BILL ANALYSIS Ó
AB 1409
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CONCURRENCE IN SENATE AMENDMENTS
AB 1409 (Bradford)
As Amended September 6, 2013
2/3 vote. Urgency
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|ASSEMBLY: |50-21|(May 16, 2013) |SENATE: |31-0 |(September 11, 2013) |
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|COMMITTEE VOTE: |14-0 |(September 11, |RECOMMENDATION: |concur |
|(U. & C.) | |2013) | | |
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Original Committee Reference: U. & C.
SUMMARY : Corrects incorrect code references in statute and revises
the statutory cap on fees necessary to obtain a certificate of
public convenience and necessity (CPCN) from the California Public
Utilities Commission (PUC) to adjust for inflation. Specifically,
this bill :
1)Corrects incorrect code references to code sections that were
moved or repealed as a result of
other enacted statutes.
2)Allows PUC to adjust for inflation the fee required to obtain a
CPCN.
The Senate amendments :
1)Specify the filing fee is reestablished at $500 and allow the PUC
to adjust this fee in the future only according to the Consumer
Price Index (CPI).
2)Clarify that all fees are to be deposited in the Public Utilities
Commission Utilities Reimbursement Account.
3)Delete sections related to incorrect code references.
4)Provide that the PUC shall adopt rules applicable to all lifeline
services providers, including providers using alternative
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technologies.
5)Specify that the PUC may not deny a request to be designated as
an Eligible Telecommunications Carrier (ETC) or a state lifeline
provider based on the entity providing any Voice over Internet
Protocol (VoIP) or Internet Protocol (IP) enabled service.
6)Provide that Commission shall not deny or revoke a CPCN for a
telephone corporation that provide retail or wholesale service on
the grounds that the carrier also provide VoIP service or any
other unregulated service.
7)Allow reimbursement for non-telephone corporations providing
Lifeline service from the Universal Lifeline Telephone Service
Trust Administrative Committee Fund.
FISCAL EFFECT : According to the Senate Appropriations Committee,
potential minor revenue increases in the low tens of thousands of
dollars to the Public Utilities Commission Utilities Reimbursement
Account (special) for increased fee revenues on CPCN applications.
COMMENTS : This is a committee bill which revises incorrect code
references in statute and revises the statutory cap on fees
necessary to obtain a CPCN from PUC.
1)CPCN fee adjustment : The $75 fee to file an application for a
CPCN for telephone corporations and other utilities except for
passenger state corporations, and for the mortgage, lease,
transfer, or assignment of a CPCN has been in statute since 1969.
The cost of CPCN application has not adjusted for inflation.
According to PUC, the CPI has increased 530.5% since 1969. If
the application fee had been adjusted for inflation, using CPI
calculator, the fee would be approximately $473. Currently, PUC
does not have the authority to raise the fee unless there is a
change in statute through legislative action, thus the creating
the need for this bill.
The current CPCN application fee does not reflect the current
cost of PUC resources required to process the application. The
application requires extensive review and evaluation by an
Administrative Law Judge, is assigned to the Communications
Division to review tariffs and other technical aspects of the
application. Hearings may be required due to protest filed by
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other parties, or other issues or by PUC's Consumer Protection
and Safety Division, or a California Environmental Quality Act
review if the applicant is proposing to build facilities.
Depending on the initial review, PUC staff may require the
applicant to submit additional information.
2)Legislation adopted in 2010 directed the PUC to develop rules to
expand technology options for consumers receiving service under
the More Universal Service Lifeline Program. The PUC has yet to
develop those rules. The bill would also provide that all
lifeline providers, including those that are non-telephone
corporations, may be reimbursed for lifeline service from the
Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
This bill directs the PUC to develop rules governing the offering
of lifeline service for all providers of voice services using
alternative technologies.
In addition, this bill clarifies statute by stating that:
a) The PUC may not deny a request to be designated to receive
federal lifeline support on the basis of the technology used
to provide lifeline service nor may they deny or revoke a CPCN
or authorization to provide telecommunications services based
on the fact that the telecommunications provider also provides
VoIP or IP-enabled services.
b) The PUC may not, in exercising its authority to carry out
the state lifeline program or to designate a provider an
eligible telecommunications carrier, deny a request based on
the provider utilizing any VoIP or IP-enable service. Under
federal law, a provider must be designated as an ETC by the
state regulatory agency in order to participate in the federal
lifeline program. Although current state and federal law
provides the PUC with the proper authority to designate a
provider an ETC, regardless of the technology used to provide
the service, the PUC has delayed its ETC designation for any
provider that uses VoIP technologies, even where the provider
already provides telecommunications services and has been
properly certificated by the PUC.
c) The PUC may neither deny nor revoke a telephone
corporation's CPCN on the grounds that the carrier also
provides VoIP or other unregulated service. While many
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providers have been providing service with the use of more
than one technology for years, the PUC has recently question a
carrier's ability to obtain a CPCN if it uses a technology
that is not regulated by the PUC.
Analysis Prepared by : DaVina Flemings / U. & C. / (916) 319-2083
FN: 0002836