BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
920 (Yee)
Hearing Date: 05/24/2010 Amended: 05/19/2010
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 customers to opt out of receiving their directory. The
bill requires directory producers to place information on the
cover of their directory regarding how to opt out.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Enforcement and Unknown costs Special
*
resolution of complaints
* Public Utilities Commission Utilities Reimbursement Account.
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STAFF COMMENTS:
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 corporations
(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 opt-out
information must be placed inside the first page of the
directory. Producers are required to discontinue delivery of
future directories upon request.
SB 920 requires telephone corporations to allow customers to opt
out of receiving future directories. Telephone corporations
would thereafter be prohibited from delivering directories to a
customer that has opted out. The bill requires telephone
corporations 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 any third party publisher that receives
SB 920 (Yee), Page 2
subscriber information from a telephone corporation to abide by
the same requirements as a condition of receiving the
information.
Staff notes that the bill is unclear as to whether telephone
corporations are required to abide by opt out requests made by
customers to third party publishers or vice versa. To the extent
they are, telephone corporations and third party publishers may
be required to share lists of customers that have opted out. The
Commission may face some costs to enforce the requirement on
publishers to share this information. In addition, customers who
have opted out and inadvertently receive directories in the
future may file complaints with the Commission, requiring
additional oversight by the Commission.
Staff notes that federal law (47 U.S.C 22 (e), the Federal
Telecommunications Act of 1996) requires telephone corporations
to provide listing information on a timely and unbundled basis,
under nondiscriminatory and reasonable rates, terms, and
conditions to any person requesting it. At this time, it is not
clear whether federal law preempts the state from imposing
additional requirements on the transfer of subscriber
information from telephone corporations to third party
publishers, as required under SB 920.