(a) Purpose and Application.
  (1) Purpose. The provisions of this section are intended to ensure that all customers in this state are protected from an unauthorized change in a customer's local or long-distance telecommunications utility.
  (2) Application. This section, including any references in this section to requirements in 47 Code of Federal Regulations (C.F.R.) Subpart K (entitled "Changing Long Distance Service"), applies to a "telecommunications utility," as that term is defined in §26.5 of this title (relating to Definitions). This section does not apply to an unauthorized charge unrelated to a change in preferred telecommunications utility. Requirements related to proper authorization for a billing charge by a telecommunication utility are addressed by §26.32 of this title (relating to Protection Against Unauthorized Billing Charges ("Cramming")).
(b) Definitions. The following words and terms when used in this section have the following meanings unless the context indicates otherwise:
  (1) Authorized telecommunications utility--Any telecommunications utility that submits a change request, after obtaining customer authorization with verification, in accordance with the requirements of this section.
  (2) Customer--Any person, including the person's spouse, in whose name telephone service is billed, including individuals, governmental units at all levels of government, corporate entities, and any other entity with legal capacity to request a change in local service or telecommunications utilities.
  (3) Executing telecommunications utility--Any telecommunications utility that effects a request that a customer's preferred telecommunications utility be changed. A telecommunications utility may be treated as an executing telecommunications utility, however, if it is responsible for any unreasonable delays in the execution of telecommunications utility changes or for the execution of unauthorized telecommunications utility changes, including fraudulent authorizations.
  (4) Submitting telecommunications utility--Any telecommunications utility that requests on behalf of a customer that the customer's preferred telecommunications utility be changed.
  (5) Unauthorized telecommunications utility--Any telecommunications utility that submits a change request that is not in accordance with the requirements of this section.
(c) Changes in preferred telecommunications utility.
  (1) Changes by a telecommunications utility. A telecommunications utility is prohibited from submitting or executing a change on the behalf of a customer in the customer's selection of a provider of telecommunications service except in accordance with this section. Before a change order is processed by the executing telecommunications utility, the submitting telecommunications utility must obtain authorization from the customer that such change is desired for each affected telephone line and ensure that verification of the authorization is obtained in accordance with 47 C.F.R. Subpart K. In the case of a change by written solicitation, the submitting telecommunications utility must obtain verification as specified in 47 C.F.R. Subpart K, and subsection (d) of this section. A change order must be verified by one of the following methods:
    (A) Written or electronically signed authorization from the customer in a form that meets the requirements of subsection (d) of this section. A customer must be provided the option of using another authorization method as an alternative to an electronically signed authorization.
    (B) Electronic authorization placed from the telephone number which is the subject of the change order, except in exchanges where automatic recording of the automatic number identification (ANI) from the local switching system is not technically possible. To verify the electronic authorization, the submitting telecommunications utility must:
      (i) ensure that the electronic authorization confirms the information described in subsection (d)(3) of this section; and
      (ii) establish one or more toll-free telephone numbers exclusively for the purpose of verifying the change so that a customer calling toll-free number will reach a voice response unit or similar mechanism that records the required information regarding the change and automatically records the ANI from the local switching system.
    (C) Oral authorization by the customer for the change that meets the following requirements:
      (i) The customer's authorization must be given to an appropriately qualified and independent third party that obtains appropriate verification data including, at a minimum, the customer's month and year of birth, the customer's month and day of birth, mother's maiden name, or the last four digits of the customer's social security number. A corporation or partnership may provide its federal Employer Identification Number, or last six digits thereof, and the name and job title of the authorized representative for the corporation or partnership to satisfy this subparagraph.
      (ii) The entirety of the customer's authorization and the customer's verification of authorization must be electronically recorded on audio tape, a wave sound file, or other recording device that is compatible with the commission's equipment.
      (iii) The recordings must be dated and include clear and conspicuous confirmation that the customer authorized the change in telephone service provider.
      (iv) The third party verification must elicit, at a minimum, the identity of the customer, confirmation that the person on the call is authorized to make the change in service, the name of each telecommunications utility affected by the change but not including the name of the displaced carrier, each telephone number to be switched, and the type of service involved. The third party verifier must not market or advertise the telecommunications utility's services by providing additional information, including information regarding preferred carrier freeze procedures.
      (v) The third party verification must be conducted in the same language used in the sales transaction.
      (vi) Automated systems must provide customers the option of speaking with a live person at any time during the call.
      (vii) A telecommunications utility or its sales representative initiating a three-way call or a call through an automated verification system must drop off the call once a three-way connection with the third party verifier has been established unless:
        (I) the telecommunications utility files sworn written certification with the commission that the sales representative is unable to drop off the sales call after initiating a third party verification. Such certification should provide sufficient information as to each reason for the inability of the sales agent to drop off the line after the third party verification is initiated. A carrier is exempt from this requirement for a period of two years from the date the carrier's certification was filed with the commission;
        (II) a telecommunications utility that seeks to extend the exemption provided under subclause (I) of this clause must, before the end of the two-year period, and every two years thereafter, recertify to the commission the utility's continued inability to comply with this clause.
      (viii) The third party verification must immediately terminate if the sales agent of a telecommunications utility that has filed a sworn written certification in accordance with clause (vii) of this subparagraph responds to a customer inquiry or speaks after third party verification has begun.
      (ix) The independent third party must:
        (I) not be owned, managed, directed or controlled by the telecommunications utility or the telecommunications utility's marketing agent;
        (II) not have financial incentive to confirm change orders; and
        (III) operate in a location physically separate from the telecommunications utility and the telecommunications utility's marketing agent.
  (2) Changes by customer request directly to the local exchange company. If a customer requests a change in the customer's current preferred telecommunications utility by contacting the local exchange company directly, and that local exchange company is not the chosen carrier or affiliate of the chosen carrier, the verification requirements in paragraph (1) of this subsection do not apply. The customer's current local exchange company must maintain a record of the customer's request for 24 months.
(d) Letters of Agency (LOA). A written or electronically signed authorization from a customer for a change of telecommunications utility must use a letter of agency (LOA) as specified in this subsection:
Cont'd...