44-1573

44-1573. Local telecommunications service
providers; changes; authorization for services; requirements;
penalties; program termination

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

1. Make on behalf of a customer any change or direct a different local
telecommunications service provider to make any change in a provider of a local or
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 a person, firm or corporation that is the agent or
representative of a local telecommunications service provider is an act of that local
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 local or
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 within a reasonable period of time
after receiving the order as prescribed by the commission by rule to ensure that the
order is completed and to enable the new local or long-distance telecommunications
service provider to provide service to the customer.

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

4. Use any written authorization agreement to change or add local
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 local telecommunications bill for local
telecommunications services without the customer's authorization to add the local
telecommunications services to the customer's bill.

B. If an authorized change in a local telecommunications service provider is made,
the new local 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 K of this section. A local 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 local telecommunications service does not have to pay for any
local telecommunications service that the customer does not authorize.

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

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

F. The unauthorized local telecommunications service provider shall bear all costs
of immediately transferring the customer to the customer's original local
telecommunications service provider and restoring the customer's service.

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

H. After notice and an opportunity for a hearing, if the commission determines that
a local 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 local telecommunications service provider for intrastate
or interstate service or relating to billing for unauthorized services, the commission
may impose on the local 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 a negligent or intentional act by the local telecommunications
service provider and the procedures used by the local telecommunications service provider
to avoid incidents of unauthorized changes of local 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.

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

J. 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.

K. The commission may adopt rules for making a change in local 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 local
telecommunications service provider on behalf of the customer.

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

3. A requirement that the new local telecommunications service provider that
provides local telecommunications service in this state shall verify the customer's
change. The commission rules may specify that:

(a) The local 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 local telecommunications service provider.

4. Enforcement measures.

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