BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 870
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 870 (Wesson)
          As Amended September 4 , 2001
          Majority vote

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          |ASSEMBLY:  |71-2 |(May 24, 2001)  |SENATE: |25-11|(September 6,  |
          |           |     |                |        |     |2001)          |
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           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 



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