BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  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