Title 54 Public Utilities
Chapter 4 Authority of Commission Over Public Utilities
Section 37 Definitions -- Unauthorized charge to account -- Penalties -- Procedures for verification -- Authority of commission and Division of Public Utilities.
54-4-37. Definitions -- Unauthorized charge to account -- Penalties -- Procedures
for verification -- Authority of commission and Division of Public Utilities.
(1) For purposes of this section:
(a) "Agents" includes any person representing a public utility for purposes of billing for a
service or merchandise from a third-party supplier.
(b) "Billing aggregator" means any person that:
(i) initiates charges;
(ii) combines or aggregates charges from third-party suppliers of services or
merchandise; or
(iii) (A) creates bills for account holders; and
(B) passes these bills for the billing of account holders to:
(I) another billing aggregator; or
(II) a public utility.
(c) (i) "Public utility" is as defined in Section 54-2-1.
(ii) "Public utility" does not include a telecommunications corporation providing only
mobile wireless service or Internet access.
(d) "Subscriber" means a person or government or a person acting legally on behalf of a
person or government who authorizes a charge from a third-party provider of service or
merchandise.
(e) (i) "Third party" means any person other than the account holder and the public
utility.
(ii) "Third party" includes:
(A) a billing aggregator;
(B) a public utility;
(C) a nonpublic utility provider of services and merchandise;
(D) those persons billing for services or merchandise; and
(E) those persons verifying a subscriber's authorization.
(iii) "Third party" does not include:
(A) an affiliated or subsidiary company of a public utility whose charges the commission
determines by rule would be reasonably associated by a subscriber with the type of charges that
would appear on that particular public utility's bill;
(B) a presubscribed local or long distance telecommunications corporation or its affiliated
or subsidiary company as to charges for local or long distance telephone, data, or wireless
services.
(2) This section does not apply to:
(a) telecommunications services that are used, initiated, or requested by the customer,
including dial-around services such as:
(i) 10-10-XXX;
(ii) 1-900 numbers;
(iii) directory assistance;
(iv) operator-assisted calls;
(v) acceptance of collect calls; and
(vi) other casual calling by the customer;
(b) changes in telecommunications providers regulated by Section 54-8b-18;
(c) the provision of any charges for financing by an affiliated or subsidiary company of a
public utility in connection with the purchase of services or merchandise if there is a written
agreement for the financing between the customer and the affiliated or subsidiary company; or
(d) except for Subsections (5) and (6), services provided by any of the following that are
billed through a public utility:
(i) a city;
(ii) a town; or
(iii) a county.
(3) Pursuant to this section, a public utility may not charge an account holder for services
the account holder never:
(a) ordered; or
(b) knowingly authorized.
(4) A public utility shall ensure that its account holders receive:
(a) identification of a third-party provider of services or merchandise;
(b) upon subscriber request, toll-free numbers to enable a subscriber to contact the third
party to resolve disputes;
(c) a clear, concise description of services or merchandise being billed;
(d) highlight or identification of each service or merchandise different from prior billing
cycle services or merchandise;
(e) clear identification of the payment amount needed for each service or merchandise to
ensure that any public utility service will continue;
(f) prompt and courteous treatment of all disputed charges; and
(g) information about the provisions in Subsections (5) and (6).
(5) (a) Unless specifically instructed by the account holder, each public utility shall first
apply all payments received to the account holder's bill for the public utility's own tariffed utility
services.
(b) Any remaining credit after the application of payment under Subsection (5)(a) shall
be allocated proportionally to other charges, unless otherwise specified by the account holder.
(6) A public utility may not disconnect or threaten disconnection of any account holder's
basic utility service for failure to pay third-party charges.
(7) Accounts receivable purchased by a public utility from third parties may not be
treated as public utility charges regardless of the service or product upon which the account
receivable is based.
(8) (a) If an account holder informs the public utility that a third-party service or
merchandise charge is neither knowingly used nor authorized, or the charge in whole or part is
disputed, the public utility shall:
(i) (A) immediately credit the account holder's account for the disputed amount; and
(B) refer the matter back to the third party for collection; or
(ii) suspend the account holder's obligation of payment of the disputed amount until it is
determined whether the charge was either knowingly used or authorized.
(b) The public utility may not request the account holder to contact the third party to
resolve the dispute prior to applying the credit under Subsection (8)(a).
(c) The disputed charge shall be removed from the public utility's bill to the account
holder no later than two billing cycles following the billing cycle during which the complaint or
dispute is registered unless it is later determined that the charge was authorized and the account
holder is required to pay the charge.
(d) Immediately upon the account holder's first complaint or inquiry, the public utility
shall inform the account holder of:
(i) the process provided in this Subsection (8); and
(ii) the account holder's options.
(e) Except as provided in Subsection (8)(c), once the charges have been removed from
the account holder's utility bill:
(i) the third party may not use the utility bill to:
(A) rebill the charges; or
(B) further attempt to collect the charge; and
(ii) the public utility may not allow any further collection attempts by the third party to
involve the utility bill.
(9) (a) If requested by the account holder, a public utility shall provide the account holder
with toll-free numbers supplied by the provider of the service or merchandise, so the account
holder may contact the third-party supplier of the services or merchandise billed.
(b) The public utility responsibility prescribed by Subsection (9)(a) applies through all
layers of third parties, including:
(i) public utilities;
(ii) service providers;
(iii) merchandise providers;
(iv) affiliate billing companies; or
(v) billing aggregators.
(c) A public utility shall perform due diligence to acquire the information required under
this Subsection (9) from any provider for whom it bills.
(10) A third-party provider of services or merchandise may not request a public utility to
bill its charges unless and until it:
(a) has provided to the public utility valid toll-free numbers to enable a subscriber to
contact the third-party to resolve any disputed charges;
(b) has provided updated toll-free numbers to the public utility upon any change in the
numbers; and
(c) has received authorization from the subscriber for the service or merchandise
through:
(i) obtaining the subscriber's written authorization;
(ii) having the subscriber's oral authorization verified by an independent verifier; or
(iii) any means provided by rule of the commission.
(11) If the subscriber is not an individual, an authorization shall be valid only if given by
an authorized representative of the subscriber.
(12) The written authorization for the service or merchandise described in Subsection
(10) shall:
(a) be signed by the subscriber; and
(b) contain a clear, conspicuous, and unequivocal request by the subscriber for the
service or merchandise.
(13) The confirmation by a verifier shall, at a minimum:
(a) (i) confirm the subscriber's identity with information unique to the customer; or
(ii) if the customer refuses to provide identifying information, note the fact that the
customer would not provide the identifying information;
(b) confirm that the subscriber requests the service or merchandise be provided by the
third party; and
(c) confirm that the subscriber has the authority to request the service or merchandise be
provided by the third party.
(14) A verifier shall meet each of the following:
(a) any criteria set for verifiers by the commission;
(b) not be directly or indirectly managed, controlled, directed, or owned wholly or in part
by:
(i) the public utility on whose bill the charge will appear;
(ii) a third-party provider;
(iii) an agent of a public utility or third-party provider that seeks to provide the service or
merchandise;
(iv) a person who directly owns or indirectly manages, controls, directs, or owns more
than 5% of the public utility or third-party provider described in Subsection (14)(b)(i) or (ii);
(v) the marketing entity that seeks to market the third-party provider's service or
merchandise; or
(vi) any person who directly or indirectly manages, controls, or owns more than 5% of
the marketing entity described in Subsection (14)(b)(v);
(c) operate from facilities physically separated from those facilities of:
(i) the public utility on whose bill the charge will appear;
(ii) the third party or its agents that seek to provide the service or merchandise to the
subscriber; or
(iii) the marketing entity that seeks to market the third-party provider's service or
merchandise to the subscriber; and
(d) not derive commissions or compensation based upon the number of authorizations
verified.
(15) A verifier that obtains the subscriber's oral verification regarding the change shall
record that verification by obtaining the appropriate verification data.
(16) (a) The record verifying a subscriber's request for a third-party to provide services or
merchandise shall be available to the subscriber upon request.
(b) Information obtained from the subscriber through verification may not be used for
any other purpose.
(c) Any intentional unauthorized release of the information in violation of Subsection
(16)(b) is grounds for:
(i) penalties or other action by the commission; or
(ii) remedies provided by law to the aggrieved subscriber against any of the following
who is responsible for the violation:
(A) the third-party provider;
(B) the verifier;
(C) an agent or employee of the third-party provider or verifier.
(17) The verification shall occur in the same language as that in which the request was
solicited.
(18) Each public utility shall allow account holders to prohibit the public utility from
billing for all or selected third parties for services or merchandise.
(19) (a) Each public utility shall maintain monthly records of the number of complaints
about unauthorized charges that appear on a public utility bill.
(b) The records described in Subsection (19)(a) shall be available to the commission
upon request.
(20) (a) Proceedings for violations of this section may be commenced by request for
agency action filed with the commission by:
(i) an account holder;
(ii) a public utility;
(iii) the Division of Public Utilities; or
(iv) the commission on the commissioner's own motion.
(b) The remedies provided by this chapter are not exclusive and are in addition to all
other causes of action, remedies, and penalties provided by law.
(21) Any public utility, its agents, or a third-party provider of goods or services who
violates this section or rules adopted to implement this section shall be subject to Sections
54-7-23 through 54-7-29.
(22) The Division of Public Utilities shall have power to seek injunctive relief to stop
repeated unauthorized violations of this section by a public utility or a third-party provider of
service or merchandise.
(23) The commission is granted authority to:
(a) enforce this section; and
(b) implement rules to carry out the requirements of the section.
Amended by Chapter 139, 2001 General Session
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