H.B. 135 Enrolled

PREVENTION OF UNAUTHORIZED
TELECOMMUNICATIONS PROVIDER CHANGE
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: Sheryl L. Allen
John E. Swallow

AN ACT RELATING TO PUBLIC UTILITIES; PROHIBITING AN UNAUTHORIZED
TELECOMMUNICATIONS PROVIDER CHANGE; PROVIDING DEFINITIONS;
PRESCRIBING CHANGE AND VERIFICATION PROCEDURES AND RECORDS;
REQUIRING RESTITUTION; AUTHORIZING THE PUBLIC SERVICE COMMISSION TO
PROMULGATE RULES; PROVIDING AND PRESCRIBING PENALTIES AND
PROCEDURES FOR SUBSCRIBER COMPLAINTS; AND REQUIRING NOTICE OF
CHANGE TO SUBSCRIBERS.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
54-8b-18, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 54-8b-18 is enacted to read:
54-8b-18. Definitions -- Unauthorized change of telecommunications provider --
Unauthorized charges -- Procedures for verification -- Penalties -- Authority of commission.
(1) For purposes of this section:
(a) "Agents" includes any person, firm, or corporation representing a telecommunications
corporation for purposes of requesting a change in a subscriber's telecommunications provider, but
does not include a local service provider when executing a request submitted by another service
provider or its agents.
(b) "Freeze" means a directive from a subscriber to retain the provider of public
telecommunications services selected by the subscriber until the subscriber provides authorization
for a change to another provider of public telecommunications services through any means by
which a freeze is implemented.

(c) "Small commercial subscriber" is a person or entity conducting a business, agriculture,
or other enterprise in the state having less than five telecommunications lines.
(d) "Subscriber" means a corporation, person, or government, or a person acting legally on
behalf of a corporation, person, or government who has purchased public telecommunications
services from a telecommunications corporation.
(2) No telecommunications corporation or its agents shall make any change or authorize a
different telecommunications corporation to make any change in the provider of any public
telecommunications service to a subscriber unless it complies, at a minimum, with Subsections (2)(a)
through (e). This Subsection (2) does not apply to a telecommunications corporation that effectuates
a change in service provider pursuant to a change authorization submitted or requested by another
telecommunications corporation.
(a) The telecommunications corporation or its agents shall, at a minimum, inform the
subscriber of the nature, extent, and rates of the service being offered and any charges associated
with the change.
(b) Notwithstanding Section 13-26-4 , changes in provider of telecommunication service
accomplished through telephone solicitation shall comply with the Telephone Fraud Prevention Act,
Sections 13-26-2 , 13-26-8 , 13-26-10 , and 13-26-11 .
(c) For sales of residential service or small commercial subscriber service, the
telecommunications corporation or its agents shall confirm that the subscriber is aware of any
charges that the subscriber must pay associated with the change and that the subscriber authorizes
the change of provider. The subscriber's authorization to change the provider shall be confirmed by
any one of the following methods:
(i) obtaining the subscriber's written authorization;
(ii) having the subscriber's oral authorization verified by an independent third party; or
(iii) any means provided by rule of the Federal Communications Commission or the
commission.
(d) If the subscriber is not an individual, an authorization shall be valid only if given by an
authorized representative of the subscriber.

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(e) (i) The written authorization to change the provider shall be signed by the subscriber and
shall contain a clear, conspicuous, and unequivocal request by the subscriber for a change of
telecommunications provider.
(ii) A written authorization is not valid if it is presented to the subscriber for signature in
connection with a sweepstakes, game of chance, or any other means prohibited by commission rule.
(iii) Nothing in this section shall be construed to prohibit any person from offering a
premium, incentive, or a thing of value to another as consideration for authorizing a change of
telecommunications service provider, provided that no element of chance or skill is associated with
the offer of the premium, incentive, or thing of value or its receipt.
(3) The confirmation by a third-party verifier shall, at a minimum:
(a) confirm the subscriber's identity with information unique to the customer, unless the
customer refuses to provide identifying information, then that fact shall be noted;
(b) confirm that the subscriber agrees to the requested change in telecommunications service
providers; and
(c) confirm that the subscriber has the authority to select the provider as the provider of that
service.
(4) A third-party verifier shall meet each of the following criteria:
(a) any criteria for third-party verifiers set by the Federal Communications Commission;
(b) not be directly or indirectly managed, controlled, directed, or owned wholly or in part:
(i) by the telecommunications corporation or its agents that seek to provide the
telecommunications service or by any corporation, firm, or person who directly or indirectly
manages, controls, directs, or owns more than 5% of the telecommunications corporation; or
(ii) by the marketing entity that seeks to market the telecommunications service or by any
corporation, firm, or person who directly or indirectly manages, controls, directs, or owns more than
5% of the marketing entity;
(c) operate from facilities physically separated from:
(i) those of the telecommunications corporation or its agents that seek to provide the
subscriber's telecommunications service; or

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(ii) those of the marketing entity that seeks to market a telecommunications service to the
subscriber; and
(d) not derive commissions or compensation based upon the number of change
authorizations verified.
(5) A telecommunications corporation or its agents seeking to verify the change
authorization shall connect the subscriber to the third-party verifier or arrange for the third-party
verifier to call the subscriber to verify the change authorization.
(6) A third-party verifier that obtains the subscriber's oral verification regarding the change
shall record that verification by obtaining appropriate verification data.
(7) (a) The record verifying a subscriber's change of provider 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 Subsection (7)(b) is grounds
for penalties or other action by the commission or remedies provided by law to the aggrieved
subscriber against the telecommunications corporation, third-party verifier, their agents, or their
employees who are responsible for the violation.
(8) The third-party verification shall occur in the same language as that in which the change
was solicited.
(9) The verification requirements described in this section shall apply to all changes in the
provider of any public telecommunications service.
(10) The commission may promulgate rules:
(a) necessary to implement this section;
(b) consistent with any rules promulgated by the Federal Communications Commission; and
(c) in a nondiscriminatory and competitively neutral manner.
(11) (a) Each subscriber may elect to require the telecommunications corporation providing
the subscriber's local exchange service to implement a freeze until the subscriber provides
authorization for a change to another provider of public telecommunications services.

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(b) Once a subscriber has elected the freeze option under Subsection (11)(a), the
telecommunications corporation providing the subscriber's local exchange service may not process
a request to change the subscriber to another provider of telecommunications services without prior
authorization directly from the subscriber.
(12) (a) Whenever the subscriber's provider of a telecommunications service changes, the
new provider shall:
(i) retain a record of the verified change authorization consistent with requirements of the
Federal Communications Commission or rules issued by the commission; and
(ii) be responsible for providing a conspicuous notice of the change within 30 days of the
effective date of the change of service.
(b) At a minimum, the notice in Subsection (12)(a)(ii) shall identify the new provider,
contain a general description of the service and price, and provide information necessary for the
subscriber to have questions answered or to rescind the change.
(13) Any bill shall identify each telecommunications service provider of telecommunication
service for which billing is rendered.
(14) (a) Any person or provider of telecommunications service inadvertently or knowingly
designating or changing the subscriber's telecommunications service provider in violation of this
section shall refund to the subscriber any amounts required by the rules of the Federal
Communications Commission and the commission.
(b) The unauthorized provider in Subsection (14)(a) additionally shall:
(i) bear all costs of restoring the customer to the service of the subscriber's original service
provider; and
(ii) pay to any other telecommunications provider any fees set by the commission for the
designation or change.
(15) Proceedings for violations of this section may be commenced by request for agency
action filed with the commission by a subscriber, a telecommunications corporation, the Division
of Public Utilities, or by the commission on its own motion.
(16) Any telecommunications corporation, its agents, or a third-party verifier who violates

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this section or rules adopted to implement this section shall be subject to the provisions of Sections
54-7-23 through 54-7-29 .
(17) The commission is granted authority to enforce provisions relating to an unauthorized
telecommunication service provider change in interstate and intrastate telecommunication service
involving telecommunications corporations operating in the state.

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