BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1160
                                                                  Page  1


          SENATE THIRD READING
          SB 1160 (Padilla)
          As Amended  July 5, 2012
          Majority vote 

           SENATE VOTE  :32-0  
           
           UTILITIES & COMMERCE              13-0              JUDICIARY   
          10-0                
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Fletcher,       |Ayes:|Feuer, Wagner, Atkins,    |
          |     |Buchanan, Fong, Fuentes,  |     |Dickinson, Gorell, Huber, |
          |     |Roger Hern�ndez, Huffman, |     |Jones, Monning,           |
          |     |Knight, Ma, Nestande,     |     |Wieckowski, Bonnie        |
          |     |Skinner, Swanson, Valadao |     |Lowenthal                 |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits a governmental entity, and a provider of 
          communication service acting at the request of a governmental 
          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.  

           FISCAL EFFECT  :  None

           COMMENTS  :  According to the author, 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.

           Background  :  For many decades landline telephone service was the 
          only means of
          communication and calling 911 for emergency assistance.  The 
          evolution of technology has brought to the forefront a greater 
          use of mobile wireless and Voice over Internet Protocol (VoIP) 
          services as a primary means of communication for voice calls, 
          texting, e-mail, Internet access, and other uses, including 
          access to 911.  It has been estimated by the Federal 
          Communication Commission (FCC) that 70% of all 911 calls now 
          originate from wireless phones.

          In California, Public Utilities Commission (PUC) Decision No. 








                                                                  SB 1160
                                                                  Page  2


          71797 (1966), established a procedure that must be followed 
          before "any communications utility operating under the 
          jurisdiction of the commission" may refuse service to an 
          applicant, or discontinue service to a subscriber, based on an 
          assertion by law enforcement that the service is or will be used 
          for unlawful purposes.  This is commonly known as "Tariff Rule 
          31."  Importantly, this tariff rule applies only to refusals of 
          service/disconnections requested by law enforcement; it does not 
          apply to company-initiated disconnections for fraud or other 
          illegal activity made pursuant to applicable tariffs, customer 
          contracts, and internal practices to prevent network harm. 

          PUC implemented "Tariff Rule 31" following the California 
          Supreme Court's 1966 decision in Sokol v. Public Utilities 
          Commission (1966) 65 Cal.2d 247, which struck down a prior PUC 
          rule on this matter.  The Sokol case held that "�Whatever] new 
          procedure is hereafter devised," it "must at a minimum require 
          that the police obtain prior authorization to secure the 
          termination of service by satisfying an impartial tribunal that 
          they have probable cause to act, in a manner reasonably 
          comparable to a proceeding before a magistrate to obtain a 
          search warrant.  In addition, after service is terminated the 
          subscriber must be promptly afforded the opportunity to 
          challenge the allegations of the police and to secure 
          restoration of the service." Sokol, 65 Cal.2d at page 256.

          Following Sokol, PUC undertook further proceedings to modify the 
          rule consistent with this standard.  PUC was then sued again by 
          an aggrieved person asserting "extensive" constitutional errors 
          including violation of free speech, due process, and unlawful 
          taking of property.  In Goldin v. Public Utilities Commission 
          (1979), 23 Cal. 3d 638, the California Supreme Court held that 
          "Tariff Rule 31" needed to "be modified in certain respects in 
          order to insure the full future protection of constitutional 
          rights to due process of law."  Specifically, Goldin required 
          PUC to modify the rule to provide that the magistrate must find 
          that there is probable cause to believe "not only that the 
          subject telephone facilities have been or are to be used in the 
          commission or facilitation of illegal acts, but that the 
          character of such acts is such that, absent immediate and 
          summary action in the premises, significant dangers to public 
          health, safety, or welfare will result."  Goldin, 23 Cal. 3d at 
          664-65.  Otherwise, Goldin found "Tariff Rule 31" to be 
          generally consistent with the requirements of the Sokol decision 








                                                                  SB 1160
                                                                  Page  3


          and the requirements of applicable principles of state and 
          federal constitutional law.  Goldin, 23 Cal. 3d at 670.  PUC 
          amended "Tariff Rule 31" to implement the modifications required 
          under Goldin.  See Decision 91188, adopted January 8, 1980.

           BART goes too far  ?:  In August 2011, officials of the Bay Area 
          Rapid Transit district
          temporarily disabled wireless service in several stations to 
          interfere with anticipated political demonstrations protesting 
          the fatal shooting of a passenger by BART police.  Thousands of 
          BART commuters lost the ability to utilize wireless services in 
          the affected stations for the purpose of public safety.

          In December 2011, the BART board of directors adopted the 
          nation's first policy specifying when mobile wireless service 
          can be shut down.  The new policy allows BART to interrupt cell 
          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.

           What this bill does  ?:  This bill would preempt a governmental 
          entity, provider of
          communications service, or any official acting at the request of 
          a governmental entity from interrupting communications service 
          for the purpose of protecting public safety or preventing the 
          use of communications for an illegal purpose unless a signed 
          court order is obtained.

          Nothing in this bill curtails a governmental entity from 
          reliance on judicially recognized exceptions to the prohibition 
          on prior restraints of speech.  If a governmental entity 
          determines that it must rely on a judicially recognized 
          exception because the circumstances justify an interruption of 
          communications service without first obtaining an order, the 
          governmental entity shall follow certain criteria.

          It also makes current law technology-neutral to apply to any 
          communications service that interconnects with the public 
          switched telecommunications network and is required by FCC to 
          provide users 911 access to emergency services.  









                                                                  SB 1160
                                                                  Page  4



           Analysis Prepared by :    DaVina Flemings / U. & C. / (916) 
          319-2083                                               FN: 
          0004457