BILL ANALYSIS
SB 1601
Page 1
SENATE THIRD READING
SB 1601 (Bowen)
As Amended June 24, 2002
Majority vote
SENATE VOTE :23-13
UTILITIES & COMMERCE 12-1
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|Ayes:|Wright, Pescetti, | | |
| |Calderon, | | |
| |Bill Campbell, | | |
| |Canciamilla ,Cardenas | | |
| |Kelley, La Suer, Nation, | | |
| |Papan, Reyes, Simitian | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|John Campbell | | |
| | | | |
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SUMMARY : Requires a 14-day period to rescind cellular service
and equipment. Specifically, this bill requires:
1)Every cellular service provider to allow a 14-day grace period
to all new cellular service customers, within which a customer
may rescind the agreement and terminate service, if the
customer finds that the cellular service quality is
unsatisfactory.
2)That the customer is responsible to pay for those services
used prior to any cancellation of the agreement.
EXISTING LAW :
1)Provides for licensure of cellular phone service providers
through the Federal Communications Commission.
2)Empowers the California Public Utilities Commission (PUC) to
regulate telecommunications services.
FISCAL EFFECT : Unknown
COMMENTS :
SB 1601
Page 2
1)Author's statements and purposes: The author wants to ensure
that people have the information they need make sure they'll
get what they pay for when they sign a cellular service
contract. A prospective cellular phone customer can't rely on
the coverage maps provided by the cellular carriers because
they all contain disclaimers that the map is not a guarantee
of service availability or quality. Thus, the only way for a
customer to know if the cellular phone meets their needs is to
use it for a period of time. If a customer is required to
sign a long-term contract to obtain service, that customer is
potentially stuck if he or she finds the service is less than
was advertised or promised. The goal of this bill is to
provide customers with a reasonable way out of that long-term
commitment if the product they're buying doesn't live up to
their expectations or to the promises made by the carrier.
If cellular service coverage maps could be made more accurate,
and if the "test drive" in the store could account for the
topography, underpasses, tunnels, buildings, trees,
atmospheric disturbances, other radio signals, and intensity
of usage challenges that a customer will face out on the "open
road," there would be no need for a grace period. The
customer would be able to make an informed choice right in the
store. Since that isn't an option, the author believes the
next best solution is to allow customers to rescind their
contracts if the service proves to be unsatisfactory. This
bill gives customers 30 days to rescind the contract.
2)Return / cancellation policies: Some cellular carriers
already provide customers with a grace period during which
they can choose to cancel the service contract. For example,
AT&T Wireless gives customers a 30-day grace period and
Verizon has a 14-day great period. Cingular allows a 15-day
return period on cellular equipment.
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083
FN: 0005552