BILL NUMBER: SB 1068 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 30, 2005
AMENDED IN SENATE APRIL 27, 2005
AMENDED IN SENATE MARCH 30, 2005
INTRODUCED BY Senators Escutia and Bowen
(Coauthors: Senators Alarcon, Alquist, Ashburn, Dunn, Figueroa,
Kuehl, and Speier)
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
telecommunications consumer protections that are
at a minimum, as protective as for landline
telecommunications and mobile telephony services, consistent with
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.
The bill would provide that if the commission fails to
adopt rules that include specified requirements by July 1, 2006, the
bill's requirements would become effective as of that date and the
commission would thereafter be prohibited from adopting rules
pursuant to the provisions requiring the adoption of rules.
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 Rights
905.
(a) It is the intent of the Legislature to establish
telecommunications consumer protections that are at a
minimum, as protective as for landline
telecommunications and mobile telephony services, consistent with
those originally adopted by the commission in Decision
04-05-057.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Consumer" means any individual or small commercial entity
that purchases or subscribes, or may potentially purchase or
subscribe, to any product or service provided or billed by a
telephone corporation.
(2) "Contract" means an agreement, including a consumer service
agreement, to supply products or perform services for compensation,
but does not include a tariff or the rates, terms, and conditions
contained in an approved tariff.
(3) "Marketing" means communication initiated by the telephone
corporation intended to attract a consumer to purchase or subscribe
to a product or service, disseminated through television, radio,
newspaper, written material, telemarketing, or the Internet.
(1)
(4) "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.
(5) "Telephone corporation" means a telephone corporation as
defined in Section 234, and includes agents of a telephone
corporation.
(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 written contracts and
disclosures in the same language as used in the 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 clearly and conspicuously
disclose its rates, terms, and conditions of service
and, upon request, provide its customers at the point
of sale and, upon request, provide a consumer with a complete
explanation of the charges comprising the customer's
consumer'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. currently effective
tariffs and the key r ates, terms, and conditions it
currently offers for each nontariffed offering subject to the
commission's jurisdiction, including mobile telephony service
offerings. When services are no longer being offered to new
subscribers, a telephone corporation may limit to current
subscribers of those services, access to those rates, terms, and
conditions of service.
(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.
(3) (A) A telephone corporation shall not bind a consumer to a
term contract that charges a penalty, fee, or other amount due to
cancellation before the end of the term, unless the contract allows
the consumer at least 30 days from initiation of actual service to
cancel without payment of the penalty, fee, or other amount, except
for the payment for use and normal recurring charges applicable to
the use that was incurred before the consumer cancelled and the
reasonable cost of work done to provide the service before the
consumer canceled the service.
(B) A telephone corporation shall provide a customer
consumer with written confirmation of every
order for service and a written copy of each
copy of each available written contract between the telephone
corporation and the customer. consumer.
(C) A contract for service may not incorporate other information
by reference, except where the referenced information is provided in
a commission approved tariff, or 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
consumer'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.
(4) A telephone corporation shall provide each available written
contract to a consumer and make the disclosures required pursuant to
paragraphs (1), (2), and (3) in the same language used in the
marketing of the product or service.
(6)
(5) A telephone corporation may not require
a deposit to establish or reestablish service unless a
customer consumer 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
consumer , and not later than 30 days after basic service is
discontinued.
(7)
(6) 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 consumer . 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. government taxes or other charges
telephone corporations are required by law to collect from consumers
and remit to a governmental entity shall be separately listed in a
separate section of the telephone bill titled "government fees and
taxes." This section of the bill shall not include any charge the
telephone corporation is not required to collect from the consumer
and to remit the entire amount collected from the consumer to the
government.
(8)
(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.
(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.
(8) No telephone corporation shall change a consumer's contract in
a way that results in higher rates or charges or more restrictive
terms or conditions without the express consent of the consumer,
except that a telephone corporation may pass through any increase in
a tax or fee the telephone corporation is required to collect from
the consumer and remit to a governmental entity, or any increase in a
tax or fee that the Federal Communications Commission or the Public
Utilities Commission requires the telephone corporation to pay and
that the telephone corporation remits in its entirety from the
increased amount collected.
(10)
(9) A telephone corporation shall provide
written notice to any customer consumer
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.
consumers.
(11) A telephone corporation shall investigate a customer
(10) A telephone corporation shall
investigate a consumer billing dispute and reach a
determination and communicate that determination to the
customer within 30 days consumer within 30 days of the
date the dispute was communicated to the telephone corporation
. During the investigation of the customer
consumer billing dispute, no late charge or penalty may be
collected from the customer consumer ,
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. consumer. A telephone
corporation shall not provide as a term or condition of service, for
a choice of law other than that of California, or for a forum for
adjudication of disputes other than the county in California in which
the consumer receives the billing. A telephone corporation shall not
hold consumers liable for expenses resulting from
complaints before the commission, other agencies, courts, or
arbitrators.
(12)
(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.
(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.
(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:
(12) A telephone corporation shall provide every residential
consumer, to the extent permitted by existing technology or
facilities, and every mobile telephony service handset that is
technologically compatible with its system, with access to the "911"
emergency dialing system regardless of whether an account has been
established.
(1)
(13) (A) (i)
A telephone corporation billing may not contain
noncommunications related charges unless the telephone corporation
obtains the express written authorization of the customer
consumer to include noncommunications charges on that
consumer's bill 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 consumer and individuals
authorized by the consumer , from placing charges.
(ii) Only charges that the consumer has specifically authorized at
the point of sale may be included on the subscriber's bill. Point of
sale authorization must be provided by use of a PIN number or other
equally reliable security measure.
(2)
(B) 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)
( C ) 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.
(e) If the commission fails to adopt rules within the time limits
specified in subdivision (c), the consumer rights and protections set
forth in subdivision (d) shall be effective and the commission shall
not thereafter adopt rules pursuant to the provisions of this
section.
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.
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CORRECTIONS Text -- Page 3.
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