BILL ANALYSIS
AB 1329
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Date of Hearing: May 8, 2003
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Sarah Reyes, Chair
AB 1329 (Levine) - As Amended: May 1, 2003
SUBJECT : Public Utilities Commission: telecommunications.
SUMMARY : Codifies six principles of consumer rights for
telecommunication services. Specifically, this bill declares
that consumers of telecommunication service have the following
rights:
a) A right of disclosure, including the right to receive
clear and complete information about rates, charges, terms,
and conditions for available products and services, and to
pay for products and services according to the rates,
charges, terms, and conditions they have agreed to;
b) A right of choice, including the right to select the
products and services they desire and to select the vendor
of those products and services, and to have those choices
honored by the telecommunications industry;
c) A right of privacy, including a right of personal
privacy, to be protected from unauthorized use of their
telecommunications records and personal information, and to
be free from intrusive communications and technology;
d) A right to public participation and enforcement,
including a right to participate in public policy
proceedings, to be informed of their rights and the
agencies responsible for enforcing those rights, and to
have effective recourse if their rights of violated;
e) A right of accurate bills and adequate remedies when
bills are not accurate, including a right o billing that
accurately state the products and services being charged,
billing that enable the consumer to understand what
products and services are being charged, and to receive
fair, prompt, and courteous resolution of a disagreement
with, or question about, the appropriateness of any charge;
and
f) A right to be free from discrimination, including the
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right to be treated equally to all other similarly situated
consumers, free of prejudice and disadvantage.
EXISTING LAW :
1)Requires the California Public Utilities Commission (PUC) to
establish consumer protection rules for exempted
telecommunication services that include:
a) The availability of rates, terms, and conditions of
service to consumers;
b) Notices to consumers of rate increases and decreases,
changes in terms and conditions of service, and change of
ownership;
c) Identifying and eliminating unacceptable marketing
practices including, but not limited to, fraudulent
marketing practices;
d) To assure that aggrieved consumer have speedy, low-cost,
and effective avenues available to seek relief in a
reasonable time;
e) To assure consumers that their right to informational
privacy for services over which the commission has
oversight;
f) To assure a telephone corporation's cooperation with the
commission investigations of customer complaints.
2)Requires telephone corporations to provide customer service
standards that include:
a) Sufficient information to make informed choices among
telecommunication services and providers, which includes
information regarding the provider's identity, service
options, pricing, and terms and conditions of service.
b) Ability to access to a live operator by dialing "0" and
making it free option.
c) Reasonable statewide service quality standards
pertaining to network technical quality, customer service,
installation, repair and billing.
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d) Information concerning the regulatory process and how
customers can participate in that process, including the
process of resolving complaints.
3)Prohibits any public utility from prejudicing, disadvantaging,
or requiring different rates or deposit amounts from a person
based on race, religious creed, color, national origin,
ancestry, physical handicap, medical condition, occupation,
sex, marital status or change in marital status.
4)Requires a provider of commercial mobile radio service to
develop a means to allow subscribers to obtain reasonably
current and available information, as determined by the
provider, on the subscriber's calling plan or plans and
service usage.
5)Requires each provider of commercial mobile radio service to
inform subscribers at the time service is established of the
availability of the information on their calling plan or plans
and service usage and how it can be obtained.
6)Requires that a telephone bill may only contain charges for
products or services that a subscriber has authorized.
7)Requires any person, corporation, or billing agent that
charges subscribers for products or services on a telephone
bill to include the amount being charged for each product or
service, including any taxes or surcharges, and a clear and
concise description of the service, product, or other offering
for which a charge has been imposed.
8)Requires a public utility to notify customers within 45 days
or 75 days of a proposed rate change and allows affected
customers or their representatives to testify at any hearing
of the proposed rate change.
9)Prohibits any telephone or telegraph corporation from making
available a customers personal calling patterns, credit or
financial information, demographic or purchasing information
without first obtaining the customers consent in writing.
FISCAL EFFECT : Unknown.
COMMENTS :
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Purpose of this bill: According to the author this bill will
establish in code a set of basic consumer rights for all
telecommunications customers in California. The broad policies
established by this bill will act as a guideline for the
Legislature and regulatory bodies when they consider developing
future regulations for telecommunication services.
Consumer Bill of Rights Proceeding : On June 6, 2002 PUC started
an Order Instituting Rulemaking for the purpose of creating an
interim draft decision on a Consumer Bill of Rights for all
telecommunication carriers and their customers. The interim
draft decision required all telecommunications carriers to meet
certain standards, set by PUC, for disclosure, consumer choice,
privacy, public participation and enforcement, accurate bills
and redress, non-discrimination, and safety.
The public was invited to 20 public participation sessions in 13
locations throughout the state and 1200 people attending one or
more of them and 300 made public statements. Furthermore, PUC
received from utilities and interested parties' 71 submittals
from 39 groups.
Shouldn't the Legislature wait for PUC to finish developing the
Consumer Bill of Rights before placing anything in statute?
Currently, an Administrative Law Judge (ALJ) is reviewing the
draft General Order on the Consumer Bill of Rights. Upon review
by ALJ it is committee staffs understanding that this issue will
be placed for a vote of the commission within the next few
months subject to any delays.
Does the author intend to have their bill conform to the 15
Consumer Protection Rules under the Telecommunication Consumer
Bill of Rights? This bill currently proposes to codify the
intent language in the Telecommunication Consumer Bill of Rights
but does not include the 15 Consumer Protection Rules that
outline the specific responsibilities of the landline and
commercial mobile radio carriers.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
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Opposition
None on file.
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083