BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1329
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          ASSEMBLY THIRD READING
          AB 1329 (Levine)
          As Amended May 1, 2003
          Majority vote.

           UTILITIES AND COMMERCE     11-0                                 
           
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          |Ayes:|Reyes, Richman, Calderon, |     |                          |
          |     |Diaz, Jerome Horton, La   |     |                          |
          |     |Malfa, La Suer, Levine,   |     |                          |
          |     |Nunez, Ridley-Thomas,     |     |                          |
          |     |Wolk                      |     |                          |
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           SUMMARY  :  Codifies six principles of consumer rights for  
          telecommunication services.  Specifically,  this bill  declares  
          that consumers of telecommunication service have the following  
          rights:

          1)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.

          2)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.

          3)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.

          4)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.

          5)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  








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            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.

          6)A right to be free from discrimination, including the 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; and,

             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;









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             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; and,

             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  








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            financial information, demographic or purchasing information  
            without first obtaining the customers consent in writing.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  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.

          Currently, an Administrative Law Judge at PUC is reviewing the  
          interim draft decision and the commissioners are expected to  
          vote on a final decision within the next couple of months.
           

          Analysis Prepared by  :    Daniel Kim / U. & C. / (916) 319-2083 



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