BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           920 (Yee)
          
          Hearing Date:  05/10/2010           Amended: 05/05/2010
          Consultant:  Brendan McCarthy   Policy Vote: EU&C 6-4














































          SB 920 (Yee), Page 2


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          BILL SUMMARY: SB 920 requires producers of telephone directories  
          to allow certain customers to opt out of receiving their  
          directory. The bill requires directory producers to place  
          information on the cover of their directory giving customers  
          information about how to opt out. The bill requires directory  
          producers to demonstrate compliance with existing law requiring  
          the use of recycled newsprint.
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                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12      2012-13     Fund
           
          Rulemaking             $150 to $300                     Special  
          *

          Enforcement            Minor costs                      Special  
          *

          * Public Utilities Commission Utilities Reimbursement Account.
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          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense file.

          Under current order of the Public Utilities Commission,  
          telephone directory producers must allow certain customers to  
          opt out of receiving future directories. (Technically, only  
          customers who have elected to keep their phone number unlisted  
          must be allowed to opt out. In practice, directory producers  
          typically allow anyone to opt out.) Telephone companies (which  
          are utilities regulated by the Commission) and third party  
          publishers that receive information on subscribers from  
          telephone companies are covered by this rule.

          The existing rule applies only to producers of "white page"  
          directories listing residential customer information. (Although  
          many "yellow page" producers allow customers to opt out.) The  
          opt-out information must be placed inside the first page of the  
          directory. Producers are required to discontinue delivery of  
          future directories upon request.

          Current law requires publishers that use newsprint in commercial  







          SB 920 (Yee), Page 2


          printing to use at least 50 percent recycled-content newsprint.

          SB 920 requires telephone corporations and third party producers  
          of telephone directories to allow customers to opt out of  
          receiving future directories. The bill does not appear to  
          distinguish between "white page" and "yellow page" directories.  
          The bill is not limited to third party producers that receive  
          customer information from telephone companies. 

          Directory producers are prohibited from subsequently delivering  
          directories to a customer that has opted out. The bill requires  
          directory producers to place a telephone number, internet  
          address, or both on the front cover of their directory, by which  
          customers can opt out of receiving future copies of that  
          directory. In addition, the front cover must include a statement  
          that the directory can be recycled.

          The bill also requires that directory producers demonstrate  
          compliance with the existing requirement relating to the use of  
          recycled-content newsprint in commercial printing.

          There appear to be many producers of telephone directories that  
          would be covered under this bill that are not covered under the  
          existing Commission rule. For example, many publishers of small,  
          niche "white page" directories may purchase information from  
          various companies that compile directory information, rather  
          than purchasing the information from a telephone company. Also,  
          publishers of "yellow page" directories may develop listing  
          information on their own or by purchasing information from  
          sources other than a telephone company. The number of additional  
          publishers that would be covered by the bill is unknown.

          Because the bill requires the Commission to regulate third party  
          publishers that it has not previously regulated, the Commission  
          is likely to require additional resources to implement the bill.  
          For example, the Commission will need to determine the universe  
          of regulated entities under the bill and then to adopt rules to  
          implement the requirements of the bill. Staff estimates the cost  
          to develop rules to implement the bill will likely be between  
          $150,000 and $300,000.