Bill Text: CA SB1058 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Communications: Moore Universal Telephone Service Act and internet service providers.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-06-18 - June 18 hearing: Held in committee and under submission. [SB1058 Detail]

Download: California-2019-SB1058-Amended.html

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Amended  IN  Senate  April 03, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 1058

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Introduced by Senator Hueso

February 18, 2020

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An act to amend Sections 233, 276, and 882 of add Section 879.6 to the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL'S DIGEST

SB 1058, as amended, Hueso. Telecommunications: telephone corporations: California High-Cost Fund-B Administrative Committee Fund: advanced communications services. Moore Universal Telephone Service Act.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. The Moore Universal Telephone Service Act requires the commission to annually designate a class of lifeline service necessary to meet minimum residential communications needs, including the ability to originate and receive calls and the ability to access electronic information service, to set the rates and charges for that service, to develop eligibility criteria for that service, and to assess the degree of achievement of universal service, including telephone penetration rates by income, ethnicity, and geography. Lifeline telephone service program rates are required to be set at no more than 50% of either the basic rate for measured service or the basic flat rate service, as applicable, exclusive of federally mandated end user access charges that are available to the residential subscriber.

This bill would require the commission to evaluate the extent to which federal reductions in lifeline telephone service subsidies would result in rates limiting access to basic voice service. If the commission finds that federal reductions could result in the loss of basic voice services by increasing costs to California lifeline telephone service subscribers for those services, the bill would require the commission to adjust the state-level subsidies for those services in a manner that ensures that California lifeline telephone service subscribers retain affordable access to basic voice services, as specified.

(1)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations, defined as including every corporation or person owning, controlling, operating, or managing any telephone line for compensation within the state. Existing law defines a telephone line as including all conduits, ducts, poles, wires, cables, instruments, and appliances, and all other real estate, fixtures, and personal property owned, controlled, operated, or managed in connection with or to facilitate communication by telephone, whether that communication is had with or without the use of transmission wires.

This bill would define a telephone line as including all conduits, ducts, poles, wires, cables, instruments, and appliances, and all other real estate, fixtures, and personal property owned, controlled, operated, or managed in connection with or to facilitate voice communication by telephone, whether that voice communication occurs with or without the use of transmission wires and whether that voice communication utilizes Voice over Internet Protocol, Internet Protocol enabled service, or any other successor protocol.

(2)Existing law establishes the state’s 6 universal service funds in the State Treasury, including the California High-Cost Fund-B Administrative Committee Fund, and provides that moneys in each of the state’s universal service funds are held in trust and may only be expended to accomplish specified telecommunications universal service programs, upon appropriation in the annual Budget Act or upon supplemental appropriation. Existing law requires that all moneys appropriated from the California High-Cost Fund-B Administrative Committee Fund to the commission be utilized exclusively by the commission for the High-Cost Fund-B program.

This bill would require that all moneys appropriated from the California High-Cost Fund-B Administrative Committee Fund to the commission be utilized by the commission exclusively for the High-Cost Fund-B program.

(3)Existing law requires the commission, as soon as practicable, in a proceeding or multiple proceedings, to consider ways to ensure that advanced telecommunications services are made available as ubiquitously and economically as possible, in a timely fashion, to California’s citizens, institutions, and businesses and provides that the proceeding or proceedings should be completed within one year of commencement. Existing law requires that the proceeding or proceedings develop rules, procedures, orders, or strategies that seek to achieve the goals of (a) providing all citizens and businesses with access to the widest possible array of advanced communications services, (b) providing the state’s educational and health care institutions with access to advanced communications services, and (c) ensuring cost-effective deployment of technology to protect ratepayers’ interests and the affordability of telecommunications services.

This bill would require that the proceeding or proceedings develop rules, procedures, orders, or strategies that seek to achieve the additional goal of ensuring reliable access to the 911 emergency communications system provided pursuant to the Warren-911-Emergency Assistance Act.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) It is the policy of the state to ensure the continued affordability and widespread availability of high-quality telecommunications service to all Californians.

(b) Recent emergencies, including catastrophic wildfires, have highlighted the importance of ensuring access to reliable, affordable telecommunications service to protect Californians’ ability to make 911 calls and receive emergency notifications.

(c) As California seeks to expand access to broadband, maintaining access to basic phone service is necessary for the public safety of all Californians, especially those in low-income and vulnerable communities.

SEC. 2.

 Section 879.6 is added to the Public Utilities Code, to read:

879.6.

 The commission shall evaluate the extent to which federal reductions in lifeline telephone service subsidies would result in rates limiting access to basic voice service. If the commission finds that federal reductions could result in the loss of basic voice services by increasing costs to California lifeline telephone service subscribers for those services, the commission shall adjust the state-level subsidies for these services in a manner that ensures both of the following:

(a) That California lifeline telephone service subscribers retain affordable access to basic voice services consistent with the rate requirements set forth by the commission pursuant to Section 874, regardless of the technology through which they obtain basic voice services.

(b) That any allocation of California lifeline telephone service program subsidies to offset reductions in federal subsidies not result in any incremental additional collection of universal service contributions.

SECTION 1.Section 233 of the Public Utilities Code is amended to read:

233.

“Telephone line” includes all conduits, ducts, poles, wires, cables, instruments, and appliances, and all other real estate, fixtures, and personal property owned, controlled, operated, or managed in connection with or to facilitate voice communication by telephone, whether that voice communication occurs with or without the use of transmission wires and whether that voice communication utilizes Voice over Internet Protocol, Internet Protocol enabled service, or any other successor protocol.

SEC. 2.Section 276 of the Public Utilities Code is amended to read:

276.

(a)There is hereby created the California High-Cost Fund-B Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to provide for transfer payments to telephone corporations providing local exchange services in high-cost areas in the state to create fair and equitable local rate structures, as provided for in Section 276.5, and to carry out the program pursuant to the commission’s direction, control, and approval.

(b)All revenues collected through surcharges authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. The commission shall transfer the moneys received to the Controller for deposit in the California High-Cost Fund-B Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund.

(c)Moneys appropriated from the California High-Cost Fund-B Administrative Committee Fund to the commission shall be utilized by the commission exclusively for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund.

SEC. 3.Section 882 of the Public Utilities Code is amended to read:

882.

(a)The Public Utilities Commission shall, as soon as practicable, open a proceeding or proceedings to, or as part of existing proceedings shall, consider ways to ensure that advanced telecommunications services are made available as ubiquitously and economically as possible, in a timely fashion, to California’s citizens, institutions, and businesses. The proceeding or proceedings should be completed within one year of commencement.

(b)The proceeding or proceedings shall develop rules, procedures, orders, or strategies, or all of these, that seek to achieve the following goals:

(1)To provide all citizens and businesses with access to the widest possible array of advanced communications services.

(2)To provide the state’s educational and health care institutions with access to advanced communications services.

(3)To ensure cost-effective deployment of technology so as to protect ratepayers’ interests and the affordability of telecommunications services.

(4)To ensure reliable access to the 911 emergency communications system provided pursuant to the Warren-911-Emergency Assistance Act (Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code).

(c)In the proceeding or proceedings, the commission should also consider, but need not limit its consideration to, all of the following:

(1)Whether the definition of universal service should be broadened.

(2)How to encourage the timely and economic development of an advanced public communications infrastructure, which may include a variety of competitive providers.