BILL NUMBER: AB 535	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Reyes

                        FEBRUARY 18, 1999

   An act to add Section 2889.4 to the Public Utilities Code,
relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 535, as introduced, Reyes.    Telecommunications: services.
   Existing law requires telephone corporations to provide specified
customer and subscriber services.
   This bill would require a local exchange service provider that
automatically provides custom calling or enhanced calling telephone
services billed on a per use basis to a residential subscriber of
basic exchange service to notify all residential subscribers of those
services by including in the regular bill for service a postcard
with return postage guaranteed, listing the names and descriptions of
each service to be billed on a per use basis, and the cost of each
use.  The bill would prohibit that service provider from providing
any service listed on the postcard to a subscriber without the
authorization of the subscriber to those services, as prescribed. The
bill would, except as specified, exempt residential subscribers from
liability for any charge for the use of a telephone service billed
on a per use basis unless the service provider has received that
authorization.  The bill would authorize a residential subscriber
that has authorized the provision of telephone services billed on a
per use basis to file a claim with the service provider for the
reimbursement of charges for the inadvertent or unauthorized use of
telephone services billed on a per use basis, and would require the
service provider to reimburse that subscriber under those
circumstances.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 2889.4 is added to the Public Utilities Code,
to read:
   2889.4.  (a) A local exchange service provider that automatically
provides custom calling or enhanced calling telephone services billed
on a per use basis to a residential subscriber of basic exchange
service shall notify all residential subscribers by including in the
regular bill for service a postcard with return postage guaranteed,
listing the names and descriptions of each service offered by the
service provider, to be billed on a per use basis, and the cost of
each use, including information on applicable charges such as tolls
for a connected call.  The service provider may not provide any
service listed on the postcard notice to a subscriber without the
authorization of the subscriber to those services, as indicated by
the return of the postcard to the service provider with the
subscriber's signature, telephone number, and service address.
   (b) (1) Except as specified in paragraph (2), a residential
subscriber may not be liable for any charge for the use of a
telephone service billed on a per use basis unless the service
provider has received authorization from that subscriber pursuant to
subdivision (a).
   (2) A current subscriber may be liable for any charge for the use
of a telephone service billed on a per use basis used within 14 days
from the date that notification was sent by the service provider
pursuant to subdivision (a), but may not be liable for charges
incurred thereafter, unless the service provider has received
authorization from that subscriber pursuant to subdivision (a).
   (c) A residential subscriber that has authorized the provision of
telephone services billed on a per use basis in accordance with
subdivision (a) may file a claim with the service provider for the
reimbursement of charges for the inadvertent or unauthorized use of
telephone services billed on a per use basis, and the service
provider, under those circumstances, shall reimburse that subscriber.

   (d) As used in this section, the following terms have the
following meanings:
   (1) "Current subscriber" means a residential subscriber of a local
exchange service provider as of December 31, 1999.
   (2) "New subscriber" means a person who initiates a subscription
to residential service from a local exchange service provider that
begins on or after January 1, 2000.