BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1074 (Fuentes)
          As Amended May 16, 2011
          Hearing Date: July 5, 2011
          Fiscal: No
          Urgency: No
          SK
                    

                                        SUBJECT
                                           
               Personal Liability Immunity: Telecommunications Service 
                                      Providers

                                      DESCRIPTION  

          This bill would provide 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 
          civil claim, damage, or loss caused by an act or omission in the 
          design, development, installation, maintenance, or provision of 
          9-1-1 service.  This immunity would not apply, however, if the 
          act or omission that proximately caused the claim, damage, or 
          loss constituted gross negligence, wanton or willful misconduct, 
          or intentional misconduct.  The immunity also would not apply to 
          services provided under tariff.   

          This bill would define public safety agency and 9-1-1 service 
          for the purposes of this bill, and would otherwise make findings 
          and declarations with respect to Next Generation 9-1-1 (NG 
          9-1-1) services.

                                      BACKGROUND  

          Next Generation 9-1-1 is based on Internet Protocol (IP) 
          technology in order to provide increased access to 9-1-1 
          services.  According to the California Technology Agency's Web 
          site, the widespread and rapid adoption of wireless phones and 
          technologies that enable texting as well as sending videos and 
          photos over phones, and the increased adoption of broadband 
          throughout the state, has led to increased expectations by the 
          public with respect to 9-1-1 services.  Many Californians, for 
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          example, already assume that they can send text messages to 
          9-1-1 and receive assistance, though the current system is not 
          capable of receiving these messages.  NG 9-1-1 enables callers 
          to connect with 9-1-1 public safety answer points (PSAPs) and 
          request assistance in new ways through multimedia technologies, 
          allowing texts, photos, or even live videos to be sent to the 
          PSAP for real-time assistance.  It may even enable the use of 
          Smartphone applications that could transmit a person's health 
          information directly to the PSAP; the possibilities of NG 9-1-1 
          are numerous and vital to public safety. 

          Both Congress and the Federal Communications Commission (FCC) 
          have recognized the importance of these IP-based technologies to 
          the future of 9-1-1 services.  (See New and Emerging 
          Technologies 911 Act (NET 911 Act); FCC National Broadband 
          Plan.)  With respect to California, the 9-1-1 Emergency 
          Communications Division has released an NG 9-1-1 Strategic 
          Roadmap that identifies liability as a significant challenge 
          related to regulation and policy for NG 9-1-1.  That roadmap 
          states that "�l]ack of legal clarity on the issue of liability 
          can lead to significant issues, including delays in provisioning 
          critical NG 9-1-1 services."  

          To facilitate the adoption of NG 9-1-1, this bill would provide 
          immunity to retail or wholesale service providers of 
          telecommunications service, or other service, involved in 
          providing 9-1-1 service, for any civil claim, damage, or loss 
          caused by an act or omission in the design, development, 
          installation, maintenance, or provision of 9-1-1 service.  The 
          bill, however, would exempt from this immunity provision any act 
          or omission that proximately caused the claim, damage, or loss 
          constituted gross negligence, wanton or willful misconduct, or 
          intentional misconduct.  To limit the application of the 
          immunity, the bill would define public safety agency and 9-1-1 
          services.  
           
                                CHANGES TO EXISTING LAW
           
           Existing state law  generally provides that everyone is 
          responsible, not only for the result of his or her willful acts, 
          but also for an injury occasioned to another by his or her want 
          of ordinary care or skill in the management of his or her 
          property or person, except so far as the latter has, willfully 
          or by want of ordinary care, brought the injury upon himself or 
          herself.  (Civ. Code Sec. 1714.)

                                                                      



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           Existing federal law  provides that a wireless carrier, 
          IP-enabled voice service provider, or other emergency 
          communications provider, and their officers, 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 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.  (47 
          U.S.C. Sec. 615a.)

           Existing federal law  provides that in matters related to 9-1-1 
          communications via wireless 9-1-1 service, IP-enabled voice 
          service, or other emergency communications service, 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.  (47 U.S.C. Sec. 615a.)

           Existing Public Utilities Commission (PUC) tariff  provides 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 
                                                                      



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          equipment by a customer to Utility facilities.  

           Existing state law  , the Warren 911-Emergency Assistance Act, 
          requires every local public agency to establish a telephone 
          service which automatically connects a person dialing the digits 
          "911" to an established public safety answering point through 
          normal telephone service facilities.  (Gov. Code Sec. 53100 et 
          seq.)  This Act defines "public safety agency" to mean a 
          functional division of a public agency which provides 
          firefighting, police, medical, or other emergency services.  
          (Gov. Code Sec. 53102.)

           This bill  would provide that a retail or wholesale service 
          provider of a service involved in providing 9-1-1 service, shall 
          not be liable for any civil claim, 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 claim, damage, or loss 
          constituted gross negligence, wanton or willful misconduct, or 
          intentional misconduct.

           This bill  would define "public safety agency" in accordance with 
          the Warren 911-Emergency Assistance Act, and define "9-1-1 
          service" as a telecommunications service, or other wireline or 
          wireless service, that provides to the user of the public 
          telephone system the ability to reach a public safety agency by 
          utilizing the digits 9-1-1 or otherwise facilitates the 
          provision of emergency services pursuant to the 
          Warren-911-Emergency Assistance Act.  

           This bill  would provide that "9-1-1 service" includes a 9-1-1 
          service that utilizes in whole or in part an Internet Protocol.

           This bill  would not apply to services provided under tariff.

           This bill  would include findings and declarations.

                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

            This bill extends the same immunity from ordinary negligence 
            that telephone companies have in their tariff to other service 
            providers when they are functioning as part of the 911 
                                                                      



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            emergency system.  This immunity would only attach when a 
            third party is actively participating in connecting a caller 
            to a 911 provider, and not generally to the company or its 
            other activities. 

            All entities associated with responding to emergencies, 
            including providers of 911 service, have immunity from 
            ordinary negligence.  Without this protection, no entity, 
            whether a public agency or private company, could assume the 
            risk of liability associated with responding to an emergency.  
            Emergency responders have immunity through statute, while 
            telephone corporations have it through tariffs filed with the 
            Public Utilities Commission (PUC).  NG 911, however, will 
            involve third-party providers that are neither emergency 
            responders nor telephone companies, and these third-parties 
            will be deterred from providing emergency related services if 
            they cannot have the same 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 a 
            wireless caller who cannot give their location.  

          2.    Immunity for NG 9-1-1  

          This bill seeks to encourage the development of NG 9-1-1 by 
          providing a qualified immunity for retail or wholesale service 
          providers of services involved in providing NG 9-1-1.  If 
          successfully implemented, NG 9-1-1 could allow the public to 
          send text, images, video or data to the "public safety answering 
          point" (9-1-1 center).  That ability would add versatility to 
          the existing emergency system - for example, an individual who 
          is deaf or hearing impaired could use a text message to contact 
          emergency services as opposed to using TTY or TDD devices.  The 
          policy question raised by this bill is what immunity, if any, is 
          appropriate for NG 9-1-1 service providers in order to achieve 
          the goal of facilitating the transition to NG 9-1-1.

            a.    Immunities in general  

            As a general rule, immunities act to deprive an injured 
            individual from seeking redress for his or her injuries.  That 
            deprivation counsels against providing immunity unless 
            absolutely necessary because the benefits of providing that 
            immunity outweigh the potential costs.  As a recent example, 
            public agencies that operate skateboarding parks receive a 
            qualified immunity from liability for injuries in those parks 
                                                                      



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            if they require participants to wear safety equipment.  That 
            immunity was enacted to encourage the construction of 
            skateboarding parks and to encourage the use of safety 
            equipment among teenagers.  An important part of that immunity 
            was a sunset, which allowed the Legislature to review the 
            pilot project, make changes, and evaluate any concerns that 
            arose. As a result of that oversight, this Committee's 
            analysis of AB 264 (Correa, 2011) noted that there have been 
            no reported lawsuits in the past eight years against public 
            agencies.  Thus, the immunity was actually never used, but was 
            able to provide the necessary incentive to further the public 
            policy goal of building skateboarding parks and encouraging 
            the use of safety equipment.

            Although skateboard parks are different in nature from NG 
            9-1-1, this bill represents a similar goal of providing for an 
            immunity that is intended to spur development of the 
            technology advances necessary to enable NG 9-1-1 services, in 
            the interest of public safety.  With respect to existing 9-1-1 
            services, provided by a utility (phone company), existing law, 
            under the PUC's tariff, provides a broad immunity from civil 
            damages that is similar to the immunity proposed by this bill. 
             That PUC immunity is arguably appropriate given the need for 
            those utilities to provide access to 9-1-1 services - if, in 
            fact, a utility does not provide 9-1-1 access, that lack of 
            access would pose a serious risk to the health and safety of 
            the public.  Although similar to the existing immunity for 
            utilities, the immunity proposed by this bill is fundamentally 
            different due to applying to a yet-unknown set of 
            technologies.

            b.    NG 9-1-1 immunity issues  

            Although promising, NG 9-1-1 is not currently in place in 
            California.  To the extent that certain devices do offer to 
            call emergency services (such as a home alarm system that is 
            tripped by an intruder), that call is done by voice, not 
            electronically.  From a policy standpoint, the difficulty in 
            crafting an immunity to encourage the development of NG 9-1-1 
            is that it is unclear exactly what type of products would take 
            advantage of the immunity.  For example, such an immunity 
            could cover individuals who develop applications for smart 
            phones that allow users, with one click, to send an automated 
            message to NG 9-1-1 requesting assistance.  That immunity 
            would spur creation, but, on the other hand, could cause an 
            individual to release an application for general consumption 
                                                                      



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            that still had flaws that may cause the software to stop 
            working in emergency situations.  

            From a public policy standpoint, any immunity must encourage 
            the use of new technologies, but also not unduly restrict 
            valid claims so as to create an incentive for NG 9-1-1 
            providers to formulate reliable systems for the public to use 
            to contact emergency services.  It should also be noted that 
            the exact nature of NG 9-1-1 service is unknown as it is still 
            developing, and the Legislature should closely monitor any 
            enacted immunity to ensure that it, in fact, is encouraging 
            innovation while not removing liability for injuries that, 
            from a public policy standpoint, should be actionable.

            c.    Proposed amendment to limit immunity  

            This bill would provide immunity from any civil claim, 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 claim, damage, or loss constituted gross negligence, 
            wanton or willful misconduct, or intentional misconduct to any 
            retail or wholesale service provider of telecommunications 
            service, or other service that is involved in providing 9-1-1 
            service.  While the bill also defines the meaning of "9-1-1 
            service," there has been concern expressed by stakeholders 
            that because of the still-evolving nature of the NG 9-1-1 
            technologies, this bill would be granting an immunity that is 
            overly broad based on varying interpretations of who could be 
            deemed a "provider" for the purposes of this bill.  

            In an effort to limit the immunity provisions and make 
            explicit that the immunity does not apply to any operation or 
            performance of end user devices (equipment) that does not 
            relate to the provision of 9-1-1 service, this bill should be 
            amended as follows: 

               On page 2, after line 26, insert "(d) This section shall 
               not be construed to modify the liability of any 
               manufacturer, distributor or other person arising from a 
               claim, damage or loss related to the operation or 
               performance of an end user device that is not related to 
               the provision of 9-1-1 service."

            In order to provide additional clarity that any provision of 
            9-1-1 service must be pursuant to the Warren 9-1-1 Emergency 
                                                                      



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            Act, the bill should be amended as follows: 

               On page 2, line 3, after "9-1-1 service" insert "in 
               accordance with the Warren 911-Emergency Act (Article 6 
               (commencing with Section 53100)) of Chapter 1 of Part 1 of 
               Division 2 of Title 5 of the Government Code"

          3.    Opposition's concerns  

          The California Chapter of the National Emergency Number 
          Association, in opposition, contends:

            California's citizens, and government agencies that provide 
            access to emergency medical and/or public safety services, 
            depend on the absolute reliability and dependability of 
            products and services associated with guaranteeing access to 
            emergency service resources.  All communications facilities 
            associated with the provision of 9-1-1 emergency services are 
            provided by telecommunications corporations or 
            telecommunication service providers.  Communications 
            facilities that connect callers to Public Safety Answering 
            Points (PSAPs) are the direct responsibility of the 
            telecommunication corporations.  They are directly responsible 
            for the installation and maintenance of those facilities.  In 
            addition, they are to provide address data to California's 
            PSAPs to assure that emergency service providers are being 
            directed to the appropriate location to respond to emergency 
            service requests, a critical responsibility. 

            To �make] immune telecommunication corporations or service 
            providers from liability caused by their negligence or lack of 
            appropriate installation, maintenance and information 
            provision practices is inappropriate.  These companies are not 
            new to corporate responsibility and as "for-profit" entities, 
            they are properly insured to address malpractice occurrences.  


            The reliability and dependability of ancillary emergency 
            communication service provider products must be the 
            responsibility of the developers and providers of those 
            products.  They must be held responsible for meeting the 
            standards that are required to assure our citizens of 
            immediate, reliable and appropriate access to emergency 
            service providers. 

            Should communication facilities and/or communication devices 
                                                                      



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            fail to perform appropriately, and providers of those 
            facilities and/or services must be held liable and responsible 
            for those failures.  The responsibility for those failures 
            rests on them, not the public agency engaged in the 
            utilization of the facilities and/or services to assure 
            immediate and appropriate access to emergency services that 
            Californians are entitled to demand. 


           Support  :  AT&T; California's Independent Telecommunications 
          Companies; Civil Justice Association of California

           Opposition  :  California Chapter of the National Emergency Number 
          Association

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known 

           Prior Legislation  :  None Known 

           Prior Vote  :

          Assembly Floor (Ayes 76, Noes 0)
          Assembly Utilities and Commerce Committee (Ayes 14, Noes 0)
          Assembly Judiciary Committee (Ayes 9, Noes 0) 

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