BILL NUMBER: SB 1068 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Escutia and Bowen
(Coauthors: Senators Alarcon and Figueroa)
FEBRUARY 22, 2005
An act to add Article 11 (commencing with Section 905) to Chapter
4 of Part 1 of Division 1 of the Public Utilities Code, relating to
telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
SB 1068, as introduced, Escutia. Telecommunications: consumer
protection.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
Pursuant to existing law, the commission adopted a general order
applicable to all commission-regulated telecommunications utilities
known as the telecommunications consumers' Bill of Rights.
This bill would state the intent of the Legislature to establish
consumer protections that are at a minimum, as protective as those
originally adopted by the commission in the telecommunications
consumers' Bill of Rights. The bill would require that the
commission, by July 1, 2006, develop and enforce consumer protection
rules for telecommunications service, including mobile telephony
services, as defined, that achieve certain policies and meet
specified requirements. The bill would additionally require that the
commission, by July 1, 2006, develop and enforce consumer protection
rules for charges for noncommunications services on telephone
corporation billings, that meet specified requirements.
Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime.
Certain provisions of this bill would be part of the act and an
order or other action of the commission would be required to
implement certain of the provisions. Because a violation of the bill'
s provisions or of an implementing order or decision of the
commission would be a crime, this bill would impose a state-mandated
local program by creating new crimes.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 11 (commencing with Section 905) is added to
Chapter 4 of Part 1 of Division 1 of the Public Utilities Code , to
read:
Article 11. Telecommunications Bill of Right
905. (a) It is the intent of the Legislature to establish
consumer protections that are at a minimum, as protective as those
originally adopted by the commission in Decision 04-05-057. (b) For
purposes of this section, "mobile telephony services" means
commercially available interconnected mobile phone services that
provide access to the public switched telephone network (PSTN) via
mobile communication devices employing radiowave technology to
transmit calls, including cellular radiotelephone, broadband Personal
Communications Services (PCS), and digital Specialized Mobile Radio
(SMR). "Mobile telephony services" does not include mobile satellite
services or mobile data services used exclusively for the delivery of
nonvoice information to a mobile device.
(c) The commission shall, by July 1, 2006, develop and enforce
consumer protection rules for telecommunications service, including
mobile telephony services, that achieve all of the following
policies:
(1) A consumer has a right to receive clear and complete
information about rates, terms, and conditions for available products
and services, and to be charged only according to the rates, terms,
and conditions to which the consumer has agreed.
(2) A consumer has a right to select services and vendors, and to
have the consumer's choices respected by telecommunications service
providers.
(3) A consumer has a right to personal privacy, to be protected
from unauthorized use of the consumer's records and personal
information, and to reject intrusive communications and technology.
(4) A consumer has a right to participate in public policy
proceedings, to be informed of his or her rights and what agencies
enforce those rights, and to have effective recourse if his or her
rights are violated.
(5) A consumer has a right to accurate and understandable bills
for products and services authorized by the consumer, and to fair,
prompt, and courteous redress for problems the consumer encounters.
(6) A consumer has the right to be treated equally with all other
similarly situated consumers, free of prejudice or disadvantage.
(7) A consumer has a right to safety and security of person and
property.
(d) The rules adopted by the commission pursuant to subdivision
(c) shall include all of the following requirements:
(1) A telephone corporation shall disclose its rates, terms, and
conditions of service and, upon request, provide its customers with a
complete explanation of the charges comprising the customer's bill.
(2) A telephone corporation shall make no statement about rates
and services that is deceptive, untrue, or misleading.
(3) A telephone corporation shall provide a customer with written
confirmation of every order for service and a written copy of each
contract between the telephone corporation and the customer. A
customer may cancel, without termination fees or penalties, any new
service or contract for service within 30 days after the new service
is initiated.
(4) Every advertisement of the price, rate, or unit value of a
prepaid calling card or prepaid calling service shall include a
disclosure of any geographic limitation on the advertised price, any
minimum charges, any expiration policies, and any relevant fees or
surcharges. If any language other than English is used in the
advertising or promotion of the prepaid calling card or prepaid
calling service the disclosure shall be in that language.
(5) A telephone corporation may not require a deposit to establish
or reestablish service unless a customer is unable to demonstrate
acceptable credit. No deposit imposed by a telephone corporation may
exceed twice the estimated monthly bill for basic service. Every
deposit shall be refunded after one continuous year of timely
payments for basic service by the customer, and not later than 30
days after basic service is discontinued.
(6) Every telephone corporation billing statement shall be clearly
organized and may only contain charges for products and services
which have been authorized by the customer. All mandated government
taxes, surcharges, and fees required to be collected from customers
and to be remitted to federal, state, or local governments shall be
separately listed and identified as "government fees and taxes." This
section of the billing shall not include any charges for which the
telephone corporation is not required to remit the moneys to the
government.
(7) A telephone corporation shall credit payments effective the
business day payments are received by the telephone corporation or
its agent. No billing shall include any previously unbilled charge
for intrastate service furnished more than three months immediately
preceding the date of the billing, except that the billing may
include roaming charges for mobile telephony services on a system
other than the subscriber's home system for up to four months
immediately preceding the date of the billing, and the billing may
include charges for collect, third-party, and calling card calls for
up to the five months immediately preceding the date of the billing.
Telephone corporations shall prorate charges for basic service for
partial months. Billings shall be based on the rates in effect at the
time the service was used.
(8) A telephone corporation shall provide reasonable notice to all
affected customers of every proposed change in the customer's
service agreement or any contract change that may result in higher
rates or charges or more restrictive terms or conditions and any
service agreement or contract change may not be implemented without
the express consent of the customer.
(9) A telephone corporation shall provide written notice to any
customer whose payments are overdue not less than seven calendar days
prior to terminating service for nonpayment. Basic exchange service
may not be disconnected on any day that telephone corporation
representatives are not available to assist customers.
(10) A telephone corporation shall investigate a customer billing
dispute and reach a determination and communicate that determination
to the customer within 30 days. During the investigation of the
customer billing dispute, no late charge or penalty may be collected
from the customer, the charge in dispute may not be sent to
collection, and no adverse credit report may be filed as to the
customer. Disputes shall be resolved pursuant to California law and
the forum for adjudication of disputes shall be the county in
California in which the customer receives the billing or the customer'
s primary place of use of the service.
(11) A telephone corporation shall designate one or more
representatives to be available during regular business hours to
accept Consumer Affairs Branch inquires from the commission. The
telephone corporation shall provide all documents and information
requested by the branch.
(12) A telephone corporation shall issue an identification card to
every employee who has occasion to enter the premises of customers
on behalf of the telephone corporation. No telephone corporation
shall misrepresent, or allow its employees to misrepresent, its
association or affiliation with the corporation when soliciting or
implementing the customer's agreement to purchase products or
services.
(13) A telephone corporation shall provide every residential
customer, and every mobile telephony handset that is technologically
compatible with its system, with access to the 9-1-1 emergency
dialing system regardless of whether an account has been established.
(e) The commission shall, by July 1, 2006, develop and enforce
consumer protection rules for charges for noncommunications services
on telephone corporation billings, that include all of the following:
(1) A telephone corporation billing may not contain
noncommunications related charges unless the telephone corporation
obtains the express written authorization of the customer and the
telephone corporation uses a Personal Identification Number (PIN) or
other equally reliable security procedure approved by the commission,
that is designed to prevent persons or entities other than the
customer and individuals authorized by the customer, from placing
charges.
(2) A telephone corporation shall take reasonable precautions to
screen vendors and billing agents before agreeing to provide billing
services for noncommunications related charges by the vendor or
billing agent, in order to screen out unreliable or untrustworthy
business entities.
(3) A telephone corporation shall not disconnect basic telephone
service for nonpayment of noncommunications related charges.
(4) A telephone corporation shall separately identify all
noncommunications related charges on every billing, with clear and
concise descriptions of the product or service for which a charge has
been imposed.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of
Article XIII B of the California Constitution because the only costs
that may be incurred by a local agency or school district will be
incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.