Amended in Assembly April 20, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2395

Introduced by Assembly Member Low

February 18, 2016

An act to add Section 711 to the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL’S DIGEST

AB 2395, as amended, Low. Telecommunications: replacement of public switched telephone network.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law, until January 1, 2020, prohibits the commission from regulating Voice over Internet Protocol and Internet Protocol enabled service (IP enabled service), as defined, except as required or delegated by federal law or expressly provided otherwise in statute.

This bill would require a telephone corporation that is transitioning to IP enabled services and networks to complete a customer education and outreach program begin delete explaining end delete begin insert before seeking to withdraw traditional circuit-switched and other legacy telephone services. The education and outreach program would be required to explain end insert the transition from legacy public switched telephone network services regulated by the commission to IP enabled services, the benefits and advantages of IP enabled services, a description of the advanced services available to consumers, and information regarding the projected timeframes for the transition, including that withdrawal of any voice grade single-line telephone service will not take place prior to January 1, 2020. The bill would prohibit a telephone corporation from withdrawing any voice grade single-line begin insert circuit-switched legacy end insert telephone services without first giving prior notice to the commission certifying (1) that the telephone corporation has completed the education and outreach program, and (2) that an alternative voice service is available for the affected customers in the affected area. The bill would require the commission begin delete to conduct a technical review end delete to confirm that the replacement service has specified elements. Upon completion of these steps, but no sooner than January 1, 2020, the bill would authorize a telephone corporation to elect to discontinue legacy telephone service upon providing not less than 90-days’ notice to the affected customers and to the commission, as specified. The bill would authorize a customer of the telephone corporation, within 30 days after receipt of the notice of withdrawal of legacy voice service to begin delete petition the commission to end delete begin insert request in writing that the commission end insert review the availability of the alternative service at the customer’s location. The bill would require the commission to begin delete issue an order disposing of the petition not later than 60 days after its filing. end delete begin insert review and resolve the customer’s request within 60 days of receipt of the request. end insert The bill would authorize the commission, if it determines after investigation that no alternative service is available to that customer at the customer’s location, to begin delete attempt to identify a willing provider of voice service to serve the customer, and if no willing provider is identified, to end delete order the withdrawing telephone corporation to provide voice service to the customer for a period no longer than 12 months after withdrawal. begin delete The bill would require the commission to establish a universal connectivity program by September 1, 2019, to ensure that those customers for whom the commission has ordered the withdrawing telephone corporation to provide voice services for the 12-month period will continue to have voice service available after that period. end delete begin insert If an order to continue to provide voice service to a customer is issued, the bill would require the commission to evaluate whether an alternative service has become available for the customer during the period the order is in effect and if an alternative service meeting specified requirements does not become available, would authorize the commission to order the withdrawing telephone corporation to continue to provide voice service to the affected customer until an alternative service is available at the customer’s location. end insert

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill are within the act and require action by the commission to implement its requirements, 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) California continues to be the world’s advanced technology
leader, the center of the innovation economy, and a pioneer in
clean and sustainable technology. The state must adopt a strategy
to build our digital infrastructure while retiring outdated
technology. The transition from 20th century traditional
circuit-switched and other legacy telephone services to 21st century
next-generation Internet Protocol (IP) networks and services is
taking place at an extraordinary pace. A significant majority of
Californians have already transitioned to upgraded communications
services such as high-speed Internet, Voice over Internet Protocol
(VoIP), and mobile telephony services.

(b) Between 1999 and 2015, California witnessed an estimated
85 percent decline in landlines providing legacy telephone services
and relying on dated technology. At the same time, consumer
adoption of advanced services over IP-based networks has
continued to grow. Californians have quickly adopted new
technologies to communicate. More than 9 out of 10 Californians
use a smartphone or other mobile devices, 86 percent use the
Internet, and there are over 5.7 million VoIP subscriptions. As of
2014, approximately 6 percent of Californians resided in
households with only a landline, a 44 percent decline from 2010.

(c) So many California consumers have made this transition so
quickly because IP-based services offer greater functionality than
legacy phone service. The gap will only widen with the continuing
integration of IP networks with cloud computing and the Internet
of Things. The policy of the state is to help all Californians
transition to advanced begin delete and clean end delete technologies and services so that
everyone, including low-income, senior, and rural communities,
can benefit from and participate fully in 21st century modern life.

(d) The legacy telephone network is begin delete outdated, underutilized,
and carbon-unfriendly when compared to the IP network. Vital
economic, educational, health, and civic opportunities, including
online learning, telemedicine, remote working, e-government
services, and public safety, are not optimized on the outdated
network. The transition from older, dated technologies to newer,
more advanced technologies is nearly complete, and at some point
in the not-too-distant future it will no longer be economically viable
or environmentally sound to maintain legacy networks and services.
The consumer demand will not be there, the economics will not
support it, and the associated environmental burden will be
disproportionate to its long past benefits. end delete begin insert underutilized. end insert

begin delete

(e) Recent studies show that transitioning from a legacy switched
network to an all IP network can reduce energy costs by as much
as 70 percent, reduce water use for cooling by as much as 70
percent, and reduce emissions of greenhouse gases by as much as
40 percent. IP services themselves provide even further benefits,
including reduced fuel and electricity use through smart logistics
and telematics for efficient traffic and route management, and
automated monitoring of energy use related to lighting and climate
control. IP-based technologies, including remote water leakage
detection and control and smart irrigation solutions for agriculture,
may also serve to enable efficient use of water by consumers.

(f) (1) This act will provide a path for the telecommunications
industry to make significant contributions toward the state’s goals
for energy use and emissions of greenhouse gases, as set forth in
the California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500) of the Health and Safety
Code) and the Clean Energy and Pollution Reduction Act of 2015
(Chapter 547 of the Statutes of 2015).

(2)

end delete

begin insert (e) end insert begin insert   end insert begin insert (1) end insert  This act will establish state policy for a clearly
communicated, planned, and orderly transition begin delete from outdated
technology to cleaner end delete begin insert to end insert advanced technologies, so that continuity
of service for consumers and businesses is ensured, while
maintaining safeguards to preserve universal connectivity.

begin delete

(3)

end delete

begin insert (2) end insert  This act will ensure that the begin delete advanced end delete begin insert alternative end insert services
replacing legacy services provide quality voice service and access
to emergency communications as part of a 21st century policy
framework.

begin delete

(4)

end delete

begin insert (3) end insert  This act will ensure that begin delete advanced end delete begin insert alternative end insert services are
available to replace legacy services before the transition, so that
all Californians are able to benefit from the opportunities presented
by advanced technologies and services.

SEC. 2.  

Section 711 is added to the Public Utilities Code, to
read:

711.  

(a)  begin delete A end delete begin insert Before seeking to withdraw traditional
circuit-switched and other legacy telephone services pursuant to
this section, a end insert telephone corporation transitioning to IP-enabled
services and networks shall complete a customer education and
outreach program explaining the IP transition, its benefits and
advantages, begin delete including the end delete begin insert which may include end insert environmental
benefits and advantages, and a description of the advanced services
available to consumers. The customer education and outreach
program shall also include information regarding the projected
timeframes for the transition, including the fact that the withdrawal
of any voice grade single-line telephone service will not take place
prior to January 1, 2020.

(b) A telephone corporation planning to discontinue any voice
grade single-line begin insert circuit-switched legacy end insert telephone service shall
first give prior notice to the commission certifying both of the
following:

(1) The telephone corporation has completed the education and
outreach program prescribed in subdivision (a).

(2) An alternative voice service is available for the affected
customers in the affected area.

(c) Upon receipt of the notice to withdraw, the commission shall
begin delete conduct a technical review to end delete confirm that the alternative service
has all of the following elements:

(1) Voice grade access to the public switched telephone network
or its successor.

(2) Real-time, two-way voice communications.

(3) Access for end users of those services to the local emergency
telephone systems described in 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), and where available, enhanced 911 access.

(4) Alternative services begin delete that require end delete begin insert requiring end insert a residential power
supply to operate begin delete shall also provide backup-battery capability
consistent with the standard end delete begin insert are in compliance with the
backup-battery capability standards end insert established by the Federal
Communications Commission.

(d) The commission’s begin delete technical review end delete begin insert confirmation process end insert
shall be limited to the determination of whether the alternative
service has the elements set forth in subdivision (c) and shall be
completed within 120 days from receipt of notice from the
telephone corporation pursuant to subdivision (b). If the
commission fails to complete its technical review within 120 days
from receipt of notice, the telephone corporation will be
conclusively presumed to have complied with the requirements of
subdivisions (b) and (c).

(e) Upon completion of the requirements of subdivisions (b),
(c), and (d) for voice grade single-line begin insert circuit-switched legacy
telephone end insert services, but no sooner than January 1, 2020, a telephone
corporation may elect to discontinue any legacy telephone service,
upon giving no less than 90-days’ prior notice to the affected
customers and to the commission. If the discontinuance of legacy
telephone service includes voice grade single-line services, the
notice shall include information regarding the availability of an
alternative service as begin delete verified end delete begin insert confirmed end insert by the commission begin delete in the
technical review, how to petition the commission for review of
the availability of the alternative service at the customer’s location,
and any environmental benefit that will come with the
discontinuance of legacy services and the migration to alternative
services. end delete begin insert and how to seek commission review if the customer
believes the alternative service is not available at the customer’s
location. end insert During the notice period, the telephone corporation shall
continue to provide the legacy telephone service to the affected
customers, except a customer that disconnects or changes the
features of the service, but shall have no obligation to provide the
legacy telephone service to any new customers in the affected area.

(f)  begin delete Notwithstanding Section 710, within end delete begin insert Within end insert 30 days after
receipt of a telephone corporation’s notice of withdrawal of legacy
voice service, a customer may begin delete petition end delete begin insert request in writing that end insert the
commission begin delete to end delete review the availability of the alternative service at
the customer’s location. The commission shall begin delete issue an order
disposing of the petition not later than 60 days after the filing of
the petition. end delete begin insert review and resolve the customer’s request within 60
days of receipt of the request. The commission’s review shall be
limited to determining whether an alternative service that has the
elements set forth in subdivision (c) is available to the customer
at that customer’s location. end insert If the commission determines begin delete after an
investigation that no end delete begin insert that an end insert alternative service is begin insert not end insert available to
the customer at the customer’s location, the commission begin delete shall
attempt to identify a willing provider of voice service to serve the
customer. If no willing provider is identified, the commission end delete may
order the withdrawing telephone corporation to provide voice
service to the customer at the customer’s location for a period no
longer than 12 months after withdrawal. The begin delete willing provider or
the end delete withdrawing telephone corporation may utilize any technology
or service arrangement to provide the voice services as long as it
meets the requirements of subdivision (c).

begin delete

(g) By September 1, 2019, the commission shall establish a
universal connectivity program to ensure that those customers for
whom the commission has ordered the withdrawing telephone
corporation to provide voice services for the 12-month period in
subdivision (f) will continue to receive voice service.

end delete begin insert

(g) If an order to continue to provide voice service to a customer
is issued pursuant to subdivision (f), during the period in which
the withdrawing telephone corporation is required to provide voice
service, the commission shall evaluate whether an alternative
service has become available for the customer that is the subject
of the order. If an alternative service meeting the elements of
subdivision (c) does not become available during the period of the
order, the commission may order the withdrawing telephone
corporation to continue to provide voice service to the affected
customer until an alternative service is available at the customer’s
location. The withdrawing telephone corporation may utilize any
technology or service arrangement to provide the voice service as
long as it meets the requirements of subdivision (c).

end insert

(h) Nothing in this section grants the commission jurisdiction
or control over an alternative service except as specifically set
forth in this section.

(i) Nothing in this section affects a telephone corporation’s
ability to withdraw services under any other law.

begin insert

(j) Nothing in this section affects or changes the commission’s
authority to implement and enforce Sections 251 and 252 of the
federal Communications Act of 1934, as amended (47 U.S.C. Secs.
251 and 252), including, but not limited to, the authority to
arbitrate and enforce interconnection agreements pursuant to
Section 252(b).

end insert begin insert

(k) Nothing in this section affects or changes the obligations of
an incumbent local exchange carrier pursuant to Sections 251 and
252 of the federal Communications Act of 1934, as amended (47
U.S.C. Secs. 251 and 252). For these purposes, “incumbent local
exchange carrier” is defined as in subsection (h) of Section 251
of Title 47 of the United States Code.

end insert

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.