BILL ANALYSIS �
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THIRD READING
Bill No: SB 50
Author: Lieu (D)
Amended: 4/30/13
Vote: 21
SENATE ENERGY, UTILITIES & COMMUN. COMM. : 10-0, 4/16/13
AYES: Padilla, Fuller, Cannella, Corbett, De Le�n, DeSaulnier,
Hill, Knight, Wolk, Wright
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Telecommunications: pay telephones
SOURCE : Author
DIGEST : This bill requires, beginning January 1, 2015, the
owners or operators of public telephones, available for public
use, that accept any form of payment to post additional
information and comply with additional requirements, as
specified.
ANALYSIS :
Existing law:
1. Requires every owner or operator of a coin-activated public
telephone to post on or near the telephone the name of the
provider, a toll-free number for contacting the provider,
charges for each available service, and a statement that the
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provider will respond to inquiries about the terms of
service.
3. Requires the Public Utilities Commission (PUC) to adopt and
enforce requirements for coin-activated and credit-card
activated public telephones that include posting instructions
for local and long distance calling, a number for customer
complaints, and a notice that surcharges may apply to an
operator-assisted and calling card call.
This bill:
1. Revises these requirements effective January 1, 2015, to
apply to public telephones that accept any form of payment
and requires a notice posted on or near a public telephone
that calls activated by a card or other payment device may
cost more than coin-activated calls.
2. Requires, effective January 1, 2015, that the operator on a
public telephone call activated by any form of payment
identify itself to the consumer at the beginning of each
call, quote the complete rates and charges for the call, and
permit the customer to terminate the call before it is
connected and any charge incurred.
Background
The growth of wireless telephone service has made the public
payphone somewhat of a historic relic, with California now
having only about 30,000 pay telephones statewide, down from
about 175,000 in 1998, according to the PUC. But payphones
still offer a vital means of communication for persons without
wireless service, especially in airports, hospitals, and other
public places. Traditionally activated by inserting coins, many
payphones today also are activated with calling cards, credit
cards, and debit cards.
The rates charged for calls made at public telephones are not
regulated. However, state law requires specified information be
visibly posted on or near payphones, including the following:
The name and toll-free number of the provider of
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operator-assisted services;
Applicable charges for each available operator-assisted
service;
A statement that the provider will respond to inquiries about
the terms of service; and
A statement that surcharges may apply to operator-assisted and
calling card calls.
Federal regulations require similar notifications on public pay
telephones, and also provide for the right of the customer to
get a quote of all charges for any operator-assisted call before
the call is connected and to choose to terminate the call before
any charge is incurred. The federal rules apply only to
interstate calls, however.
The PUC currently employs three payphone inspectors who
routinely conduct targeted inspections on public telephones
across California to ensure compliance with regulatory
requirements. The inspection checklist includes whether public
telephones have required signage relating to the cost of calls
and whether calls made are charged accurately. Inspectors
notify public telephone owners of violations through Corrective
Action Report letters and conduct follow-up inspections to
ensure that deficiencies have been corrected. Although the PUC
has no specified penalties for payphone operators, state law
authorizes the PUC to order disconnection of service to a public
telephone operator in violation of PUC rules.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 4/30/13)
California Airports Council
California Public Utilities Commission
California Senior Legislature
Congress of California Seniors
Division of Ratepayer Advocates
Los Angeles World Airports
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Vietnam Veterans of America, California State Council
ARGUMENTS IN SUPPORT : According to the author's office, this
bill enables customers to know beforehand the actual costs of
using a credit, debit, or calling card, or other payment device,
for placing a call from a public telephone. This bill responds
to complaints and media reports of customers unknowingly being
charged as much as $20 for 20 seconds to make these types of
calls.
The Division of Ratepayer Advocates supports this bill "which
would extend existing coin-activated payphone regulation to
payphone calls made by using any form of payment. This bill
would eliminate the difference between regulations governing
coin-activated payphone service and payphone service paid for
using other payment methods.
"SB 50 would extend important cost and contact disclosure
requirements to all public payphone services regardless of the
payment method. DRA supports this pro-consumer bill and we look
forward to working with you to ensure this bill is enacted into
law."
JG:d 4/30/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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