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
FN: 0002880