BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1104
          Author:   Levine (D)
          Amended:  8/25/05 in Senate
          Vote:     21

           
           SEN. ENERGY, UTIL. & COMMUNICATIONS COMM.  :  9-0, 6/21/05
          AYES:  Escutia, Morrow, Alarcon, Bowen, Campbell, Cox,  
            Dunn, Murray, Simitian
          NO VOTE RECORDED:  Battin, Kehoe

           ASSEMBLY FLOOR  :  73-0, 5/9/05 - See last page for vote


           SUBJECT  :    Video provider billing practices

           SOURCE  :     Author


           DIGEST  :    This bill ensures that video service customers  
          are not billed after requesting to have their service  
          terminated.

           Senate Floor Amendments  of 8/25/05 are technical.  They  
          rewrite the provision to clarify its intent.

           ANALYSIS  :    Current law establishes minimum statewide  
          customer service rules for video service providers, which  
          include cable television service, satellite television  
          service, and another other retail provider of video  
          service.

          This bill adds to those rules a requirement that a video  
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                                                               AB 1104
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          2

          provider shall cease charging a customer for services  
          within seven business days of receiving a request to  
          terminate service.  The bill provides that if the customer  
          provides seven or more business days notice before the date  
          for termination of service, the provider shall cease  
          charging for additional services as of midnight of the last  
          day of service.  A video provider could continue to provide  
          the service after seven days but could not charge for such  
          service.  The bill states, however, that it does not  
          prohibit a provider from billing for charges incurred by  
          the customer prior to the date for termination of service.

           Background

           Current law provides a number of protections for cable and  
          satellite television service customers.  These include a  
          requirement to make repairs promptly, posting customer  
          payments promptly, having knowledgeable company  
          representatives available to respond to customer telephone  
          inquiries during normal business hours, and providing  
          adequate notice before raising rates or deleting channels.

          This bill deals with the problem of cable operators  
          continuing to bill for service after the customer has  
          terminated the service and paid for the service up to the  
          termination date.  In other words, the customer has  
          discontinued service, has paid all charges, but continues  
          to be billed for services which are not delivered.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Bass, Benoit, Berg,  
            Bermudez, Blakeslee, Bogh, Canciamilla, Chan, Chavez,  
            Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore,  
            Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg,  
            Hancock, Harman, Jerome Horton, Shirley Horton, Huff,  
            Jones, Karnette, Keene, Klehs, La Malfa, La Suer, Laird,  
            Leno, Levine, Lieber, Matthews, Maze, McCarthy, Montanez,  
            Mountjoy, Mullin, Nakanishi, Nation, Nava, Negrete  
            McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman,  
            Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas,  
            Spitzer, Strickland, Torrico, Tran, Umberg, Vargas,  







                                                               AB 1104
                                                                Page  
          3

            Villines, Walters, Wolk, Wyland, Yee, Nunez
          NO VOTE RECORDED:  Calderon, Gordon, Haynes, Houston,  
            Koretz, Leslie, Liu


          NC:cm  8/26/05   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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