BILL ANALYSIS                                                                                                                                                                                                    �          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          SB 1160 -  Padilla                                Hearing Date:  
          April 17, 2012             S
          As Amended:         April 9, 2012                 Non-FISCAL     
            B

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                                      DESCRIPTION
           
           Current law  makes it a misdemeanor for an agent, operator, or 
          employee of any telegraph or telephone office to willfully 
          refuse to transmit a message unless the customer bill is not 
          paid or the message encourages treason or other unlawful acts or 
          facilitates escape of a criminal.

           Current law  authorizes law enforcement to order a cut to a 
          telephone line to prevent communications where there is probable 
          cause that a person is holding hostages, committing a crime, or 
          resisting arrest through use of force.

           A California Supreme Court decision  held that it is unlawful for 
          a telephone corporation to interrupt landline telephone service 
          at the request of law enforcement unless the interruption is 
          pursuant to a court order based upon a finding that there is 
          probable cause the service is being used in illegal acts which, 
          absent immediate interruption, would result in significant 
          dangers to the public health, safety, and welfare.

           Current law  and decisions of the Federal Communications 
          Commission (FCC) require specified providers of communications 
          service, including landline, wireless, and certain 
          Internet-based services, to provide customers 911 access to 
          emergency services.

           This bill  would prohibit a government entity, and a provider of 
          communications service acting at the request of a government 
          entity, from intentionally interrupting communication service 











          for the purpose of protecting public safety or preventing use of 
          the service for an illegal purpose except pursuant to a court 
          order based on a finding of probable cause.

           This bill  would require that the court order authorizing an 
          intentional interruption of service include a finding that the 
          interruption will not suppress speech that is protected by the 
          First Amendment of the United States Constitution or the free 
          speech provision of the California Constitution or violate any 
          other rights under federal or state law.

           Current regulations  of the California Public Utilities 
          Commission (CPUC) require landline telephone corporations to 
          notify a customer of a court order to interrupt service being 
          used for an illegal purpose and establishes a procedure for the 
          customer to challenge the interruption.  

           This bill  would require that a communications service provider 
          that interrupts service pursuant to a court order as required by 
          this bill also comply with any applicable regulation of the 
          CPUC, FCC, or both, and any other applicable provision of state 
          or federal law.

           This bill  would make legislative findings that protecting 
          customers' 911 access to emergency services and their means to 
          engage in constitutionally protected expression is a matter of 
          statewide concern, thereby preempting local laws or policies 
          that conflict with this bill.

                                      BACKGROUND
           
          Landline telephone service was once the only widely available 
          means for voice communications and calling 911 for emergency 
          assistance.  Now, growing numbers of people use other 
          technologies such as mobile wireless and Voice over Internet 
          Protocol (VoIP) services as their primary means of communication 
          for voice calls, texting, email, Internet access, and other 
          uses, including access to 911.  Providers of wireless service 
          and some types of VoIP service are required to provide customers 
          911 access.  About 70 percent of all 911 calls now originate 
          from wireless service.

          While ubiquitous 911 access helps protect public safety, there 
          are occasions when law enforcement seeks to shut down 










          communications service in order to protect public safety and 
          prevent crime.  However, California law has long held that such 
          shutdowns require prior court approval based on a finding of 
          probable cause of illegal activity. In 1942, in a case where the 
          State Attorney General ordered a telephone company to disconnect 
          service for a man suspected of supplying racing information to 
          bookmakers, a California appellate court held that no state 
          official has the authority to suspend telephone service on mere 
          assertion that illegal activity might take place.

          In 1979, the California Supreme Court held in Goldin v. PUC that 
          interruption of telephone service at the request of law 
          enforcement requires a court order with a finding of probable 
          cause that the service is being used in illegal acts that, 
          absent immediate interruption, would result in significant 
          dangers to the public health, safety, and welfare.  This 
          requirement of a court order is enshrined in a CPUC rule that 
          governs providers of landline telephone service (Tariff Rule 
          31).  

          BART Policy - In December 2011, the board of directors of the 
          Bay Area Rapid Transit (BART) district adopted the nation's 
          first local policy specifying when wireless service can be shut 
          down.  This followed BART's shutdown of wireless service for 
          three hours in August 2011 in an attempt to stop text 
          communication by individuals organizing a rally related to an 
          issue of great public interest.  The shutdown led to criticism 
          of BART for depriving thousands of people of the ability to call 
          911 and to comparisons to oppressive governments around the 
          world that shut down communications systems in order to silence 
          public protests and demand for democratic freedoms.

           BART's new policy allows BART to interrupt wireless service if 
          BART officials determine there is strong evidence of imminent 
          unlawful activity that threatens public safety, substantial 
          disruption of public transit services, or destruction of BART 
          property, among other considerations.  The policy does not 
          require any court or other review of BART officials' 
          determination that a shutdown is justified.

          FCC Action - At the time BART adopted its policy, the Chairman 
          of the FCC stated that open and available communications 
          networks are critical to democracy, the economy, and public 
          safety.  On March 1, the FCC issued a Public Notice asking for 










          public comment on many issues related to intentional 
          interruptions of wireless service by, or at the request of, a 
          government actor for the purpose of ensuring public safety.  The 
          FCC asked for comment on the legal and policy constraints on 
          service interruption posed by the First Amendment, federal law 
          governing communications, and other provisions of federal and 
          state law.  The FCC stated that public input will inform whether 
          - and if so, what - policy guidance may be appropriate regarding 
          wireless service interruptions.

                                       COMMENTS
           
              1.   Author's Purpose  . The author states that the purpose of 
               this bill is to protect public safety by ensuring 911 
               access to emergency services and to preserve a free and 
               open communications system that is critical to democracy.

             2.   Narrow Focus on Government-Initiated Shutdowns  . The 
               court order required by this bill applies only to service 
               interruptions by government, or by a provider at the 
               request of government, for the purpose of protecting public 
               safety or preventing use of the service for an illegal 
               activity.  It does not apply to service disconnection or 
               interruption authorized by law or regulation for specified 
               purposes such as for failure of a subscriber to pay a bill, 
               maintenance and repair, as directed by the CPUC because of 
               fraudulent business activity or misuse of automated 
               dialing-announcing devices, among others.  This narrow 
               focus of the bill is consistent with the FCC's proceeding 
               seeking to develop federal guidance on government-initiated 
               shutdown of wireless service.

              3.   Targets Service Providing 911 Access  . This bill seeks to 
               protect public safety by targeting providers of 
               communications service that are required to provide their 
               customers 911 access to emergency services.  The bill's 
               applicability does not distinguish among technologies or 
               rely on whether or not a service is a "telecommunications 
               service" under federal law or provided by a "telephone 
               corporation" under state law.  Instead, the bill applies to 
               any service that the FCC has required to provide 911 
               access, which includes traditional landline, wireless, and 
               certain Internet-based services.  If the FCC has determined 
               it is a service where customers expect to be able to call 










               911 for help during an emergency, then this bill requires a 
               court order before government can shut down that service.

              4.   Preempts Conflicting Local Policies  . This bill makes 
               legislative findings that protecting customers' 911 access 
               to emergency services and their means to engage in 
               constitutionally protected expression "is a matter of 
               statewide concern."  This language expresses the 
               Legislature's intent that the bill's provisions apply 
               statewide and preempt any conflicting local law, including 
               that of a charter city.  For example, the BART policy would 
               conflict with this bill because it allows BART officials to 
               determine when circumstances justify a service interruption 
               without any court order or finding of probable cause.  
               Thus, if this bill were enacted, the existing BART policy 
               would be preempted.

              5.   Timing of Court Order  .  A letter from the BART General 
               Manager raises concerns with the bill requiring a court 
               order prior to shutting down service, stating "I am not 
               convinced that in a crisis situation there will be enough 
               time . . . to comply in a timely fashion."  The California 
               Supreme Court, in the 1979 Goldin decision requiring a 
               court order based on probable cause before interrupting 
               service, compared the process of getting the court order 
               for this purpose to that for getting a court order for a 
               search warrant.  Current law authorizes an expedited 
               procedure for obtaining court orders from a designated 
               judge on call at all times.  Since 2010, electronic 
               signatures are allowed on warrants, which speed the process 
               even more.  Press reports this month about implementing the 
               e-signature technology for search warrants in California 
               state that the process takes only minutes to complete.

              6.   Guidance from FCC Proceeding  .  The FCC's Public Notice 
               seeks input on a wide range of legal, policy, and 
               operational issues related to shutdown of wireless service. 
                  Comments are due April 30, and reply comments are due 
               May 30.  The author has indicated that these comments and 
               any FCC guidance based on those comments will help inform 
               whether this bill needs additional amendments.  

              7.   National Emergencies  .  CTIA-The Wireless Association 
               raises a concern whether this bill would interfere with the 










               federal "Emergency Wireless Protocol" for shutting down 
               service during national emergencies.  This protocol, which 
               is referenced in the FCC's Public Notice, is not mandatory. 
                This bill does not distinguish between service shutdowns 
               that involve a national emergency or not.  It would apply 
               to many potential service shutdowns that do not involve a 
               national emergency. 

              8.   Double Referral  . Should this bill be approved by the 
               committee, it should be re-referred to the Senate Committee 
               on Judiciary for its consideration. 

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          American Civil Liberties Union Northern California
          California Cable & Telecommunications Association, if amended
          California Chapter of the National Emergency Number Association
          The Utility Reform Network

           Oppose:
           
          None on file

          Jacqueline Kinney 
          SB 1160 Analysis
          Hearing Date:  April 17, 2012