BILL NUMBER: AB 2395 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
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 explaining
before seeking to withdraw traditional circuit-switched and
other legacy telephone services. The education and
outreach program would be required to explain 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 circuit-switched legacy
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 to
conduct a technical review 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 petition the
commission to request in writing that the commission
review the availability of the alternative service at the
customer's location. The bill would require the commission to
issue an order disposing of the petition not later than 60
days after its filing. review and resolve the customer'
s request within 60 days of receipt of the request. 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 attempt to identify a willing
provider of voice service to serve the customer, and if no willing
provider is identified, to order the withdrawing telephone
corporation to provide voice service to the customer for a period no
longer than 12 months after withdrawal. 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. 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.
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 and clean 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 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. underutilized.
(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)
(e) (1) This act will establish
state policy for a clearly communicated, planned, and orderly
transition from outdated technology to cleaner
to advanced technologies, so that continuity of service
for consumers and businesses is ensured, while maintaining safeguards
to preserve universal connectivity.
(3)
(2) This act will ensure that the advanced
alternative services replacing legacy services
provide quality voice service and access to emergency communications
as part of a 21st century policy framework.
(4)
(3) This act will ensure that advanced
alternative 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) A Before seeking to withdraw
traditional circuit-switched and other legacy telephone services
pursuant to this section, a 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, including the which
may include 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 circuit-switched legacy 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
conduct a technical review to 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 that require
requiring a residential power supply to operate shall
also provide backup-battery capability consistent with the standard
are in compliance with the backup-battery capability
standards established by the Federal Communications Commission.
(d) The commission's technical review
confirmation process 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 circuit-switched legacy
telephone 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 verified confirmed
by the commission 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. and how to
seek commission review if the customer believes the alternative
service is not available at the customer's location. 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) Notwithstanding Section 710, within
Within 30 days after receipt of a telephone corporation's
notice of withdrawal of legacy voice service, a customer may
petition request in writing that the commission
to review the availability of the alternative
service at the customer's location. The commission shall
issue an order disposing of the petition not later than 60 days after
the filing of the petition. 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. If the commission determines after an
investigation that no that an alternative
service is not available to the customer at the customer's
location, the commission shall attempt to identify a
willing provider of voice service to serve the customer. If no
willing provider is identified, the commission 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 willing provider or the
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).
(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.
(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).
(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.
(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).
(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.
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.