BILL NUMBER: AB 2570	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2016

INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 19, 2016

   An act to amend  Section 314.5 of   Sections
873 and 879 of, and to add Section 878.5 to,  the Public
Utilities Code, relating to  the Public Utilities Commission.
  telecommunications. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2570, as amended, Quirk.  Public Utilities Commission:
inspection and audit of books and records.  
Telecommunications: universal service: wireless communications. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
The Moore Universal Telephone Service Act establishes the Universal
Lifeline Telephone Service program in order to provide low-income
households with access to affordable basic residential telephone
service.  The act requires the commission to annually designate a
class of lifeline service necessary to meet minimum communications
needs. The act requires that a lifeline telephone service subscriber
be provided with one lifeline subscription, as defined by the
commission, at his or her principal place of residence.  
   This bill would specify that minimum communication needs includes
wireless communications. The bill would prohibit the commission from
reimbursing a telephone corporation for a reimbursement claim for
providing wireless lifeline service to a new subscriber who enrolls
for service with the telephone corporation if the subscriber enrolled
for wireless lifeline service with another telephone corporation
within the previous 60 days. The bill would require the commission to
reimburse a telephone corporation providing wireless lifeline
service within 60 days of the date the telephone corporation submits
a reimbursement claim. If the commission does not reimburse a
telephone corporation for a reimbursement claim for wireless lifeline
service within 60 days, the bill would require the commission to pay
all of the costs of the telephone corporation resulting from the
late reimbursement, including, but not limited to, financing fees,
interest payments, and staff time.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities and can establish its own
procedures, subject to statutory limitations or directions and
constitutional requirements of due process. The Public Utilities Act
requires the commission to inspect and audit the books and records of
certain public utilities, at specified intervals, for regulatory and
tax purposes.  Existing law requires reports of these inspections
and audits and other pertinent information to be furnished to the
State Board of Equalization for use in the assessment of public
utilities.  
   This bill would delete the requirement that reports of the
inspections and audits and other pertinent information be furnished
to the State Board of Equalization. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 873 of the   Public
Utilities Code   is amended to read: 
   873.  (a) The commission shall annually do all of the following:
   (1) Designate a class of lifeline service necessary to meet
minimum communications  needs.   needs,
including wireless communications. 
   (2) Set the rates and charges for that service.
   (3) Develop eligibility criteria for that service.
   (4) Assess the degree of achievement of universal service,
including telephone penetration rates by income, ethnicity, and
geography.
   (b) Minimum communications needs includes, but is not limited to,
the ability to originate and receive calls and the ability to access
electronic information services.
   SEC. 2.    Section 878.5 is added to the  
Public Utilities Code   , to read:  
   878.5.  The commission shall not reimburse a telephone corporation
for a reimbursement claim for providing wireless lifeline service to
a new subscriber who enrolls for service with the telephone
corporation if the subscriber enrolled in wireless lifeline service
with another telephone corporation within the previous 60 days.
   SEC. 3.    Section 879 of the   Public
Utilities Code   is amended to read: 
   879.  (a) The commission shall, at least annually, initiate a
proceeding to set rates for lifeline telephone service. All telephone
corporations providing lifeline telephone service shall annually
file, on a date set by the commission, proposed lifeline telephone
service rates and a statement of projected revenue needs to meet the
funding requirements to provide lifeline telephone service to
qualified subscribers, together with proposed funding methods to
provide the necessary funding. These funding methods shall include
identification of those services whose rates shall be adjusted to
provide the necessary funding.
   (b) The commission shall commence a proceeding within 30 days
after the date set for the filings required in subdivision (a),
giving interested parties an opportunity to comment on the proposed
rates and funding requirements and the proposed funding methods. The
commission may change the rates, funding requirements, and funding
methods proposed by the telephone corporations in any manner
necessary, including reasonably spreading the funding among the
services offered by the telephone corporations, to meet the public
interest. Within 60 days of the annual filing, the commission shall
issue an order setting lifeline telephone service rates and funding
methods for each telephone corporation making a filing as required in
subdivision (a). The commission may establish a lifeline service
pool composed of the rate adjustments and surcharges imposed by the
commission pursuant to this section for the purpose of funding
lifeline telephone service.
   (c) Any order issued by the commission pursuant to this section
shall require telephone corporations providing lifeline telephone
service to apply the funding requirement in the form of a surcharge
to service rates which may be separately identified on the bills of
customers using those services. The commission shall not allow any
surcharge under this section on the rates charged by those telephone
corporations for lifeline telephone service.
   (d) The commission shall permit telephone corporations operating
between service areas to adjust the rates of any service which may be
affected by any surcharge imposed by this section. 
   (e) The commission shall reimburse a telephone corporation
providing wireless lifeline service within 60 days of the date the
telephone corporation submits a reimbursement claim. If the
commission does not reimburse a telephone corporation for a
reimbursement claim for wireless lifeline service within 60 days, the
commission shall pay all of the costs of the telephone corporation
resulting from the late reimbursement, including, but not limited to,
financing fees, interest payments, and staff time.  
  SECTION 1.    Section 314.5 of the Public
Utilities Code is amended to read:
   314.5.  The commission shall inspect and audit the books and
records for regulatory and tax purposes (a) at least once in every
three years in the case of every electrical, gas, heat, telegraph,
telephone, and water corporation serving over 1,000 customers, and
(b) at least once in every five years in the case of every
electrical, gas, heat, telegraph, telephone, and water corporation
serving 1,000 or fewer customers. An audit conducted in connection
with a rate proceeding shall be deemed to fulfill the requirements of
this section.