AB334: Bill Text

LRB-2241/1

CTS:jld:ch

2005 - 2006 LEGISLATURE

2005 Assembly BILL 334

April 15, 2005 - Introduced by Representatives Berceau, Sheridan, Turner, Lehman, Black, Hines, Pocan, Pope-Roberts, Colon and Travis, cosponsored by Senators Coggs and Erpenbach. Referred to Committee on Energy and Utilities.

AB334,1,3 An Act to amend 100.264 (2) (intro.); and to create 100.53 of the statutes; relating to: regulating mobile telephone service providers and access to mobile telephone numbers, granting rule-making authority, and providing a penalty.

Analysis by the Legislative Reference Bureau

This bill regulates mobile telephone service providers (providers) and requires the Department of Agriculture, Trade and Consumer Protection (DATCP) to enforce the provisions of the bill. The bill defines a mobile telephone service provider as a person who is authorized by the Federal Communications Commission to provide commercial mobile service. Generally, commercial mobile service is wireless telephone service.

This bill requires providers to conspicuously disclose in commercial mobile service contracts all of the following in a single document: 1) the monthly charge, the duration of the contract, and the minutes of usage included; 2) charges for activation, for minutes of usage in excess of the minutes included in the contract, for directory assistance, or for cancellation of the contract; 3) the cost of any services available to the customer that are not included in the monthly charge; 4) conditions, limitations, or additional charges or usage time that relate to the location where the customer initiates or receives a call, to the location of the recipient of the customer's call, or to the time of day of usage; 5) taxes and surcharges collected by the provider; and 6) any other information DATCP determines to be necessary to protect customers. Under the bill, a provider must, upon request by a customer, provide an itemized bill at no charge.

The bill requires DATCP to promulgate rules that require providers to submit and update maps that show each provider's service area and require providers to make the map available on the Internet and supply the map to customers upon entering into a contract for commercial mobile service. Under the bill, DATCP must also promulgate rules that require providers to submit semiannual reports on the quality of their service. The reports must contain certain data, including the number of dropped calls experienced by a provider's customers and the street-level signal strength of a provider's commercial mobile service.

The bill prohibits providers from charging a customer additional fees or higher rates than those specified in the customer's contract for services; charging a late fee, unless payment is more than 60 days past due; and selling a mobile telephone to a customer that prevents the customer from using the mobile telephone with a different provider that offers services that are compatible with that mobile telephone. Under the bill, a provider may not extend or renew a contract unless it has notified the customer of the extension or renewal in a document separate from a monthly bill. The notice must be sent to the customer between 15 and 30 days before the date of extension or renewal. Further, the bill prohibits a provider from making a material modification to a customer's contract unless the provider gives prior written notice to the customer. Under the bill, the customer may terminate the contract within 30 days after receiving the notice from the provider.

This bill specifies that a customer may terminate a contract for mobile telephone service within 30 days after the customer receives the first bill, if the customer notifies the provider during that period. Under the bill, if the customer terminates the contract during that first 30 days for one of these reasons, the provider may not charge the customer a termination fee, and must within 14 days refund amounts that the customer has paid to the provider, except amounts owed by the customer for calls placed or received before terminating the contract. The bill prohibits any person other than a provider from charging a fee to terminate a contract. Under the bill, a termination fee must be prorated according to the remaining term of the contract.

This bill also prohibits a provider or provider's affiliate or agent from disclosing a customer's name or wireless telephone number without the customer's consent. The bill requires that a customer's consent be evidenced by a form that includes certain disclosures regarding the consequences that may follow from the customer's consent. Under the bill, a customer may revoke a consent at any time, and a provider must comply with the customer's revocation within 60 days. The bill prohibits a provider from imposing an additional charge upon a customer because the customer does not consent to disclosure. Certain types of disclosures are exempt from the prohibition on disclosure without consent, including: 1) a disclosure for the sole purpose of collecting a debt owed by the customer to the provider; 2) a disclosure for the sole purpose of responding to a 911 call; and 3) a disclosure made to a provider to effectuate a customer's request to transfer a wireless telephone number.

Under the bill, a customer may bring an action against a provider who violates a provision in the bill, and may recover twice the amount of the customer's pecuniary loss or $500, whichever is greater. A provider who violates a provision of the bill is also subject to a forfeiture of $500 to $5,000 or up to six months imprisonment or both. The bill also gives DATCP enforcement authority.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB334, s. 1 Section 1. 100.264 (2) (intro.) of the statutes is amended to read:

AB334,3,9 100.264 (2) Supplemental forfeiture. (intro.) If a fine or a forfeiture is imposed on a person for a violation under s. 100.16, 100.17, 100.18, 100.182, 100.183, 100.20, 100.205, 100.207, 100.21, 100.30 (3), 100.35, 100.44 or, 100.46, or 100.53, or a rule promulgated under one of those sections, the person shall be subject to a supplemental forfeiture not to exceed $10,000 for that violation if the conduct by the defendant, for which the violation was imposed, was perpetrated against an elderly person or disabled person and if the court finds that any of the following factors is present:

AB334, s. 2 Section 2. 100.53 of the statutes is created to read:

AB334,3,11 100.53 Mobile telephone service. (1) Definitions. In this section:

AB334,3,12 (a) "Commercial mobile service" has the meaning given in 47 USC 332 (d).

AB334,3,14 (b) "Mobile telephone service provider" means a person that is authorized by the federal communications commission to provide commercial mobile service.

AB334,3,16 (2) Requirements; mobile telephone service providers. A mobile telephone service provider shall do all of the following:

AB334,3,18 (a) Conspicuously disclose in every contract for commercial mobile service all of the following in a single document:

AB334,4,3 1. The monthly charge to the customer, the duration of the contract, the minutes of usage allowed without incurring charges in addition to the monthly charge. and the method used for calculating minutes of usage.

AB334,4,5 2. Charges for activation, for minutes of usage in excess of the minutes specified in subd. 1., for directory assistance, or for cancellation of the contract.

AB334,4,7 3. The cost of any services available to the customer that are not included in the monthly charge.

AB334,4,10 4. Conditions, limitations, or additional charges that relate to the location where the customer initiates or receives a call, to the location of the recipient of the customer's call, or to the time of day of usage.

AB334,4,12 5. Taxes and surcharges collected from customers by the mobile telephone service provider.

AB334,4,14 6. Any other information that the department determines to be necessary to protect customers.

AB334,4,16 (b) Upon the request of the customer, provide to the customer an itemized bill at no charge.

AB334,4,18 (3) Prohibited acts; mobile telephone service providers. A mobile telephone service provider may not do any of the following:

AB334,4,20 (a) Charge a customer additional fees or higher rates than specified in the customer's contract for commercial mobile service.

AB334,4,22 (b) Charge a customer late fees unless payment for commercial mobile service provided to the customer is more than 60 days past due.

AB334,5,2 (c) Sell, give, or provide to a customer, in connection with a contract for commercial mobile service, a mobile telephone that the customer is unable to use with a different mobile telephone service provider whose mobile telephone service is compatible with that mobile telephone.

AB334,5,9 (d) Extend or renew a contract for commercial mobile service upon the expiration of the initial term of the contract, unless the mobile telephone service provider has disclosed to the customer the date on which contract will be extended or renewed and the action that the customer may take to prevent extension or renewal. A disclosure under this paragraph may not be contained in a monthly bill or statement and shall be sent to the customer not more than 30 days nor less than 15 days before the date of extension or renewal.

AB334,5,13 (4) Termination fees. No person may charge a customer a fee for terminating a mobile telephone service contract, except a mobile telephone service provider may charge a customer a fee that is prorated according to the remaining term of the contract.

AB334,5,21 (5) Contract modifications. A mobile telephone service provider may not make a material modification to a customer's contract for commercial mobile service unless the mobile telephone service provider has given prior written notice of the modification to the customer. No later than 30 days after the customer's receipt of notice of the modification, the customer may terminate the contract by providing written notice of the termination to the mobile telephone service provider. A mobile telephone service provider may not charge a fee for a termination under this subsection.

AB334,6,4 (6) Rules; mobile telephone service area maps. The department shall promulgate rules requiring mobile telephone service providers to prepare and, on a quarterly basis, update maps that show, to the maximum degree of precision that is practicable, their service areas for commercial mobile service. The rules shall require mobile telephone service providers to provide copies of the map to customers upon entering into contracts with customers, to provide updated copies without charge to customers upon request, and to make the maps available without charge to the public on the Internet.

AB334,6,7 (7) Rules; mobile telephone service quality reports. (a) The department shall promulgate rules that require a mobile telephone service provider to submit semiannual reports to the department describing all of the following information:

AB334,6,9 1. The number of dropped calls experienced by customers of the mobile telephone service provider.

AB334,6,11 2. The number of properly dialed calls that are not processed properly by the mobile telephone service provider.

AB334,6,14 3. Areas within the mobile telephone service provider's service area in which customers experience difficulty in obtaining access to the provider's commercial mobile service.

AB334,6,16 4. Street-level signal strength of commercial mobile service provided by the mobile telephone service provider.

AB334,6,18 5. Any other information determined by the department that relates to the quality of commercial mobile service.

AB334,6,20 (b) The rules under par. (a) may require mobile telephone service providers to report information on the basis of geographic areas specified in the rules.

AB334,7,6 (8) Initial right to terminate contract. A customer who has entered into a contract with a mobile telephone service provider to provide commercial mobile service may terminate the contract within 30 days after the customer first receives a bill from the mobile telephone service provider, if the customer notifies the mobile telephone service provider during that period. A mobile telephone service provider may not charge a customer a fee to terminate a contract under this subsection. Within 14 days after the customer terminates a contract under this subsection, the mobile telephone service provider shall refund to the customer any amounts paid to the mobile telephone service provider by the customer prior to terminating the contract, except any amounts owed by the customer for calls placed or received prior to terminating the contract.