BILL ANALYSIS AB 870 Page 1 ASSEMBLY THIRD READING AB 870 (Wesson) As Amended April 19, 2001 Majority vote UTILITIES AND COMMERCE 17-0 APPROPRIATIONS 21-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, |Ayes:|Migden, Bates, Lowenthal, | | |Calderon, | |Jackson, Ashburn, | | |Bill Campbell, John | |Cedillo, Corbett, Correa, | | |Campbell, Canciamilla, | |Daucher, Strom-Martin, | | |Cardenas, Diaz, Jackson, | |Maldonado, Robert | | |Kelley, La Suer, Maddox, | |Pacheco, Papan, Pavley, | | |Nation, Papan, Reyes, | |Runner, Simitian, | | |Simitian, Wesson | |Thomson, Wesson, Wiggins, | | | | |Wright, Zettel | ----------------------------------------------------------------- SUMMARY : Prohibits use of certain types of automatic calling devices (ACDs) capable of storing and calling random numbers under certain circumstances. Specifically, this bill : 1)Prohibits the use of ACDs which are capable of sequentially or randomly calling telephone numbers with no person or prerecorded message available for the person called on or after July 1, 2002. 2)Allows the California Public Utilities Commission (CPUC) to establish an acceptable error rate for such devices on or after July 1, 2002. EXISTING LAW authorizes CPUC to control or regulate the use of ACDs and specifies the hours during which the devices may not be operated. FISCAL EFFECT : 1)Minor absorbable special fund costs to CPUC to establish the error rate and maintain records. 2)Potential absorbable costs, offset by fine revenue, to CPUC and/or the Attorney General for enforcement. COMMENTS : This bill addresses the proliferation in ACDs as AB 870 Page 2 means of effecting unsolicited and intrusive telephone calls. This bill acknowledges that there is a need to balance individual privacy and public safety concerns with commercial free speech rights. Thus, this bill very narrowly addresses the portion of these calls which are abandoned, or which result in no person or prerecorded message being available to the called party. This bill notes that consumer outrage extends beyond abandoned calls. A similar bill, AB 2721 (Wesson) of 2000, which died in the Senate, included a prohibition against unsolicited prerecorded calls with no live person on the line. AB 870 restricts use of sequential or random dialing that results in abandoned calls. This bill allows CPUC to require persons operating automatic dialing announcing devices to maintain records of telephone connections made, for which no person or recorded message was available to the called party, presumably prior to CPUC establishing any acceptable error rate. CPUC's ability to determine how many abandoned calls tend to occur when using these ACDs will best enable CPUC to establish whether there is any acceptable error rate, or whether, as this bill implies, no abandoned calls are acceptable. Given the difficulties experienced with AB 2721, it appears it is extremely difficult to restrict the proliferation of unsolicited commercial speech transiting the public switched telephone network. Oddly, though the privacy and safety issues of someone knocking at your door are more acute than of someone calling into your home, each such instance involves the personal right to privacy and the right not to be disturbed. Individuals hang "no solicitors" signs on their doors and much unwanted commercial foot trade is avoided. Technology provides us with devices to selectively block incoming calls into our homes, to keep calls out which are unidentified, and to make all sorts of complicated connections with other phones and multiple phones at once. Ironically, no telephone company has presented a service that allows customers to filter out unsolicited sales calls, prerecorded messages, abandoned calls or other such marketing ploys. Consumers still rely heavily on the screening of calls coming through answering machines to avoid unsolicited calls. Unfortunately, answering machines can't prevent the phantom calls addressed in this bill from arriving over and over again. Where technology and communications companies have failed, regulation should succeed AB 870 Page 3 in helping prevent a proliferation of abandoned calls as more and more companies use ACDs and recorded messaging in lieu of live calling. Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083 FN: 0000829