BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1814
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1814 (Reyes)
          As Amended March 18, 2002
          Majority vote

           ECONOMIC DEVELOPMENT            8-4                             
           
           ----------------------------------------------------------------- 
          |Ayes:|Reyes, Chan, Cohn,        |     |                          |
          |     |Correa, Diaz, Florez,     |     |                          |
          |     |Liu, Oropeza              |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Zettel, Ashburn, Bogh,    |     |                          |
          |     |Wyman                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires a 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,  
            provide a 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)Specifies that in the case of service transfer the notice  
            shall include a description of proposed transfer, rates and  
            conditions of new service, a statement of the customer's right  
            to transfer to another ISP, and a toll-free customer service  
            telephone number for responding to customers' questions.

          3)Specifies circumstances when an ISP may terminate service  
            without prior notice, including breach of contract by the  
            customer, sending harassing or threatening material, sending  
            large amounts of unsolicited commercial e-mail, gaining  
            unauthorized access to other information networks, and  
            violating federal or state law. 

          4)Preempts local governments and agencies from enacting rules,  
            regulation, codes, statutes or ordinances regarding notice of  
            service transfer or termination. 

           FISCAL EFFECT  :  None









                                                                  AB 1814
                                                                  Page  2

           COMMENTS  :  This bill extends to customers of ISPs similar  
          existing protections covering telephone customers.  

          This bill responds to the need for consumer protections in the  
          wake of business failures that resulted in immediate  
          interruptions and terminations of Internet service without prior  
          notice.  In early December 2001, over 850,000 subscribers of an  
          ISP were left without Internet service with no prior notice.   
          Many other customers were transferred to other ISPs without  
          notice although those ISPs offered slower service and different  
          terms and conditions regarding information privacy and other  
          consumer protections.


           Analysis Prepared by  :  Pedro Villegas / J., E.D. & E. / (916)  
          319-2090


                                                                FN: 0004247