BILL NUMBER: AB 2244 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 19, 2002
PASSED THE SENATE AUGUST 14, 2002
AMENDED IN SENATE JUNE 29, 2002
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, 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 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 include certain transition provisions and make
other related changes.
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 (8) applies.
(3) The company shall print legibly on the card or packaging, 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) The value of the card and any surcharges, taxes, or fees,
including monthly or other periodic fees, maintenance fees, per-call
access fees, surcharges for calls made on pay telephones, 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 surcharges for international calls or, in lieu of
disclosing each surcharge, the highest surcharge for any
international calls applicable on that card and 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 (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. The company shall
provide customer service in each language used on a prepaid calling
card or its packaging and in the advertising or promotion of the
prepaid calling card or prepaid calling services.
(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.
(D) A company shall not impose a fee or surcharge related to
obtaining customer service, including any charge related to
connecting with the customer service number or waiting to speak to a
live operator.
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.
(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.
(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.
(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.
(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.
(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.
(12) A company may not impose any charges if the consumer is not
connected to the number called. For the purpose of this paragraph,
the customer shall not be considered connected to the number called
if the customer receives a busy signal or the call is unanswered.
(13) The value of the card and the amount of the various charges,
however denominated, that are required to be disclosed by paragraph
(3), shall be expressed in the same format. If the value of a card
is expressed in minutes, the minutes shall be identified as domestic
or international and the identification shall be printed on the same
line or next line as the value of the card in minutes.
SEC. 2. Notwithstanding any other provision of this act, prepaid
calling cards in compliance with the disclosure requirements of
paragraphs (2) and (3) of subdivision (b) of Section 17538.9 of the
Business and Professions Code as it existed immediately prior to the
effective date of this act may continue to be sold to the public
until July 1, 2003.