BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1814
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1814 (Reyes) 
          As Amended April 1, 2002
          Majority vote

           ECONOMIC DEVELOPMENT      8-4                                   
           
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          |Ayes:|Reyes, Chan, Cohn,        |     |                          |
          |     |Correa, Diaz, Florez,     |     |                          |
          |     |Liu, Oropeza              |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Zettel, Ashburn, Bogh,    |     |                          |
          |     |Wyman                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires 30-day prior 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 30-day prior written or electronic notice to a class  
            of customers or any affected customers of service termination  
            or transfer to another ISP, unless otherwise permitted by law  
            or contract.

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

           FISCAL EFFECT  :  None

           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  








                                                                  AB 1814
                                                                  Page  2

          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


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