476.103 - UNAUTHORIZED CHANGE IN SERVICE -- CIVIL PENALTY.

        476.103  UNAUTHORIZED CHANGE IN SERVICE -- CIVIL      PENALTY.         1.  Notwithstanding the deregulation of a communications service      or facility under section 476.1D, the board may adopt rules to      protect consumers from unauthorized changes in telecommunications      service.  Such rules shall not impose undue restrictions upon      competition in telecommunications markets.         2.  As used in this section, unless the context otherwise      requires:         a.  "Change in service" means the designation of a new      provider of a telecommunications service to a consumer, including the      initial selection of a service provider, and includes the addition or      deletion of a telecommunications service for which a separate charge      is made to a consumer account.         b.  "Consumer" means a person other than a service provider      who uses a telecommunications service.         c.  "Executing service provider" means, with respect to any      change in telecommunications service, a service provider who executes      an order for a change in service received from another service      provider.         d.  "Service provider" means a person providing a      telecommunications service.         e.  "Submitting service provider" means a service provider who      requests another service provider to execute a change in service.         f.  "Telecommunications service" means a local exchange or      long distance telephone service other than commercial mobile radio      service.         3.  The board shall adopt rules prohibiting an unauthorized change      in telecommunications service.  The rules shall be consistent with      federal communications commission regulations regarding procedures      for verification of customer authorization of a change in service.      The rules, at a minimum, shall provide for all of the following:         a. (1)  A submitting service provider shall obtain      verification of customer authorization of a change in service before      submitting such change in service.         (2)  Verification appropriate under the circumstances for all      other changes in service.         (3)  The verification may be in written, oral, or electronic form      and may be performed by a qualified third party.         (4)  The reasonable time period during which the verification is      to be retained, as determined by the board.         b.  A customer shall be notified of any change in service.         c.  Appropriate compensation for a customer affected by an      unauthorized change in service.         d.  Board determination of potential liability, including      assessment of damages, for unauthorized changes in service among the      customer, previous service provider, executing service provider, and      submitting service provider.         e.  A provision encouraging service providers to resolve      customer complaints without involvement of the board.         f.  The prompt reversal of unauthorized changes in service.         g.  Procedures for a customer, service provider, or the      consumer advocate to submit to the board complaints of unauthorized      changes in service.         4. a.  In addition to any applicable civil penalty set out in      section 476.51, a service provider who violates a provision of this      section, a rule adopted pursuant to this section, or an order      lawfully issued by the board pursuant to this section, is subject to      a civil penalty, which, after notice and opportunity for hearing, may      be levied by the board, of not more than ten thousand dollars per      violation.  Each violation is a separate offense.         b.  A civil penalty may be compromised by the board.  In      determining the amount of the penalty, or the amount agreed upon in a      compromise, the board may consider the size of the service provider,      the gravity of the violation, any history of prior violations by the      service provider, remedial actions taken by the service provider, the      nature of the conduct of the service provider, and any other relevant      factors.         c.  A civil penalty collected pursuant to this subsection      shall be forwarded by the executive secretary of the board to the      treasurer of state to be credited to the department of commerce      revolving fund created in section 546.12 and to be used only for      consumer education programs administered by the board.         d.  A penalty paid by a rate-of-return regulated utility      pursuant to this section shall be excluded from the utility's costs      when determining the utility's revenue requirement, and shall not be      included either directly or indirectly in the utility's rates or      charges to its customers.         e.  The board shall not commence an administrative proceeding      to impose a civil penalty under this section for acts subject to a      civil enforcement action pending in court under section 714D.7.         5.  If the board determines, after notice and opportunity for      hearing, that a service provider has shown a pattern of violations of      the rules adopted pursuant to this section, the board may by order do      any of the following:         a.  Prohibit any other service provider from billing charges      to residents of Iowa on behalf of the service provider determined to      have engaged in such a pattern of violations.         b.  Prohibit certificated local exchange service providers      from providing exchange access services to the service provider.         c.  Limit the billing or access services prohibition under      paragraph "a" or "b" to a period of time.  Such prohibition      may be withdrawn upon a showing of good cause.         d.  Revoke the certificate of public convenience and necessity      of a local exchange service provider.         6.  The board has primary jurisdiction over a complaint pursuant      to this section initiated by a service provider.         7.  Subsection 6 does not preclude proceedings before the federal      communications commission to enforce applicable federal law.      However, a service provider or a consumer, for the same alleged acts,      shall not pursue a complaint both before the federal communications      commission and pursuant to this section.         8.  The board shall adopt competitively neutral rules establishing      procedures for the solicitation, imposition, and lifting of preferred      carrier freezes.  A valid preferred carrier freeze prevents a change      in service unless the subscriber gives the service provider from whom      the freeze was requested the subscriber's express consent.  
         Section History: Recent Form
         99 Acts, ch 16, §1; 2009 Acts, ch 181, §51         Referred to in § 714D.6 
         Footnotes
         For future repeal of 2009 amendment to subsection 4, paragraph c,      effective July 1, 2011, see 2009 Acts, ch 179, §146