Database of Carriers that Violate State Laws Resolution-2007-02

[1] many of which operate in more than one State and many of which are interrelated business entities; and

WHEREAS, A variety of governmental agencies authorize telecommunications carriers to operate or otherwise regulate or oversee such carriers’ operations, including issuing operating certificates or licenses, collecting and reviewing carriers’ annual reports, and enforcing service quality, billing and other regulations that are intended to ensure that consumers receive reasonable service at reasonable rates; and

WHEREAS, Some telecommunications carriers have engaged in practices in multiple States that violate the terms and conditions of their operating authority, violate State laws and regulations, or otherwise constitute unreasonable, deceptive or misleading consumer practices, sometimes resulting in the revocation of such carriers’ operating authority, the imposition of fines or penalties, or orders requiring customer refunds or other restitution; and

WHEREAS, States are often unable to collect fines or penalties, or compel refunds or other restitution, because the offending telecommunications carrier simply ceases its operations and has no tangible property or assets within the State; and

WHEREAS, Examples of such cases abound, including enforcement actions against the following telecommunications carriers:  America’s Tele-Network, Inc.;[2] America’s Digital Satellite Telecommunications, Inc.;[3] the “Fletcher Companies”;[4] and most recently Business Options, Inc. and Buzz Telecom, Inc.[5]; and 

WHEREAS, Individuals or business entities that may, by ownership or other indicia of control, be responsible for such illegal or unreasonable patterns of practices may be involved with other telecommunications carriers that provide, or seek to provide, telecommunications service within a State that previously took enforcement action against a telecommunications carrier for whose operations or practices such individuals or business entities may have been responsible; and

WHEREAS, States historically have not been able to adequately ensure that individuals or business entities that may, by ownership or other indicia of control, be responsible for telecommunications carriers’ illegal or unreasonable patterns of practices, are barred from providing, or seeking to provide, telecommunications service through another telecommunications carrier that they own or control; and

WHEREAS, The States’ development and utilization of an database containing information that links individuals or business entities that may, by ownership or other indicia of control, be responsible for telecommunications carriers’ illegal or unreasonable patterns of practices to other telecommunications carriers that provide, or seek to provide, telecommunications service will provide States’ with important enforcement  tools that will either allow them to collect fines or penalties, or compel refunds or other restitution, from telecommunications carriers’ that engage in illegal or unreasonable patterns of practices; now therefore be it

RESOLVED, That the National Association of State Utility Consumer Advocates (“NASUCA”) calls upon members to encourage and assist State utility commissions or other law enforcement agencies to develop and utilize a database containing information that links individuals or business entities that may, by ownership or other indicia of control, be responsible for telecommunications carriers’ illegal or unreasonable patterns of practices to other telecommunications carriers that provide, or seek to provide, telecommunications service within the State; and be it further

RESOLVED, That NASUCA establish a task force charged with formulating and submitting proposals for the development and utilization of such a database, including:  (a) consideration of issues related to the criteria for determining the degree of ownership or control required for an individual or business entity to be considered responsible for a telecommunications carrier’s illegal or unreasonable practices; (b) what agencies should have access to such database, whether for adding, updating or reviewing information contained therein; (c) what information should be maintained in such database; (d) to what extent development and utilization of such database should be coordinated with federal agencies, such as the Federal Communications Commission, Federal Trade Commission or Department of Justice; and (e) what agency or entity should be responsible for maintaining and providing access to such database; and be it further

RESOLVED, That the task force established herein provide regular progress reports to the heads of office of NASUCA members on a regular basis, no less frequently than semi-annually; and be it further

RESOLVED, that the NASUCA Telecommunications Committee and Consumer Protection Committee, with the approval of the Executive Committee of NASUCA, are authorized to take all steps consistent with this Resolution in order to secure its implementation.

ADOPTED BY THE MEMBERSHIP

June 12, 2007

Denver, Colorado