BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1733
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1733 (Reyes)
          As Amended August 23, 2004
          Majority vote
           
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          |ASSEMBLY:  |76-0 |(April 24,      |SENATE: |25-7 |(August 24,    |
          |           |     |2003)           |        |     |2004)          |
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           Original Committee Reference:   U. & C.  

           SUMMARY  :  Seeks to provide additional privacy protection for  
          wireless telephone numbers.  Specifically,  this bill  :   

          1)Provides that a provider of mobile telephony services (service  
            provider) providing the name and dialing number of a  
            subscriber for inclusion in any directory, or selling the  
            contents of any directory data base, shall not include the  
            dialing number of any subscriber without first obtaining the  
            express consent of that subscriber. 

          2)Requires that the service provider's form for obtaining the  
            subscriber's express consent shall meet all of the specified  
            requirements.

          3)Provides that a subscriber who provides express prior consent  
            may revoke that consent at any time and a service provider  
            must comply with that request within a reasonable time not to  
            exceed 60 days.

          4)Provides that a subscriber may not be charged for making the  
            choice to not be listed in a directory. 

          5)Provides that this bill's provisions do not apply to a  
            telephone corporation to effectuate a customer's request to  
            transfer the customer's assigned telephone number from his or  
            her existing service provider to a new service provider. 

          6)Includes a severability clause and related definitions.

           The Senate amendments  delete the Assembly version of this bill,  
          and instead, insert the above provisions.

           AS PASSED BY THE ASSEMBLY  , this bill required a proposed  








                                                                  AB 1733
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          electricity procurement plan of an electric utility to  
          demonstrate that it furthers the utility's obligation under the  
          state's renewables portfolio standard.  
           
           FISCAL EFFECT  :  None

           COMMENTS  :  This bill was prompted by a recent announcement by  
          the Cellular Telecommunications and Internet Association (CTIA)  
          that it is putting together a national directory of cell phone  
          numbers that could be available by the end of this year.  The  
          directory is expected to include about 75% of the nation's 163  
          million cell phone numbers (Verizon Wireless has said it will  
          not list any of its 39 million customers in the directory).   
          Some experts estimate the directory could generate $3 billion in  
          directory assistance fees and additional minutes sold for  
          wireless companies.

          Many wireless telephone companies have been anticipating the  
          creation of such a directory for some time and have been  
          including in their standard contracts a specific clause that  
          gives permission to publish numbers.  The wireless telephone  
          industry believes there is a need for a cell phone directory  
          because more and more people, about 8 million so far, according  
          to CTIA, are canceling their traditional landline phone service  
          and using only wireless phones.  

          Unlike traditional land line phones, most Wireless phone users  
          currently pay for all incoming calls and text messages, either  
          on a per minute basis or by purchasing a "bucket" of minutes at  
          a fixed rate.  Subscribers can control their bills by  
          controlling who has their phone number.  Consumer and privacy  
          advocates fear the new directory will cause a wave of  
          telemarketing and text message spam to cell phones, and that  
          aside from the nuisance, people will end up paying for sales  
          pitches to their wireless phone. 

          Cellular Phone Industry representatives argue that this bill is  
          unnecessary because they already plan to provide their  
          subscribers with most of the protections required in this bill.   
          They plan to only list a subscriber's number if the customer  
          provides opt-in consent.  They state that currently the do not  
          plan to charge subscribers not to be listed.  However, those  
          oppose to the legislation want the flexibility to change their  
          plans in the future. 









                                                                  AB 1733
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          Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083                                               


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