BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1250 (McGuire) - Telecommunications: major rural outages: notifications and reporting ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 28, 2016 |Policy Vote: E., U., & C. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 2, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1250 requires specified telecommunication services providers to notify the California Office of Emergency Services (OES) of a major rural outage, as defined, and requires the California Public Utilities Commission (CPUC) in consultation with OES to establish the requirements. Fiscal Impact: Ongoing costs of approximately $152,000 (Public Utilities Commission Utilities Reimbursement Account) to analyze data and report to the Legislature, coordinate with OES, and oversee carrier reporting. Minor costs to OES. Background: The Federal Communications Commission (FCC) requires facilities-based telecommunications service providers (e.g., wireless, wireline/landline, cable and satellite communications providers) to electronically report significant SB 1250 (McGuire) Page 1 of ? disruptions or outages through the Network Outage Reporting System (NORS). FCC rules require notification for all outages that last at least 30 minutes and affect at least 900,000 user minutes, calculated as the outages duration multiplied by the potential customers affected. The FCC presumes the outage information is confidential and protected from routine public disclosure given the sensitivity of the information to national security and commercial competitiveness. The CPUC largely adheres to the FCC outage notification requirements. However, the CPUC has petitioned the FCC in order to gain access to the NORS data for California. In March 2015, the FCC adopted a Notice of Proposed Rulemaking regarding proposals to update the Outage Reporting rules to enhance the reliability and resiliency of the Nation's communication system, in particular to strengthen the Nation's 911 system. The FCC is considering a number of changes to the existing rules, however, largely maintaining the existing notification outage threshold of 30 minutes duration and affecting 900,000 user minutes. The proposals include creating more uniformity in applying the threshold for wireless service which the FCC found are applying different methods, as well as, proposals to better address the needs of rural communities by considering a geography-based threshold. The FCC is also soliciting comments as to whether and how it may share data with state regulatory agencies, such as the CPUC. As of the writing of this analysis, the proposed rulemaking remains open. Proposed Law: This bill: Establishes the 911 Emergency Reliability and Public Safety Act and requires the CPUC to annually report specified information on major rural outages to the Legislature. Defines "major rural outage" as an outage of telecommunications service in a rural area, experienced by a facilities-based provider of telecommunications services that SB 1250 (McGuire) Page 2 of ? the FCC requires to provide access to 911 services, that is both (A) of 30 or more minutes duration and (B) potentially affects 75,000 or more user-minutes. Requires the CPUC, in consultation with OES, to: - Require all facilities-based telecommunications services to provide responder outage information within 30 minutes of the outage to OES. - Require all facilities-based providers of telecommunications services to provide initial outage reporting within 120 minutes of the outage to OES. - Require all facilities-based providers of telecommunications services to provide final outage reporting within 20 days of the outage to OES and the CPUC, and specifies information that must be included in the report. - Adopt rules to inform the public relative to outages, including specified information to be posted on the providers Internet website. - Determine what information may be made public consistent with the confidentiality provisions of Public Utilities Code § 583 and confidentiality requirements of the FCC. Authorizes the CPUC, in consultation with the OES, to adopt rules to implement and refine the notification and reporting requirements. Requires OES to notify any applicable county office of emergency services and sheriff of any county affected by the outage and specifies what should be included in the report. SB 1250 (McGuire) Page 3 of ? Requires the telecommunications service provider to notify the CPUC upon its completion of providing initial outage reporting. Requires that a written summary of the outage report is supplied to the board of supervisors of each county affected by the outage within 30 days of the major rural outage. Provides that violations of the 911 Emergency Reliability and Public Safety Act are subject to existing CPUC enforcement actions, including fines and penalties. Establishes that rural outage notifications and reporting requirements of this act are among the numerous provisions explicitly authorized and not subject to the limitations imposed on the CPUC to limit regulatory jurisdiction of Voice over Internet Protocol (VOIP) and Internet Protocol (IP). Staff Comments: Per the CPUC, in 2015, facilities-based wireline and wireless telephone corporations filed approximately 460 NORS reports per month, based on the 900,000 user minute reporting threshold. This Legislation has a 75,000 user minute reporting threshold for rural areas; at present, the CPUC does not have information on the number of users affected by past outages or how that might be affected by future outages. Consequently, the CPUC estimates that the new reporting could generate hundreds of additional reports per month. -- END -- SB 1250 (McGuire) Page 4 of ?