State of Illinois
90th General Assembly
Legislation

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[ Senate Amendment 002 ]

90_SB1567sam001

                                           LRB9010645JSgcam04
 1                    AMENDMENT TO SENATE BILL 1567
 2        AMENDMENT NO.     .  Amend Senate Bill 1567 by  replacing
 3    the title with the following:
 4        "AN  ACT  concerning  subscription  to telecommunications
 5    services, amending named Acts."; and
 6    by replacing everything after the enacting  clause  with  the
 7    following:
 8        "Section  5.   The  Public  Utilities  Act  is amended by
 9    changing Section 13-902 as follows:
10        (220 ILCS 5/13-902)
11        (Section scheduled to be repealed on July 1, 2001)
12        Sec. 13-902.  Rules for verification  of  a  subscriber's
13    change   in  telecommunications  carrier  or  addition  to  a
14    subscriber's service.
15        (a)  As  used  in  this  Section,  "subscriber"  means  a
16    telecommunications carrier's retail business customer  served
17    by not more than 20 lines and a retail residential customer.
18        (b)  A subscriber of a telecommunications carrier may not
19    be switched to another telecommunications carrier without the
20    subscriber's authorization.
21        (c)  A  telecommunications carrier shall not effectuate a
                            -2-            LRB9010645JSgcam04
 1    change  to  a  subscriber's  telecommunications  services  by
 2    providing  an  additional  telecommunications  service   that
 3    results  in  a  recurring  additional  monthly  charge to the
 4    subscriber   (herein   referred   to   as   an    "additional
 5    telecommunications service") without following the subscriber
 6    notification  procedures  set  forth  in  this  Section.   An
 7    "additional  telecommunications  service"  does  not  include
 8    making  available  any additional telecommunications services
 9    on a subscriber's line when the subscriber activates and pays
10    for the services on a per use basis.
11        (d)  It is the responsibility of the company  or  carrier
12    requesting  a  change  in  a  subscriber's telecommunications
13    carrier to obtain  the  subscriber's  authorization  for  the
14    change whenever the company or carrier acts as a subscriber's
15    agent with respect to the change.
16        (e)  A  company  or  carrier  requesting  a  change  in a
17    subscriber's  telecommunications  carrier  as  described   in
18    subsection  (d)  shall  be  solely  responsible for providing
19    written notice of the change to the subscriber in  accordance
20    with this Section.  In addition, a telecommunications carrier
21    that  provides any additional telecommunications service to a
22    subscriber shall be solely responsible for providing  written
23    notice  of  the  additional telecommunications service to the
24    subscriber in accordance with  this  Section.     The  notice
25    shall be provided as follows:
26             (1)  A letter to the subscriber must be mailed using
27        first class mail, postage prepaid, no later than 72 hours
28        after  implementation  of  a  change  in the subscriber's
29        telecommunications carrier  or  the  installation  of  an
30        additional telecommunications service.
31             (2)  The letter must be a separate document sent for
32        the  sole  purpose of describing the changes or additions
33        authorized by the subscriber.
34             (3)  The letter must be printed  with  10  point  or
                            -3-            LRB9010645JSgcam04
 1        larger  type  and  contain  clear and plain language that
 2        confirms the details  of  a  change  in  carrier  or  the
 3        additional  telecommunications  service  and provides the
 4        subscriber with a toll free number  to  call  should  the
 5        subscriber  wish  to  delete  services or make additional
 6        changes.
 7        (f)  The Commission shall promulgate any rules  necessary
 8    to  ensure  that a subscriber of a telecommunications carrier
 9    is not switched to another telecommunications carrier or that
10    an additional telecommunications service is not added without
11    the subscriber's authorization.  The rules promulgated  under
12    this   Section   shall   comport  with  the  rules,  if  any,
13    promulgated by the Attorney General pursuant to the  Consumer
14    Fraud and Deceptive Business Practices Act.
15        (g)  Complaints  may  be  filed with the Commission under
16    this Section by a subscriber who has been switched to another
17    telecommunications carrier without authorization or has  been
18    provided an additional telecommunications service not ordered
19    by  the  subscriber, by a telecommunications carrier that has
20    been removed as  a  subscriber's  telecommunications  carrier
21    without  authorization,  or  by  the  Commission  on  its own
22    motion.   Upon filing  of  the  complaint,  the  parties  may
23    mutually  agree  to  submit the complaint to the Commission's
24    established mediation process.  Remedies agreed to during the
25    mediation process may include, but shall not be  limited  to,
26    remedies  set forth below in paragraphs (1) through (5).  The
27    Commission may in its discretion deny the availability of the
28    mediation process to parties, who in its judgment,  may  have
29    engaged  in  a  pattern  of  conduct  inconsistent  with this
30    Section.  If no agreement is reached to submit the  complaint
31    or  if  no agreement is reached during the mediation process,
32    hearings shall be held pursuant to Article 10  of  this  Act.
33    If  after  notice  and  hearing,  the Commission finds that a
34    telecommunications carrier has violated  this  Section  or  a
                            -4-            LRB9010645JSgcam04
 1    rule  promulgated  under  this Section, the Commission may in
 2    its discretion order any one or more of the following:
 3             (1)  In  case  of  an  unauthorized  switch   to   a
 4        telecommunications   carrier,   require   the   violating
 5        telecommunications  carrier  to  refund to the subscriber
 6        all fees and charges collected from  the  subscriber  for
 7        services  up  to the time the subscriber receives written
 8        notice  of  the  fact  that  the  violating  carrier   is
 9        providing  telecommunications  service to the subscriber.
10        Notice consistent with paragraph (1)  of  subsection  (e)
11        shall be deemed to satisfy the notice requirement of this
12        paragraph.
13             (2)  In   case   of  an  unauthorized  switch  to  a
14        telecommunications   carrier,   require   the   violating
15        telecommunications carrier to refund  to  the  subscriber
16        charges collected in excess of those that would have been
17        charged  by  the subscriber's previous telecommunications
18        carrier.
19             (3)  In  case  of  an  unauthorized  switch   to   a
20        telecommunications   carrier,   require   the   violating
21        telecommunications  carrier  to  pay  to the subscriber's
22        previous  telecommunications  carrier  the   amount   the
23        previous  telecommunications carrier would have collected
24        for the telecommunications service.
25             (4)  Require   the   violating    telecommunications
26        carrier  to  pay  a  fine of up to $1,000 into the Public
27        Utility Fund for each repeated and  wilful  violation  of
28        this Section.
29             (5)  In  the  case  of  an  unauthorized  additional
30        telecommunications service, require the violating carrier
31        to refund all charges for telecommunications products and
32        services provided without a subscriber's authorization.
33             (6)  Issue a cease and desist order.
34             (7)  For  a  pattern  of  violation of this Section,
                            -5-            LRB9010645JSgcam04
 1        revoke   the   violating   telecommunications   carrier's
 2        certificate of service authority.    The  Commission  may
 3        adopt  rules  prescribing procedures for the verification
 4        of  a  change  in   a   subscriber's   selection   of   a
 5        telecommunications   carrier   for   the   provision   of
 6        telecommunications  service,  whether  local  exchange or
 7        interexchange.  The rules shall be  compatible  with  the
 8        verification   procedures   established  by  the  Federal
 9        Communications Commission under the Communications Act of
10        1996.
11    (Source: P.A. 89-497, eff. 6-27-96.)
12        Section 10.  The Consumer Fraud  and  Deceptive  Business
13    Practices Act is amended by adding Section 2II as follows:
14        (815 ILCS 505/2II new)
15        Sec.   2II.  Prohibition   of   sweepstakes   boxes   and
16    conditions  upon use of prize promotions to solicit authority
17    to  provide telecommunications or related service.
18        (a)  As used in this Section, the  following  terms  have
19    the meaning set forth herein:
20             (1)  "Telecommunications  carrier"  has  the meaning
21        given in Section 13-202 of the Public Utilities Act.
22             (2)  "Telecommunications service"  has  the  meaning
23        given in Section 13-203 of the Public Utilities Act.
24             (3)  "Enhanced telecommunications service" means any
25        service  or merchandise, other than interLATA, intraLATA,
26        or  local  exchange  service  for  which  any  charge  or
27        assessment appears on a billing statement directed  to  a
28        consumer by a telecommunications carrier.
29             (4)  "Sweepstakes  box"  means the box or receptacle
30        into which consumers place entry forms or documents  used
31        to  enter  sweepstakes,  contests,  or  drawings  of  any
32        description, and promotional materials attached thereto.
                            -6-            LRB9010645JSgcam04
 1        (b)  It  is an unfair or deceptive act or practice within
 2    the meaning of Section 2  of  this  Act  for  any  person  to
 3    solicit  authority  to execute a change of telecommunications
 4    carrier   or   to   solicit   authority   to   provide    any
 5    telecommunications  service  or  enhanced  telecommunications
 6    service through the use of any sweepstakes box.
 7        (c)  Forms  or  documents  used or intended to be used by
 8    consumers to enter sweepstakes, contests, or drawings of  any
 9    description  may  not  be  used  by  any  person  as  written
10    authority    to    execute   a   change   of   any   person's
11    telecommunications    carrier    or     to     render     any
12    telecommunications  service  or  enhanced  telecommunications
13    service.
14        (d)  Any  person  who solicits any authority to execute a
15    change of  any  person's  telecommunications  carrier  or  to
16    render    any    telecommunications   service   or   enhanced
17    telecommunications service through or in conjunction with any
18    sweepstakes,   contest,    or    drawing    shall    clearly,
19    conspicuously,   and   fully  disclose  in  all  direct  mail
20    solicitations to consumers the  fact  that  the  sweepstakes,
21    contest,  or  drawing  is  intended  to  solicit authority to
22    execute a change  of  telecommunications  carrier  or  render
23    telecommunications  service  or  enhanced  telecommunications
24    service.   The  disclosure  shall  include, at the least, the
25    following information:
26             (1)  that    no    purchase     or     change     of
27        telecommunications  carrier  or  service  is  required to
28        enter the sweepstakes, contest, or drawing;
29             (2)  the alternative means by  which  a  person  may
30        enter   the  sweepstakes,  contest,  or  drawing  without
31        authorizing a change  of  telecommunications  carrier  or
32        service or making a purchase;
33             (3)  the  name  and  telephone  number of the entity
34        soliciting consumers to make a purchase or to authorize a
                            -7-            LRB9010645JSgcam04
 1        change of telecommunications carrier or  service  through
 2        the  use  of  or  in  conjunction  with  the sweepstakes,
 3        contest, or drawing; and
 4             (4)  a  brief  description  of  the  nature  of  the
 5        telecommunications       services       or       enhanced
 6        telecommunications services for  which  authorization  is
 7        sought  through  the  use  of  or in conjunction with the
 8        sweepstakes, contest, or drawing.
 9        (e)  It is an unfair or deceptive act or practice  within
10    the  meaning of Section 2 of this Act for any person to use a
11    form or document used or intended to be used by consumers  to
12    enter  sweepstakes,  contests, or drawings of any description
13    as written authority to execute  a  change  of  any  person's
14    telecommunications     carrier     or     to    render    any
15    telecommunications  service  or  enhanced  telecommunications
16    service or for any person to solicit authority to  execute  a
17    change  of telecommunications carrier or to solicit authority
18    to  provide  any  telecommunications  service   or   enhanced
19    telecommunications service through or in conjunction with any
20    sweepstakes,   contest,   or  drawing  in  a  manner  not  in
21    compliance with this Section.  Nothing in this Section  shall
22    be  construed to prohibit any person from offering a premium,
23    incentive, or thing of value to another as consideration  for
24    authorizing  a  change  of  telecommunications carrier or the
25    rendition  of  any  telecommunications  service  or  enhanced
26    telecommunications  service,  provided  that  no  element  of
27    chance or skill is associated with the offer of the  premium,
28    incentive, or thing of value or the receipt thereof.
29        Section  99.  Effective date.  This Act takes effect upon
30    becoming law.".

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