BILL NUMBER: AB 2570	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN SENATE  JUNE 30, 2016
	AMENDED IN SENATE  JUNE 14, 2016
	AMENDED IN SENATE  JUNE 1, 2016

INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 19, 2016

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2570, as amended, Quirk. Telecommunications: universal service:
reimbursement claims.
   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 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 prohibit the commission from reimbursing a
telephone corporation for a reimbursement claim for providing
lifeline service to a new subscriber who enrolls for service with the
telephone corporation if the subscriber enrolled for lifeline
service with another telephone corporation within the previous 60
days.  The bill would require the commission to reimburse a
telephone corporation providing lifeline service within 90 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 lifeline service within 90 days, the bill
would require the commission to pay interest to the telephone
corporation except under specified circumstances. 
   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 878.5 is added to the Public Utilities Code, to
read:
   878.5.  (a) The commission shall not reimburse a telephone
corporation for a reimbursement claim for providing lifeline service
to a new subscriber who enrolls for service with the telephone
corporation if the subscriber enrolled in lifeline service with
another telephone corporation within the previous 60 days.
   (b) Nothing in this section shall preclude a subscriber from
terminating wireless lifeline service within 14 days of service
activation without incurring any charges, including an early
termination fee, as authorized pursuant to Rulemaking 11-03-113.

  SEC. 2.    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 lifeline service within 90 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
lifeline service within 90 days, the commission shall pay interest to
the telephone corporation except under the circumstances described
in Section 9.9.2 of General Order 153.