BILL ANALYSIS AB 909 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 909 (Reyes) As Amended July 15, 2003 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |44-29|(May 27, 2003) |SENATE: |23-12|(August 28, | | | | | | |2003) | ----------------------------------------------------------------- Original Committee Reference: U. & C. SUMMARY : Requires telephone companies to disclose certain types of billing information for customers who purchase bundled service packages. Specifically, this bill : 1)Requires telephone companies to provide to customers purchasing a service that includes both local and long distance, or for customers that buy a set number of minutes for a fixed price, a breakdown separately showing the total minutes of use in the billing period listed under one telephone number for toll and long distance service. This information shall be provided by the telephone company only at the request of a customer. 2)Includes a sunset of January 1, 2007. The Senate amendments : 1)Delete the requirement that telephone companies provide a separate charge for local telephone service to customers purchasing a service that includes both local and long distance service and instead require toll and long distance usage information to be provided. 2)Require this information to be provided to customers that buy a set number of minutes for a fixed price. 3)Add a sunset date of January 1, 2007. AS PASSED BY THE ASSEMBLY , this bill required 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 AB 909 Page 2 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 : 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 usage information at the customers request for toll and long distance service. Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083 FN: 0002880