BILL ANALYSIS AB 870 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 870 (Wesson) As Amended September 4 , 2001 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |71-2 |(May 24, 2001) |SENATE: |25-11|(September 6, | | | | | | |2001) | ----------------------------------------------------------------- Original Committee Reference: U. & C. SUMMARY : Prohibits use of certain types of automatic calling devices capable of storing and calling random numbers under certain circumstances. Specifically, this bill : 1)Prohibits the use of automatic calling devices 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, and the term "pre-recorded message." Deletion of this term requires that a live person attend outbound telemarketing calls. EXISTING LAW authorizes the California Public Utilities Commission (CPUC) to control or regulate the use of automatic calling devices 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 automatic dialing devices 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 AB 870 Page 2 and/or the Attorney General for enforcement. COMMENTS : This bill addresses the proliferation in automatic calling devices as 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 measure very narrowly addresses the portion of these calls which are abandoned, or which result in no person being available to the called party. This measures requires CPUC to determine an acceptable error rate by July 1, 2002, and requires companies which operate these automatic dialing devices to keep records of abandoned calls. These measures 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 a huge annoyances to called parties and also reduce unnecessary traffic across the public switched telephone network. This measure 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: 0002646