BILL ANALYSIS
AB 909
Page 1
Date of Hearing: April 28, 2003
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Sarah Reyes, Chair
AB 909 (Reyes) - As Amended: April 23, 2003
SUBJECT : Telecommunication.
SUMMARY : Requires telephone companies to have a separate
breakdown of local and long-distance charges as part of their
regular billings. Specifically, this bill requires every local
exchange carrier and competitive local exchange carrier to
provide to customers who elect to purchase any service package
that includes both local and long-distance service, a breakdown
showing the separate charges for local and long-distance service
as part of their regular billings.
EXISTING LAW :
1)Requires telephone corporations to provide customer service
standards that include:
a) Sufficient information to make informed choices among
telecommunication services and providers, which includes
information regarding the provider's identity, service
options, pricing, and terms and conditions of service.
b) Ability to access to a live operator by dialing "0" and
making it free option.
c) Reasonable statewide service quality standards
pertaining to network technical quality, customer service,
installation, repair and billing.
d) Information concerning the regulatory process and how
customers can participate in that process, including the
process of resolving complaints.
2)Requires that a telephone bill may only contain charges for
products or services that a subscriber has authorized.
3)Requires any person, corporation, or billing agent that
charges subscribers for products or services on a telephone
bill to include the amount being charged for each product or
AB 909
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service, including any taxes or surcharges, and a clear and
concise description of the service, product, or other offering
for which a charge has been imposed.
FISCAL EFFECT : Unknown.
COMMENTS :
The purpose for this bill: Historically consumers have been
able to make informed choices about their local and long
distance service plans based on an itemized list of charges in
their monthly phone bills. While local phone rates are
basically set by PUC - in the past consumers have been able to
shop around for the best rates for intrastate and interstate
toll calls. Currently, with the emergence of incumbent
telephone carriers in the long distance market there has been a
marketing strategy to package local and long distance services
in one monthly phone bill, supposedly simplifying the billing
statements for residential and business customers.
Current law requires telephone carriers to provide customers
with sufficient information upon which they can make informed
choices among telecommunications services and providers. This
includes, but is not limited to, information regarding the
provider's identity, service options, pricing, and terms and
conditions of service. This bill just clarifies current law by
requiring telephone carriers that provide service packages that
include local and long distance service to separately list the
charge for local service and the usage for long distance service
in a customer's monthly billing statement.
Consumer Bill of Rights Proceeding : On June 6, 2002 the
California Public Utilities Commission (PUC) started a Order
Instituting Rulemaking for the purpose of creating an interim
draft decision on a Consumer Bill of Rights for all
telecommunication carriers and their customers. The interim
draft decision required all telecommunications carriers to meet
certain standards, set by PUC, for disclosure, consumer choice,
privacy, public participation and enforcement, accurate bills
and redress, non-discrimination, and safety. In the last four
years, the number of complaints against phone carriers in
California has risen dramatically from approximately 11,000
grievances filed in 1999 to about 18,000 complaints in 2000 to
an all-time high of 31,345 petitions by the end of 2001.
AB 909
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Customers who said they were deceptively or erroneously charged
for a service without their authorization filed most of the
complaints to the PUC.
REGISTERED SUPPORT / OPPOSITION :
Support
Office of Ratepayer Advocates
TURN
Opposition
Verizon
MCI-WOLDCOM
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083