BILL NUMBER: AB 535	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   MAY 6, 1999
	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 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   offers per use custom calling or
enhanced features to provide a new subscriber, including an existing
customer ordering an additional line, during the verbal service order
process, with information about those features.  The bill would
require the representatives of a provider to advise that subscriber
of the availability of blocking for these features, and to inquire as
to whether the subscriber would like to block any or all of these
features.  The bill would require a local exchange service provider
that offers these features to advise an existing subscriber who
inquires about the features, or who seeks a bill adjustment for the
inadvertent or unauthorized use of per use custom calling features,
that the features can be blocked, and to inquire as to whether the
subscriber would like to block any or all of the features.  The bill
would require a local exchange service provider that offers these
features to provide a prescribed notice to all existing subscribers
not later than January 31, 2000, describing all features provided on
a per use basis, the charge for each activation, any additional
charges, and detailed information about the ability to block these
features  .
   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) (1) A  
   2889.4.  (a) A local exchange service provider that offers per use
custom calling or enhanced features shall provide a new subscriber,
including an existing customer ordering an additional line, during
the verbal service order process, with information about those
features.  The representatives of a provider shall advise that
subscriber of the availability of blocking for these features and
shall inquire as to whether the subscriber would like to block any or
all of the features.
   (b) (1) A local exchange service provider that offers the features
described in subdivision (a) shall advise an existing subscriber who
inquires about the features, or who seeks a bill adjustment for the
inadvertent or unauthorized use of per use custom calling features,
that the features can be blocked and shall inquire as to whether the
subscriber would like to block any or all of the features.
   (2) (A) A local exchange service provider that offers the features
described in subdivision (a) shall provide notice to all existing
subscribers not later than January 31, 2000, describing all features
provided on a per use basis, the charge for each activation, any
additional usage or other charges, and detailed information about the
ability to block these features.
   (B) The notice shall contain a toll free number for further
information and shall contain a pre-paid postcard that subscribers
may return if they wish to block any or all of the per use features.

   (c) Nothing in subdivisions (a) or (b) precludes a local exchange
service subscriber that has not blocked per use features from
obtaining a bill adjustment for the inadvertent or unauthorized
activation of those per use services that do not require coded
dialing to access, including any additional usage charges associated
with accessing two calls at one time.   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 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 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
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 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 local exchange
carrier pursuant to subdivision (a), but may not be liable for
charges incurred thereafter, unless the 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 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.