BILL NUMBER: AB 2799	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Calderon

                        FEBRUARY 20, 2004

   An act to amend Section 2890 of the Public Utilities Code,
relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2799, as introduced, Calderon.  Telecommunications:  billings.
   Existing law requires that when a person or corporation obtains a
written order for a telecommunications product or service, the
written order be a separate document from any solicitation material.
Existing law requires that written orders and written solicitation
materials be unambiguous, legible, be in at least 10-point type, and
be in the same language.  Existing law prohibits written orders being
used as entry forms for sweepstakes, contests, or other programs
that offer prizes or gifts.
   This bill would instead require that when a telephone corporation
mails solicitation materials that were not requested, that advertise
a product or service that may be ordered through execution and return
of an enclosed ordering form that is not conditioned upon the
telephone corporation providing further documentation or disclosure
of the terms of the agreement, then the essential terms of the
agreement are to be set forth clearly, conspicuously, and legibly in
the ordering form, in a minimum 10-point type, and in the same
language as the solicitation materials.  The bill would prohibit a
telephone corporation from using as an order form for product or
services, an entry form for sweepstakes, contests, or other programs
that offer prizes or gifts.
   Existing law requires a telephone bill to only contain charges for
products or services the purchase of which the subscriber has
authorized.  Existing law requires that telephone bills include
information concerning the nature of the charges, dispute resolution,
and complaint procedures that establish certain rebuttable
presumptions relative to whether a charge has been authorized.
   This bill would provide means to make a prima facie showing of
authorization.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 2890 of the Public Utilities Code is amended to
read:
   2890.  (a) A telephone bill may only contain charges for products
or services, the purchase of which the subscriber has authorized.
   (b) When a  person or corporation obtains a written order
for a product or service, the written order shall be a separate
document from any solicitation material.  The sole purpose of the
document is to explain the nature and extent of the transaction.
Written orders and written solicitation materials shall be
unambiguous, legible, and in a minimum 10-point type.  Written or
oral solicitation materials used to obtain an order for a product or
service shall be in the same language as the written order.  Written
orders may not be used as entry forms   telephone
corporation mails written solicitation materials to an existing or
prospective customer that advertise a product or service that may be
ordered through execution and return of an enclosed ordering form not
conditioned upon the telephone corporation providing further
documentation or disclosure of the terms of the agreement, without
having first received a request for information about its products or
services, the essential terms of the agreement shall be set forth
clearly, conspicuously, and legibly in the ordering form, in a
minimum 10-point type, and in the same language as the solicitation
materials.  No telephone corporation may use an order form for
product or services that is an entry form  for  a 
sweepstakes, contests, or any other program that offers prizes or
gifts.
   (c) The commission may only permit a subscriber's local telephone
service to be disconnected for nonpayment of charges relating to the
subscriber's basic local exchange telephone service, long-distance
telephone service within a local access and transport area
(intraLATA), long-distance telephone service between local access and
transport areas (interLATA), and international telephone service.
   (d)  (1)  A billing telephone company shall
clearly identify, and use a separate billing section for, each
person, corporation, or billing agent that generates a charge on a
subscriber's telephone bill.  A billing telephone company may not
bill for a person, corporation, or billing agent, unless that person,
corporation or billing agent complies with  paragraph (2)
  subdivision (e)  .  
   (2)  
   (e)  Any person, corporation, or billing agent that charges
subscribers for products or services on a telephone bill shall do all
of the following:  
   (A)  
   (1)  Include, or cause to be included, in the telephone bill
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.  
   (B)  
   (2)  Include, or cause to be included, for each entity that
charges for a product or service, information with regard to how to
resolve any dispute about that charge, including the name of the
party responsible for generating the charge and a toll-free telephone
number or other no cost means of contacting the entity responsible
for resolving disputes regarding the charge and a description of the
manner in which a dispute regarding the charge may be addressed.
Each telephone bill shall include the appropriate telephone number of
the commission that a subscriber may use to register a complaint.

   (C)  
   (3)  Establish, maintain, and staff a toll-free telephone
number to respond to questions or disputes about its charges and to
provide the appropriate addresses to which written questions or
complaints may be sent.  The person, corporation, or billing agent
that generates a charge may also contract with a third party,
including, but not limited to, the billing telephone corporation, to
provide that service on behalf of the person, corporation or billing
agent.  
   (D)  
   (4)  Provide a means for expeditiously resolving subscriber
disputes over charges for a product or service, the purchase of which
was not authorized by the subscriber.  In the case of a dispute,
there is a rebuttable presumption that an unverified charge for a
product or service was not authorized by the subscriber and that the
subscriber is not responsible for that charge.  With regard to direct
dialed telecommunications services, evidence that a call was dialed
is prima facie evidence of authorization.  If recurring charges arise
from the use of those subscriber-initiated services, the recurring
charges are subject to this section.   For any charge subject to
a rebuttable presumption under this paragraph, the existence of a
customer contract with terms requiring or authorizing the telephone
corporation to provide the product or service, or the existence of a
pattern of usage of the product or service, is prima facie evidence
of authorization.  
   (e)  
   (f)  If an entity responsible for generating a charge on a
telephone bill receives a complaint from a subscriber that the
subscriber did not authorize the purchase of the product or service
associated with that charge, the entity, not later than 30 days from
the date on which the complaint is received, shall verify the
subscriber's authorization of that charge or undertake to resolve the
billing dispute to the subscriber's satisfaction.  
   (f)  
   (g)  For purposes of this section, "billing agent" is the
clearinghouse or billing aggregator.  
   (g) This section shall become operative on July 1, 2001.