BILL NUMBER: SB 1068 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 30, 2005
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 amended, 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
Rights
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
the following terms have the following meanings:
(1) "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.
(2) "Contract" means an agreement to supply products or perform
services for compensation, and includes a customer service agreement
for tariffed services.
(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. This includes
the right to receive available contracts and disclosures in the same
language as used in th e marketing of the product or
service.
(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.
A telephone corporation shall publish, and keep current on an
Internet Web site, the rates, terms, and conditions for services it
offers for services for which it currently has customers.
(2) A telephone corporation shall make no statement about rates
and services that is deceptive, untrue, or misleading.
(3) (A) A customer may cancel, without
termination fees or penalties, any new service or contract for
service within 30 days after the new service or contract for service
is initiated.
(B) 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.
(C) A contract for service may not incorporate other information
by reference, except where the referenced information is provided in
a separate document provided simultaneously with the contract.
(D) A written confirmation shall include the rates, terms, and
conditions of service, including the customer's right to cancel the
service within 30 days.
(4) A telephone corporation shall provide a
contract to a customer and make the disclosures required pursuant to
paragraphs (1) and (2) in the same language used to advertise the
product or service, upon the customer's request.
(5) 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)
(6) 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)
(7) Every telephone corporation billing
statement shall be clearly organized and contain a clear and
concise description of the product or service for which the
charges are imposed. Every billing statement 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)
(8) 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)
(9) A telephone corporation shall not change a customer's contract
in a way that results in higher rates or more restrictive terms or
conditions without the express consent of the customer.
(10) 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)
(11) 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. A
telephone corporation shall not hold customers liable for costs
resulting from complaints before the commission, other agencies, or
arbitrators.
(11)
(12) 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)
(13) 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)
(14) 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.