BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 870
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 870 (Wesson)
          As Amended July 2, 2001
          Majority vote
           
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          |ASSEMBLY:  |71-2 |(May 24, 2001)  |SENATE: |25-6 |(July 20,      |
          |           |     |                |        |     |2001)          |
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           Original Committee Reference:   U. & C.  

           SUMMARY  :  Prohibits the 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 California Public Utilities Commission (CPUC) to  
            establish an acceptable error rate for such devices on or  
            after July 1, 2002.

           The senate amendments  delete the Legislative findings and  
          declarations section from this bill. 

           EXISTING LAW  authorizes CPUC to control or regulate the use of  
          ACDs and specifies the hours during which the devices may not be  
          operated.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially the same  
          but contained findings and declarations with regard to ACDs and  
          consumer annoyance. 

           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  
          means of effecting unsolicited and intrusive telephone calls.   







                                                                  AB 870
                                                                  Page  2

          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 requires CPUC to determine an acceptable error rate by  
          July 1, 2002, and requires companies which operate these ACDs to  
          keep records of abandoned calls.  This bill should reduce the  
          overall number of abandoned calls, where a device dials but no  
          recorded message or live person comes on the line when the call  
          is answered.  This should eliminate both huge annoyances to  
          called parties, and also reduce unnecessary traffic across the  
          public switched telephone network.  This bill should also result  
          in better self-policing of the use of automatic dialers and  
          provides a mechanism for CPUC to determine reasonable operation  
          of such devices while minimizing their annoyance factor. 

           Analysis Prepared by  :    Kelly Boyd / U. & C. / (916) 319-2083   
          FN: 0002103