BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 402
          Author:   Campbell (R)
          Amended:  5/9/05
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMMUNICATIONS COMM.:  9-0, 5/3/05
          AYES:  Morrow, Alarcon, Battin, Bowen, Campbell, Cox, Dunn,  
            Kehoe, Murray
          NO VOTE RECORDED:  Escutia, Simitian


           SUBJECT  :    Telecommunications

           SOURCE  :     Author


           DIGEST  :    This bill, as it relates to the national  
          cellphone number directory, allows a narrow expansion of  
          the written consent requirement to also permit affirmative  
          consent on an Internet website, as specified.

           ANALYSIS  :    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.

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                                                                SB 402
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          This bill changes the express written consent requirement  
          to instead require either express written consent, or an  
          affirmative response made on a separate field on an  
          Internet Web site, where there is no default.

          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, Statutes 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."

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

           SUPPORT  :   (Verified  5/11/05)

          Cingular Wireless

           OPPOSITION  :    (Verified  5/11/05)

          Privacy Rights Clearinghouse









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          NC:nl  5/12/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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