BILL ANALYSIS Ó SB 50 Page 1 Date of Hearing: July 3, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 50 (Lieu) - As Amended: April 30, 2013 Policy Committee: Utilities and Commerce Vote: 12-0 Urgency:No State Mandated Local Program: YesReimbursable:No SUMMARY This bill requires the owners and operators of public telephones that accept any form of payment to post and provide additional information regarding rates and call charges beginning January 1, 2015. Specifically, this bill: 1)Requires the owners and operators of all public telephones to post on or near the telephone equipment a notification informing customers that calls activated by a card or other payment device may cost more than coin-activated calls. 2)Requires the owner or operator of all public telephones call to identify itself before the consumer incurs any charges, quote the complete rates and charges for the call, and permit the customer to terminate the call before it is connected. FISCAL EFFECT Minor, absorbable costs to the Public Utilities Commission (PUC) to inspect public telephones for compliance with the disclosure requirements. COMMENTS 1)Rationale. Pay telephones are currently activated by coins, credit, debit and calling cards. State law requiring rate disclosure and posting only applies to the owners or operators of coin-activated pay phones. This bill would extend these consumer protection provisions to current and future pay telephone payment technologies. Federal regulations provide the right of customers to get a SB 50 Page 2 quote on all charges for operator-assisted calls however the federal rules only apply to interstate calls. This bill would provide the same requirements for intrastate calls. 2)Background. The PUC estimates there are approximately 30,000 pay telephones in California, located primarily in the Los Angeles Basin, San Francisco Bay Area, and Interstate 5 corridor. Pay telephones provide service for consumers without wireless service in public places such as gas stations, airports and hospitals. The PUC does not regulate the rates of public telephones but does enforce state and federal operating requirements. PUC inspectors routinely conduct targeted inspections of public telephones throughout California to ensure compliance with regulatory requirements. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081