HBA-NMO H.B. 548 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 548 By: Flores Business & Industry 3/19/99 Introduced BACKGROUND AND PURPOSE According to the Public Utility Commission (PUC), "cramming," the practice of billing telephone customers for services they did not authorize, is the second-highest complaint PUC receives after "slamming," the unauthorized change of a customer's long distance provider. In fiscal year 1998, there were more than 5,200 customer complaints concerning "cramming," resulting in the refund of more than $34,000. H.B. 548 prohibits a person, including a telecommunications utility, from including or causing the inclusion of a charge on a bill for a telecommunications good or service unless the customer receiving the bill has authorized the receipt of the good or service and the subsequent charge. This bill also provides that a customer is not liable for payment of such charges. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 55, Utilities Code, by adding Section 55.012, as follows: Sec. 55.012. CHARGE FOR UNAUTHORIZED GOOD OR SERVICE. Prohibits a person, including a telecommunications utility, from including or causing the inclusion of a charge on a bill for a telecommunications good or service unless the customer receiving the bill has authorized the receipt of the good or service and inclusion of the charge on the bill. Provides that a customer receiving a bill for telecommunications services is not liable for payment of any charge for a good or service if the customer did not authorize the receipt of the good or service and its inclusion as a charge on the bill, or the customer did not receive the good or service. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.