Amended in Senate August 15, 2016

Amended in Senate June 30, 2016

Amended in Senate June 14, 2016

Amended in Senate June 1, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2570

Introduced by Assembly Member Quirk

February 19, 2016

An act to begin delete amend Section 879 of, and to end delete add Section 878.5 begin delete to, end delete begin insert to end insert the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL’S DIGEST

AB 2570, as amended, Quirk. Telecommunications: universal service: reimbursement claims.

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 providing lifeline service to a new subscriber who enrolls for service with the telephone corporation if the subscriber enrolled for lifeline service with another telephone corporation within the previous 60 days. begin delete The bill would require the commission to reimburse a telephone corporation providing lifeline service within 90 days of the date the telephone corporation submits a reimbursement claim. If the commission does not reimburse a telephone corporation for a reimbursement claim for lifeline service within 90 days, the bill would require the commission to pay interest to the telephone corporation except under specified circumstances. end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 878.5 is added to the Public Utilities
Code, to read:

878.5.  

(a) The commission shall not reimburse a telephone
corporation for a reimbursement claim for providing lifeline service
to a new subscriber who enrolls for service with the telephone
corporation if the subscriber enrolled in lifeline service with
another telephone corporation within the previous 60 days.

(b) Nothing in this section shall preclude a subscriber from
terminating wireless lifeline service within 14 days of service
activation without incurring any charges, including an early
termination fee, as authorized pursuant to Rulemaking 11-03-113.

begin delete

SEC. 2.  

Section 879 of the Public Utilities Code is amended
to read:

879.  

(a) The commission shall, at least annually, initiate a
proceeding to set rates for lifeline telephone service. All telephone
corporations providing lifeline telephone service shall annually
file, on a date set by the commission, proposed lifeline telephone
service rates and a statement of projected revenue needs to meet
the funding requirements to provide lifeline telephone service to
qualified subscribers, together with proposed funding methods to
provide the necessary funding. These funding methods shall include
identification of those services whose rates shall be adjusted to
provide the necessary funding.

(b) The commission shall commence a proceeding within 30
days after the date set for the filings required in subdivision (a),
giving interested parties an opportunity to comment on the
proposed rates and funding requirements and the proposed funding
methods. The commission may change the rates, funding
requirements, and funding methods proposed by the telephone
corporations in any manner necessary, including reasonably
spreading the funding among the services offered by the telephone
corporations, to meet the public interest. Within 60 days of the
annual filing, the commission shall issue an order setting lifeline
telephone service rates and funding methods for each telephone
corporation making a filing as required in subdivision (a). The
commission may establish a lifeline service pool composed of the
rate adjustments and surcharges imposed by the commission
pursuant to this section for the purpose of funding lifeline telephone
service.

(c) Any order issued by the commission pursuant to this section
shall require telephone corporations providing lifeline telephone
service to apply the funding requirement in the form of a surcharge
to service rates which may be separately identified on the bills of
customers using those services. The commission shall not allow
any surcharge under this section on the rates charged by those
telephone corporations for lifeline telephone service.

(d) The commission shall permit telephone corporations
operating between service areas to adjust the rates of any service
which may be affected by any surcharge imposed by this section.

(e) The commission shall reimburse a telephone corporation
providing lifeline service within 90 days of the date the telephone
corporation submits a reimbursement claim. If the commission
does not reimburse a telephone corporation for a reimbursement
claim for lifeline service within 90 days, the commission shall pay
interest to the telephone corporation except under the circumstances
described in Section 9.9.2 of General Order 153.

end delete