BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN AB 1379 - Calderon Hearing Date: July 8, 2003 A As Amended: June 30, 2003 Non-FISCAL B 1 3 7 9 DESCRIPTION Current law requires cellular phone companies to provide customers with a means of obtaining reasonably current information on service usage, as determined by the cellular phone company, by January 1, 2004. This bill adds roaming usage and charges to the information that must be provided by the cellular phone company, if feasible, and extends the deadline for implementation to January 1, 2005. BACKGROUND Most cellular telephone service plans include a specified number of minutes of service in the monthly price. Minutes beyond that specified number are subject to additional, relatively high charges, which motivate customers to try and keep close track of their usage. For example, a typical plan might cost $39.99/month, which includes up to 400 minutes of service (10 cents a minute if the customer uses all 400 minutes), but that 401st minute and every minute of usage after that may cost customers 40 cents apiece. In response to this concern, the Legislature passed, and the Governor signed, SB 1903 (O'Connell), Chapter 286 of the Statutes of 2002, which required cellular phone companies to provide customers with reasonably current information on usage. Recognizing the technical limitations on obtaining up to the moment usage information, the statute provided the cellular companies with flexibility by allowing them to determine what information is current and available. COMMENTS 1.We'd Also Like To Know . . . This bill requires cellular phone companies to provide customers with current information on roaming charges and usage upon customer inquiry, if the cellular phone company determines that such information is available. This is a modest expansion of existing law. 2.. . . But Not Until The Following Year . Giving customers access to their current account information isn't an uncommon practice. Many credit card companies, banks, and long distance telephone companies provide customers with up-to-date information on their account balances via telephone or the Internet. This bill proposes to take a step backwards by extending the deadline for cellular companies to provide customers with usage information by one year. It's unclear why such an extension is necessary or warranted, especially in light of the fact that companies already collect and maintain this information for billing purposes. The author and committee may wish to consider removing the language proposing to delay the effective date of SB 1903 by one year. 3.Related Legislation . AB 909 (Reyes) requires telephone companies to, upon request of a customer, provide information on the number of landline long distance minutes they've used during a given billing period. That measure is scheduled for hearing today in the Senate Energy, Utilities, & Communications Committee. ASSEMBLY VOTES Assembly Floor (73-0) Assembly Utilities and Commerce Committee (8-4) POSITIONS Sponsor: Author Support: Office of Ratepayer Advocates Oppose: None on file Randy Chinn AB 1379 Analysis Hearing Date: July 8, 2003