BILL ANALYSIS                                                                                                                                                                                                              1
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                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

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                                      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