BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1055|
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THIRD READING
Bill No: SB 1055
Author: Hueso (D)
Introduced:2/16/16
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 4/19/16
AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,
Leyva, McGuire, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Payphone Service Providers Committee
SOURCE: California Public Utilities Commission
DIGEST: This bill eliminates 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
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Page 2
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
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.
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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
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.:YesLocal: No
SUPPORT: (Verified5/17/16)
California Public Utilities Commission (source)
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OPPOSITION: (Verified5/17/16)
None received
ARGUMENTS IN SUPPORT: According to the CPUC, 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.
Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
5/19/16 14:37:28
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