BILL ANALYSIS
AB 1814
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Date of Hearing: March 12, 2002
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Sarah Reyes, Chair
AB 1814 (Reyes) - As proposed to be amended: March 12, 2002
SUBJECT : Internet service
SUMMARY : Requires 45-day notice by an internet service
provider (ISP) to a customer of service termination or service
transfer to another ISP. Specifically, this bill :
1)Requires that an ISP, or any entity representing an ISP, to
provide 45-day prior written or electronic notice to a class
of customers or any affected customers of service termination
or transfer to another ISP.
2)Requires that this notice include all of the following:
a) A description of proposed transfer, and rates and
conditions of a proposed new service.
b) A statement of the customer's right to transfer to
another ISP.
c) A toll-free customer service telephone number for
responding to customers' questions.
3)Prohibits charge to the customer for any transfer of customer
services.
4)Specifies the following exceptions when an ISP may terminate
service without notice:
a) Breach of written contract between the ISP and the
customer, including the acceptable use policy of the ISP as
disclosed at the time that services were contracted.
b) The customer account is used to communicate harassing or
threatening material.
c) The customer account is used to send large amounts of
unsolicited commercial e-mail.
d) The customer account is used to gain unauthorized access
AB 1814
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to other information networks, otherwise known as "hacking"
as defined in existing law.
e) The customer account has been compromised and is being
used by a third party.
f) The customer account is used in violation of federal or
state law.
5)Preempts local governments and agencies from enacting
redundant rules, regulation, codes, statutes or ordinances
regarding notice of service transfer or termination.
EXISTING LAW
1)Requires a 30-day customer notification of a telephone
corporation's termination of service or transfer to another
telephone corporation.
2)Defines a series of computer crimes and other forms of
unauthorized access to computers, computer systems and
computer data that are punishable by law.
FISCAL EFFECT : Unspecified.
COMMENTS : According to the author, "Reliable internet service
has become a necessity for small businesses engaged in
e-commerce, students enrolled in online evening adult education
classes, online job seekers, and countless other types of
customers who use the internet in their daily lives?. thousands
of California customers, many of whom rely heavily on their
ISPs, are not adequately protected or informed of service
termination that occurs by no fault of the customer."
This bill responds to the need for consumer protections in the
wake of high profile business failures and subsequent
interruptions or terminations of internet service. In early
December, 2001, over 850,000 subscribers of an internet service
provider were left without internet service with no prior
notice. Many other customers were transferred to other ISPs
that offered slower service.
This bill extends to customers of internet service providers
similar existing protections covering telephone customers.
AB 1814
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SUPPORT:
California Public Interest Research Group
Consumers Union
Greenlining Institute
OPPOSITION:
None on file.
Analysis Prepared by : Pedro Villegas / J., E.D. & E. / (916)
319-2090