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.