BILL NUMBER: AB 535	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   APRIL 7, 1999

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 amended, Reyes.  Telecommunications: services.
   Existing law requires telephone corporations to provide specified
customer and subscriber services.
   This bill would require a local exchange  service provider
  carrier 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   local exchange carrier
 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 also require a local
exchange carrier to provide to each new subscriber, as defined,
during the verbal initiation of a subscription to residential
service, the information to be included in the above-described
postcard.  The bill would require a local exchange carrier to inform
any new subscriber of the option to block any service feature during
that subscription transaction, to permit a new subscriber to
authorize the activation or blocking of any service feature during
the subscription transaction, and to send a service confirmation
letter subsequent to subscription, as specified.  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  
local exchange carrier  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
  obtain from the local exchange carrier an adjustment
of the subscriber's bill for the inadvertent or unauthorized
activation of that telephone service  .
   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 
 (1) A local exchange carrier  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   local exchange carrier  , 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   local exchange carrier
 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   local exchange carrier 
with the subscriber's signature, telephone number, and service
address.   The local exchange carrier shall submit the content of
a proposed postcard notification to the commission for approval
prior to its inclusion in the bills of that local exchange carrier.
   (2) A local exchange carrier shall also provide to each new
subscriber, during the verbal initiation of a subscription to
residential service, the information to be included in a notification
pursuant to paragraph (1).  A local exchange carrier shall
additionally inform any new subscriber of the option to block any
service feature.  A local exchange carrier shall permit a new
subscriber to authorize the activation or blocking of any service
feature during the verbal subscription transaction.  The local
exchange carrier shall send a service confirmation letter subsequent
to a verbal subscription and shall include in the letter the name,
function, and activation charge for each custom calling feature and
indicate whether the subscriber has blocked any named service
feature. 
   (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   local exchange carrier  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   local exchange carrier  pursuant to
subdivision (a), but may not be liable for charges incurred
thereafter, unless the  service provider   local
exchange carrier  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.
  obtain from the local exchange carrier an adjustment
of the subscriber's bill for the inadvertent or unauthorized
activation of a telephone service billed on a per use basis. 
   (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.   "New subscriber" also
includes an existing subscriber who orders a new telephone line to be
added to existing service.