BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 932|
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THIRD READING
Bill No: SB 932
Author: Bowen (D)
Amended: 4/20/99
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE : 6-3, 4/13/99
AYES: Bowen, Baca, Hughes, Solis, Speier, Vasconcellos
NOES: Brulte, Kelley, Mountjoy
NOT VOTING: Alarcon, Peace
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Telecommunications: service: notice
SOURCE : Author
DIGEST : This bill creates several new protections for
telephone customers.
ANALYSIS : Current law requires telephone service to be
provided in a just and reasonable manner.
This bill creates several new protections for telephone
customers:
1.Customers have a five day right of recission on new
telephone services and features.
2.A customer may not be charged for a service which has
not been used.
CONTINUED
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3.Customers shall be reimbursed for any charge resulting
from the inadvertent or unauthorized use of the service.
4.Telecommunications companies must provide customers with
clear information prior to purchase.
5.The California Public Utilities Commission (CPUC) shall
create a means by which customers may easily compare
prices among companies.
6.Any advertisements for telephone service which refer to
price must disclose complete pricing information.
7.A local telephone directory must be provided to
customers without charge and directories for neighboring
communities shall also be provided without charge upon
request.
8.Local telephone service may not be disconnected for
nonpayment of charges imposed by a third-party.
9.Service deposits may not exceed two months worth of
bills.
10.Social security numbers may be required only if no other
means of determining creditworthiness is available.
Background
Over the years, a number of telephone consumer protections
have been attempted and written into law. While the
majority of telephone companies provide satisfactory
service, marketing abuses continue and it's not uncommon
for consumers to feel pressured, misled, or taken
advantage of. Recent investigations into misleading and
hidden charges with dial-around services (e.g. 10-10-xyz)
underscore the potential pitfalls of the modern
telecommunications market.
This bill arises from the Senate Energy, Utilities and
Communications Committee's introductory hearing on
telecommunications issues and discussions between the
author, various consumer groups, and the telecommunications
industry. While it is premature to say the groups have
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reached any type of consensus, the list of protections
covered in the bill represent areas where there is the most
agreement. Should the bill move forward, consumer groups
have asked the author and the telecommunications industry
to consider addressing a host of other issues, such as:
1.Making directory information available on the Internet.
2.Requiring advertising to include unit pricing disclosure.
3.Requiring neutral information about Caller ID to be
offered to customers.
4.Requiring free blocking for non-essential services.
5.Barring the transfer of customer-specific information
among company affiliates.
6.Requiring the maintenance of a detailed,
California-specific complaint record.
7.Expanding the comprehensive energy consumer protections
to apply to telephone customers.
8.The creation of a low cost dispute resolution process.
The author intends to address these and other issues as
part of a stakeholder process similar to one used by the
author last year in crafting AB 1994, which created some
consumer protection for calling card purchases.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/11/99)
Office of Ratepayer Advocates
TURN
UCAN
OPPOSITION : (Verified 5/11/99)
GTE California Inc.
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Pacific Telesis Group
NC:cm 5/12/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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