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: 5/17/99
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 a number of new consumer
protection provisions for subscribers of telephone service.
Senate Floor Amendments of 5/17/99 generally clarify the
bill's provisions and attempt to reduce opposition.
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.Clarifies notice provisions relating to new service.
2.Customers have a ten day right of recission on new
CONTINUED
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telephone services and features.
3.A customer may not be charged for a service which has
not been used or has been rescinded.
4.Customers shall be reimbursed for any charge resulting
from the inadvertent use of the service.
5.The California Public Utilities Commission (PUC) shall
create a means by which customers may easily compare
prices among companies.
6.Any advertisements for telephone service which refer to
price shall disclose all underlying charges and
restrictions.
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 disputed 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
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telecommunications issues and discussions between the
author, various consumer groups, and the telecommunications
industry. While it is premature to say the groups have
reached any type of consensus, the list of protections
covered in the bill represent areas where there is the most
agreement. The author plans additional meetings between
the industry and consumers to further resolve differences.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The PUC estimates minor costs to create a means by which
telephone subscribers may compare prices of telephone
service. Any costs to the PUC could be handled using
existing resources.
SUPPORT : (Verified 5/17/99)
Office of Ratepayer Advocates
TURN
UCAN
OPPOSITION : (Verified 5/17/99)
GTE California Inc.
Pacific Telesis Group
NC:cm 5/19/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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