BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 909
                                                                  Page  1

          Date of Hearing:   May 21, 2003

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                      AB 909 (Reyes) - As Amended:  May 1, 2003 

          Policy Committee:                              UtilitiesVote:8-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires every phone company, for their customers who  
          purchase both local and long-distance service, to show the  
          charge for local service and the total monthly long-distance  
          usage in the monthly phone bill.

           FISCAL EFFECT  

          Potential minor costs to the Public Utilities Commission for  
          enforcement.

           COMMENTS  

           Purpose  .  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 set by the Public Utilities  
          Commission, consumers have been able to shop for the best rates  
          for intrastate and interstate toll calls.  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 to simplify 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 is intended to clarify current  
          law by requiring telephone carriers that provide local and long  
          distance service to separately list the charge for local service  








                                                                  AB 909
                                                                  Page  2

          and the usage for long distance service in a customer's monthly  
          billing statement.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081