BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 909
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 909 (Reyes)
          As Amended July 15, 2003
          Majority vote
           
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          |ASSEMBLY:  |44-29|(May 27, 2003)  |SENATE: |23-12|(August 28,    |
          |           |     |                |        |     |2003)          |
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           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 


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