.
2 5 3. The board shall adopt rules prohibiting an unauthorized
2 6 change in telecommunications service. The rules shall be
2 7 consistent with federal communications commission regulations
2 8 regarding procedures for verification of customer
2 9 authorization of a change in service. The rules, at a
2 10 minimum, shall provide for all of the following:
2 11 a. (1) A submitting service provider shall obtain
2 12 verification of customer authorization of a change in service
2 13 before submitting such change in service.
2 14 (2) Verification appropriate under the circumstances for
2 15 all other changes in service.
2 16 (3) The verification may be in written, oral, or
2 17 electronic form and may be performed by a qualified third
2 18 party.
2 19 (4) The reasonable time period during which the
2 20 verification is to be retained, as determined by the board.
2 21 b. A customer shall be notified of any change in service.
2 22 c. Appropriate compensation for a customer affected by an
2 23 unauthorized change in service.
2 24 d. Board determination of potential liability, including
2 25 assessment of damages, for unauthorized changes in service
2 26 among the customer, previous service provider, executing
2 27 service provider, and submitting service provider.
2 28 e. A provision encouraging service providers to resolve
2 29 customer complaints without involvement of the board.
2 30 f. The prompt reversal of unauthorized changes in service.
2 31 g. Procedures for a customer, service provider, or the
2 32 consumer advocate to submit to the board complaints of
2 33 unauthorized changes in service.
2 34 4. a. In addition to any applicable civil penalty set out
2 35 in section 476.51, a service provider who violates a provision
3 1 of this section, a rule adopted pursuant to this section, or
3 2 an order lawfully issued by the board pursuant to this
3 3 section, is subject to a civil penalty, which, after notice
3 4 and opportunity for hearing, may be levied by the board, of
3 5 not more than ten thousand dollars per violation. Each
3 6 violation is a separate offense.
3 7 b. A civil penalty may be compromised by the board. In
3 8 determining the amount of the penalty, or the amount agreed
3 9 upon in a compromise, the board may consider the size of the
3 10 service provider, the gravity of the violation, any history of
3 11 prior violations by the service provider, remedial actions
3 12 taken by the service provider, the nature of the conduct of
3 13 the service provider, and any other relevant factors.
3 14 c. A civil penalty collected pursuant to this subsection
3 15 shall be forwarded by the executive secretary of the board to
3 16 the treasurer of state to be credited to the general fund of
3 17 the state and to be used only for consumer education programs
3 18 administered by the board.
3 19 d. A penalty paid by a rate-of-return regulated utility
3 20 pursuant to this section shall be excluded from the utility's
3 21 costs when determining the utility's revenue requirement, and
3 22 shall not be included either directly or indirectly in the
3 23 utility's rates or charges to its customers.
3 24 e. The board shall not commence an administrative
3 25 proceeding to impose a civil penalty under this section for
3 26 acts subject to a civil enforcement action pending in court
3 27 under section 714D.7.
3 28 5. If the board determines, after notice and opportunity
3 29 for hearing, that a service provider has shown a pattern of
3 30 violations of the rules adopted pursuant to this section, the
3 31 board may by order do any of the following:
3 32 a. Prohibit any other service provider from billing
3 33 charges to residents of Iowa on behalf of the service provider
3 34 determined to have engaged in such a pattern of violations.
3 35 b. Prohibit certificated local exchange service providers
4 1 from providing exchange access services to the service
4 2 provider.
4 3 c. Limit the billing or access services prohibition under
4 4 paragraph "a" or "b" to a period of time. Such prohibition
4 5 may be withdrawn upon a showing of good cause.
4 6 d. Revoke the certificate of public convenience and
4 7 necessity of a local exchange service provider.
4 8 6. The board has primary jurisdiction over a complaint
4 9 pursuant to this section initiated by a service provider.
4 10 7. Subsection 6 does not preclude proceedings before the
4 11 federal communications commission to enforce applicable
4 12 federal law. However, a service provider or a consumer, for
4 13 the same alleged acts, shall not pursue a complaint both
4 14 before the federal communications commission and pursuant to
4 15 this section.
4 16 8. The board shall adopt competitively neutral rules
4 17 establishing procedures for the solicitation, imposition, and
4 18 lifting of preferred carrier freezes. A valid preferred
4 19 carrier freeze prevents a change in service unless the
4 20 subscriber gives the service provider from whom the freeze was
4 21 requested the subscriber's express consent.
4 22 Sec. 2. NEW SECTION. 714D.1 LEGISLATIVE INTENT.
4 23 The general assembly finds that customers of telephone
4 24 services have been subjected to fraud in the sale and
4 25 advertisement of telephone long distance and local service, as
4 26 well as other services related to residential and business
4 27 telephone service. The general assembly further finds that
4 28 companies acting in a lawful manner have lost customers to
4 29 companies that obtain customers through fraud and deception.
4 30 It is the intent of the general assembly to protect
4 31 telephone service subscribers from fraud and to provide
4 32 statutory remedies for the victims of fraud in the sale of
4 33 telecommunications service. It is the intent of the general
4 34 assembly to provide the attorney general with additional
4 35 remedies to address the issue of fraud in the sale of
5 1 telecommunications service. It is further the intent of the
5 2 general assembly that this chapter does not limit the rights
5 3 or remedies that are otherwise available to a consumer or the
5 4 attorney general under any other law.
5 5 Sec. 3. NEW SECTION. 714D.2 DEFINITIONS.
5 6 As used in this chapter, unless the context otherwise
5 7 requires:
5 8 1. "Advertisement" means the same as defined in section
5 9 714.16, subsection 1.
5 10 2. "Consumer" means a person who is not a
5 11 telecommunications service provider and who uses
5 12 telecommunications services.
5 13 3. "Deception" means the same as defined in section
5 14 714.16, subsection 1.
5 15 4. "Person" means the same as defined in section 714.16,
5 16 subsection 1.
5 17 5. "Sweepstakes box" means the box or receptacle into
5 18 which a person may place an entry form or document used to
5 19 enter a sweepstakes, contest, or drawing of any description,
5 20 and promotional materials attached to such entry form or
5 21 document.
5 22 6. "Telecommunications Act" means 47 U.S.C. } 258, a
5 23 portion of the federal Telecommunications Act of 1996,
5 24 relating to changes in telephone service, and including
5 25 regulations adopted pursuant to that section.
5 26 7. "Telecommunications service" means local exchange or
5 27 long distance telephone service, and any additional service or
5 28 merchandise for which any charge or assessment appears on a
5 29 billing statement directed to a person by a provider of local
5 30 exchange or long distance telephone service, but does not
5 31 include commercial mobile radio service or charges or
5 32 assessments imposed on consumers of local exchange or long
5 33 distance telephone service or on such additional service or
5 34 merchandise by governmental entities.
5 35 8. "Telecommunications service provider" means a person
6 1 who advertises, sells, leases, or provides telecommunications
6 2 services to another person.
6 3 9. "Unfair practice" means the same as defined in section
6 4 714.16, subsection 1, and also means any failure of a person
6 5 to comply with the Telecommunications Act or with any statute
6 6 or rule enforced by the utilities board within the utilities
6 7 division of the department of commerce relating to a
6 8 telecommunications service selection or change.
6 9 Sec. 4. NEW SECTION. 714D.3 UNFAIR AND DECEPTIVE
6 10 PRACTICES.
6 11 The act, use, or employment by a person of deception or an
6 12 unfair practice in connection with the lease, sale, or
6 13 advertisement of a telecommunications service or the
6 14 solicitation of authority to provide or execute a change of a
6 15 telecommunications service is an unlawful practice.
6 16 Sec. 5. NEW SECTION. 714D.4 PROHIBITION OF SWEEPSTAKES
6 17 BOXES.
6 18 The use of a sweepstakes box by a person to solicit
6 19 authority to provide or execute a change of a consumer's
6 20 telecommunications service is an unlawful practice.
6 21 Sec. 6. NEW SECTION. 714D.5 CONDITIONS ON USE OF PRIZE
6 22 PROMOTIONS TO SOLICIT AUTHORITY TO PROVIDE OR CHANGE
6 23 TELECOMMUNICATIONS SERVICES.
6 24 1. It is an unlawful practice for a person to use a form
6 25 or document which is to be used or intended to be used by
6 26 another person to enter a sweepstakes, contest, or drawing of
6 27 any description as written authority to provide or execute a
6 28 change of a consumer's telecommunications service.
6 29 2. It is an unlawful practice for a person to solicit the
6 30 lease or sale of or to solicit the authority to provide or
6 31 execute a change of a telecommunications service to another
6 32 person through or in conjunction with a sweepstakes, contest,
6 33 or drawing without clearly, conspicuously, and fully
6 34 disclosing in all direct mail solicitations to the other
6 35 person the fact that the sweepstakes, contest, or drawing is
7 1 intended to solicit authority to provide or execute a change
7 2 of a telecommunications service. The disclosure required
7 3 shall include, at a minimum, all of the following:
7 4 a. A statement that an acceptance or change of
7 5 telecommunications service is not required to enter the
7 6 sweepstakes, contest, or drawing.
7 7 b. An alternative means by which a person may enter the
7 8 sweepstakes, contest, or drawing without accepting or
7 9 authorizing a change in a telecommunications service.
7 10 c. The name and telephone number of the entity soliciting
7 11 the person to accept or to authorize a change of
7 12 telecommunications service through the use of or in
7 13 conjunction with the sweepstakes, contest, or drawing.
7 14 d. A brief description of the nature of the
7 15 telecommunications service for which authorization is sought
7 16 through the use of or in conjunction with the sweepstakes,
7 17 contest, or drawing.
7 18 Sec. 7. NEW SECTION. 714D.6 PRIVATE ACTION.
7 19 1. In addition to any other remedy, a consumer may bring
7 20 an action against a person who commits an unlawful practice
7 21 under this chapter to recover from the person all of the
7 22 following:
7 23 a. The amount of any moneys or property acquired by the
7 24 person from the consumer by means of an unlawful practice
7 25 under this section, or two hundred dollars, whichever is
7 26 greater.
7 27 b. If a court finds that the consumer prevails in the
7 28 action and that the unlawful practice was an intentional
7 29 violation of this chapter, five hundred dollars or twice the
7 30 amount of the consumer's actual damages, whichever is greater.
7 31 c. Costs and reasonable attorney fees.
7 32 2. A cause of action under this section shall not apply
7 33 unless, prior to filing the action, the consumer has submitted
7 34 a complaint to the utilities board within the utilities
7 35 division of the department of commerce, the utilities board
8 1 has failed to resolve the complaint to the consumer's
8 2 satisfaction within one hundred twenty days of the date the
8 3 complaint was submitted, and the consumer dismisses the
8 4 complaint before the utilities board. The requirement that a
8 5 consumer complaint be submitted to the utilities board and
8 6 resolved by the utilities board to the consumer's satisfaction
8 7 within one hundred twenty days of filing before the consumer
8 8 may file an action pursuant to this section shall not apply to
8 9 an action by the attorney general to recover moneys for the
8 10 consumer pursuant to section 714D.7 or any other law. A
8 11 finding by the utilities board that a respondent has complied
8 12 with rules governing carrier selection procedures adopted by
8 13 the utilities board shall be an affirmative defense to any
8 14 claim brought under this section or section 476.103 or 714D.7
8 15 that an unauthorized change in service has occurred.
8 16 Sec. 8. NEW SECTION. 714D.7 CIVIL ENFORCEMENT.
8 17 1. A violation of this chapter or a rule adopted pursuant
8 18 to this chapter is a violation of section 714.16, subsection
8 19 2, paragraph "a". The remedies and penalties provided by
8 20 section 714.16, including but not limited to injunctive relief
8 21 and civil penalties, apply to violations of this chapter.
8 22 2. In seeking reimbursement pursuant to section 714.16,
8 23 subsection 7, from a person who has committed an unlawful
8 24 practice under this chapter, the attorney general may seek an
8 25 order from the court that the person pay to the attorney
8 26 general on behalf of consumers the amounts for which the
8 27 person would be liable under section 714D.6 for each consumer
8 28 who has a cause of action pursuant to section 714D.6. Section
8 29 714.16, as it relates to consumer reimbursement, applies to
8 30 amounts recovered by the attorney general as reimbursement
8 31 under this chapter. However, a consumer who is awarded
8 32 monetary damages pursuant to section 714D.6 is not eligible
8 33 for monetary relief under this section for the same unlawful
8 34 practice.
8 35 3. The remedies provided pursuant to this chapter are in
9 1 addition to any other remedies provided to the state or to a
9 2 person under other law.
9 3 4. The attorney general shall not file a civil enforcement
9 4 action under this chapter or under section 714.16 against a
9 5 person for an act which is the subject of an administrative
9 6 proceeding to impose a civil penalty which has been initiated
9 7 against the person by the utilities board within the utilities
9 8 division of the department of commerce. This subsection shall
9 9 not be construed to limit the authority of the attorney
9 10 general to file a civil enforcement or other enforcement
9 11 action against a person for violating a prior agreement
9 12 entered into by the person with the attorney general or a
9 13 court order obtained by the attorney general against the
9 14 person. This subsection shall not be construed to limit the
9 15 authority of the attorney general to file a civil enforcement
9 16 or other enforcement action against the person for acts which
9 17 are not the subject of an administrative proceeding which has
9 18 been initiated against the person by the utilities board.
9 19
9 20
9 21
9 22 RON J. CORBETT
9 23 Speaker of the House
9 24
9 25
9 26
9 27 MARY E. KRAMER
9 28 President of the Senate
9 29
9 30 I hereby certify that this bill originated in the House and
9 31 is known as House File 588, Seventy-eighth General Assembly.
9 32
9 33
9 34
9 35 ELIZABETH ISAACSON
10 1 Chief Clerk of the House
10 2 Approved , 1999
10 3
10 4
10 5
10 6 THOMAS J. VILSACK
10 7 Governor
Text: HF00587 Text: HF00589 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
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