BILL NUMBER: AB 2192 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Levine
FEBRUARY 20, 2008
An act to amend Sections 871.5, 872, 873, 874, 875, 876, 877, 878,
and 879 of, and to repeal Section 879.5 of, the Public Utilities
Code, relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 2192, as introduced, Levine. Telecommunications: universal
service: Moore Universal Telephone Service Act.
The Moore Universal Telephone Service Act established the
Universal Lifeline Telephone Service (ULTS) program.
This bill would replace the definition of "residential" in the
Moore Universal Telephone Service Act, with a definition of
"household" and would make conforming changes.
Existing law requires the commission to: (1) annually designate a
class of lifeline service necessary to meet minimum residential
communications needs, including the ability to originate and receive
calls and the ability to access electronic information services, (2)
set the rates and charges for that service, (3) develop eligibility
criteria for that service, and (4) assess the degree of achievement
of universal service.
With respect to the 2nd requirement described above, this bill
would require the commission to set the monthly rate assistance
amount for lifeline service, and to charge assistance amounts for
installation and connection. The bill would require the commission
to, at least triennially, initiate a proceeding to set the rate and
charge assistance amounts for lifeline telephone service.
Existing law requires that the ULTS rates be set at no more than
50% of either the basic rate for measured service or the basic flat
rate service, as applicable, exclusive of federally mandated end user
access charges that are available to the residential subscriber.
Existing law requires that the lifeline telephone service
installation or connection charge, or both, not be more than 50% of
the charge for basic residential service installation or connection.
This bill would delete these provisions.
Existing law requires the commission to require every telephone
corporation providing telephone service within a service area to file
a schedule of rates and charges providing a class of lifeline
telephone service.
This bill would delete this provision.
Existing law requires that a lifeline telephone service subscriber
be provided with one single party line at his or her principal place
of residence.
This bill would require 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.
Existing law makes any public utility, as defined, and any
corporation other than a public utility, that violates the Public
Utilities Act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the commission
is guilty of a crime.
Because the provisions of this bill are within the act and require
action by the commission to implement its requirements, a violation
of these provisions would impose a state-mandated local program by
expanding the definition of a crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 871.5 of the Public Utilities Code is amended
to read:
871.5. The Legislature finds and declares all of the following:
(a) The offering of high quality basic telephone service at
affordable rates to the greatest number of citizens has been a
longstanding goal of the state.
(b) The Moore Universal Telephone Service Act has been, and
continues to be, an important means for achieving universal service
by making basic residential telephone service
affordable to low-income citizens households
through the creation of a lifeline class of service.
(c) Every means should be employed by the commission and telephone
corporations operating within service areas which furnish
lifeline telephone service to ensure that every
person household qualified to receive lifeline
telephone service is informed of and is afforded the opportunity to
subscribe to that service.
(d) The furnishing of lifeline telephone service is in the public
interest and should be supported fairly and equitably by every
telephone corporation, and the commission, in administering the
lifeline telephone service program, should implement the program in a
way that is equitable, nondiscriminatory, and without competitive
consequences for the telecommunications industry in California.
SEC. 2. Section 872 of the Public Utilities Code is amended to
read:
872. As used in this article, "residential"
"household" means a residential use
dwelling that is the principal place of residence of
the lifeline telephone service subscriber, and excludes
any industrial, commercial, and every other category
of end use or other nonr esidential
building .
SEC. 3. 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 residential communications needs.
(2) Set the rates and charges monthly rate
assistance amount for that service , and charge
assistance amounts for installation and connection .
(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.
This information shall be annually reported to the Legislature by
the commission in a document which can be made public.
(b) Minimum residential communications needs includes, but is not
limited to, the ability to originate and receive calls and the
ability to access electronic information services.
SEC. 4. Section 874 of the Public Utilities Code is amended to
read:
874. The lifeline telephone service rates and charges
shall be as follows: (a) The
commission may limit the number of installation and connection charge
assistance amounts, or both, provided to a lifetime telephone
service customer in any given period.
(a) In a residential subscriber's service area where measured
service is not available, the lifeline telephone service rates shall
not be more than 50 percent of the rates for basic flat rate service,
exclusive of federally mandated end user access charges, available
to the residential subscriber.
(b) In a residential subscriber's service area where measured
service is available, the subscriber may elect either of the
following:
(1) A lifeline telephone service measured rate of not more than 50
percent of the basic rate for measured service, exclusive of
federally mandated end user access charges, available to the
residential subscriber.
(2) A lifeline flat rate of not more than 50 percent of the rates
for basic flat rate service, exclusive of federally mandated end user
access charges, available to the residential subscriber.
(c) The lifeline telephone service installation or connection
charge, or both, shall not be more than 50 percent of the charge for
basic residential service installation or connection, or both. The
commission may limit the number of installation and connection
charges, or both, that may be incurred at the reduced rate in any
given period.
(d)
(b) There shall be no charge to the
residential lifeline customer who has filed a
valid eligibility statement for changing out of lifeline service.
(e)
(c) The commission shall assess whether there is a
problem with customers who fraudulently obtain lifeline telephone
service. If the commission determines that there is a problem, it
shall recommend and promulgate appropriate solutions. This assessment
and the solutions determined by the commission shall not, in and of
themselves, change the procedures developed pursuant to Section 876.
SEC. 5. Section 875 of the Public Utilities Code is amended to
read:
875. (a) In addition to Section 874, when applicable,
every lifeline telephone service subscriber shall be given an
allowance, reduced by the amount of any credit or allowance
authorized by the Federal Communications Commission, equal to the
then current or announced federally mandated residential end user
access charges.
(b) The commission may, in a separate proceeding, establish
procedures necessary to ensure that the lifeline telephone service
program qualifies for any federal funds available for the support of
those programs.
SEC. 6. Section 876 of the Public Utilities Code is amended to
read:
876. The commission shall require every
Every telephone corporation providing telephone service within
a service area to file a schedule of rates and charges
providing a class of lifeline telephone service. Every telephone
corporation providing service within a service area shall
inform all eligible subscribers of the availability of lifeline
telephone service, and how they may qualify for and obtain service,
and shall accept applications for lifeline telephone service
according to procedures specified by the commission.
SEC. 7. Section 877 of the Public Utilities Code is amended to
read:
877. Nothing in this article precludes the commission from
changing any rate , rate assistance amount, or charge assistance
amount established pursuant to Section 873, either
specifically or pursuant to any general restructuring of all
telephone rates, charges, and classifications.
SEC. 8. Section 878 of the Public Utilities Code is amended to
read:
878. A lifeline telephone service subscriber shall be provided
with one single party line lifeline
subscription, as defined by the commission, at his or her
principal place of residence, and no other member of that subscriber'
s family or household who maintains residence at that place is
eligible for lifeline telephone service.
An applicant for lifeline telephone service may report only one
address in this state as the principal place of residence.
SEC. 9. Section 879 of the Public Utilities Code is amended to
read:
879. (a) The commission shall, at least annually
triennially , initiate a proceeding to set
rates the rate and charge assistance amounts
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.
SEC. 10. Section 879.5 of the Public Utilities Code is repealed.
879.5. Notwithstanding Section 879, the commission shall issue
its initial order adopting required rates and funding requirements
not later than October 31, 1987, and prior to the issuance of that
order, may fund lifeline telephone service through the use of an
interim surcharge on service rates for telephone service provided by
telephone corporations operating between service areas. The interim
surcharge shall not exceed 4 percent of the service rates.
SEC. 11. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.