BILL NUMBER: AB 1315	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2010
	AMENDED IN ASSEMBLY  MAY 5, 2009

INTRODUCED BY   Assembly Member  Ruskin  
Fuentes 

                        FEBRUARY 27, 2009

    An act to amend Sections 305, 307, and 308 of the Public
Utilities Code, relating to the Public Utilities Commission.
  An act to add Section 716 to the Public Utilities
Code, relating to telecommunications. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1315, as amended,  Ruskin   Fuentes 
.  Telecommunications:  Public Utilities 
Commission.   Commission: Federal Communications
Commission: forebearance petitions.  
   The federal Communications Act of 1934, as amended by the federal
Telecommunications Act of 1996, establishes a program of cooperative
federalism for the regulation of telecommunications to attain the
goal of local competition, while implementing specific, predictable,
and sufficient federal and state mechanisms to preserve and advance
universal service, consistent with certain universal service
principles. The act authorizes an incumbent local exchange carrier,
as defined, to file a forbearance petition with the Federal
Communications Commission (FCC) to require the FCC to forbear from
applying any regulation or any provision of the act to a
telecommunications carrier, as defined, or telecommunications
service, as defined, in any or some of its or their geographic
markets, if the FCC makes certain determinations.  
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including telephone
corporations, as defined.  
   This bill would provide that if an incumbent local exchange
carrier files a forbearance petition with the FCC requesting that the
FCC forbear from enforcing that carrier's duty to provide to any
requesting telecommunications carrier nondiscriminatory access to
network elements on an unbundled basis at any technically feasible
point on rates, terms, and conditions that are just, reasonable, and
nondiscriminatory, within any metropolitan statistical area located
in the state, the PUC would be required to first determine if the
petition meets certain legal requirements pursuant to a specified
regulation adopted by the FCC, and if the PUC determines that the
petition fails to meet those requirements, to timely submit a motion
for summary denial of the petition with the FCC. If the PUC
determines that the petition meets those requirements, the bill would
require the PUC to review and analyze the petition and make
determinations relative to matters that are pertinent to the
petition. The bill would require the PUC to file substantive comments
with the FCC relative to those determinations. The bill would
require the PUC to require each telephone corporation providing
service within a metropolitan statistical area to report
comprehensive and detailed information sufficient to enable the PUC
to file its substantive comments to the petition and to undertake
certain analysis.  
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the PUC
is a crime.  
   Because the provisions of this bill are within the act and certain
of the bill's provisions require action by the PUC to implement, a
violation of these provisions would impose a state-mandated local
program by creating a new crime.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities, as defined.
The California Constitution grants the commission certain general
powers over all public utilities, subject to control by the
Legislature, and authorizes the Legislature, unlimited by the other
provisions of the Constitution, to confer additional authority and
jurisdiction upon the commission, that is cognate and germane to the
regulation of public utilities. Existing law requires the Governor to
designate the president of the commission from among its members and
requires the president to direct the executive director, the
attorney, and other staff of the commission, except for the Division
of Ratepayer Advocates.  
   This bill would require the commission to appoint a president of
the commission from among its members. The bill would repeal the
requirement that the president direct commission staff. 

   Existing law authorizes the attorney for the commission, if
directed to do so by the president, except as otherwise directed by
vote of the commission, to intervene, if possible, in any action or
proceeding involving any question arising pursuant to the Public
Utilities Act. Existing law requires the attorney for the commission
to commence, prosecute, and expedite the final determination of all
actions and proceedings, and to generally perform all duties and
services as attorney to the commission, as directed or authorized by
the president, except as otherwise directed or authorized by vote of
the commission.  
   This bill would authorize the attorney for the commission, if
directed to do so by the commission, to intervene, if possible, in
any action or proceeding involving any question arising pursuant to
the Public Utilities Act. This bill would require the attorney for
the commission to commence, prosecute, and expedite the final
determination of all actions and proceedings, and to generally
perform all duties and services as attorney to the commission, as
directed or authorized by the commission.  
   Existing law requires the executive director for the commission to
keep a full and true record of all proceedings of the commission,
issue all necessary process, writs, warrants, and notices, and
perform such other duties as the president, or vote of the
commission, prescribes. Existing law provides that the president may
authorize the executive director to dismiss complaints or
applications when all parties are in agreement thereto, in accordance
with rules that the commission may prescribe.  
   This bill would require the executive director to keep a full and
true record of all proceedings of the commission, issue all necessary
process, writs, warrants, and notices, and perform the other duties
the commission prescribes. The bill would provide that the commission
may authorize the executive director to dismiss complaints or
applications when all parties are in agreement thereto, in accordance
with rules that the commission may prescribe. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) The federal Telecommunications Act of 1996 (Public Law
104-104) amended the federal Communications Act of 1934 (47 U.S.C.
Sec. 151 et seq.), to establish a program of cooperative federalism
for the regulation of telecommunications to attain the goal of local
competition, while implementing specific, predictable, and sufficient
federal and state mechanisms to preserve and advance universal
service, consistent with certain universal service principles. 

   (b) Consistent with the federal Telecommunications Act of 1996,
state law declares the policies for telecommunications for California
to include removal of the barriers to open and competitive markets
and promoting fair product and price competition in a way that
encourages greater efficiency, lower prices, and more consumer
choices, while continuing our universal service commitment. 

   (c) Section 10 of the federal Communications Act of 1934 (47
U.S.C. Sec. 160) permit an incumbent local exchange carrier to file a
forbearance petition with the Federal Communications Commission
(FCC), pursuant to the practice and procedure regulations for
forbearance proceedings adopted by the FCC (47 C.F.R. 1.53 to 1.59),
requesting that the FCC forbear from enforcing that carrier's duty to
provide to any requesting telecommunications carrier,
nondiscriminatory access to network elements on an unbundled basis at
any technically feasible point on rates, terms, and conditions that
are just, reasonable, and nondiscriminatory (47 U.S.C. Sec. 251(c)(3)
and Sec. 271(c)(2)(B)(ii)).  
   (d) The California Constitution establishes the Public Utilities
Commission (PUC) with jurisdiction over all public utilities and
grants the PUC certain general powers over all public utilities,
subject to control by the Legislature. The California Constitution
authorizes the PUC to fix the rates and charges for every public
utility, while existing state law requires that those rates and
charges be just and reasonable.  
   (e) In order to fulfill the state's policies for
telecommunications, when an incumbent local exchange carrier that is
a telephone corporation subject to the authority and jurisdiction of
the PUC, files a forbearance petition with the FCC requesting that
the FCC forbear from enforcing that carrier's duty to provide
nondiscriminatory access to network elements on an unbundled basis,
it is necessary for the PUC to monitor and evaluate the petition and
to act to advance the interests of ratepayers whenever forbearance
would likely result in rates and charges that are not just and
reasonable or whenever forbearance would likely have an adverse
effect on product and price competition. 
   SEC. 2.    Section 716 is added to the  
Public Utilities Code   , to read:  
   716.  (a) If an incumbent local exchange carrier files a
forbearance petition with the Federal Communications Commission
pursuant to Section 10 of the federal Communications Act of 1934 (47
U.S.C. Sec. 160), requesting that the Federal Communications
Commission forbear from enforcing that carrier's duty to provide to
any requesting telecommunications carrier, nondiscriminatory access
to network elements on an unbundled basis at any technically feasible
point on rates, terms, and conditions that are just, reasonable, and
nondiscriminatory (47 U.S.C. Sec. 251(c)(3) and Sec. 271 (c)(2)(B)
(ii)), within any metropolitan statistical area located in the state,
the commission shall first determine whether the petition for
forbearance meets each of the requirements of Section 1.54 of Title
47 of the Code of Federal Regulations. If the commission determines
that the petition fails to meet any of the requirements of that
section, the commission shall timely submit a motion for summary
denial of the petition with the Federal Communications Commission
identifying and supporting each deficiency identified by the
commission.
   (b) If an incumbent local exchange carrier files a forbearance
petition with the Federal Communications Commission pursuant to
Section 10 of the federal Communications Act of 1934 (47 U.S.C. Sec.
160), requesting that the Federal Communications Commission forbear
from enforcing that carrier's duty to provide to any requesting
telecommunications carrier, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible point on
rates, terms, and conditions that are just, reasonable, and
nondiscriminatory (47 U.S.C. Sec. 251(c)(3) and Sec. 271(c)(2)(B)
(ii)), within any metropolitan statistical area located in the state,
after making its determination and taking any action required
pursuant to subdivision (a), the commission shall review and analyze
the petition and do all of the following:
   (1) Consistent with paragraph (1) of subsection (a) of Section 160
of Title 47 of the United States Code, determine whether enforcement
of the carrier's duty to provide nondiscriminatory access to network
elements on an unbundled basis is not necessary to ensure that the
charges, practices, classifications, or regulations of that carrier
are just and reasonable and are not unjustly or unreasonably
discriminatory.
   (2) Consistent with paragraph (2) of subsection (a) of Section 160
of Title 47 of the United States Code, determine whether enforcement
of the carrier's duty to provide nondiscriminatory access to network
elements on an unbundled basis is not necessary to protect
consumers.
   (3) Consistent with paragraph (3) of subsection (a) of Section 160
of Title 47 of the United States Code, determine whether forbearance
from enforcing the carrier's duty to provide nondiscriminatory
access to network elements on an unbundled basis is consistent with
the public interest, including whether forbearance will promote
competitive market conditions.
   (4) Independently determine the truth and completeness of the
facts offered by the petition, pursuant to subsection (b) of Section
1.54 of Title 47 of the Code of Federal Regulations, to support a
prima facie case for forbearance.
   (c) In making its evaluation and determinations pursuant to
subdivision (b), the commission shall consult with the Division of
Ratepayer Advocates.
   (d) Upon making its determinations pursuant to subdivision (b),
the commission shall timely file substantive comments to the petition
with the Federal Communications Commission, pursuant to paragraph
(4) of subsection (b) of Section 1.55 of Title 47 of the Code of
Federal Regulations. The substantive comments shall include opening
and reply comments, shall describe the determinations made by the
commission and the basis for those determinations, shall identify how
the petition potentially impacts the telecommunications policies of
the state identified in Section 709, and shall include detailed
recommendations regarding the adoption or denial of the petition
based upon the determinations of the commission.
   (e) Not later than _____, in order to gather independent data
regarding the level of competition in the metropolitan statistical
areas of the state, the commission shall require each telephone
corporation providing service within a metropolitan statistical area
to report, pursuant to Section 583, comprehensive and detailed
information sufficient to enable the commission to do the following:
   (1) File substantive comments to any petition for forbearance
pursuant to subdivision (d).
   (2) Separately analyze the level of retail competitive options
available to residential and business customers in each metropolitan
statistical area at the wire center level, and determine which of
these options rely upon wholesale inputs from the incumbent local
exchange carrier.
   (3) Separately analyze the level of wholesale competitive options
available to competitive carriers for last-mile loops and transport
circuits in each metropolitan statistical area at the wire center
level. 
   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 305 of the Public Utilities
Code is amended to read:
   305.  The commission shall designate a president of the commission
from among the members of the commission. The president shall
preside at all meetings and sessions of the commission. 

  SEC. 2.    Section 307 of the Public Utilities
Code is amended to read:
   307.  (a) The commission may appoint as attorney to the commission
an attorney at law of this state, who shall hold office during the
pleasure of the commission.
   (b) The attorney shall represent and appear for the people of the
State of California and the commission in all actions and proceedings
involving any question under this part or under any order or act of
the commission. If directed to do so by the commission, the attorney
shall intervene, if possible, in any action or proceeding in which
any such question is involved.
   (c) The attorney shall commence, prosecute, and expedite the final
determination of all actions and proceedings directed or authorized
by the commission, advise the commission and each commissioner, when
so requested, in regard to all matters in connection with the powers
and duties of the commission and the members thereof, and generally
perform all duties and services as attorney to the commission that
the commission may require of him or her.  
  SEC. 3.    Section 308 of the Public Utilities
Code is amended to read:
   308.  (a) The commission shall appoint an executive director, who
shall hold office during its pleasure. The executive director shall
be responsible for the commission's executive and administrative
duties and shall organize, coordinate, supervise, and direct the
operations and affairs of the commission and expedite all matters
within the commission's jurisdiction.
   (b) The executive director shall keep a full and true record of
all proceedings of the commission, issue all necessary process,
writs, warrants, and notices, and perform the other duties the
commission prescribes. The commission may authorize the executive
director to dismiss complaints or applications when all parties are
in agreement thereto, in accordance with rules that the commission
may prescribe.
   (c) The commission may appoint assistant executive directors who
may serve warrants and other process in any county or city and county
of this state.