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
          
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          |Version: March 28, 2016         |Policy Vote: E., U., & C. 7 - 0 |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 2, 2016       |Consultant: Narisha Bonakdar    |
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          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  







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          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  








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            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.









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           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.


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