BILL NUMBER: AB 2244 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 13, 2002
AMENDED IN ASSEMBLY APRIL 29, 2002
INTRODUCED BY Assembly Members Wayne and Correa
(Principal coauthor: Senator Figueroa)
(Coauthors: Assembly Members Cedillo, Chavez, Chu,
Diaz, Koretz, and Salinas)
(Coauthors: Senators Ortiz and Romero)
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 amended, 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 required 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.
The bill would make other related changes.
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 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) (8) 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:
and the vendor shall make available clearly and
conspicuously in a prominent area immediately proximate to the point
of sale of the prepaid calling card or prepaid calling services the
following information:
(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) 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 definition of the term "unit," if applicable.
(E) The billing decrement.
(F) The name of the company.
(G) The recharge policy, if any.
(H) The refund policy, if any.
(I) The expiration policy, if any.
(J) The 24-hour customer service toll-free telephone number
required in paragraph (4) (6) .
(4) If a language other than English is used on the card or
packaging to provide dialing instructions to place a call or to
contact customer service, the information required by paragraph (3)
shall also be disclosed in that language in the point of sale
disclosure in the manner described in paragraph (3).
(5) If a language other than English is used in the advertising or
promotion of the card or prepaid calling services or is used on the
card or packaging other than for dialing instructions, the
information required by paragraph (3) shall also be disclosed in that
language on the card or packaging and in the point of sale
disclosure in the manner described in paragraph (3).
(6) A company shall establish and maintain a toll-free
customer service telephone number that shall meet the following
requirements:
(A) 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.
(ii) The company's recharge, refund, and expiration policies.
(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)
(7) 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)
(8) 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)
(9) In the case of prepaid calling cards or services
utilized at a pay phone, the company may provide voice prompt
notification of any applicable pay phone 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 pay phone
surcharges without incurring any charge for the call.
(8)
(10) 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)
(11) 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)
(12) A company may not impose any charges if the consumer
is not connected to the number called.