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View Statement of Purpose / Fiscal Impact
S1510aa....................................................by STATE AFFAIRS
LONG DISTANCE TELEPHONE SERVICE - Adds to existing law to prohibit
"slamming" or unauthorized switching of long distance service by long
distance telephone company carriers and to provide that certain conduct is
a violation of the Consumer Protection Act.
02/19 Senate intro - 1st rdg - to printing
02/20 Rpt prt - to St Aff
02/26 Rpt out - to 14th Ord
03/04 Rpt out amen - to engros
03/05 Rpt engros - 1st rdg - to 2nd rdg as amen
03/06 2nd rdg - to 3rd rdg as amen
03/09 3rd rdg as amen - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Sorensen
Floor Sponsor - Bunderson
Title apvd - to House
03/10 House intro - 1st rdg as amen - to St Aff
03/16 Rpt out - rec d/p - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
03/18 3rd rdg as amen - PASSED - 65-0-5
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow,
Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes,
Gould, Hadley, Henbest, Hornbeck, Jaquet, Jones(22), Jones(20), Judd,
Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford,
Loertscher, Mader, Marley, McKague, Meyer, Mortensen, Newcomb,
Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison, Sali,
Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman,
Tippets, Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Black(15), Crane, Hansen, Jones(9), Miller
Floor Sponsor - Kjellander, Field(13), Alltus
Title apvd - to Senate
03/19 To enrol
03/20 Rpt enrol - Pres signed
03/23 Sp signed - to Governor
03/24 Governor signed
Session Law Chapter 274
Effective: 03/24/98
S1510|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1510, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO FRAUDULENT TELEPHONE SERVICES AND DISCLOSURES TO CONSUMERS OF 3 CHANGES IN THEIR TELECOMMUNICATIONS SERVICE; AMENDING CHAPTER 6, TITLE 48, 4 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 48-603D, IDAHO CODE, TO 5 DEFINE TERMS, TO PROHIBIT THE UNAUTHORIZED SWITCHING OF A CONSUMER'S LOCAL 6 OR INTEREXCHANGE TELEPHONE SERVICE, TO PROVIDE NOTICE OF CHANGES IN A 7 CONSUMER'S TELECOMMUNICATIONS SERVICES; AND DECLARING AN EMERGENCY. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Chapter 6, Title 48, Idaho Code, be, and the same is 10 hereby amended by the addition thereto of a NEW SECTION , to be 11 known and designated as Section 48-603D, Idaho Code, and to read as follows: 12 48-603D. UNFAIR TELEPHONE SERVICES -- UNORDERED GOODS AND SERVICES -- 13 DISCLOSURE TO CONSUMERS. (1) As used in this section: 14 (a) "Telecommunications provider" means a person that provides telecommu- 15 nications service. 16 (b) "Telecommunications service" means the offering for sale of the con- 17 veyance of voice, data or other information at any frequency over any part 18 of the electromagnetic spectrum. Telecommunications service does not 19 include cable television service or broadcast service. 20 (c) "Telecommunications service agreement" means a contract between the 21 telecommunications provider and a consumer for telecommunications service 22 that is provided to the consumer on a continuing or periodic basis. The 23 term includes an oral, written, or electronically recorded contract, and 24 includes any material amendment to an existing contract. 25 (2) (a) Section 48-605, Idaho Code, notwithstanding, it is unlawful for 26 a telecommunications provider to request a change in a consumer's local 27 exchange or interexchange carrier without the consumer's verified consent. 28 (b) For purposes of subsection (2)(a) of this section: 29 (i) It is the responsibility of the telecommunications provider 30 requesting a change in a telephone service subscriber's local 31 exchange or interexchange carrier to verify that the consumer has 32 authorized the change. A telecommunications provider that does not 33 verify a consumer's change in his or her local exchange or 34 interexchange carrier in accordance with the verification procedures, 35 if any, adopted by the federal communications commission under the 36 telecommunications act of 1996, including subpart K of 47 CFR 64, as 37 those procedures are from time to time amended, commits an unlawful 38 practice within the meaning of this act. A telephone company, wire- 39 less carrier or telecommunications carrier providing local exchange 40 service who has been requested by another telecommunications provider 41 to process a change in a consumer's carrier is only liable under this 42 section if it knowingly participates in processing a requested change 43 that is unauthorized or not properly verified; and 2 1 (ii) Compliance with applicable federal verification procedures is a 2 complete defense to an allegation of consumer fraud under subsection 3 (2)(a) of this section. 4 (3) (a) Section 48-605, Idaho Code, notwithstanding, it is unlawful for 5 a telecommunications provider to bill a consumer for goods or services 6 that are in addition to the consumer's telecommunications services without 7 the consumer's authorization adding the goods or services to the 8 consumer's service order. 9 (b) For purposes of subsection (3)(a) of this section, a telephone com- 10 pany or telecommunications carrier providing billing services for another 11 telecommunications provider is only liable under this section if it know- 12 ingly participates in billing a consumer for goods or services without the 13 consumer's authorization for the addition of those goods or services to 14 the consumer's service order. 15 (4) (a) A telecommunications provider shall be solely responsible for 16 providing written notice to a consumer who has agreed to enter into a 17 telecommunications service agreement with the telecommunications provider. 18 (b) The notice shall clearly and conspicuously disclose to the consumer 19 that the consumer's local exchange or interexchange carrier has been 20 changed. The notice shall also advise the consumer that the consumer may 21 change back to the previous carrier or select a new carrier by calling the 22 previous carrier or the consumer's preferred carrier. The notice shall 23 also provide the consumer with a toll-free number to call for further 24 information. 25 (c) The notice shall be sent on or before the fifteenth day after the 26 consumer enters into the telecommunications service agreement, or on or 27 before the day the telecommunications provider first bills the consumer 28 under the agreement, whichever is later. 29 (d) The notice must be a separate document sent for the sole purpose of 30 advising the consumer of his or her entering into a telecommunications 31 service agreement. The notice shall also not be combined with any sweep- 32 stakes entry form in the same document or other like inducement. 33 (e) The sending of this notice shall not constitute a defense to a charge 34 that a consumer did not consent to enter into a telecommunications service 35 agreement or that the consumer's consent was verified according to federal 36 law. 37 (f) Compliance with the notification requirements, if any, adopted by the 38 federal communications commission under the telecommunications act of 39 1996, including subpart K of 47 CFR 64, shall be deemed to be compliance 40 with this subsection. 41 (g) A consumer who selects a different carrier within three (3) days 42 after receiving the notice under subsection (4)(a) of this section may not 43 be charged a cancellation charge or disconnect fee unless the consumer has 44 more than five (5) telephone lines and has entered into a written agree- 45 ment which specifies such charges and fees, and the telecommunications 46 provider has complied with the verification procedures under subsection 47 (2)(b) of this section. 48 SECTION 2. An emergency existing therefor, which emergency is hereby 49 declared to exist, this act shall be in full force and effect on and after its 50 passage and approval.
STATEMENT OF PURPOSE
RS08066C2
This proposed legislation amends the Idaho Consumer Protection Act. It
adds a new section prohibiting the practices of slamming -- the switching
of a person's long distance service from one long distance carrier to
another without that person's verified consent -- and cramming -- the
billing of a consumer by a telecommunications provider for goods or
services that were not ordered by that consumer. The proposed legislation
also provides that notice be given to consumers when their long distance
service has been switched, and allows them a three-day opportunity to
cancel the switch.
FISCAL NOTE
There is no fiscal impact.
CONTACT: Freeman Duncan, Legislative Liaison
Attorney General's Office
Phone:(208) 334-4151
Senator Hal Bunderson
Idaho Senate
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE
S1510