BILL ANALYSIS Ó
SB 1055
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Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Mike Gatto, Chair
SB
1055 (Hueso) - As Introduced February 16, 2016
SENATE VOTE: 39-0
SUBJECT: Payphone Service Providers Committee
SUMMARY: Eliminates the Payphone Service Providers Committee
(PSPC), and its corresponding fund, from the Public Utilities
Code.
EXISTING LAW:
1)Requires the California Public Utilities Commission (CPUC), by
rule or order, adopt and enforce specified operating
requirements for telephones available for public use that
accept any form of payment and that are owned or operated by
corporations or persons other than telephone corporations.
(Public Utilities Code Section 742)
2)Requires every owner or operator of telephones available for
public use, other than a telephone corporation, that accept
any form of payment which, as part of the service furnished,
provides operator-assisted services by other than a telephone
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corporation having tariff schedules on file with the CPUC
providing for the furnishing of operator-assisted services, to
cause to be posted on or near the telephone equipment so as to
be easily seen by telephone customers specified information.
(Public Utilities Code Section 741)
3)Establishes the PSPC, which is an advisory board to advise the
CPUC regarding the 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 Section 279)
4)Establishes several telecommunications related funds,
including the PSPC Fund, in the State Treasury. (Public
Utilities Code Section 270)
FISCAL EFFECT: Unknown.
COMMENTS:
1)Author's Statement: "This bill is an effort to help modernize
the Public Utilities Code and ensure it is accurately
reflecting the work of the CPUC."
2)Background: The number of pay phones in operation has
declined dramatically over the years. According to the CPUC,
in 2007 there were approximately 93,869 pay phones in
California, by 2015 there were only approximately 27,000 pay
phones remaining. Pay phones are largely concentrated in the
Los Angeles Basin and San Francisco Bay Area. In addition,
there are approximately 1,156 pay phone owners. Pay phone
owners purchase and maintain the hardware to operate a pay
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phone, including selecting a location, installing and removing
the pay phone, purchasing a dial tone service, and maintaining
the required signage and disclosure of the pay phone. The
CPUC does not regulate the rates for pay phones, nor does it
have authority over the placement, construction, or removal of
pay phones.
Currently, the CPUC's Safety and Enforcement Division (SED)
enforces pay phone operating requirements. CPUC inspectors
inspect pay phones to ensure that 9-1-1 calls can be made,
toll free numbers are indeed toll free, adequate signage and
disclosures are posted, and check for physical safety.
Inspectors prioritize pay phones in critical areas such as,
airports, schools, hospitals, remote areas, and areas affected
by natural disasters or consumer complaints. SED receives
about 50 complaints a year regarding pay phones. In 2015,
inspectors conducted 4,969 pay phone inspects. If a
deficiency is found, inspectors send a corrective action
report to the pay phone owner. Pay phone owners are typically
responsive to correcting deficiencies because it helps them
meet the state's operating requirements to continue operating
the pay phone.
3)Payphone Service Providers Committee and Fund: The PSPC and
its corresponding fund were established in 1999 through SB 669
(Polanco), Chapter 677, Statutes of 1999. The PSPC is an
advisory board created to advise the CPUC on the 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. As the number of pay phones
declined, in 2008, the CPUC issued Decision 08-06-020 which
ordered the elimination of the PSPC, while still acknowledge
the important role pay phones play in meeting the state's
universal service goals, especially in emergency situations.
After the PSPC ceased operation, its corresponding fund became
unused and no longer functional. The CPUC's SED inherited pay
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phone enforcement responsibilities including targeted
inspections to check for compliance with operating
requirements after the PSPC ceased operations.
According to the CPUC, the remaining funds in the PSPC Fund
(approximately $5,000) are no longer in the CPUC's budget and
is in the process of being administratively eliminated and
transferred back to the General Fund by the Department of
Finance.
This bill eliminates the PSPC, and its corresponding fund,
from the Public Utilities Code.
4)Arguments in Support: According to the CPUC, the sponsor of
the bill, "SB 1055 would remove the [PSPC] fund from statute
and also eliminate its companion advisory committee. The
remaining $5,000 fund balance would be transferred to the
General Fund. Elimination of the fund would not affect the
CPUC's continued enforcement activities, which in 2015
included inspection of 5,000 payphones to ensure proper
operation and compliance with state law."
REGISTERED SUPPORT / OPPOSITION:
Support
California Public Utilities Commission (Sponsor)
SB 1055
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Opposition
None on File.
Analysis Prepared by:Edmond Cheung / U. & C. / (916)
319-2083