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        
           
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          |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
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          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
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          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 



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