House Substitute for SENATE BILL No. 212

      An Act concerning telecommunications services; relating to enhanced universal service and
      internet access; amending K.S.A. 1997 Supp. 66-2005, 66-2008 and 66-2011 and re-
      pealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 1997 Supp. 66-2005 is hereby amended to read as
follows: 66-2005. (a) Each local exchange carrier shall file a network in-
frastructure plan with the commission on or after January 1, 1997, and
prior to January 1, 1998. Each plan, as a part of universal service protec-
tion, shall include schedules, which shall be approved by the commission,
for deployment of universal service capabilities by July 1, 1998, and the
deployment of enhanced universal service capabilities by July 1, 2001
2003, as defined pursuant to subsections (p) and (q) of K.S.A. 1997 Supp.
66-1,187 and amendments thereto, respectively. With respect to enhanced
universal service, such schedules shall provide for deployment of ISDN,
or its technological equivalent, or broadband facilities, only upon a firm
customer order for such service, or for deployment of other enhanced
universal services by a local exchange carrier. After receipt of such an
order and upon completion of a deployment plan designed to meet the
firm order or otherwise provide for the deployment of enhanced universal
service, a local exchange carrier shall notify the commission. The com-
mission shall approve the plan unless the commission determines that the
proposed deployment plan is unnecessary, inappropriate, or not cost ef-
fective, or would create an unreasonable or excessive demand on the
KUSF. The commission shall take action within 90 days. If the commission
fails to take action within 90 days, the deployment plan shall be deemed
approved. This approval process shall continue until July 1, 2000. Each
plan shall demonstrate the capability of the local exchange carrier to com-
ply on an ongoing basis with quality of service standards to be adopted
by the commission no later than January 1, 1997.

    (b) In order to protect universal service, facilitate the transition to
competitive markets and stimulate the construction of an advanced
telecommunications infrastructure, each local exchange carrier shall file
a regulatory reform plan at the same time as it files the network infra-
structure plan required in subsection (a). As part of its regulatory reform
plan, a local exchange carrier may elect traditional rate of return regula-
tion or price cap regulation. Carriers that elect price cap regulation shall
be exempt from rate base, rate of return and earnings regulation. How-
ever, the commission may resume such regulation upon finding, after a
hearing, that a carrier that is subject to price cap regulation has: violated
minimum quality of service standards pursuant to subsection (l) of K.S.A.
1997 Supp. 66-2002 and amendments thereto; been given reasonable no-
tice and an opportunity to correct the violation; and failed to do so. Reg-
ulatory reform plans also shall include:

    (1) A commitment to provide existing and newly ordered point-to-
point broadband services to: Any hospital as defined in K.S.A. 65-425,
and amendments thereto; any school accredited pursuant to K.S.A. 72-
1101 et seq., and amendments thereto; any public library; or other state
and local government facilities at discounted prices close to, but not be-
low, long-run incremental cost; and

    (2) a commitment to provide basic rate ISDN service, or the tech-
nological equivalent, at prices which are uniform throughout the carrier's
service area and which are designed to stimulate the development of an
extensive residential market. Local exchange carriers shall not be required
to allow retail customers purchasing the foregoing discounted services to
resell those services to other categories of customers. Telecommunica-
tions carriers may purchase basic rate ISDN services, or the technological
equivalent, for resale in accordance with K.S.A. 1997 Supp. 66-2003 and
amendments thereto. The commission may reduce prices charged for
services outlined in provisions (1) and (2) of this subsection, if the com-
mitments of the local exchange carrier set forth in those provisions are
not being kept.

    (c) Subject to the commission's approval, all local exchange carriers
shall reduce intrastate access charges to interstate levels as provided
herein. Rates for intrastate switched access, and the imputed access por-
tion of toll, shall be reduced over a three-year period with the objective
of equalizing interstate and intrastate rates in a revenue neutral, specific
and predictable manner. The commission is authorized to rebalance local
residential and business service rates to offset the intrastate access and
toll charge reductions. Any remaining portion of the reduction in access
and toll charges not recovered through local residential and business serv-
ice rates shall be paid out from the KUSF pursuant to K.S.A. 1997 Supp.
66-2008 and amendments thereto. Rural telephone companies shall re-
duce their intrastate switched access rates to interstate levels on March
1, 1997, and every two years thereafter, as long as amounts equal to such
reductions are recovered from the KUSF.

    (d) Beginning March 1, 1997, each rural telephone company shall
have the authority to increase annually its monthly basic local residential
and business service rates by an amount not to exceed $1 in each 12
month period until such monthly rates reach an amount equal to the
statewide rural telephone company average rates for such services. The
statewide rural telephone company average rates shall be the arithmetic
mean of the lowest flat rate as of March 1, 1996, for local residential
service and for local business service offered by each rural telephone
company within the state. In the case of a rural telephone company which
increases its local residential service rate or its local business service rate,
or both, to reach the statewide rural telephone company average rate for
such services, the amount paid to the company from the KUSF shall be
reduced by an amount equal to the additional revenue received by such
company through such rate increase. In the case of a rural telephone
company which elects to maintain a local residential service rate or a local
business service rate, or both, below the statewide rural telephone com-
pany average, the amount paid to the company from the KUSF shall be
reduced by an amount equal to the difference between the revenue the
company could receive if it elected to increase such rate to the average
rate and the revenue received by the company.

    (e) For regulatory reform plans in which price cap regulation has
been elected, price cap plans shall have three baskets: Residential and
single-line business, including touch-tone; switched access services; and
miscellaneous services. The commission shall establish price caps at the
prices existing when the regulatory plan is filed subject to rate rebalancing
as provided in subsection (c) for residential services, including touch-tone
services, and for single-line business services, including touch-tone serv-
ices, within the residential and single-line business service basket. The
commission shall establish a formula for adjustments to the price caps.
The commission also shall establish price caps at the prices existing when
the regulatory plan is filed for the miscellaneous services basket. The
commission shall approve any adjustments to the price caps for the mis-
cellaneous service basket, as provided in subsection (f).

    (f) On or before January 1, 1997, the commission shall issue a final
order in a proceeding to determine the price cap adjustment formula that
shall apply to the price caps for the local residential and single-line busi-
ness and the miscellaneous services baskets and for sub-categories, if any,
within those baskets. In determining this formula, the commission shall
balance the public policy goals of encouraging efficiency and promoting
investment in a quality, advanced telecommunications network in the
state. The commission also shall establish any informational filing require-
ments necessary for the review of any price cap tariff filings, including
price increases or decreases within the caps, to verify such caps would
not be exceeded by any proposed price change. The adjustment formula
shall apply to the price caps for the local residential and single-line busi-
ness basket after December 31, 1999, and to the miscellaneous services
basket after December 31, 1997. The price cap formula, but not actual
prices, shall be reviewed every five years.

    (g) The price caps for the residential and single-line business service
basket shall be capped at their initial level until January 1, 2000, except
for any increases authorized as a part of the revenue neutral rate rebal-
ancing under subsection (c). The price caps for this basket and for the
categories in this basket, if any, shall be adjusted annually after December
31, 1999, based on the formula determined by the commission under
subsection (f).

    (h) The price cap for the switched access service basket shall be set
based upon the local exchange carrier's intrastate access tariffs as of Jan-
uary 1, 1997, except for any revenue neutral rate rebalancing authorized
in accordance with subsection (c). Thereafter, the cap for this basket shall
not change except in connection with any subsequent revenue neutral
rebalancing authorized by the commission under subsection (c).

    (i) The price caps for the miscellaneous services basket shall be ad-
justed annually after December 31, 1997, based on the adjustment for-
mula determined by the commission under subsection (f).

    (j) A price cap is a maximum price for all services taken as a whole
in a given basket. Prices for individual services may be changed within
the service categories, if any, established by the commission within a
basket. An entire service category, if any, within the residential and single-
line business basket or miscellaneous services basket may be priced below
the cap for such category. Unless otherwise approved by the commission,
no service shall be priced below the price floor which will be long-run
incremental cost and imputed access charges. Access charges equal to
those paid by telecommunications carriers to local exchange carriers shall
be imputed as part of the price floor for toll services offered by local
exchange carriers on a toll service basis.

    (k) A local exchange carrier may offer promotions within an exchange
or group of exchanges. All promotions shall be approved by the commis-
sion and shall apply to all customers in a nondiscriminatory manner within
the exchange or group of exchanges.

    (l) Unless the commission authorizes price deregulation at an earlier
date, intrastate toll services within the miscellaneous services basket shall
continue to be regulated until the affected local exchange carrier begins
to offer 1 + intraLATA dialing parity throughout its service territory, at
which time intrastate toll will be price deregulated, except that prices
cannot be set below the price floor.

    (m) On or before July 1, 1997, the commission shall establish guide-
lines for reducing regulation prior to price deregulation of price cap reg-
ulated services in the miscellaneous services basket, the switched access
services basket, and the residential and single-line business basket.

    (n) Subsequent to the adoption of guidelines pursuant to subsection
(m), the commission shall initiate a petitioning procedure under which
the local exchange carrier may request rate range pricing. The commis-
sion shall act upon a petition within 21 days, subject to a 30-day suspen-
sion. The prices within a rate range shall be tariffed and shall apply to all
customers in a nondiscriminatory manner in an exchange or group of
exchanges.

    (o) A local exchange carrier may petition the commission to designate
an individual service or service category, if any, within the miscellaneous
services basket, the switched access services basket or the residential and
single-line business basket for reduced regulation. The commission shall
act upon a petition for reduced regulation within 21 days, subject to a
suspension period of an additional 30 days, and upon a good cause show-
ing of the commission in the suspension order, or within such shorter
time as the commission shall approve. The commission shall issue a final
order within the 21-day period or within a 51-day period if a suspension
has been issued. Following an order granting reduced regulation of an
individual service or service category, the commission shall act on any
request for price reductions within 7 seven days subject to a 30-day sus-
pension. The commission shall act on other requests for price cap ad-
justments, adjustments within price cap plans and on new service offer-
ings within 21 days subject to a 30-day suspension. Such a change will be
presumed lawful unless it is determined the prices are below the price
floor or that the price cap for a category, if any, within the entire basket
has been exceeded.

    (p) The commission may price deregulate within an exchange area,
or at its discretion on a statewide basis, any individual service or service
category upon a finding by the commission that there is a telecommuni-
cations carrier or an alternative provider providing a comparable product
or service, considering both function and price, in that exchange area.
The commission shall act upon a petition for price deregulation within
21 days, subject to a suspension period of an additional 30 days, and upon
a good cause showing of the commission in the suspension order, or
within such shorter time as the commission shall approve; provided that
no such petition shall be filed prior to July 1997, unless the commission
otherwise authorizes. The commission shall issue a final order within the
21-day period or within a 51-day period if a suspension has been issued.

    (q) Upon complaint or request, the commission may investigate a
price deregulated service. The commission shall resume price regulation
of a service provided in any exchange area by placing it in the appropriate
service basket, as approved by the commission, upon a determination by
the commission that there is no longer a telecommunications carrier or
alternative provider providing a comparable product or service, consid-
ering both function and price, in that exchange area.

    (r) The commission shall require that for all local exchange carriers
all such price deregulated basic intraLATA toll services be geographically
averaged statewide and not be priced below the price floor established
in subsection (j).

    (s) Cost studies to determine price floors shall be performed as re-
quired by the commission in response to complaints. In addition, not-
withstanding the exemption in subsection (b), the commission may re-
quest information necessary to execute any of its obligations under the
act.

    (t) A local exchange carrier may petition for individual customer pric-
ing. The commission shall respond expeditiously to the petition within a
period of not more than 30 days subject to a 30-day suspension.

    (u) No audit, earnings review or rate case shall be performed with
reference to the initial prices filed as required herein.

    (v) Telecommunications carriers shall not be subject to price regu-
lation, except that: Access charge reductions shall be passed through to
consumers by reductions in basic intrastate toll prices; and basic toll prices
shall remain geographically averaged statewide. As required under K.S.A.
66-131, and amendments thereto, and except as provided for in subsec-
tion (c) of K.S.A. 1997 Supp. 66-2004 and amendments thereto, telecom-
munications carriers that were not authorized to provide switched local
exchange telecommunications services in this state as of July 1, 1996,
including cable television operators who have not previously offered tel-
ecommunications services, must receive a certificate of convenience
based upon a demonstration of technical, managerial and financial via-
bility and the ability to meet quality of service standards established by
the commission. Any telecommunications carrier or other entity seeking
such certificate shall file a statement, which shall be subject to the com-
mission's approval, specifying with particularity the areas in which it will
offer service, the manner in which it will provide the service in such areas
and whether it will serve both business customers and residential custom-
ers in such areas. Any structurally separate affiliate of a local exchange
carrier that provides telecommunications services shall be subject to the
same regulatory obligations and oversight as a telecommunications car-
rier, as long as the local exchange carrier's affiliate obtains access to any
services or facilities from its affiliated local exchange carrier on the same
terms and conditions as the local exchange carrier makes those services
and facilities available to other telecommunications carriers. The com-
mission shall oversee telecommunications carriers to prevent fraud and
other practices harmful to consumers and to ensure compliance with
quality of service standards adopted for all local exchange carriers and
telecommunications carriers in the state.

    Sec. 2. K.S.A. 1997 Supp. 66-2008 is hereby amended to read as
follows: 66-2008. On or before January 1, 1997, the commission shall
establish the Kansas universal service fund, hereinafter referred to as the
KUSF.

    (a) The initial amount of the KUSF shall be comprised of local
exchange carrier revenues lost as a result of rate rebalancing pursuant to
subsection (c) of K.S.A. 1997 Supp. 66-2005 and amendments thereto and
subsection (a) of K.S.A. 1997 Supp. 66-2007 and amendments thereto.
Such revenues shall be recovered on a revenue neutral basis. The revenue
neutral calculation shall be based on the volumes and revenues for the
12 months prior to September 30, 1996, adjusted for any rate changes.

    (b) The commission shall require every telecommunications carrier,
telecommunications public utility and wireless telecommunications serv-
ice provider that provides intrastate telecommunications services to con-
tribute to the KUSF on an equitable and nondiscriminatory basis. Any
telecommunications carrier, telecommunications public utility or wireless
telecommunications service provider which contributes to the KUSF may
collect from customers an amount equal to such carrier's, utility's or pro-
vider's contribution , except that before January 1, 2000, no such carrier,
provider or utility shall collect from customers an amount in excess of
8.89% of its intrastate retail revenues as provided in commission docket
no. 190-492-U but such carrier, provider or utility may collect a lesser
amount from its customer.

    Prior to January 1, 2000, with respect to wireless telecommunications
service providers, an equitable and nondiscriminatory rate shall be an
amount equal to the rate of contributions of wireline telecommunications
service providers, as determined by the commission, reduced by the per-
centage minutes of usage initiated and terminated entirely over the wire-
less network as determined by the commission. The commission shall es-
tablish such rate for wireless telecommunications service providers no
later than December 31, 1998. Any contributions in excess of distributions
collected in any reporting year shall be applied to reduce the estimated
contribution that would otherwise be necessary for the following year.

    (c) Pursuant to the federal act, distributions from the KUSF shall be
made in a competitively neutral manner to qualified telecommunications
public utilities, telecommunications carriers and wireless telecommuni-
cations providers, that are deemed eligible both under subsection (e)(1)
of section 214 of the federal act and by the commission.

    (d) The commission shall periodically review the KUSF to determine
if the costs of qualified telecommunications public utilities, telecommu-
nications carriers and wireless telecommunications service providers to
provide local service justify modification of the KUSF. If the commission
determines that any changes are needed, the commission shall modify
the KUSF accordingly.

    (e) Any qualified telecommunications carrier, telecommunications
public utility or wireless telecommunications service provider may re-
quest supplemental funding from the KUSF based upon a percentage
increase in access lines over the 12-month period prior to its the request.
The supplemental funding shall be incurred for the purpose of providing
services to and within the service area of the qualified telecommunica-
tions carrier, telecommunications public utility or wireless telecommu-
nications service provider. Supplemental funding from the KUSF shall
be used for infrastructure expenditures necessary to serve additional cus-
tomers within the service area of such qualifying utility, provider or car-
rier. All affected parties shall be allowed to review and verify a request
of such a qualified utility, carrier or provider for supplemental funding
from the KUSF, and to intervene in any commission proceeding regard-
ing such request. The commission shall issue an order on the request
within 120 days of filing. Additional funding also may be requested for:
The recovery of shortfalls due to additional rebalancing of rates to con-
tinue maintenance of parity with interstate access rates; shortfalls due to
changes to access revenue requirements resulting from changes in federal
rules; additional investment required to provide universal service and en-
hanced universal service, deployed subject to subsection (a) of K.S.A.
66-2005, and amendments thereto; and for infrastructure expenditures in
response to facility or service requirements established by any legislative,
regulatory or judicial authority. Such requests shall be subject to simpli-
fied filing procedures and the expedited review procedures, as outlined
in the stipulation attached to the order of November 19, 1990 in docket
no. 127,140-U (Phase IV).

    (f) Additional supplemental funding from the KUSF, other than as
provided in subsection (e) of this section, may be authorized at the dis-
cretion of the commission. However, the commission may require ap-
proval of such funding to be based upon a general rate case filing. With
respect to any request for additional supplemental funding from the
KUSF, the commission shall act expeditiously, but shall not be subject to
the 120 day deadline set forth in subsection (e).

    Sec. 3. K.S.A. 1997 Supp. 66-2011 is hereby amended to read as
follows: 66-2011. (a) As used in this section, ``the internet'' means the
international network of interconnected government, educational, and
commercial computer networks. An ``internet service provider'' means an
entity that provides end user access to the internet. Nothing in this section
shall be construed to mean that the commission has any regulatory juris-
diction over internet service providers. The provisions of this section ap-
ply only to those locations of the state where local (7-digit) internet access,
which supports at least 14.4 kilobits per second service with no more than
5% blockage during the busiest hour of the service, is not available on or
after October 1, 1996. The provisions of this section also apply to those
locations where local access has been discontinued as of October 1, 1996,
or access to the service deteriorates to more than 5% blockage during the
busiest hour of the service.

    (b) On or after July 1, 1996 and prior to October 1, 1996, rural
telephone companies shall file concurring tariffs to offer internet access
in locations identified in subsection (a) to an intraLATA internet service
provider of the customer's choice. All rural telephone companies, includ-
ing local exchange carriers pursuant to subsection (c), shall provide dial-
up access to support at least 14.4 kilobit per second service ubiquitously
throughout the exchange service area, with 28.8 19.2 kilobit per second
service made available to any requesting customer on or on and after July
1, 1999. The commission shall increase the 19.2 kilobit per second re-
quirement when the commission determines that more advanced tech-
nology is both technically and economically feasible.

    (c) On or after July 1, 1996 and prior to October 1, 1996, all local
exchange carriers, other than rural telephone companies, shall file tariffs
with the commission for two flat-rate dial-up plans, which would provide
internet access in locations identified in subsection (a) to an intraLATA
internet service provider of the customer's choice. All such plans shall be
approved by the commission if they meet the criteria established in this
section. The first plan includes: (1) For off-peak users, a monthly rate of
not more than $15 per line for the hours of 5 p.m. through 7:59 a.m.
weekdays and all hours on weekends and federal holidays. Calls placed
outside this specified off-peak period shall be billed at prevailing toll rates.
(2) For unlimited usage, the rate shall not exceed $30 per line per month.
The commission shall waive imputation considerations in reviewing and
approving these service offerings.

    (d) If a location was previously eligible for the plans provided in sub-
section (c) and a new internet service provider establishes a local presence
in that location, the local exchange carrier serving the location shall:

    (1) Notify all subscribers of the discounted internet access service that
a local internet service provider is now available;

    (2) continue to make the discounted internet access service available
to existing subscribers of such service with no deterioration of such serv-
ice; and

    (3) allow no new subscribers of the discounted internet access service.

    (e) Nothing in this section shall be construed to imply that the com-
mission has any regulatory jurisdiction over the internet or internet serv-
ice providers with respect to quality of service, rates, billing and collection
practices, end-to-end bandwidth, technical support or any other aspects
of the business of providing internet access service. However, the com-
mission shall monitor the adequacy of connectivity to internet service
providers. Upon complaints of inadequate access, commission staff shall
request a seven-day traffic busy line study from the local exchange carrier
serving the internet service provider. Commission staff shall analyze the
study results to determine whether there is more than 5% access blockage
and shall provide the analysis to the internet service provider for consid-
eration and possible action. If the analysis indicates a need for additional
capacity and the internet service provider fails to take a corrective action
within 45 days after the analysis is provided to such provider by the
commission staff, the internet service provider shall be removed from the
commission's internet service provider registry and subscribers of such
internet service subscriber shall be eligible for the plans provided in sub-
section (c) if there is no other local internet service provider serving the
location.

    (d) (f) All internet service providers operating in the state shall reg-
ister with the commission. Such registration shall include the name of the
internet service provider and the provider's address, contact name, phone
number, and access line numbers. This information shall be maintained
by the commission and disseminated to all local exchange carriers and
rural telephone companies providing access to internet service providers
in accordance with provisions of this section. This information shall be
used to validate customer service requests at the commission's internet
home page (http://www.kcc.state.ks.us). This information shall be used to
determine a requesting customer's eligibility for the plans provided in
subsection (c) and to provide a single authoritative listing of internet serv-
ice provider access numbers for local exchange carriers to use in process-
ing service orders. Absent complaints to commission staff, internet service
providers shall be assumed to provide service with 5% or less access block-
age upon registration. If, upon complaint and subsequent investigation,
access blockage is determined to exceed 5%, the provider shall be removed
from the commission's registry.

    (e) (g) During the 1999 session of the Kansas legislature, the com-
mission shall transmit a report to the chairperson, vice-chairperson and
ranking minority member of the house standing committee on energy
and natural resources, the senate standing committee on transportation
and utilities and the joint committee on computers and telecommunica-
tions concerning implementation of this section. The report shall include
recommendations for revisions in this section necessitated by technolog-
ical innovation or market changes in the telecommunications industry.
The report also may include an expiration date for this section.

    New Sec. 4. (a) The commission shall establish a KUSF working
committee. The membership of the working committee shall be deter-
mined by the commission subject to the conditions set forth in subsection
(b). The legislative coordinating council shall designate the chair of the
committee and the chair shall be a legislative member. Meetings shall be
on call of the chair.

    (b) The membership of the KUSF working committee shall include:

    (1) One representative for each of the following: Local exchange car-
riers subject to price cap regulation, interexchange carriers, cable com-
panies, wireless telecommunications service providers, rural telephone
companies, local exchange carriers certificated after January 1, 1996, com-
petitive access providers, internet service providers, the citizens' utility
ratepayer board;

    (2) a faculty member from a Kansas university with expertise in tele-
communications technology, a representative of elementary and second-
ary schools, a representative of a public library, a large business, other
than a telecommunications public utility and a small business, other than
a telecommunications public utility; and

    (3) eight legislators as follows: two members of the house standing
committee on utilities appointed by the speaker of the house of repre-
sentatives, two members of such committee appointed by the minority
leader of the house of representatives, two members of the senate stand-
ing committee on commerce appointed by the president of the senate
and two members of such committee appointed by the minority leader
of the senate. Legislators serving as members of the committee and those
members described in paragraph (2) shall receive amounts provided by
subsection (e) of K.S.A. 75-3223 and amendments thereto for each day
of actual attendance at any meeting of the task force or any subcommittee
meeting approved by the task force. Such amounts paid to members shall
be paid from appropriations to the legislative coordinating council pur-
suant to vouchers prepared by the director of legislative administrative
services and approved by the chairperson or vice-chairperson of the leg-
islative coordinating council.

    (c) The KUSF working committee shall discuss, identify and develop
recommendations regarding technology issues, KUSF funding regulatory
procedures, modifications to enhanced universal service and other issues
identified by the committee, including but not limited to:

    (1) The definition of enhanced universal service;

    (2) how and when enhanced universal services should be deployed;

    (3) what mechanism is most appropriate for the recovery of capital
costs; and

    (4) how to address internet access in light of changing technology.

    (d) On or before December 1, 1998, the KUSF working committee
shall submit a report and recommendations to the legislature based on
the activities of the working committee.

    (e) The legislative research department, the commission and office
of the revisor of statutes shall provide staff support for the committee.
Legislative staff shall prepare the report and any recommendations of the
working committee.

    New Sec. 5. (a) As used in this section:

    (1) ``Express authorization'' means an express, affirmative act by a
consumer clearly agreeing to the change in the consumer's telecommu-
nications carrier or local exchange carrier to another carrier.

    (2) ``Telecommunications services'' has the meaning provided by
K.S.A. 66-1,187 and amendments thereto.

    (b) No local exchange carrier or telecommunications carrier shall sub-
mit to a local exchange carrier an order to change a consumer's telecom-
munications carrier or local exchange carrier to another carrier without
having obtained the express authorization of the consumer authorized to
make the change. The local exchange carrier or telecommunications car-
rier requesting the change shall have the burden of proving the express
authorization by a preponderance of the evidence.

    (c) No local exchange carrier, telecommunications carrier or third
party utilized to verify an order to change a consumer's telecommunica-
tions carrier or local exchange carrier to another carrier shall:

    (1) Engage in any activity, conduct or representation while soliciting
or verifying a change in a consumer's telecommunications carrier or local
exchange carrier to another carrier that has the capacity to mislead, de-
ceive or confuse the consumer;

    (2) employ a box or container used to collect entries for sweepstakes,
contests or drawings to gather letters of agency or other documents that
constitute authorizations by consumers to change the consumers' tele-
communications carrier or local exchange carrier to another carrier or to
change or add to the consumers' other telecommunications services; or

    (3) use any methods not approved by the federal communications
commission statutes, rules and regulations (as in effect on the effective
date of this act) or state corporation commission rules and regulations to
change a consumer's telecommunications carrier or local exchange carrier
to another carrier.

    (d) Any local exchange carrier or telecommunications carrier that vi-
olates subsection (b) or (c) shall be subject to a civil penalty of not less
than $5,000 nor more than $20,000 for each such violation instead of the
penalty provided for in subsection (a) of K.S.A. 50-636, and amendments
thereto.

    (e) Any violation of this section is a deceptive and unconscionable act
or practice under the provisions of the Kansas consumer protection act
and shall be subject to any and all of the enforcement provisions of the
Kansas consumer protection act. Nothing in this section shall preclude
the state corporation commission from exerting its authority as it pertains
to intrastate services nor the attorney general from pursuing violations of
any other provisions of the Kansas consumer protection act by a local
exchange carrier or telecommunications carrier.

    (f) All local exchange carriers shall offer consumers the option of no-
tifying the local exchange carrier in writing that they do not desire any
change of telecommunications carrier regardless of any orders to the con-
trary submitted by any third party. The consumer shall be permitted to
cancel such notification or to change its telecommunications carrier by
notifying the consumer's local exchange carrier accordingly. All local
exchange carriers shall annually notify the consumers of the carrier's
telecommunications services of the availability of this option.

    (g) This section shall be part of and supplemental to the Kansas con-
sumer protection act.

    Sec. 6. K.S.A. 1997 Supp. 66-2005, 66-2008 and 66-2011 are hereby
repealed.

    Sec. 7. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certifiy that the above Bill originated in the
Senate, and passed that body

__________________________________

Senate adopted
Conference Committe Report __________________________________

__________________________________

President of the Senate.

__________________________________

Secretary of the Senate.

Passed the House
as amended __________________________

House adopted
Conference Committee Report __________________________

__________________________________

Speaker of the House.

__________________________________

Chief Clerk of the House.

Approved __________________________

__________________________________

Governor.