BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1903|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1903
          Author:   O'Connell (D)
          Amended:  8/8/02
          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

           SENATE FLOOR  :  24-14, 5/28/02
          AYES:  Alarcon, Alpert, Bowen, Burton, Chesbro, Dunn,  
            Escutia, Figueroa, Karnette, Kuehl, Machado, Murray,  
            O'Connell, Ortiz, Peace, Perata, Polanco, Romero, Scott,  
            Sher, Soto, Speier, Torlakson, Vasconcellos
          NOES:  Ackerman, Battin, Brulte, Haynes, Johannessen,  
            Johnson, Knight, Margett, McClintock, McPherson,  
            Monteith, Morrow, Oller, Poochigian

           ASSEMBLY FLOOR  :  49-29, 8/12/02 - See last page for vote


           SUBJECT  :    Commercial mobile radio service providers

           SOURCE  :     Author


           DIGEST  :    This bill requires cellular telephone service  
          providers to establish a means by which customers can  
                                                           CONTINUED





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          obtain current information on their calling plans and  
          usage.

           Assembly Amendments  a) reword the intent language, b)  
          remove the requirement that the State Public Utilities  
          Commission (PUC) shall adopt regulations, c) push back the  
          implementation date to January 2004, and d) clarify that  
          the bill applies only to cellular phones and not to one-way  
          paging services.

           ANALYSIS  :    Current federal law permits states to  
          establish customer service rules for cellular telephone  
          companies.

          Existing law requires anyone who charges subscribers for  
          products or services on a telephone bill to include in the  
          bill the amount being charged for each product or service,  
          including any taxes or charges, along with a clear and  
          concise description of the service or product.

          This bill requires cellular telephone service providers to  
          give customers a way to obtain current information on their  
          calling plan and usage.  Specifically, this bill:

          1.Requires commercial mobile radio service providers,  
            commonly known as cellular telephone service providers,  
            to give subscribers a method to obtain current  
            information on the subscriber's calling plan or plans and  
            service usage.

          2.Specifies that the service provider may determine what  
            information is reasonably current and available, but that  
            the information must be made available to subscribers no  
            later than January 1, 2004.

          3.Directs cellular service providers to inform their  
            subscribers of this service, and how to get it, at the  
            time service is first established.

          4.Excludes one-way paging and narrowband personal  
            communications services from the requirements. 

           Background  








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          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

           SUPPORT  :   (Verified  8/13/02)

          Office of Ratepayer Advocates

           OPPOSITION  :    (Verified  8/13/02)

          Verizon Wireless
          Nextel Communications
          VoiceStream Wireless
          Sprint







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          AT&T Wireless
          Cingular


           ASSEMBLY FLOOR  
          AYES:  Alquist, Aroner, Calderon, Canciamilla, Cardenas,  
            Cardoza, Cedillo, Chan, Chavez, Chu, Cohn, Corbett,  
            Correa, Diaz, Dutra, Firebaugh, Florez, Frommer,  
            Goldberg, Horton, Jackson, Keeley, Kehoe, Koretz, Liu,  
            Longville, Lowenthal, Matthews, Migden, Nakano, Nation,  
            Negrete McLeod, Oropeza, Papan, Pavley, Reyes, Salinas,  
            Shelley, Simitian, Steinberg, Strom-Martin, Thomson,  
            Vargas, Washington, Wayne, Wiggins, Wright, Wyland,  
            Wesson
          NOES:  Aanestad, Ashburn, Bates, Bogh, Briggs, Bill  
            Campbell, Cogdill, Cox, Daucher, Dickerson, Harman,  
            Havice, Hollingsworth, Kelley, La Suer, Leach, Leonard,  
            Leslie, Maddox, Maldonado, Mountjoy, Robert Pacheco, Rod  
            Pacheco, Pescetti, Richman, Runner, Strickland, Wyman,  
            Zettel


          NC:kb  8/13/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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