BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 500
                                                                  Page  1

          Date of Hearing:  June 24, 2002

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                              Roderick D. Wright, Chair
                    SB 500 (Torlakson) - As Amended:  May 24, 2002

           SENATE VOTE  :  30-4
           
          SUBJECT  :  Retail merchandise, utilities, and cable television:   
          delivery, service, and repair:  times.

           SUMMARY  :  Requires that a utility or cable company, upon  
          request, offer a four-hour appointment window, for service or  
          repair, as retailers are currently required to do.   
          Specifically,  this bill :  

          1)Eliminates the option of cable and utility companies to  
            periodically notify subscribers by mail, of their right to  
            service connection or repair service within a four-hour  
            period, or when the consumer was not present during the  
            specified time period, so that these companies are required to  
            inform customers of that right when they call for service.

          2)Requires retailers, cable and utility companies and consumers,  
            to agree with subscribers on a four-hour period within which a  
            delivery, service, or repair will take place.

          3)Permits notification by telephone, if the retailer or its  
            agent leaves a telephone number for a return telephone call,  
            to enable the consumer to arrange a new two-hour period for  
            delivery, service, or repair with the retailer or the  
            retailers' agent.

          4)Exempts retail, cable and utility companies from legal action  
            when the company makes a diligent attempt to notify the  
            consumer of its inability to deliver, service, or repair,  
            either in person or by telephone.

          5)Increases the penalty for retail, cable television and utility  
            companies that a small claims court can award from $500 to  
            $600 if they fail, without cause, to meet the four-hour  
            service window.

           EXISTING LAW  :









                                                                  SB 500
                                                                  Page  2

          1)Requires retailers with 25 or more employees selling  
            merchandise to consumers, to specify, either at the time of  
            the sale or at a later date prior to the delivery date, a  
            four-hour period within which delivery will be made if the  
            consumer's presence is required.  Cable and utility companies  
            are required to disclose a consumers' right to a four-hour  
            window when the consumer calls or via mail.

          2)Provides a cause of action in small claims court, for actual  
            damages not to exceed $500, against a retailer, cable  
            television or utility company for failure to comply,  
            appropriate notification or a second two-hour service window  
            without just cause. 

           FISCAL EFFECT  :  Unknown

           COMMENTS  : 

          This bill requires cable and utility service providers with 25  
          or more employees offer a four-hour service window for service,  
          repair or a delivery appointment at the time the appointment is  
          scheduled.  Current law requires cable and utility companies to  
          notify consumers three times a year of their servie.

          According to the author, this bill is intended "to ensure that  
          every subscriber will be informed of the four-hour window so  
          they can reduce the consequences of a required presence at  
          home." 

          SB 500 requires that, a retailer, utility, or cable television  
          company and the consumer must agree to the four-hour appointment  
          window, and a representative of a retailer, utility, or cable  
          television company must leave a call back number when the  
          four-hour appointment window is missed to allow for  
          rescheduling.  

          This bill also raises the penalty for damages that a consumer is  
          eligible to receive for violation of this law in small claims  
          court from $500 to $600.  

          Supporters of this bill suggest that changes to Civil Code  
          Section 1722 will not only result in, savings to consumers in  
          lost wages but also allow consumers to be aware of the four-hour  
          appointment window. In Summary, this bill will improve the  
          repair response times for cable and utility companies, thereby  








                                                                  SB 500
                                                                  Page  3

          making them more accountable to subscribers.

          It should also be noted that Pacific Bell has been required, by  
          the California Public Utilities Commission Decision 00-11-018,  
          dated December 11, 2001, as part of a resolution of complaint,  
          to modify its "611" repair service to ensure that its' customers  
          are aware of the four-hour appointment window.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Office of the Attorney General
          AARP
          American Federation of State, County, and State Employees
          Consumers Union
          Office of Ratepayer Advocates
          CPUC
          TURN
          UCAN
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Angela Haywood / U. & C. / (916)  
          319-2083