BILL ANALYSIS                                                                                                                                                                                                    �          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          SB 380 -  Padilla                                 Hearing Date:   
          April 16, 2013             S
          As Amended:         April 1, 2013                 Non-FISCAL      
            B
                                                                        
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           Current law  makes it a misdemeanor for an agent, operator, or  
          employee of any telegraph or telephone office to willfully  
          refuse to transmit a message unless the customer bill is not  
          paid or the message encourages treason or other unlawful acts or  
          facilitates escape of a criminal.
           
           Current law  authorizes law enforcement to order a cut, divert,  
          or reroute to a telephone line to prevent communications where  
          there is probable cause that a person is holding hostages and  
          committing a crime, or in a barricade situation.
           
           A California Supreme Court decision  held that it is unlawful for  
          a telephone corporation to interrupt landline telephone service  
          at the request of law enforcement unless the interruption is  
          pursuant to a court order based upon a finding that there is  
          probable cause the service is being used in illegal acts which,  
          absent immediate interruption, would result in significant  
          dangers to the public health, safety, and welfare.
           
           Current law  and decisions of the Federal Communications  
          Commission (FCC) require specified providers of communications  
          service, including landline, wireless, and certain  
          Internet-based services, to provide customers 911 access to  
          emergency services.
           
           This bill  would prohibit a government entity, and a provider of  
          communications service acting at the request of a government  
          entity, from interrupting communication service for the purpose  
          of protecting public safety or preventing use of the service for  
          an illegal purpose except pursuant to a court order based on  
          probable cause.











           
           This bill  would require that the court order authorizing an  
          interruption of service include a finding that the interruption  
          is narrowly tailored to prevent unlawful infringement of speech  
          that is protected by the First Amendment of the United States  
          Constitution or the free speech provision of the California  
          Constitution.
           
           This bill  would provide an exception to the court order  
          requirement if a governmental entity reasonably determines that  
          an extreme emergency situation exists that involves immediate  
          danger of death and there is insufficient time, with due  
          diligence, to first obtain a court order.
           
           This bill  would require, in the case of an interruption without  
          a prior court order, that the governmental entity apply for a  
          court order no later than two hours after commencement of a  
          service interruption, and provide the communications service  
          provider a statement of intent to apply for a court order.
           Current regulations  of the California Public Utilities  
          Commission (CPUC) require landline telephone corporations to  
          notify a customer of a court order to interrupt service being  
          used for an illegal purpose and establishes a procedure for the  
          customer to challenge the interruption.  
           
           This bill  would require that a communications service provider  
          that interrupts service pursuant to a court order as required by  
          this bill also comply with any applicable regulation of the  
          CPUC, FCC, or both, and any other applicable provision of state  
          or federal law.
           
           Current law  provides communications service providers immunity  
          from liability arising from actions relating to customers'  
          service as directed by court orders.
           
           This bill  would provide immunity for communications service  
          providers that act pursuant to a court order or statement of  
          intent to apply for a court order authorizing a service  
          interruption.
           
           This bill  would make legislative findings that protecting  
          customers' 911 access to emergency services and their means to  
          engage in constitutionally protected expression is a matter of  
          statewide concern, thereby preempting local laws or policies  










          that conflict with this bill.
           
                                      BACKGROUND  
           
          Landline telephone service was once the only widely available  
          means for voice communications and calling 911 for emergency  
          assistance.  Now, growing numbers of people use other  
          technologies such as mobile wireless and Voice over Internet  
          Protocol (VoIP) services as their primary means of communication  
          for voice calls, texting, email, Internet access, and other  
          uses, including access to 911.  Providers of wireless service  
          and some types of VoIP service are required to provide customers  
          911 access.  About 70 percent of all 911 calls now originate  
          from wireless service.
           
          While ubiquitous 911 access helps protect public safety, there  
          are occasions when law enforcement seeks to shut down  
          communications service in order to protect public safety and  
          prevent crime.  However, California law has long held that such  
          shutdowns require prior court approval based on a finding of  
          probable cause of illegal activity. In 1942, in a case where the  
          State Attorney General ordered a telephone company to disconnect  
          service for a man suspected of supplying racing information to  
          bookmakers, a California appellate court held that no state  
          official has the authority to suspend telephone service on mere  
          assertion that illegal activity might take place.
           
          In 1979, the California Supreme Court held in Goldin v. CPUC  
          that interruption of telephone service at the request of law  
          enforcement requires a court order with a finding of probable  
          cause that the service is being used in illegal acts that,  
          absent immediate interruption, would result in significant  
          dangers to the public health, safety, and welfare.  This  
          requirement of a court order is enshrined in a CPUC rule that  
          governs providers of landline telephone service (Tariff Rule  
          31).  
           
          BART Policy - In December 2011, the board of directors of the  
          Bay Area Rapid Transit (BART) district adopted the nation's  
          first local policy specifying when wireless service can be shut  
          down.  This followed BART's shutdown of wireless service for  
          three hours in August 2011 in an attempt to stop text  
          communication by individuals organizing a rally related to an  
          issue of great public interest.  The shutdown led to criticism  










          of BART for depriving thousands of people of the ability to call  
          911 and to comparisons to oppressive governments around the  
          world that shut down communications systems in order to silence  
          public protests and demand for democratic freedoms.
           
          BART's new policy allows BART to interrupt wireless service if  
          BART officials determine there is strong evidence of imminent  
          unlawful activity that threatens public safety, substantial  
          disruption of public transit services, or destruction of BART  
          property, among other considerations.  The policy does not  
          require any court or other review of BART officials'  
          determination that a shutdown is justified.
           
          FCC Action - At the time BART adopted its policy, the Chairman  
          of the FCC stated that open and available communications  
          networks are critical to democracy, the economy, and public  
          safety.  On March 1, 2012, the FCC issued a Public Notice asking  
          for public comment on legal and policy many issues related to  
          intentional interruptions of wireless service by, or at the  
          request of, a government actor for the purpose of ensuring  
          public safety. A major theme of comments was that, in all but  
          the most extreme case, a shutdown of wireless service creates  
          more public safety problems than it solves because people in a  
          crisis cannot call 911 for help and cannot receive emergency  
          wireless alerts, and communication among first responders will  
          be impaired. To date, the FCC has not proposed any rules or  
          policy guidance.
           
                                       COMMENTS  
           
              1.   Author's Purpose  . The author states that the purpose of  
               this bill is to protect public safety by ensuring 911  
               access to emergency services and to preserve a free and  
               open communications system that is critical to democracy.
           
              2.   Responding to Governor's Veto Message  . This bill is  
               substantially similar to SB 1160 (Padilla, 2012), which  
               Governor Brown vetoed, but with the following changes that  
               the author states respond to the Governor's veto message:
           
               �      Unlike SB 1160, this bill makes no change to current  
                 law authorizing law enforcement to order a cut, divert,  
                 or reroute a telephone line based on probable cause in  
                 hostage and barricade situations under Section 7907 of  










                 the Public Utilities Code.

               �      Revises and simplifies the determination law  
                 enforcement must make when seeking to interrupt  
                 communications in an emergency situation when there is  
                 insufficient time to first obtain a court order.

               �      Makes legislative findings including that, with more  
                 than 85 percent of American adults owning a wireless  
                 device, and use of wireless services and platforms  
                 expanding every day, protecting these wireless services  
                 from interruption is more important than ever in order to  
                 protect commerce, public safety, and First Amendment  
                 freedoms that are the core of democracy.
           
              1.   Narrow Focus on Government-Initiated Shutdowns  . The  
               court order required by this bill applies only to service  
               interruptions by government, or by a provider at the  
               request of government, for the purpose of protecting public  
               safety or preventing use of the service for an illegal  
               activity.  It does not apply to service disconnection or  
               interruption authorized by law or regulation for specified  
               purposes such as for failure of a subscriber to pay a bill,  
               maintenance and repair, as directed by the CPUC because of  
               fraudulent business activity or misuse of automated  
               dialing-announcing devices, among others.  This narrow  
               focus of the bill is consistent with the FCC's proceeding  
               seeking to develop federal guidance on government-initiated  
               shutdown of wireless service.
           
             4.    Targets Service Providing 911 Access  . This bill seeks to  
               protect public safety by targeting providers of  
               communications service that are required to provide their  
               customers 911 access to emergency services.  The bill's  
               applicability does not distinguish among technologies or  
               rely on whether or not a service is a "telecommunications  
               service" under federal law or provided by a "telephone  
               corporation" under state law.  Instead, the bill applies to  
               any service that the FCC has required to provide 911  
               access, which includes traditional landline, wireless, and  
               certain Internet-based services.  If the FCC has determined  
               it is a service where customers expect to be able to call  
               911 for help during an emergency, then this bill requires a  
               court order before government can shut down that service.  










           
             5.   Preempts Conflicting Local Policies  . This bill makes  
               legislative findings that protecting customers' 911 access  
               to emergency services and their means to engage in  
               constitutionally protected expression "is a matter of  
               statewide concern."  This language expresses the  
               Legislature's intent that the bill's provisions apply  
               statewide and preempt any conflicting local law, including  
               that of a charter city.  For example, the BART policy would  
               conflict with this bill because it allows BART officials to  
               determine when circumstances justify a service interruption  
               without any court order or finding of probable cause.   
               Thus, if this bill were enacted, the existing BART policy  
               would be preempted.
           
             6.    Hostage and Barricade Situations  .  Section 7907 of the  
               Public Utilities Code authorizes law enforcement to order a  
               telephone company to cut, divert, or reroute a telephone  
               line to prevent communications where there is probable  
               cause that a person is holding hostages and committing a  
               crime, or in barricade situations.  SB 1160, last year's  
               version of this bill, amended this section to align with  
               the court order requirement. The Los Angeles District  
               Attorney's Association (LADA) and Los Angeles Sheriff  
               objected to a court order requirement in hostage and  
               barricade situations, and the author amended the bill to  
               align with Penal Code sections that require a court order  
               for electronic monitoring in hostage and barricade  
               situations no later than 48 hours after the monitoring  
               commences. 
                
               SB 380 makes no change to Section 7907 in response to the  
               Governor's veto message.  However, the LADA has requested  
               that Section 7907 nonetheless be included in the list of  
               provisions not affected by this bill.  These include  
               provisions that either do not involve a government entity  
               (i.e., a provider's internal security practices, automatied  
               dialing devices) or include a court order or similar  
               process (i.e., CPUC order to disconnect service of an  
               entity engaged in fraudulent business activity).  Section  
               7907 applies only to law enforcement interrupting a single  
               landline (not wireless) and requires probable cause, but  
               not a court order or any other proceeding.  Thus, Section  
               7907 could be read as in conflict with Goldin.  However, to  










               be consistent with Penal Code provisions that allows 48  
               hours to obtain a court order in hostage and barricade  
               situations, the author and committee may wish to consider  
               amending the bill to exempt from the provisions of this  
               bill a law enforcement order to cut, divert, or reroute a  
               landline in a hostage or barricade situation pursuant to  
               Section 7907. 
           
             7.    Timing of Court Order in Emergency Situation  .  This bill  
               provides an exception to the court order requirement in an  
               extreme emergency situation but requires the governmental  
               entity to apply for a court order without delay and in no  
               event later than two hours after commencement of a service  
               interruption.  The author states that obtaining court  
               review as soon as possible is essential because lengthy  
               continuation of a shutdown threatens public safety by  
               depriving the public of the ability to call 911, and  
               infringes citizens' right to communicate, among other  
               social and economic impacts from losing wireless service. 
                
               The LADA states that two hours is too short a period to  
               submit an application for a court order, particularly if  
               the emergency is at night or on the weekend.  The LADA  
               states the following: "Emergencies do not necessarily occur  
               during business hours.  In order to apply for an order at  
               night or on the weekend, it would be necessary to draft the  
               affidavits, locate a designated judge and submit the  
               paperwork to that individual within two hours.  This will  
               be difficult or impossible in many emergencies,  
               particularly during a large scale disaster or terrorist  
               situation."
                
               The California Supreme Court, in the 1979 Goldin decision  
               requiring a court order based on probable cause before  
               interrupting service, compared the process of getting the  
               court order for this purpose to that for getting a court  
               order for a search warrant.  Current law authorizes an  
               expedited procedure for obtaining warrants and court orders  
               from a designated judge required to be on call at all  
               times.  Since 2010, electronic signatures are allowed on  
               warrants, which speed the process even more.  Counties  
               implementing the e-signature technology for search warrants  
               in California state that the process can take only minutes  
               to complete.










                
             8.   Guidance from FCC Proceeding  .  To date, the FCC has not  
               acted in its proceeding on legal, policy, and operational  
               issues related to shutdown of wireless service. The author  
               has incorporated issues raised in comments and states that  
               he will continue to monitor the proceeding to determine if  
               this bill may need additional conforming amendments.  
                
             9.    Technical Amendment  .  This bill requires a court order  
               to include a finding, as required by Goldin, that absent  
               immediate and summary action to interrupt communications  
               service, a serious, direct, and immediate danger to public,  
               safety, health or welfare will result.  The author agrees  
               to amend the bill to accurately track this language.
           
             10.  Double Referral  . Should this bill be approved by the  
               committee, it will be re-referred to the Senate Committee  
               on Judiciary for its consideration. 

                                          


                                      POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          AT&T
          American Civil Liberties Union Northern California
          American Federation of State, County and Municipal Employees
          California Cable & Telecommunications Association
          California Chapter of the National Emergency Number Association
          The Utility Reform Network

           Oppose:
           
          Los Angeles County District Attorney's Office, unless amended

          


































          Jacqueline Kinney 
          SB 380 Analysis
          Hearing Date:  April 16, 2013