4101-0101_DecMemo_dh.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LYNN ANDERSON
RANDY LOBB
JOE CUSICK
BEV BARKER
GENE FADNESS
TONYA CLARK
WORKING FILE
FROM:
DATE:
MAY 17, 2001 RE: ADOPTION OF THE FCC’S SLAMMING RULES, CASE NO. 31-4101-0101

In Order No. 28644 issued February 12, 2001, the Commission determined that it should adopt and administer the FCC’s new slamming rules. Adoption of the FCC’s slamming rules would allow the Commission to investigate slamming complaints filed by Idaho customers and carriers regarding both intrastate and interstate telecommunication services. To implement these new slamming rules without delay, the Commission decided to issue a temporary rule and also propose permanent rules. Order No. 28644 at 10.
Before the Commission could issue a temporary rule, Idaho Code § 67-5226(1) requires that the Governor find that the promulgation of the temporary rule: 1) confers a benefit on Idaho citizens; or 2) protects the public health, safety, or welfare. In addition, when the Commission issued its February Order, it was prohibited from initiating a proposed rulemaking while the Legislature was in session. The 2001 Legislative session is concluded and the Governor’s Office approved the issuance of the temporary rule on May 16, 2001. Consequently, the Commission may now issue its Notice of Temporary and Proposed Rulemaking.
The next Administrative Bulletin is scheduled to be published on July 4, 2001. Staff recommends that the temporary rule adopting the FCC’s slamming rules become effective on July 16, 2001.
THE FCC SLAMMING RULES
As the Commission may remember, the FCC’s slamming rules provide different remedies for customers depending on whether a customer has paid the slamming carrier. If a customer has been slammed by an unauthorized carrier, the customer is absolved of all liability for calls made within the first 30 days of being slammed. For example, if a customer’s long-distance service is slammed, the customer does not have to pay the unauthorized carrier for long-distance services for up to 30 days after being slammed. First Order, FCC 00-135 at ¶¶ 3, 6-12; 65 Fed. Reg. at 47, 679-80. Charges for calls made beyond the 30-day limit must be paid by customers to the authorized carrier at the authorized carrier’s rates, even though the service was provided by the slamming carrier.
If a customer has paid his or her telephone bill and subsequently discover having been slammed, the slamming company must pay the authorized carrier 150% of the charges it received from the customer. Out of this amount, the authorized carrier will then be allowed to retain 100% of the collected charges. The remaining 50% of the charges will be reimbursed to the customer. First Order, FCC 00-135 at ¶¶ 16-21; 65 Fed. Reg. at 47,680-81.
When an alleged unauthorized carrier is informed by a customer of an alleged slam, the carrier must remove all charges assessed for the first 30 days of service from the customer’s bill. The carrier shall notify the customer that he or she must file a complaint with the Commission within 30 days if the customer is not satisfied with the resolution of the dispute with
the carrier. 65 Fed. Reg. 47,683 at ¶¶ 28-30.
So far 33 states have adopted the slamming rules.
THE TEMPORARY AND PROPOSED RULE
Attached for your review are the draft temporary and proposed rules that would adopt the FCC’s slamming rules. The Staff recommends that the slamming rules be placed in the Commission’s Telephone Customer Relations Rules, IDAPA 31.41.01. Below is a brief description for each rule.
1. Rule 12. This is a housekeeping rule required by the Office of Administrative Rules.
2. Rule 606. Staff recommends deletion of Rule 606. As the Commission may remember, AT&T also suggested that this rule be removed because its subject matter is already addressed in the FCC slamming rules.
3. Rule 701. Rules 701 through 703 constitute the adopted state slamming rules. 701 is merely the introductory rule.
4. Rule 702. In this rule, the Commission adopts the federal slamming regulations found at 47 C.F.R. §§ 64.1100 through 64.1120, 64.1140 through 64.1170 and 64.1190.
5. Rule 703. Rule 703 outlines those PUC procedures that differ from the federal rules. The federal rules acknowledge and contemplate that there may be different procedures from state to state. These drafted state procedures conform to the Commission’s decisions encompassed in its prior Order No. 28644. In particular, subsection 01 allows slamming complaints to be filed in a number of different formats. Subsection 01 also sets out the information that must be contained in the slamming complaint.
Subsection 02 notes that the Commission’s Consumer Assistance Staff shall be responsible for resolving slamming complaints under the Commission’s informal complaint procedures. Once the Commission Staff has completed its review of the slamming complaint, it will issue a written determination. See Subsection 03.
Finally, Subsection 04 provides that an aggrieved customer or carrier may “appeal” the Staff’s determination by filing a formal complaint with the Commission. This subsection also requires that such formal complaints be filed within 21 calendar days of the Staff’s written determination. An aggrieved party that fails to file a formal complaint shall be deemed to have waived or abandoned its slamming complaint.
COMMISSION DECISION
Does the Commission wish to issue this temporary and proposed rule?
Does the Commission have any changes or modifications to the temporary or proposed rules?
Does the Commission wish to make the temporary rule effective July 1 6, 2001?

vld/M:4101-0101_slamming_dh

SLAMMING RULES 3