BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1074
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          Date of Hearing:   May 9, 2011

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                AB 1074 (Fuentes) - As Introduced:  February 18, 2011
           
          SUBJECT  :   Telecommunication service providers: personal 
          liability immunity.

           SUMMARY  :   Extends certain immunities to specified companies in 
          the provision of 9-1-1 emergency assistance services.   
          Specifically,  this bill  :  

          1)Provides that a retail or wholesale service provider of 
            telecommunications service, or other service, involved in 
            providing 9-1-1 service, shall not be liable for any claim, 
            damage, or loss caused by an action or omission of the 
            company, business, or individual in the design, development, 
            installation, maintenance, or provision of 9-1-1 service, 
            unless the act or omission that proximately caused the claim, 
            damage, or loss constituted gross negligence, recklessness, or 
            intentional misconduct.

           EXISTING LAW  :

          1)Provides pursuant to the California Public Utilities 
            Commission (PUC) tariff that a utility shall not be liable for 
            civil damages, whether in contract, tort, or otherwise, to any 
            person, corporation, or other entity for any loss or damage 
            caused by any Utility act or omission in the design, 
            development, installation, maintenance, or provision of 9-1-1 
            service other than an act or omission constituting gross 
            negligence or wanton or willful misconduct.  The Utility shall 
            not be liable or responsible for any indirect, incidental, or 
            consequential damages associated with the provision of 9-1-1 
            service, including, for example and without limitation, when a 
            call originates from a system or line which makes the 
            provision of specific location information impossible to 
            provide for technical reasons, and when a failure or 
            interruption in 9-1-1 service is due to the attachment of any 
            equipment by a customer to Utility facilities.

          2)Provides pursuant to federal law that a wireless carrier, 
            Internet Protocol (IP)-enabled voice service provider, or 
            other emergency communications provider, and their officers, 








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            directors, employees, vendors, and agents, shall have immunity 
            or other protection from liability in a State of a scope and 
            extent that is not less than the scope and extent of immunity 
            or other protection from liability that any local exchange 
            company, and its officers, directors, employees, vendors, or 
            agents, have under Federal and State law (whether through 
            statute, judicial decision, tariffs filed by such local 
            exchange company, or otherwise) applicable in such State, 
            including in connection with an act or omission involving the 
            release to a Public Service Access Point (PSAP), emergency 
            medical service provider or emergency dispatch provider, 
            public safety, fire service or law enforcement official, or 
            hospital emergency or trauma care facility of subscriber 
            information related to emergency calls, emergency services, or 
            other emergency communications services.

          3)Provides pursuant to federal law that a person using wireless 
            9-1-1 service, or making 9-1-1 communications via IP-enabled 
            voice service or other emergency communications service, shall 
            have immunity or other protection from liability of a scope 
            and extent that is not less than the scope and extent of 
            immunity or other protection from liability under applicable 
            law in similar circumstances of a person using 9-1-1 service 
            that is not via wireless 9-1-1 service, IP-enabled voice 
            service, or other emergency communications service.

          4)Provides pursuant to federal law that in matters related to 
            9-1-1 communications via wireless 9-1-1 service, IP-enabled 
            voice service, or other emergency communications services, a 
            PSAP, and its employees, vendors, agents, and authorizing 
            government entity (if any) shall have immunity or other 
            protection from liability of a scope and extent that is not 
            less than the scope and extent of immunity or other protection 
            from liability under applicable law accorded to such PSAP, 
            employees, vendors, agents, and authorizing government entity, 
            respectively, in matters related to 9-1-1 communications that 
            are not via wireless 9-1-1 service, IP-enabled voice service, 
            or other emergency communications service.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, all entities associated 
          with responding to emergencies, including providers of 9-1-1 
          service, have immunity from ordinary negligence. Without this 
          protection, no entity, whether a public agency or a private 








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          company could assume the risk of liability associated with 
          responding to an emergency. Emergency responders have immunity 
          through statute, while telephone corporations have immunity 
          through tariffs filed with the PUC. Next Generation 911 (NG 
          911), however, will involve third-party providers that are 
          neither emergency responders nor telephone corporations, and 
          these third-parties will be deterred from providing 
          emergency-related services if they cannot also have immunity 
          from ordinary negligence. The leading examples are companies 
          that maintain mapping databases and specialize in converting X/Y 
          map coordinates into an address, which is a vital function in 
          locating wireless callers who cannot give their location.

           1)Issue  :  Public expectations for the 9-1-1 emergency telephone 
            system are increasing as IP -
          based communications technology becomes increasingly available 
          on both wireline and wireless devices.  The existing system, 
          however, was designed for the analog or digital circuit-switched 
          telephone system, or landline system, which cannot accommodate 
          IP-based applications that are common today.  To accommodate 
          growing expectations that the 9-1-1 system will meet these 
          technological advancements, the 9-1-1 system will need to 
          migrate to an IP-based system, which is also referred to as NG 
          911.  

          This bill seeks to address issues regarding liability that arise 
          from the fact that an IP-based system may encompass service 
          providers other than traditional telephone corporations.

           1)Next Gen 911  :  Under NG 911, it is envisioned that all 
            connections to a PSAP will be made
          via the Internet, whether from traditional landlines, wireless 
          cellular telephones, email or text messaging.  This Internet 
          based system will also allow for additional services as well, 
          most notably converting location data from a GPS-enabled cell 
          phone into a street address that can be provided to the 9-1-1- 
          operator.  In support of the bill, Verizon states that a private 
          company called Intrado has the best location-based address 
          database in the U.S., and Verizon wants to partner with this 
          company to provide the address of a cell phone user calling 
          9-1-1 who cannot give an address. 

          Regulated telecommunications companies are protected from 
          certain civil liability by PUC tariff and pursuant to federal 
          law.  Supporters wish to extend protection from liability to 








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          businesses like Intrado, when involved in providing 9-1-1 
          service - that is, actually performing a function that connects 
          a caller to a 9-1-1 operator - through a company like Verizon 
          that is under contract with the state.  It would not be 
          appropriate for these businesses to be subject to the PUC tariff 
          as their business model does not fall within the purview of the 
          PUCs authority unlike the telecommunications companies.  
          According to supporters, no single company can provide all the 
          services needed for NG 911, and the needed technology companies 
          will be reluctant to risk the potentially unlimited liability 
          associated with 911 services without the immunity from ordinary 
          negligence that Verizon has.  The regulated telecommunications 
          companies like Verizon, however, will continue to be the 
          entities that contract with the state and remain responsible for 
          the quality of the 9-1-1 service provided regardless of who they 
          contract with.

           2)Suggested amendments  :  This bill was heard in Assembly 
            Judiciary Committee on May 3, 
          2011, and the author agreed to amend the bill in Assembly 
          Utilities and Commerce Committee to better clarify the intent of 
          the bill and respond to concerns raised by the opposition.    As 
          such, the author and this committee may wish to add legislative 
          intent language regarding the value of NG 911  .  Additionally, 
          the author and this committee may wish to add Section 1714.55 to 
          the Civil Code as follows:  

          1714.55 (a)  A retail or wholesale service provider of 
          telecommunications service or other service involved in 
          providing 9-1-1 service, shall not be liable for any civil 
          damage or loss caused by an act or omission in the design, 
          development, installation, maintenance, or provision of 9-1-1 
          service unless the act or omission that proximately caused the 
          damage or loss constituted gross negligence, wanton or willful 
          misconduct or intentional misconduct  .

          (b) For purposes of this section:

             (1)  "Public safety agency"  means a public safety agency  
               defined  by  the Warren 911 Emergency Assistance Act (Article 
               6 (commencing with Section 53100) of Chapter 1 of Part 1 of 
               Division 2 of Title 5 of the Government Code).

             (2)  "9-1-1 service"  means a telecommunications service or 
               other wireline or wireless service that provides to the 








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               user of the public telephone system the ability to reach a 
               public safety agency by dialing the digits 9-1-1 or 
               facilitates the provision thereof.  This definition 
               includes 9-1-1 service that utilizes in whole or in part 
               Internet Protocol for emergency services pursuant to the 
               Warren-911 Emergency Assistance Act  .

              (c)  This section shall not apply to services provided under 
               tariff  .


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Verizon

           Opposition 
           
          California Chapter of the National Emergency Number Association 
          (CalNENA)
           
          Analysis Prepared by  :    DaVina Flemings / U. & C. / (916) 
          319-2083