BILL ANALYSIS
AB 535
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 535 (Reyes)
As Amended August 17, 1999
Majority vote
ASSEMBLY: 43-28 ( May 20, 1999 )
SENATE: 25-12 ( August 26, 1999 )
Original Committee Reference: U. & C.
SUMMARY : Prohibits local exchange carriers (LECs) 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.
The Senate amendments :
1)Limit the application of this bill to pay per use features
that do not require an access code to be dialed to activate.
2)Clarify that this bill is applicable to residential
subscribers only.
3)Extend the date by which subscribers shall be notified of the
ability to block the above-described features from January 31,
2000 to May 1, 2000.
4)Modify the means by which customers may notify LEC of their
desire to block these service from a pre-paid postcard to a
postcard sized bill insert.
5)Limit the number of times a subscriber may seek adjustment to
a one-time bill adjustment to during the first billing cycle
the subscriber notifies LEC.
6)Authorizes LEC to provide additional bill adjustments at its
discretion.
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
AB 535
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provides, the rates or charges for those services and the state
or federal regulatory agency responsible for regulation of those
services.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required LECs that offer pay-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)Required LECs to inquire whether the subscriber would like to
block any or all of those pay-per-use custom calling features.
3)Required all customers be notified about pay-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)Required that the notice contain a toll free number and a
pre-paid postcard that subscribers may use to block any or all
of the pay-per-use custom calling features.
5)Specified that a subscriber that has not blocked the
pay-per-use features is not prohibited from obtaining a bill
adjustment for the inadvertent or unauthorized activation of
the pay-per-use services.
FISCAL EFFECT : None
COMMENTS : This bill addresses a number of complaints filed with
the Office of Ratepayer Advocates (ORA) regarding the
inadvertent use of pay per use calling features. The amendments
restrict this bill to those services that do not require dialing
an access code. It is assumed that when a customer dials an
access code that they have made a conscience decision to do so.
Limiting the number times a customer can seek an adjustment to
their bill to one time will eliminate the possibility of
fraudulent use of pay pay-per-use services.
An additional key amendment eliminated the requirement that the
customer notification of the ability to block these services
contain a pre-paid postcard. Opponents to this bill indicated
that that requirement would result in substantial costs. As
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amended customers seeking to block these services may return the
bill insert in billing envelope.
Analysis Prepared by : Carolyn Veal-Hunter / U. & C. / (916)
319-2083
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