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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