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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 26SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
SUBCHAPTER ECERTIFICATION, LICENSING AND REGISTRATION
RULE §26.111Certificate of Operating Authority (COA) and Service Provider Certificate of Operating Authority (SPCOA) Criteria

    (C) The notification letter must inform each customer of the carrier of last resort or make other arrangements to provide service as approved by each customer.

  (2) A COA or SPCOA holder that intends to cease operations must file with the commission an application to cease operations and relinquish its certificate, and provide a copy of the application to CSEC. The application must provide the following information:

    (A) Name, address, and phone number of the certificate holder;

    (B) COA or SPCOA certificate number being relinquished;

    (C) The commission control number in which the COA or SPCOA was granted;

    (D) A description of the areas in which service will be discontinued and whether basic local telecommunications service is available from other certificate holders in these areas;

    (E) A description of any contractual arrangements with customers that will not be honored, as a consequence of the cessation of operations; and

    (F) A statement regarding the disposition of customer credits and deposits, and a sworn statement stating the authority to relinquish certification, that proper notice of the relinquishment has been provided to all customers, and that the information provided in the application is true and correct.

  (3) All customer deposits and credits must be returned within 60 days of notification to cease operations and relinquish certification.

  (4) Any switchover fees that will be charged to affected customers as a consequence of the cessation of operations must be paid by the certificate holder relinquishing the certificate.

  (5) Commission approval of the cessation of operations does not relieve the COA or SPCOA of obligations to its customers under contract or other applicable law.

(n) Standards for discontinuing optional services. A COA or SPCOA holder discontinuing an optional service must comply with PURA §54.253. This section does not apply to a deregulated company holding a certificate of operating authority or to an exempt carrier.

  (1) The COA or SPCOA holder must file an application with the commission to discontinue optional services, which must provide the following information:

    (A) Name, address, and phone number of the certificate holder;

    (B) COA or SPCOA certificate number being amended;

    (C) The commission control number in which the COA or SPCOA was granted;

    (D) A description of the optional services that will be discontinued and whether such services are available from other certificate holders in the areas served by the certificate holder;

    (E) A description of any contractual arrangements with customers that will not be honored, as a consequence of the discontinuation of optional services; and

    (F) A sworn statement stating the authority to discontinue service options, that proper notice of the discontinuation of service has been provided to all customers, and that the information provided in the amended application is true and correct.

  (2) Notification to each customer receiving optional services is required, and must comply with the following requirements:

    (A) The notification letter must clearly state the intent of the certificate holder to cease an optional service and a copy of the letter must be provided to the commission and OPUC.

    (B) The notification letter must give customers a minimum of 61 days of notice of the discontinuation of optional services.

  (3) All customer deposits and credits associated with a discontinued optional service must be returned within 30 days of the discontinuation.

  (4) The certificate holder must maintain the optional services until it has obtained commission authorization to cease the optional services.

  (5) If the amendment application requests any change other than a name change, the factors as set forth in subsections (c) and (d) of this section may be considered by the commission in determining whether to approve an amendment to a COA or an SPCOA.

(o) Revocation or suspension. A certificate granted in accordance with this section is subject to amendment, suspension, or revocation by the commission for violation of PURA or commission rules or if the commission determines that holder of the certificate does not meet the requirements under this section to the extent required by PURA and this title. A suspension of a COA or an SPCOA certificate requires the cessation of all activities associated with obtaining new customers in the state of Texas for a product or service that require a COA or an SPCOA. A revocation of a COA or SPCOA certificate requires the cessation of activities in the state of Texas that require a COA or an SPCOA in accordance with commission order. The commission may also impose an administrative penalty on a person for a violation of PURA or commission substantive rules. Commission Staff or any affected person may bring a complaint seeking to amend, suspend, or revoke a COA or an SPCOA certificate. Grounds for initiating an investigation that may result in the suspension or revocation include the following:

  (1) Non-use of approved certificate for a period of 24 months, without re-qualification prior to the expiration of the 24-month period;

  (2) Providing false or misleading information to the commission;

  (3) Failure to meet financial obligations on a timely basis, or the inability to obtain or maintain the financial resources needed to provide adequate service;

  (4) Violation of any state law applicable to the certificate holder that affects the certificate holders' ability to provide telecommunications services;

  (5) Failure to meet commission reporting requirements to the extent required by PURA and this title;

  (6) Engaging in fraudulent, unfair, misleading, deceptive, or anti-competitive practices or unlawful discrimination in providing telecommunications service;

  (7) Switching, or causing a customer's telecommunications service to be switched, without first obtaining the customer's permission;

  (8) Billing an unauthorized charge, or causing an unauthorized charge to be billed, to a customer's telecommunications service bill;

  (9) Failure to maintain financial resources in accordance with subsection (f)(1) of this section;

  (10) A pattern of not responding to commission inquiries or customer complaints in a timely fashion;

  (11) Suspension or revocation of a registration, certification, or license by any state or federal authority;

  (12) Conviction of a felony by the certificate holder, a person controlling the certificate holder, or principal employed by the certificate holder, or any crime involving theft, fraud, or deceit related to the certificate holder's service;

  (13) Failure to serve as a provider of last resort if required to do so by the commission;

  (14) Failure to provide required services to customers under the federal or Texas Universal Service Fund;

  (15) Failure to comply with the rules of the federal or Texas Universal Service Fund; and

  (16) Violations of PURA or any commission rule or order applicable to the certificate holder.


Source Note: The provisions of this §26.111 adopted to be effective December 13, 2010, 35 TexReg 10945; amended to be effective April 7, 2014, 39 TexReg 2564; amended to be effective November 13, 2014, 39 TexReg 8687; amended to be effective December 21, 2023, 48 TexReg 7524

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