BILL NUMBER: AB 1315 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN ASSEMBLY MAY 5, 2009
INTRODUCED BY Assembly Member Fuentes
FEBRUARY 27, 2009
An act to add Section 716 to the Public Utilities Code, relating
to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 1315, as amended, Fuentes. Telecommunications: Public Utilities
Commission: Federal Communications Commission: forbearance
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 participate in that forbearance
proceeding by timely filing substantive comments on the petition,
providing data on local competition in the metropolitan statistical
area that is the subject of the petition, and taking any other action
that advances the state's policies promoting competition in
telecommunications markets. The bill would require the PUC to develop
a process and sample data request for collecting data on
local competition in any California metropolitan statistical area,
and would require all providers of local telephone service, as
specified, to provide all data and other information requested by the
PUC .
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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 the state's
universal service commitment.
(c) Section 10 of the federal Communications Act of 1934 (47
U.S.C. Sec. 160) permit permits 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)
(d) 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. state'
s policies promoting competition in telecommunications markets.
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.
participate in that forbearance proceeding by timely
filing substantive comments on the petition, providing data on local
competition in the metropolitan statistical area that is the subject
of the petition, and taking any other action that advances the state'
s policies promoting competition in telecommunications
markets.
(b) (1) In order to be prepared to timely comply with subdivision
(a), the commission shall develop a process and sample data request
for collecting data on local competition in any California
metropolitan statistical area. The data shall include, but not be
limited to, separate data on competitive options for residential,
business, and wholesale services.
(2) All providers of local telephone service, including, but not
limited to, local exchange carriers, interexchange carriers, mobile
telephony service providers, and providers of facilities-based
interconnected Voice over Internet Protocol (VoIP) service, shall
provide all data and other information requested by the commission
pursuant to this section.
(c) This section shall not give the commission jurisdiction over
providers of facilities-based interconnected VoIP service, except to
require these providers to comply with any data request made pursuant
to this section.
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.