AB 2570,
as amended, Quirk. Telecommunications: universal service:begin delete wireless communications.end deletebegin insert reimbursement claims.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. The Moore Universal Telephone Service Act establishes the Universal Lifeline Telephone Service program in order to provide low-income households with access to affordable basic residential telephone service. The act requires that a lifeline telephone service subscriber be provided with one lifeline subscription, as defined by the commission, at his or her principal place of residence.
This bill would prohibit the commission from reimbursing a telephone corporation for a reimbursement claim for providingbegin delete wirelessend delete lifeline service to a new subscriber who enrolls for service with
the telephone corporation if the subscriber enrolled forbegin delete wirelessend delete lifeline service with another telephone corporation within the previous 60 days. The bill would require the commission to reimburse a telephone corporation providingbegin delete wirelessend delete lifeline service withinbegin delete 60end deletebegin insert 90end insert days of the date the telephone corporation submits a reimbursement claim. If the commission does not reimburse a telephone corporation for a reimbursement claim forbegin delete wirelessend delete lifeline service withinbegin delete 60end deletebegin insert
90end insert
days, the bill would require the commission to paybegin delete all of the costs of the telephone corporation resulting from the late reimbursement, including, but not limited to, financing fees, interest payments, and staff time.end deletebegin insert interest to the telephone corporation except under specified circumstances.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 878.5 is added to the Public Utilities
2Code, to read:
begin insert(a)end insertbegin insert end insert The commission shall not reimburse a telephone
4corporation for a reimbursement claim for providingbegin delete wirelessend delete
5 lifeline service to a new subscriber who enrolls for service with
6the telephone corporation if the subscriber enrolled inbegin delete wirelessend delete
7 lifeline service with another telephone corporation within the
8previous 60 days.begin delete Nothingend delete
9begin insert(b)end insertbegin insert end insertbegin insertNothingend insert in this section shall preclude a subscriber from
10terminating wireless lifeline service within 14 days of service
11activation without incurring any charges, including an early
12termination fee, as authorized pursuant to Rulemaking 11-03-113.
Section 879 of the Public Utilities Code is amended
14to read:
(a) The commission shall, at least annually, initiate a
16 proceeding to set rates for lifeline telephone service. All telephone
17corporations providing lifeline telephone service shall annually
18file, on a date set by the commission, proposed lifeline telephone
19service rates and a statement of projected revenue needs to meet
20the funding requirements to provide lifeline telephone service to
21qualified subscribers, together with proposed funding methods to
22provide the necessary funding. These funding methods shall include
23identification of those services whose rates shall be adjusted to
24provide the necessary funding.
25(b) The commission shall commence a proceeding
within 30
26days after the date set for the filings required in subdivision (a),
27giving interested parties an opportunity to comment on the
28proposed rates and funding requirements and the proposed funding
P3 1methods. The commission may change the rates, funding
2requirements, and funding methods proposed by the telephone
3corporations in any manner necessary, including reasonably
4spreading the funding among the services offered by the telephone
5corporations, to meet the public interest. Within 60 days of the
6annual filing, the commission shall issue an order setting lifeline
7telephone service rates and funding methods for each telephone
8corporation making a filing as required in subdivision (a). The
9commission may establish a lifeline service pool composed of the
10rate adjustments and surcharges imposed by the commission
11pursuant to this section for the purpose of funding lifeline telephone
12service.
13(c) Any order issued by the commission pursuant to this section
14shall require telephone corporations providing lifeline telephone
15service to apply the funding requirement in the form of a surcharge
16to service rates which may be separately identified on the bills of
17customers using those services. The commission shall not allow
18any surcharge under this section on the rates charged by those
19telephone corporations for lifeline telephone service.
20(d) The commission shall permit telephone corporations
21operating between service areas to adjust the rates of any service
22which may be affected by any surcharge imposed by this section.
23(e) The commission shall reimburse a telephone corporation
24providingbegin delete wirelessend delete
lifeline service withinbegin delete 60end deletebegin insert 90end insert days of the date
25the telephone corporation submits a reimbursement claim. If the
26commission does not reimburse a telephone corporation for a
27reimbursement claim forbegin delete wirelessend delete lifeline service withinbegin delete 60end deletebegin insert 90end insert
28 days, the commission shall paybegin delete all of the costs of the telephone
29
corporation resulting from the late reimbursement, including, but
30not limited to, financing fees, interest payments, and staff time.end delete
31
begin insert interest to the telephone corporation except under the
32circumstances described in Section 9.9.2 of General Order 153.end insert
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