BILL ANALYSIS
AB 909
Page 1
ASSEMBLY THIRD READING
AB 909 (Reyes)
As Amended May 1, 2003
Majority vote
UTILITIES AND COMMERCE 8-2
APPROPRIATIONS 17-7
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|Ayes:|Reyes, Richman, |Ayes:|Steinberg, Berg, |
| |Canciamilla, Jerome | |Lowenthal, Laird, Diaz, |
| |Horton, Levine, Nunez, | |Firebaugh, Goldberg, |
| |Ridley-Thomas, Wolk | |Leno, Nation, Negrete |
| | | |McLeod, Nunez, Pavley, |
| | | |Ridley-Thomas, Simitian, |
| | | |Wiggins, Yee, Chu |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Campbell, La Suer |Nays:|Bates, Daucher, Haynes, |
| | | |Maldonado, Pacheco, |
| | | |Runner, Samuelian |
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SUMMARY : Requires telephone companies to disclose certain types
of billing information for customers who purchase bundled
service packages. Specifically, this bill requires all
telephone companies to provide to customers who purchase any
service package that includes both local and long distance
service a breakdown separately showing the charge for local
telephone service and total monthly usage listed under one
telephone number for long distance service as part of their
regular billings.
FISCAL EFFECT : Potential minor costs to the California Public
Utilities Commission (PUC) for enforcement.
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
AB 909
Page 2
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.
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083
FN: 0001156