BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            MARTHA M. ESCUTIA, CHAIRWOMAN
          

          SB 402 -  Campbell                                Hearing Date:   
          May 3, 2005                S
          As Amended:         April 6, 2005                 Non-FISCAL      
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                                      DESCRIPTION
           
           Current law  requires that cellular telephone companies and their  
          agents must obtain the express written consent of customers  
          before including their name and telephone number in any  
          directory.

           Current law  requires that when the customer could be billed for  
          unsolicited calls or text messages, the cellular telephone  
          company and its agents must disclose that the customer, by  
          consenting to including their number in a directory, may incur  
          additional charges.

           This bill  changes the express written consent requirement to  
          instead require either express written consent, a response made  
          on a separate field on an Internet Web site, or a response to a  
          separate question when the customer calls a customer service  
          center.

           This bill  deletes the requirement for customer notice that  
          consenting to be listed in a directory may cause the customer to  
          incur additional charges.


                                      BACKGROUND
           
          The revelation that the Cellular Telecommunications and Internet  
          Association (CTIA) was creating a national cellphone number  
          directory was greeted by much concern over the loss of privacy  
          and the potential for unwanted calls and e-mail, which the  
          customer would pay for.  Federal and state legislation requiring  











          prior consent was introduced.  California's legislation was  
          enacted (AB 1733 - Reyes: Chapter 753 of 2004).  In signing the  
          bill the Governor noted concerns:

               "?this bill requires consent to be obtained on a  
               separate document that the customer must physically  
               sign and date.  This over burdensome provision does  
               not take into account modern business practices  
               developed for consumer ease and greater business  
               efficiencies such as digital files and over the phone  
               approvals.

               I look forward to working with the legislature next  
               session to revise the consent provision to represent  
               actual modern day business practice."







































                                       COMMENTS
           
          In addition to then-Assemblyman Campbell, AB 1733 was jointly  
          authored by Senator Bowen and Assemblyman Levine.  The author  
          has been in negotiations with those legislators to develop a  
          consensus approach to meeting the Governor's concerns.
           
          Consensus has not yet been achieved.  There are two areas of  
          concern.  The first deals with consent via telephone. The  
          concern with obtaining consent over the telephone is that it  
          allows the customer to be persuaded that inclusion in a  
          directory would be in his/her interest.  Worse, it allows for  
          incomplete, or even misleading, disclosure because the  
          communication between the cellular company service  
          representative and the customer is not monitored.  

          The second concern is that the bill deletes the current  
          requirement that customers be notified that by opting in the  
          customer is consenting to have his/her number sold or licensed,  
          which may result in his/her incurring increased costs.

          There seems to be a consensus to allow a narrow expansion of the  
          written consent requirement to also permit  affirmative  consent  
          on a separate field on an Internet Website with an electronic  
          confirmation.  Other changes to the existing statute are not a  
          consensus.  The author and committee may wish  to adopt only  
          these amendments.


                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          Cingular Wireless

           Oppose:
           
          Privacy Rights Clearinghouse












          






          Randy Chinn 
          SB 402 Analysis
          Hearing Date:  May 3, 2005