[atlas:bill]

AN ACT Relating to unauthorized services and charges of a telecommunications company; adding new sections to chapter 80.36 RCW; creating new sections; prescribing penalties; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that changes in the rapidly changing telecommunications market are resulting in new consumer problems. The legislature further finds that unauthorized changes in telecommunications service, known commonly as slamming, and unauthorized billing for service on telecommunications bills, known commonly as cramming, are unfair and deceptive consumer practices. The legislature further finds that consumers should have options available to protect themselves against unauthorized service changes and billings. In addition, current penalties and remedies need to be increased to provide a more effective deterrent to these practices.

NEW SECTION. Sec. 2. (1) Every local exchange telecommunications company must offer to its customers, as a part of basic local service and at no additional cost, the following optional services:

(a) Account freeze service. If a customer has subscribed to account freeze service, the local exchange company may not make changes to the customer's local or long-distance service except on direct oral or written direction of the customer and shall reject any orders for change in service that are purported to be submitted on behalf of the customer; and

(b) Bill block service. If a customer has subscribed to bill block service, the local exchange company may not bill the customer for nontelecommunications services.

(2) Each local exchange telecommunications company must notify its customers of the services described in this section at the time service is established and at least once per year thereafter. The commission may prescribe the form of notice by rule.

NEW SECTION. Sec. 3. All lists of charges for services that appear on a consumer's bill shall be clear, separate, and distinct. At a minimum, any local exchange company that bills for nontelecommunications services must clearly identify on the bill the actual name of the company making the charge, the specific product or service being billed for, and a toll-free contact number for disputing a charge. The commission may prescribe the form of bill disclosure by rule.

NEW SECTION. Sec. 4. Telecommunications companies shall not offer telecommunications services in the form of a sweepstakes entry, contest entry form, calling card service, club membership, or combined with any other inducement where the advertisements and details of charges for the telecommunications services are not clear, separate, and distinct.

NEW SECTION. Sec. 5. A customer may notify their local exchange company of an unauthorized service change or billing by telephone to a customer service area, to a designated customer service electronic mail address, or in writing.

NEW SECTION. Sec. 6. (1) In addition to any penalty imposed by other provisions of law, any person who violates sections 2 through 7 of this act or any rule of the commission (a) defining conditions and processes for the switching of local or long-distance telecommunications service; or (b) limiting the authority of telecommunications companies to bill for nontelecommunications services shall be liable for a civil penalty in the amount of one thousand dollars per day. Each day shall be considered a separate violation. For subsequent violations the amount of the civil penalty shall be increased to five thousand dollars per day.

(2) Penalties imposed under this section shall be imposed in the manner as penalties in RCW 80.04.405.

(3) If the commission finds a company has violated any rule of the commission defining conditions and processes for the switching of local or long-distance telecommunications service, it may require that all future service changes submitted by the company be in writing.

NEW SECTION. Sec. 7. (1) A customer who has had their local or long-distance telecommunications service switched without proper authorization, as defined by the commission, is not liable for any payments to the unauthorized carrier and shall not be charged for having their service restored to their authorized carrier. The customer may be charged for service at a rate no greater than what would have been charged by his or her authorized telecommunications company.

(2) If a customer disputes a charge for nontelecommunications service, the local exchange company shall remove the charge from the bill. This provision does not affect the ability of the charging company to independently collect legitimate charges.

(3) The commission may adopt rules to enforce this section.

NEW SECTION. Sec. 8. The legislature finds that the practices covered by sections 2 through 7 of this act are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of sections 2 through 7 of this act is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW. In any action under chapter 19.86 RCW, a person has a presumption of injury and statutory damages in the amount of two thousand five hundred dollars. For purposes of this section, a person bringing the action must prove:

(1) A violation of sections 2 through 7 of this act;

(2) A violation of any rule of the commission that: (a) Defines conditions and processes for the switching of local or long-distance telecommunications service; or (b) limits the authority of telecommunications companies to bill for services; or

(3) That the switching of local or long-distance telecommunications service or wrongful inclusion on a bill is an unfair or deceptive act.

NEW SECTION. Sec. 9. The Washington utilities and transportation commission and the attorney general shall assess and report to the legislature by June 2000 whether the practices of unauthorized service changes and billing have been deterred by this legislation and may make recommendations to the legislature with regard to enforcement.

NEW SECTION. Sec. 10. Sections 2 through 7 of this act are each added to chapter 80.36 RCW.

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.