WASHINGTON-Legislation introduced in the California legislature last week would create a bill of rights for telecom consumers that would be at least as comprehensive as guidelines state regulators approved last May, only to put on hold last month.
The measure-SB 1068-is authored by California State Sen. Martha Escutia (D), chairwoman of the Senate Committee on energy, utilities and communications. Bill cosponsors are Democratic Sens. Debra Bowen, Richard Alarcon and Liz Figueroa.
The bill, introduced last Tuesday, would require the California Public Utilities Commission to adopt a bill of rights by July 1, 2006. The Senate initiative comes in response to a California Public Utilities Commission decision last month to suspend the bill of rights until it can be re-examined. The bill of rights spawned a series of new regulations designed to make advertising, billing and contract terms fairer and easier for consumers to understand.
GOP Gov. Arnold Schwarzenegger and the wireless industry decried the CPUC ruling, predicting the bill of rights would hurt consumers in terms of higher phone bills and would do more damage to the already fractured state economy.
The wireless industry, which argues its voluntary code of conduct addresses most consumer issues, has invested hundreds of thousands of dollars in hopes of derailing the bill of rights and thus preventing California from setting a precedent for the rest of the country.
The CPUC that passed the bill of rights last year is not the same one that shelved consumer rules in January and that eventually could revamp the state’s entire telecom regulatory regime.
In December, Schwarzenegger appointed two new members to CPUC-Democrat Dian Grueneich and Republican Steve Poizner-to replace two Democratic commissioners-Carl Wood and Loretta Lynch-whose terms ended Dec. 31.
Last May, Commissioners Wood, Lynch and Geoffrey Brown-the swing vote-voted for the bill of rights despite objections of pro-business Democratic Commissioner Susan Kennedy and CPUC President Michael Peevey.
Kennedy penned the measure that stayed the bill of rights, which was to have gone into effective in December. Many mobile-phone carriers requested-and were granted-compliance extensions for various rules. But the big headache comes in the form of changes wireless carriers must make to computer systems.
Last Thursday, the CPUC had planned to vote on Kennedy’s motion to initiate a rulemaking to re-examine regulations governing wireless operators and other telecom service providers. The commission held the item in response to a request by Commissioner Brown.
Grueneich joined Kennedy and Peevey in voting to the suspend the bill of rights on Jan. 27. Poizner, the former Snap Track Inc. executive who sold his firm to Qualcomm Inc. for $1 billion in 2000, did not participate in that vote. Lawyers are trying to determine whether Poizner’s rich portfolio of telecom and tech stocks creates a conflict of interest and are analyzing how the situation should be handled.
Poizner last week told RCR Wireless News he expects his attorneys and government lawyers to resolve the matter in the next two weeks. Whether Poizner will be able to weigh in on the bill of rights controversy and other telecom proceedings is unclear.
Meantime, Grueneich plans to meet with industry and consumer groups in March to discusses telecom issues generally and gather with stakeholders again the first week of April to hear views on the bill of rights.
Consumer groups and state Attorney General Bill Lockyer strongly oppose any weakening of the bill of rights. “Carriers have offered only a few examples of rules they contend are impossible to implement. The examples further illustrate the absurdity of the carriers’ claim the rules must be scrapped,” said Lockyer and the CPUC Office of Ratepayer Advocates.
Schwarzenegger likely would veto any bill-of-rights legislation, and it would be difficult for the California legislature to override such a veto. But lawmakers believe they can still send a message to the CPUC and perhaps garner public support by passing a bill that codifies the bill of rights. Grueneich and Poizner still must be confirmed by the state Senate, though both can be active on the CPUC for up to a year while their nominations are pending.
