BILL ANALYSIS
SB 1601
Page 1
SENATE THIRD READING
SB 1601 (Bowen)
As Amended August 15, 2002
Majority vote
SENATE VOTE : 23-13
UTILITIES & COMMERCE 12-1
-----------------------------------------------------------------
|Ayes:|Wright, Pescetti, | | |
| |Calderon | | |
| |Bill Campbell, | | |
| |Canciamilla, Cardenas, | | |
| |Kelley, La Suer, nation, | | |
| |Papan, Reyes, Simitian | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|John Campbell | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Requires a 14-day period to rescind cellular service
and equipment. Specifically, this bill :
1)Requires 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)Provides that the customer is responsible to pay for those
services used prior to any cancellation of the agreement.
3)Specifies that the requirements in this bill do not apply to
commercial accounts, meaning five (5) or more cell phones, or
to wireless phone accounts where customers are not required to
purchase more than one month of service.
EXISTING LAW :
1)Provides for licensure of cellular phone service providers
through the Federal Communications Commission.
2)Provides that the California Public Utilities Commission will
regulate telecommunications services.
SB 1601
Page 2
FISCAL EFFECT : Unknown
COMMENTS :
1)It is the author' intent 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 in service,
there would be no need for a grace period. Consequently, the
author believes the next best solution is to allow customers
to rescind their contracts if the service proves to be
unsatisfactory.
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: 0006327