BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: SB 1055 Hearing Date: 4/19/2016 ----------------------------------------------------------------- |Author: |Hueso | |-----------+-----------------------------------------------------| |Version: |2/16/2016 As Introduced | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Nidia Bautista | | | | ----------------------------------------------------------------- SUBJECT: Payphone Service Providers Committee DIGEST: This bill would eliminate the Payphone Service Providers Committee (PSPC), the corresponding fund, which was intended to advise the California Public Utilities Commission (CPUC) regarding payphones. ANALYSIS: Existing law: 1)Requires the CPUC to adopt and enforce operating requirements for telephones available for public use that accept any form of payment and that are owned and operated by corporations or person other than telephone corporations. (Public Utilities Code §742) 2)Establishes the PSPC as an advisory board to advise the CPUC regarding development, implementation, and administration of programs to educate pay phone service providers, ensure compliance with the CPUC's requirements for pay phone operations, and educate consumers on matters related to pay phones. (Public Utilities Code §279) 3)Establishes several telecommunications-related funds in the State Treasury, including the PSPC Fund. (Public Utilities Code §270 (a) (5)) 4)Provides that Federal Communications Commission (FCC) shall take all actions necessary to prescribe regulations that establish a per call compensation plan to ensure that all SB 1055 (Hueso) Page 2 of ? payphone service providers are fairly compensated for each and every completed intrastate and interstate call using their payphone, except emergency calls and relay service call for hearing disabled individuals, and other requirements. Establishes that to the extent that any state requirements are inconsistent with the FCC's regulations, federal regulations on such matters shall preempt such state requirements. (47 United States Code §276) This bill: 1)Eliminates the PSPC which was intended to advise the CPUC regarding the development, implementation, and administration of programs to educate payphone service providers, ensure compliance with the CPUC's requirements for payphone operations, and educate consumers on matters related to payphones. 2)Eliminates the corresponding PSPC Fund. Background When the PSPC was established, in 1999, there were nearly 100,000 payphones in use across California. However, the number of payphones has since dramatically declined with the widespread growth of wireless phones. Within less than 10 years of establishing the PSPC, the CPUC, in D. 06-08-020, called for its elimination stating it was "no longer functional." After the PSPC ceased operations and asked the CPUC for its dissolution, the associated fund also became unused and no longer necessary. Today, there are roughly 27,000 payphones in operation in California. These phones are owned and maintained by individual owners who purchase dial tone service from telephone service providers. Currently, there are an estimated 1,150 payphone owners. The owners of the payphones maintain all the hardware for the phone, select the locations, install and remove payphones, and are responsible for maintaining the required signage and disclosures on the payphones. While the CPUC ordered the elimination of the PSPC, it also concluded that "payphones have an important role in meeting our universal service goals, and Californians continue to use public payphones, especially in emergency situations." Therefore, the CPUC requires pay phone service providers to report on a monthly SB 1055 (Hueso) Page 3 of ? basis pay phone locations and owner information. CPUC uses this information to manage the payphone enforcement program, staffed by three CPUC inspectors. These inspectors verify that calls can be placed to 9-1-1 and to operator service providers and that collect calls can be made. CPUC inspectors prioritize inspections of payphones often vandalized, located in critical areas such as airports, schools and hospitals, remote areas, and areas recently affected by natural disasters. In 2015, CPUC inspectors conducted nearly 5,000 payphone inspections. Elimination of the PSPC and the PSPC Fund will not affect the CPUC's continued enforcement activities. Prior/Related Legislation SB 669 (Polanco, Chapter 667, Statutes of 1999) established, among other provisions, several advisory boards and corresponding funds related to telecommunications, including the PSPC and the PSPC Fund. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: California Public Utilities Commission (Source) OPPOSITION: None received ARGUMENTS IN SUPPORT: This bill will eliminate an advisory committee and fund that are no longer necessary (or in use). While other advisory committees established by SB 669 (Polanco, 1999) are still in use, such as the High-Cost Fund - A & B, Deaf and Disabled Telecommunications Program Administrative Committee Fund, and others, the PSPC was found early on to not have much utility or necessity. However, the fund has continued to exist in the Public Utilities Code. -- END -- SB 1055 (Hueso) Page 4 of ?