BILL ANALYSIS
AB 535
Page 1
ASSEMBLY THIRD READING
AB 535 (Reyes)
As Amended May 6, 1999
Majority vote
UTILITIES AND COMMERCE 9-3
APPROPRIATIONS 14-7
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|Ayes:|Cardenas, Florez, Kuehl, |Ayes:|Migden, Cedillo, Davis, |
| |Papan, Pescetti, Reyes, | |Hertzberg, Kuehl, Papan, |
| |Steinberg, Wesson, Wright | |Romero, Shelley, |
| | | |Steinberg, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Washington |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Campbell, Frusetta, |Nays:|Brewer, Ashburn, |
| |Maddox | |Campbell, Granlund, |
| | | |Maldonado, Runner, Zettel |
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SUMMARY : Prohibits local exchange carriers that automatically
provide custom calling services on a pay
per use basis from providing such service to a subscriber unless
the subscriber agreed to sign up for the
service by returning a prepaid postcard to the carrier.
Specifically, this bill :
1)Requires local exchange carriers (LEC) that offer per use
custom calling or enhanced features to provide all new
subscribers, including existing customers ordering an
additional line, with information about those calling
features.
2)Requires LECs to inquire whether the subscriber would like to
block any or all of those per use custom calling features.
3)Requires all customers be notified about per use custom
calling features, the charges for activation, any additional
charges and detailed information about the ability to block
the features not later than January 31, 2000.
4)Requires that the notice contain a toll free number and a
pre-paid postcard that subscribers may use to block any or all
AB 535
Page 2
of the per use custom calling features.
5)Specifies that a subscriber that has not blocked the per use
features is not prohibited from obtaining a bill adjustment
for the inadvertent or unauthorized activation of the per use
services.
EXISTING LAW authorizes California Public Utilities Commission
(CPUC) to investigate the billing practices of every telephone
corporation in billing its subscribers.
Requires every telephone corporation to annually issue to its
customers a listing of the residential telephone services it
provides, the rates or charges for those services and the state
or federal regulatory agency responsible for regulation of those
services.
FISCAL EFFECT : None
COMMENTS : The author has introduced this bill to address a
number of complaints filed with the 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. 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. This bill would require
LECs to inform all new and existing customers during the verbal
service order process with information about those features and
inquire whether they would like to block those features. This
bill also requires LECs to notify all customers not later than
January 31, 2000 about the per use custom calling features, the
charges for activation and any additional charges, as well as
detailed information about the ability to block those features.
Some of these custom-calling features have been available for
over three years. Three-way calling, which appears to be
causing the greatest concern to the author, has been available
for only one year. It is necessary to dial a code in order to
activate call return or repeat dialing. Three way-calling, on
the other hand, does not require a code, but is activated by
depressing the flash or switch hook while on a call with one
AB 535
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person, dialing another number, and then depressing the flash or
switch hook again to connect all three parties. Opponents
attest that the billing does not begin until all three parties
have been on the line for 18 seconds. ORA has received some
complaints indicating that there is customer confusion on the
use of the features. Since the services are already active, the
author requires that customers be given the opportunity to block
the per use custom features by returning a pre-paid postcard
furnished by LECs.
Opponents assert that the subscribers are always notified that
such services will be available in advance of the time when the
services are first offered. Opponents also indicate the current
CPUC process requires that customers be educated on the price,
accessing, terms and conditions in using per use custom calling
features. Additionally, CPUC is going to be initiating a
rulemaking procedure to establish consumer protection rules for
the telecommunications industry where these issues can be
explored further.
Analysis Prepared by : Carolyn Veal-Hunter / U. & C. / (916)
319-2083
FN: 0000743