SB1286

SECTION 1. The legislature finds that consumers in Hawaii are offered opportunities to purchase wireless telephone service from a variety of service providers and that the conduct of wireless telephone service providers in making and implementing these offers varies widely. In many instances, consumers are required to evaluate service offerings without receiving a full and fair disclosure of the terms of the service offering or an adequate means to evaluate the offering in practice. This lack of disclosure extends, but is not necessarily limited, to the essential financial terms of the offer, the specific characteristics and capabilities of the service being offered, the geographic area covered by the service being offered, and the capability of the service to meet the subscriber's needs in emergency circumstances. Furthermore, after the consumer has established service, the bills from the wireless telephone service provider for service may be unclear, misleading, or untimely, and the service provider may change the material terms for that service unilaterally and without adequate notice to and approval by the consumer. Finally, procedures currently available to consumers to resolve complaints concerning their wireless telephone service are often untimely, inefficient, or ineffective for the resolution of these complaints, and wireless telephone service providers are provided with an inadequate incentive to minimize and effectively address these complaints.

The purpose of this Act is to provide the public utilities commission with the authority to adopt rules governing wireless telephone service provider conduct and for the terms and conditions of wireless telephone service.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§269- Commercial mobile radio service; consumer protection. (a) Each commercial mobile radio service provider shall provide timely written disclosure to each commercial mobile radio service plan subscriber or potential wireless subscriber of the following information concerning any commercial mobile radio service or proposed commercial mobile radio service that is offered for sale:

(1) The calling area for the commercial mobile radio service contract, including but not limited to detailed maps displaying the wireless provider's coverage within the State and within each county of the State in which the wireless provider provides commercial mobile radio service;

(2) The monthly access fee or base charge;

(3) The number of airtime minutes included in the commercial mobile radio service contract;

(4) Any night and weekend minutes included in the commercial mobile radio service contract or other differing charges for differing time periods and the time periods during which night and weekend minutes or other charges apply;

(5) The charges for excess or additional minutes that are not included in the price of the commercial mobile radio service contract;

(6) Whether, and the extent to which, per-minute domestic or international long distance charges are included in other rates and, to the extent not included, the applicable per-minute long distance rates;

(7) Per-minute roaming or off-network charges;

(8) The amount of any additional taxes, fees, or surcharges that will be collected or retained by the wireless commercial mobile radio service provider;

(9) The duration of any fixed-term commercial mobile radio service contract;

(10) The amount of any early termination fee and the conditions under which any early termination fee would apply, including the length of any trial period during which no early termination fee would apply;

(11) A statement notifying the subscriber that the commercial mobile radio service plan includes basic wireless 911 service, including whether the wireless provider provides wireless enhanced 911 service in the county in which the wireless subscriber or potential wireless subscriber resides;

(12) Information about enhanced wireless 911 service, including whether the wireless provider provides wireless enhanced 911 service in the county in which the wireless subscriber or potential wireless subscriber resides;

(13) Website information to permit the wireless subscriber to access on-line information about the commercial mobile radio service; and

(14) Based upon information supplied by the wireless subscriber regarding anticipated usage patterns, and at the wireless subscriber's request, a good faith estimate of the monthly fixed and usage charges and additional taxes, fees, or surcharges and of the anticipated total monthly bill for the wireless subscriber under the commercial mobile radio service contract.

(b) Each wireless provider shall file with the public utilities commission a report of the rates, charges, and rate plans offered by the wireless provider to individual wireless subscribers; provided that no such informational filing requirement shall regulate, directly or indirectly, the entry of or the rates charged by any wireless provider.

(1) Be clearly organized and clearly describe in plain language the products and services for which charges are imposed;

(2) Contain only charges for products and services authorized by the wireless subscriber;

(3) Itemize roaming charges on the wireless subscriber's bill within sixty days of the placing of calls to which the changes apply and identify the date and originating location of the calls;

(4) Set forth in a separate section of the bill all taxes and fees that are required by federal or state statute, rule, or regulation to be collected from the wireless subscriber; and

(5) Include a statement that charges associated with the use of wireless telephone equipment or service shall not be the liability of the wireless subscriber if the use was unauthorized by the wireless subscriber due to loss or theft; provided that the wireless subscriber promptly reports the loss or theft to the wireless provider.

(d) Each commercial mobile radio service shall provide contract terms to any subscriber to include a trial period that shall end no earlier than fifteen days after the first billing statement is rendered to the wireless subscriber for monthly service following activation of the wireless subscriber's commercial mobile radio service.

During this trial period, a wireless subscriber, after payment for services used, may terminate the commercial mobile radio service without incurring any termination fees or charges or any other penalty of any kind and may receive, upon the return of any telephone handset bought or leased in connection with the commercial mobile radio service, a pro rata refund of any amounts paid for the telephone handset.

(e) Wireless commercial mobile radio service providers shall notify wireless subscribers at least thirty days in advance of any change in rates, charges, terms, or conditions of service for its wireless subscribers.

(f) Wireless providers shall notify wireless subscribers if the wireless provider intends to terminate a wireless subscriber's commercial mobile radio service, and the notice shall include:

(1) The amount that must be paid to maintain the commercial mobile radio service contract;

(2) The procedures available to make payments to avoid the termination of the commercial mobile radio service; and

(3) The public utilities commission's complaint procedures.

(g) Each wireless provider shall:

(1) Maintain procedures for prompt investigation of any complaint on a bill for commercial mobile radio service or on any other term of a contract for commercial mobile radio service, and for prompt reporting to the complainant of the result of the investigation. If a report is made orally, the wireless provider shall offer the complainant, upon a written request, the opportunity to receive the report in writing;

(2) Inform any complainant whose complaint is resolved in favor of the wireless provider, in whole or in part, of the availability of the public utilities commission's complaint handling procedures;

(3) Refrain from terminating service for nonpayment while a complaint is pending before a wireless provider or the public utilities commission and for fifteen days thereafter, or for a period as the public utilities commission for good cause shall establish; provided, however, that as a condition of continued service while any dispute is pending, a wireless subscriber shall pay the undisputed portions of any bill for service, including bills for current charges or for greater or lesser amounts as the public utilities commission determines reasonably reflect the undisputed costs of service to the wireless subscriber or are necessary to fairly compensate the wireless provider for services rendered while the complaint is pending and for fifteen days thereafter; and

(4) Refrain from treating the disputed portion of any bill as late while any complaint is pending before the wireless provider or the public utilities commission.

(i) The public utilities commission may assess an administrative penalty not to exceed $1,000 against any wireless provider that neglects or knowingly fails to comply with any requirement of this section or any order of the public utilities commission implementing or enforcing this section or any rule adopted under this section. All moneys recovered from administrative penalties shall be credited to the public utilities commission special fund established under section 269‑33 to offset expenses incurred in the complaint investigation and adjudication process established under this section.

(j) The public utilities commission shall maintain records concerning the number and nature of complaints received concerning commercial mobile radio service. These records shall include, but are not limited to, data identifying the wireless provider associated with each complaint, the provisions of this section or the rules adopted under this section on which each complaint is based, the actions taken by the public utilities commission to address each complaint, the actions taken to resolve each complaint, a timeline of the procedural events of the complaint beginning from the time when the public utilities commission is first notified of the complaint and ending when the public utilities commission made its final adjudication. The public utilities commission shall compile a report and annually transmit the report to the governor and the legislature, not later than twenty days prior to the convening of each regular session of the legislature, and shall make the report available to the public in writing at the public utilities commission's cost and on the Internet at no charge.

(k) Within one year of the effective date of this section, the public utilities commission shall adopt consumer satisfaction metrics to assist consumers in the evaluation of wireless providers in the State. These metrics shall be based on the complaint data available pursuant to this section and other data or factors related to a wireless provider's compliance with this section as the public utilities commission shall prescribe.

(l) As used in this section:

"Commercial mobile radio service" means commercial mobile radio service under sections 3(27) and 332(d) of the Federal Telecommunications Act of 1996, 47 U.S.C. 151 et seq., and the Omnibus Budget Reconciliation Act of 1993, P.L. 103-66, August 10, 1993, 107 Stat 312.

"Wireless subscriber" is any individual that has contracted with a wireless provider for the provision of commercial mobile radio service.

"Wireless provider" means a person or entity that is authorized by the Federal Communications Commission to provide facilities-based commercial mobile radio service within the State."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1286
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII