44-1572

44-1572. Long-distance telecommunications
service providers; changes; authorization for services;
requirements; penalties; program termination

A. A long-distance telecommunications service provider or any person, firm or
corporation that acts as an agent or representative on behalf of the long-distance
telecommunications service provider shall not:

1. Make on behalf of a customer any change or direct a different telecommunications
service provider to make any change in a provider of a long-distance telecommunications
service for which there are multiple providers unless the provider, agent or
representative complies with all authorization and confirmation procedures the commission
establishes by rule and all procedures prescribed in federal law and regulations. Any
act by any person, firm or corporation that is the agent or representative of a
telecommunications service provider is an act of that long-distance telecommunications
service provider. The commission may adopt rules relating to mitigating circumstances
under this subsection.

2. Fail to make on behalf of a customer any change in a provider of a long-distance
telecommunications service for which there are multiple providers if the provider, agent
or representative has received a change order in a manner that complies with commission
rules and federal regulations. The provider, agent or representative shall properly
process the compliant change order to ensure that the order is completed and enable the
new long-distance telecommunications service provider to provide service to the customer
within a reasonable period of time determined by the commission after receiving the
change order.

3. Use a sweepstakes, contest or drawing entry form as authorization to change or
add services to a customer's telecommunications bill or change a customer's long-distance
telecommunications service provider.

4. Use any written authorization agreement to change or add long-distance
telecommunications service unless the authorization is clear, conspicuous and printed in
at least ten point bold type. The authorization agreement shall also be in the same
language as any promotional or inducement materials provided to the customer.

5. Charge a customer through the customer's long-distance telecommunications bill
for long-distance telecommunications services without the customer's authorization to add
the long-distance telecommunications services to the customer's bill.

B. If an authorized change in a long-distance telecommunications service provider
is made, the new long-distance telecommunications service provider shall notify the
customer of the change within thirty days after receiving the change order in the manner
determined by the commission pursuant to subsection L of this section. Any bill for
long-distance telecommunications service shall contain the name and telephone number of
each telecommunications service provider for which billing is provided and any other
information deemed applicable by the long-distance telecommunications service
provider. A long-distance telecommunications service provider shall maintain a record of
the written or electronically recorded verification process chosen, including voice
recordings, for a period of twenty-four months after the date of the verification.

C. A customer of long-distance telecommunications services does not have to pay for
any charge for unauthorized services incurred during the first ninety days or three
billing cycles after the unauthorized charge is made, whichever occurs first.

D. If the customer pays for long-distance telecommunications service that the
customer did not authorize, the unauthorized long-distance telecommunications service
provider is liable to the customer or the customer's properly authorized long-distance
telecommunications service provider in an amount that is equal to all of the charges paid
by the customer to the unauthorized long-distance telecommunications service provider.

E. To obtain restitution of the unauthorized long-distance telecommunications
charges, the customer may either recover all of the unauthorized long-distance
telecommunications charges directly from the unauthorized long-distance
telecommunications service provider or request that the properly authorized long-distance
telecommunications service provider recover all unauthorized long-distance
telecommunications charges from the unauthorized long-distance telecommunications service
provider on behalf of the customer. If the customer requests the properly authorized
long-distance telecommunications service provider to recover the unauthorized
long-distance telecommunications charges, the authorized long-distance telecommunications
service provider shall provide a refund or credit to the customer of any amount that is
recovered from the unauthorized long-distance telecommunications service provider and
that is more than the amount that the customer would have paid for the same long-distance
telecommunications service if the unauthorized service had not been added or changed.

F. To allow consumers to have a single point of contact to resolve disputes over
service changes or additions, a long-distance telecommunications service provider may
participate in a dispute resolution program that is conducted by an independent third
party and approved by the federal communications commission. The long-distance
telecommunications service provider may delegate its obligations pursuant to subsection E
of this section to the independent third party dispute resolution program administrator.

G. On notification by a customer that an unauthorized change to or addition of a
long-distance telecommunications service has occurred, the authorized long-distance
telecommunications service provider, the unauthorized long-distance telecommunications
service provider or the local exchange carrier shall inform the customer of the available
dispute resolution options prescribed in this section.

H. The unauthorized long-distance telecommunications service provider shall bear
all costs of immediately transferring the customer to the customer's original
long-distance telecommunications service provider and restoring the customer's service.

I. After notice and an opportunity for a hearing, if the commission determines that
a long-distance telecommunications service provider violated any provision of this
section, commission rule or order adopted pursuant to this section or federal law or
regulation relating to making a change in long-distance telecommunications service
provider for interstate or intrastate toll service or relating to billing for
unauthorized services, the commission may impose on the long-distance telecommunications
service provider a civil penalty of not more than seven thousand five hundred dollars for
the first violation and not more than fifteen thousand dollars for each subsequent
violation in this state. In determining whether to impose a civil penalty or the amount
of the civil penalty under this section, the commission may consider any matter it deems
appropriate including whether the change of service resulted from any negligent or
intentional act by the long-distance telecommunications service provider and the
procedures used by the long-distance telecommunications service provider to avoid
incidents of unauthorized changes of long-distance telecommunications service, procedures
relating to supervision of agents, standards required to be met by agents, standards for
monitoring agents' calls, discipline imposed on agents for erroneous or intentional
unauthorized changes of service and any other good faith effort made by the provider to
avoid incidents of unauthorized changes of service. The commission shall deposit,
pursuant to sections 35-146 and 35-147, the monies collected pursuant to this subsection
in the state general fund.

J. This section does not apply to the initial installation of telephone service by
a local telecommunications service provider.

K. The penalties prescribed in this section are in addition to all other causes of
action, remedies and penalties provided under the laws of this state.

L. The commission may adopt rules for making a change in long-distance
telecommunications service provider that are not inconsistent with federal law and
regulations and that include at least all of the following:

1. Procedures for a customer to confirm a change made by another long-distance
telecommunications service provider on behalf of the customer.

2. Procedures by which the new long-distance telecommunications service provider
shall notify a customer of the change.

3. A requirement that any long-distance telecommunications service provider that
provides long-distance telecommunications service within the state shall verify the
customer's change in a manner consistent with federal regulations. The commission rules
may specify that:

(a) The long-distance telecommunications service provider may use either a written
or electronically recorded verification including without limitation voice recordings.

(b) The verification shall not contain any inducement that is different from or in
addition to any inducement offered to the customer at the time the customer was contacted
to change the customer's long-distance telecommunications service provider.

4. Enforcement measures.

M. The program established by this section ends on July 1, 2009 pursuant to section
41-3102.