BILL ANALYSIS
AB 1814
Page 1
GOVERNOR'S VETO
AB 1814 (Reyes)
As Amended August 6, 2002
2/3 vote
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|ASSEMBLY: |49-28|(April 4, 2002) |SENATE: |21-11|(August 28, |
| | | | | |2002) |
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|ASSEMBLY: |50-30|(August 30, | | | |
| | |2002) | | | |
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Original Committee Reference: J., E.D. & E.
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.
4)Specifies that the ISP shall not terminate service without just
cause, with less than 30 days notice.
AB 1814
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5)Specifies that if ISP providers enact federal law that regulates
notice requirements for termination of service, these provisions
become inoperative.
The Senate amendments :
1)Remove language to limit this bill's provisions to situations
where a provider exits the business voluntarily.
2)Clarify that no ISP may terminate service without just cause.
3)Add federal preemption language.
AS PASSED BY THE ASSEMBLY , this bill requires 30-day prior
notice by an ISP to a customer of service termination or service
transfer to another ISP.
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
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.
The Senate cleanup amendments add technical language regarding
an ISP's reason for service termination, adds termination for
just cause language and adds a federal preemption clause.
GOVERNOR'S VETO MESSAGE :
AB 1814
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While well intended, AB 1814 does not define key terms
and unfairly burdens Internet Service Providers (ISPs)
by requiring them to give a 30-day notice before any
termination or transfer of service.
I have already signed Senate Bill 772 (Bowen) which
requires electronic mail service providers to give at
least 30 days notice before permanently terminating a
customer's e-mail address. SB 772 is narrower in
scope and addresses the main problem that consumers
and businesses face- permanent disruption of e-mail
service without a legitimate reason. AB 1814, on the
other hand, does not allow for circumstances where ISP
service may be temporarily disrupted due to
circumstances not within an ISP's control nor does it
contain a definition of the term "without cause."
Without a clear definition of this term, ISPs may not
have the option of appropriately terminating service
when a customer abuses the service by conducting
illegal activities or fails to pay for the service.
Disruption of Internet service can be especially
harmful to individual consumers and small businesses.
I would be willing to consider a measure next year
that ensures that they receive prior notice of
termination provided that the bill also gives ISPs, in
the same manner that SB 772 does, the option of
terminating service if a customer abuses the service
by conducting illegal activities or fails to pay for
the service.
Analysis Prepared by : Tim Reardon / J., E.D. & E. / (916)
319-2090
FN: 0008164