BILL NUMBER: AB 2244 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Wayne
FEBRUARY 20, 2002
An act to amend Section 17538.9 of the Business and Professions
Code, relating to prepaid calling cards and services.
LEGISLATIVE COUNSEL'S DIGEST
AB 2244, as introduced, Wayne. Prepaid calling cards and
services.
Existing law regulates the sale of prepaid calling cards and
services. Existing law requires a company that sells prepaid calling
cards and services to make certain disclosures regarding fees and
surcharges, and regulates the manner in which these fees are imposed.
This bill would add to the list of specified fees and charges that
are require to be disclosed and would impose additional restrictions
on the manner in which these fees and charges are imposed.
Existing law requires a company that sells prepaid calling cards
and services to maintain a toll-free customer service number.
This bill would impose additional requirements in operating and
maintaining the company's customer service number.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17538.9 of the Business and Professions Code is
amended to read:
17538.9. (a) For the purposes of this section:
(1) "Company" refers to any entity providing prepaid calling
services to the public using its own or a resold telecommunications
network.
(2) "Prepaid calling services" or "services" refers to any prepaid
telecommunications service that allows consumers to originate calls
through an access number and authorization code, whether manually or
electronically dialed.
(3) "Prepaid calling card" or "card" means any object containing
an access number and authorization code that enables a consumer to
use prepaid calling services. It does not include any object of that
type used for promotional purposes.
(4) "Cellular telephone services" means facilities-based,
commercial mobile telephone services.
(b) The following standards and requirements for consumer
disclosure and services shall apply with respect
to the advertising and sale of prepaid calling cards and prepaid
calling services:
(1) Any advertisement of the price, rate, or unit value in
connection with the sale of prepaid calling cards or
services shall include a disclosure of any geographic limitation to
the advertised price, rate, or unit value, as well as a disclosure of
any additional surcharges, call setup charges, or fees or
surcharges applicable to the advertised price, rate, or unit
value.
(2) The following information shall be legibly printed on the
card:
(A) The name of the company.
(B) A toll-free customer service number.
(C) A toll-free network access number, if required to access
service.
(D) The authorization code, if required to access service.
(E) The expiration date or policy, if applicable, except where
paragraph (6) applies.
(3) The company shall print legibly on the card or packaging, and
the vendor shall make available in a prominent area at the point of
sale of the prepaid calling card or prepaid calling services, the
following information in both English and Spanish :
(A) Any surcharges , taxes, or fees, including monthly
or other periodic fees, maintenance fees,
per-call access or connection fees, surcharges for
calls made on pay telephones, surcharges for international calls,
or surcharges for the first minute or other period
of use that may be applicable to the use of the prepaid calling card
or prepaid calling services within the United States.
(B) Whether there are Any additional
or different prices, rates, or unit values applicable to
international usage of the prepaid calling card or prepaid calling
services.
(C) The minimum charge per call, such as a three-minute minimum
charge, if any.
(D) The charge for calls that do not connect, if any.
(E) The definition of the term "unit," if applicable.
(F) The billing decrement.
(G) The name of the company.
(H) The recharge policy, if any.
(I) The refund policy, if any.
(J) The expiration policy, if any.
(K) The 24-hour customer service toll-free telephone number
required in paragraph (4).
(4) Each A company shall establish
and maintain a toll-free customer service telephone number
with a live operator to answer incoming calls 24-hours a day, seven
days a week, through which consumers may lodge relevant complaints
and through which the following information may be obtained by
consumers that shall meet the following requirements
:
(A) All A live operator shall answer
incoming calls to the telephone number 24 hours a day, seven days a
week.
(B) The telephone number shall have sufficient capacity and
staffing to accommodate a reasonably anticipated number of calls
without incurring a busy signal or undue wait.
(C) The telephone number shall allow consumers to lodge complaints
and obtain information on all of the following:
(i) All rates, surcharges, and fees.
(B)
(ii) The company's recharge, refund, and expiration
policies.
(C)
(iii) The balance of use available in the
consumer's account, if applicable.
A company offering prepaid cellular telephone services shall be
deemed to be in compliance with the requirements of this paragraph
if, when a request for information is made outside of normal business
hours, that company provides the information requested on the next
business day.
(5) Each A company that issues
prepaid calling cards or prepaid calling services shall provide a
refund to any purchaser of a prepaid calling card or prepaid calling
services if the network services associated with that card or
services fail to operate in a commercially reasonable manner. The
refund shall be in an amount not less than the value remaining on the
card or in the form of a replacement card, and shall be provided to
the consumer within 60 days from the date of receipt of notification
from the consumer that the card has failed to operate in a
commercially reasonable manner.
(6) Cards without a specific expiration date or policy printed on
the card, and with a balance of service remaining, shall be
considered active for a minimum of one year from the date of
purchase, or if recharged, from the date of the last recharge.
(7) In the case of prepaid calling cards or services utilized at a
payphone, the company may provide voice prompt notification of any
applicable payphone surcharges, in lieu of providing notice of
surcharges as required by paragraph (1) and by subparagraph (A) of
paragraph (3) , provided that the company provides users of
prepaid calling cards or services with reasonable time to terminate
the call after notification of applicable payphone surcharges without
incurring any charge for the call.
(8) A company shall maintain access numbers with sufficient
capacity to accommodate a reasonably anticipated number of calls
without incurring a busy signal or undue delay.
(9) A company may not impose any fee or surcharge that is not
disclosed as required by this section or that exceeds the amount
disclosed by the company.
(10) A company may not impose a fee or surcharge if the consumer
is not connected to the number called .
(c) This section shall become operative on July 1, 1999.