BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 535
                                                          Page  1

Date of Hearing:   May 12, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

            AB 535 (Reyes) - As Amended: May 6, 1999 

Policy Committee:                              Utilities and  
Commerce     Vote:                             9-3

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

This bill prohibits local exchange carriers that automatically  
provide custom calling services on a pay-per-use basis from  
providing such service if a subscriber indicates they wish to  
block the services by returning a prepaid notification postcard  
to the carrier.

  FISCAL EFFECT  :

No state fiscal impact.

  COMMENTS  :

  1)Purpose  .  The author has introduced this bill to address  
  complaints filed with the PUC's Office of Ratepayer Advocates  
  (ORA).  Customers have complained that they have been billed  
  in error for using per use custom-calling features, such as  
  Call-Return, Repeat Dialing, and Three-Way Calling, that they  
  inadvertently activated.  Many of the complainants were  
  unaware that per use custom-calling features were available as  
  part of their telephone service until the charges appeared on  
  their bills.  According to the author, the use of a postcard  
  in a regular bill for service is an effort to reduce the costs  
  associated with informing all subscribers of the services the  
  LEC offers.

  2)Opponents  argue that customers were informed that the services  
  would be available in advance of the time when the services  
  were first offered and that the PUC will soon be adopting a  
  rulemaking procedure to establish consumer protection rules  
  for the telecommunication industry based on findings of fact  








                                                         AB 535
                                                          Page  2

  and conclusions of law.  

  
Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081