[As Amended by House Committee of the
Whole]
As Amended by House Committee
[As Amended by Senate Committee of the
Whole]
As Amended by Senate Committee
Session of 2000
SENATE BILL No. 431
By Committee on Commerce
1-18
13 AN ACT
concerning consumer protection; relating to
telecommunica-
14 tions
services lecommunications]; amending K.S.A.
1999 Supp.
15 50-6,103 and
[60-210 and] repealing the existing
section [sections].
16
17 Be it enacted by the Legislature of the
State of Kansas:
18 Section
1. K.S.A. 1999 Supp. 50-6,103 is hereby amended to read as
19 follows: 50-6,103. (a) As used in this
section:
20 [(1) ``Existing
local exchange carrier or
telecommunications
21 carrier'' does not mean an
affiliate or subsidiary of the local
22 exchange carrier or
telecommunications carrier.]
23 (1)
[(2)]
(1) ``Express authorization'' means an express,
affirmative
24 act by a consumer clearly agreeing to
the a change in the consumer's
25 telecommunications carrier or local
exchange carrier to another carrier
26 or the addition of any supplemental
telecommunications services to the
27 consumer's account.
28
(2)
[(3)]
(2) ``Supplemental telecommunication services''
means any
29 property or services for which any
charge or assessment appears on a
30 billing statement directed to a consumer
by a local exchange carrier or
31 telecommunications carrier, including
but not limited to personal 800
32 number services, calling card plans,
internet advertisement and website
33 services, voice mail services, paging
services, psychic services, psychic
34 memberships, dating services or
memberships, travel club memberships,
35 internet access services and service
maintenance plans. ``Supplemental
36 telecommunication services'' does not
include direct dial services to which
37 a per use charge applies.
38 (2)
(3)
[(4)]
(3) ``Telecommunications services'' has the meaning
pro-
39 vided by K.S.A. 66-1,187 and amendments
thereto.
40 (b) No local
exchange carrier or telecommunications carrier shall sub-
2
1 mit or cause to be submitted
to a local exchange carrier an order to change
2 a consumer's telecommunications
carrier or local exchange carrier to an-
3 other carrier without having obtained
the express authorization of the
4 consumer authorized to make the
change. The local exchange carrier or
5 telecommunications carrier requesting
the change shall have the burden
6 of proving the express authorization
by a preponderance of the evidence.
7 It shall not be a violation of
this subsection for a local exchange carrier
8 to assign a consumer to a
telecommunications carrier for purposes of
9 intralata services pursuant to
order of the state corporation commission.
10 (c) No
supplier, other than the consumer's existing local exchange
11 carrier or telecommunications carrier,
shall:
12 (1) Add or
cause to be added any supplemental telecommunications
13 services to a consumer's account without
having obtained the express au-
14 thorization of the consumer authorized
to make the addition and the sup-
15 plier requesting the addition shall have
the burden of proving the express
16 authorization by a preponderance of the
evidence; or
17 (2) directly
or indirectly, bill, collect, attempt to bill or collect or
cause
18 to be billed or collected, charges
arising from a change in a consumer's
19 local exchange carrier or
telecommunications carrier to another carrier
20 or charges arising from the addition of
any supplemental telecommuni-
21 cations services to a consumer's account
when such supplier knew or had
22 reason to know that the consumer's
express authorization for such change
23 or addition was not obtained.
24 (c)
(d) No local exchange carrier,
telecommunications carrier or third
25 party utilized to verify an order
to change a consumer's telecommunica-
26 tions carrier or local exchange
carrier to another carrier supplier shall:
27 (1) Engage in any
activity, conduct or representation that has the
28 capacity to mislead, deceive or confuse
the consumer, while soliciting or
29 verifying a change in a consumer's
telecommunications carrier or local
30 exchange carrier to another carrier
that has the capacity to mislead, de-
31 ceive or confuse the
consumer or adding
while soliciting or verifying
32 the addition of any
supplemental telecommunications services to a con-
33 sumer's account;
34 (2) employ a box
or container used to collect entries for sweepstakes,
35 contests or drawings to gather letters of
agency or other documents that
36 constitute authorizations by consumers to
change the consumers' tele-
37 communications carrier or local exchange
carrier to another carrier or to
38 change or add to the consumers'
other accounts any supplemental tele-
39 communications services; or
40 (3) use any
methods not approved by statute, regulations of the fed-
41 eral communications commission
statutes, rules and regulations or
federal
42 trade commission (as in effect on
the effective date of this act) or state
43 corporation commission rules and
regulations to change a consumer's
3
1 telecommunications carrier or local
exchange carrier to another carrier
2 or to add supplemental
telecommunications services to a consumer's
3 account.
4
(d) (e) Any local exchange
carrier or telecommunications carrier sup-
5 plier that violates subsection
(b) or (c), (c) or (d) shall be subject to
a civil
6 penalty of not less than $5,000 nor
more than $20,000 for each such
7 violation instead of the penalty
provided for in subsection (a) of K.S.A.
8 50-636, and amendments thereto.
9
(e) (f) Any violation of this section
is a deceptive and unconscionable
10 act or practice under the provisions of the
Kansas consumer protection
11 act and shall be subject to any and all of
the enforcement provisions of
12 the Kansas consumer protection act. Nothing
in this section shall preclude
13 the state corporation commission from
exerting its authority as it pertains
14 to intrastate services nor the attorney
general from pursuing violations of
15 any other provisions of the Kansas consumer
protection act by a local
16 exchange carrier or
telecommunications carrier supplier.
17 (f)
(g) All local exchange carriers shall offer consumers
the option of
18 notifying the local exchange carrier in
writing that they do not desire any
19 change of telecommunications carrier
regardless of any orders to the con-
20 trary submitted by any third party. The
consumer shall be permitted to
21 cancel such notification or to change its
telecommunications carrier by
22 notifying the consumer's local exchange
carrier accordingly. All local
23 exchange carriers shall annually notify the
consumers of the carrier's tel-
24 ecommunications services of the
availability of this option.
25 (h) Any person
alleging a violation of this section may bring a private
26 action to seek relief pursuant to K.S.A.
50-634, 50-636 and this section,
27 and amendments thereto and such person
may be defined as a consumer
28 pursuant to K.S.A. 50-624, and
amendments thereto for the purposes of
29 such private action.
30 (g)
(i) This section shall be part of and supplemental to
the Kansas
31 consumer protection act.
32 [Sec.
2. K.S.A. 1999 Supp. 66-2010 is hereby amended to read
33 as follows: 66-2010. (a) The commission
shall utilize a competitive
34 bidding process to select a neutral,
competent and bonded third
35 party to administer the KUSF.
36 [(b) The
administrator shall be responsible for: (1) Collecting
37 and auditing all relevant information
from all qualifying telecom-
38 munications public utilities,
telecommunications carriers or wire-
39 less telecommunications service
providers receiving funds from or
40 providing funds to the KUSF; (2)
verifying, based on the calcula-
41 tions of each qualifying
telecommunications carrier, telecommu-
42 nications public utility or wireless
telecommunications service pro-
43 vider, the obligation of each such
qualifying carrier, utility or
4
1 provider to generate the funds
required by the KUSF; (3) collect-
2 ing on a monthly basis
all moneys due to the KUSF from all tele-
3 communications public utilities,
telecommunications carriers and
4 wireless telecommunications
service providers in the state; and (4)
5 distributing amounts on a monthly
basis due to qualifying telecom-
6 munications public utilities,
wireless telecommunications service
7 providers and telecommunications
carriers receiving KUSF
8 funding.
9 [(c) Any
information made available or received by the admin-
10 istrator from carriers, utilities or
providers receiving funds from
11 or providing funds to the KUSF shall not
be subject to any provi-
12 sions of the Kansas open records act and
shall be considered con-
13 fidential and proprietary.
14
[(d) The commission is authorized to assess a late
payment fee at a
15 rate not to exceed 1.5% of the
assessment for every month a telecommu-
16 nications public utility,
telecommunications carrier or wireless telecom-
17 munications service provider fails to
pay its KUSF assessment to the ad-
18 ministrator. The
administrator or the commission shall be
authorized
19 to maintain an action to collect any
funds owed by any telecom-
20 munications carrier, public utility or
wireless telecommunications
21 provider in the district court in the
county of the registered office
22 of such carrier, utility or provider or,
if such carrier, utility or
23 provider does not have a registered
office in the state, such an
24 action may be maintained in the county
where such carrier's, util-
25 ity's or provider's principal office is
located. If such carrier, utility
26 or provider has no principal office in
the state, such an action may
27 be maintained in the district court of
any county in which such
28 carrier, utility or provider provides
service. In any action to revoke
29 or suspend the certificate of
convenience and necessity of a telecommu-
30 nications carrier or telecommunications
public utility, there shall be a
31 presumption that the carrier or utility
is unfit to hold a certificate of
32 convenience and necessity if such
carrier or utility fails to pay any KUSF
33 assessment for 60 or more days after
notice of delinquency in paying such
34 assessment.
35
[(e) Any telecommunications carrier,
telecommunications public util-
36 ity or wireless telecommunications
service provider which is required to
37 contribute to the KUSF pursuant to
K.S.A. 1999 Supp. 66-2008, and
38 amendments thereto, and which fails to
submit a KUSF calculation work-
39 sheet for a reporting period shall be
liable for an administrative penalty
40 imposed by the commission in a sum not
to exceed $1,000 for failure to
41 submit such worksheet. Each reporting
period for which such carrier,
42 utility or provider fails to submit such
worksheet shall constitute a sepa-
43 rate offense.
5
1
[The penalty provided by this subsection shall be in
addition to any
2 other authority the commission has
to enforce compliance.
3
[(e) (f) The KUSF
administrator shall be responsible to ensure
4 that funds do not fall below the
level necessary to pay all amounts
5 collectively owed to all
qualifying telecommunications public util-
6 ities, wireless telecommunications
service providers and telecom-
7 munications carriers. The
administrator shall have the authority
8 to retain and invest in a prudent
and reasonable manner any excess
9 funds collected in any period to
help ensure that adequate funds
10 are available to cover amounts payable
in other periods.
11
[(g) In amending subsection (d), it is the intent of
the legislature to
12 clarify existing authority of the
commission to assess a late payment fee.
13 Nothing in subsection (d) shall be
construed as granting new or additional
14 authority to the
commission.]
15 Sec.
2. [3.] K.S.A. 1999 Supp.
50-6,103 is [and 66-2010 are]
hereby
16 repealed.
17 Sec.
3. [4.] This act shall take
effect and be in force from and after
18 its publication in the statute book.