BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1903|
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THIRD READING
Bill No: SB 1903
Author: O'Connell (D)
Amended: 5/20/02
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 6-2, 4/9/02
AYES: Bowen, Alarcon, Murray, Sher, Vasconcellos, Vincent
NOES: Morrow, Battin
SENATE APPROPRIATIONS COMMITTEE : 7-4, 5/13/02
AYES: Alpert, Bowen, Escutia, Karnette, Murray, Perata,
Speier
NOES: Battin, Johnson, McPherson, Poochigian
SUBJECT : Commercial mobile radio service providers
SOURCE : Author
DIGEST : This bill requires cellular telephone companies
to establish a means by which customers can obtain current
information on their calling plans and usage, and requires
the State Public Utilities Commission to adopt related
regulations, as necessary.
ANALYSIS : Current federal law permits states to
establish customer service rules for cellular telephone
companies.
This bill requires cellular telephone companies to provide
customers with a way to obtain current information on their
calling plans and usage.
CONTINUED
SB 1903
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This bill requires the State Public Utilities Commission
(PUC) to adopt appropriate regulations that become
effective no later than January 1, 2004.
Background
Most cellular telephone service plans include a specified
number of minutes of service in the monthly price. Minutes
beyond that specified number are subject to additional,
relatively high charges which, not surprisingly, motivate
customers to try and keep close track of their usage. For
example, a typical plan might cost $39.99/month, which
includes up to 400 minutes of service (10 cents a minute if
the customer uses all 400 minutes), but that 401st minute
and every minute of usage after that may cost customers 40
cents apiece.
Many cellular phones can track minutes of use, but that
tracking isn't what the cellular carrier bases the
customer's bill on. Rather, cellular carriers rely on
their own internal billing systems to track usage.
This bill doesn't specify a method by which the cellular
telephone companies have to provide their customers with
current usage information. While computerized access via
the cellular telephone is the most obvious means, such
information could also be made available via the Internet
or through a call to the cellular carrier's customer
service center. The details of how that information is
provided to customers is appropriately left to the CPUC.
Giving customers access to their current account
information isn't an uncommon practice. Many credit card
companies, banks, and long distance telephone companies
provide customers with up-to-date information on their
account balances via telephone or the Internet.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
PURA revenues are derived from an annual fee on electrical,
gas, telephone, and water corporations and every other
public utility providing service directly to customers.
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Therefore, any increased costs to the State Public
Utilities Commission (PUC) should be offset by fee
revenues.
NC:kb 5/21/02 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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