Session:   

Bill

Home - Bills - Bill - Authors - Dates - Keywords - Tags - Locations

Measure AB 470
Authors McKinnor  
Subject Telephone corporations: carriers of last resort.
Relating To relating to communications.
Title An act to add Article 1.5 (commencing with Section 2878) to Chapter 10 of Part 2 of Division 1 of the Public Utilities Code, relating to communications, and making an appropriation therefor.
Last Action Dt 2025-07-17
State Amended Senate
Status In Committee Process
Active? Y
Vote Required Majority
Appropriation Yes
Fiscal Committee Yes
Local Program Yes
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-08-29     In committee: Held under submission.
2025-08-18     In committee: Referred to suspense file.
2025-07-17     Re-referred to Com. on APPR.
2025-07-17     From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
2025-07-17     Withdrawn from committee.
2025-07-16     From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 1.) (July 15). Re-referred to Com. on JUD.
2025-07-10     Referred to Coms. on E., U & C. and JUD.
2025-06-27     Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 2. Page 2340.)
2025-06-27     In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-25     Read second time. Ordered to third reading.
2025-06-24     From committee: Do pass. (Ayes 7. Noes 0.) (June 23).
2025-06-19     Withdrawn from committee.
2025-06-19     Assembly Rule 96 suspended. (Page 2223.)
2025-06-19     Ordered to third reading.
2025-06-19     Read third time and amended. Ordered to third reading. (Page 2223.)
2025-06-19     Re-referred to Com. on C. & C. pursuant to Assembly Rule 77.2.
2025-06-19     Joint Rule 62(a) suspended. (Ayes 54. Noes 11. Page 2223.)
2025-05-23     From committee: Do pass and re-refer to Com. on RLS. (Ayes 12. Noes 0.) (May 23). Re-referred to Com. on RLS.
2025-05-21     Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21     In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14     In committee: Hearing postponed by committee.
2025-05-06     Re-referred to Com. on APPR.
2025-05-05     Read second time and amended.
2025-05-01     From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (April 30).
2025-04-23     Re-referred to Com. on C. & C.
2025-04-22     From committee chair, with author's amendments: Amend, and re-refer to Com. on C. & C. Read second time and amended.
2025-03-18     Re-referred to Com. on C. & C.
2025-03-17     From committee chair, with author's amendments: Amend, and re-refer to Com. on C. & C. Read second time and amended.
2025-03-17     Referred to Com. on C. & C.
2025-02-07     From printer. May be heard in committee March 9.
2025-02-06     Read first time. To print.
Keywords
Tags
Versions
Amended Senate     2025-07-17
Amended Assembly     2025-06-19
Amended Assembly     2025-05-05
Amended Assembly     2025-04-22
Amended Assembly     2025-03-17
Introduced     2025-02-06
Last Version Text
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
	


	<ns0:Description>
		<ns0:Id>20250AB__047094AMD</ns0:Id>
		<ns0:VersionNum>94</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-06</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-03-17</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-04-22</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-05-05</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-06-19</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-07-17</ns0:ActionDate>
			</ns0:Action>
		</ns0:History>
		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>AB</ns0:MeasureType>
			<ns0:MeasureNum>470</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member McKinnor</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>McKinnor</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title> An act to add Article 1.5 (commencing with Section 2878) to Chapter 10 of Part 2 of Division 1 of the Public Utilities Code, relating to communications, and making an appropriation therefor.</ns0:Title>
		<ns0:RelatingClause>communications, and making an appropriation therefor</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Telephone corporations: carriers of last resort.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission, on or before February 1, 1995, to issue an order initiating an investigation and open proceeding to examine the current and future definitions of universal service in telecommunications. Pursuant to that provision, the commission issued a decision involving carriers of last resort, including the withdrawal process for carriers of last resort, defined as a carrier who provides local exchange service and stands ready to provide basic service to any customer requesting basic service within a specified area.</html:p>
			<html:p>This bill would require the commission, in consultation with the
			 Office of Emergency Services, to adopt a process through which a telephone corporation acting as a carrier of last resort is authorized to seek relief from their carrier of last resort obligations in a census block where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area, and in a census block that is well-served, as defined. The bill would require the commission, on or before December 15, 2026, to adopt a map designating well-served areas. The bill would require that the process include specified notice and challenge requirements. The bill would require a telephone corporation to meet certain requirements during specified time periods following the date that amended status is granted by the commission, as provided.</html:p>
			<html:p>The bill would create the Public Safety Agency Technology Upgrade Grant Fund, provide that moneys in the fund are continuously
			 appropriated to the commission for purposes of public safety agency technology upgrade grants, and authorize the fund to accept donations from nongovernmental entities.</html:p>
			<html:p>The bill would exempt specified services and locations from its provisions.</html:p>
			<html:p>Under existing law, a violation of an order,
			 decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
			<html:p>Because a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
			<html:p>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.</html:p>
			<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>YES</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>YES</ns0:LocalProgram>
		</ns0:DigestKey>
		<ns0:MeasureIndicators>
			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
			</ns0:ImmediateEffectFlags>
		</ns0:MeasureIndicators>
	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_094B3A41-3B31-4F81-AC17-1FBEBB5B3821">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					The Legislature finds and declares all of the following:
				</html:p>
				<html:p>
					(1)
					<html:span class="EnSpace"/>
					The state encourages the deployment of advanced telecommunications capability to all Californians by utilizing regulatory forbearance measures that promote competition in the local telecommunications market, or other methods that encourage infrastructure investment.
				</html:p>
				<html:p>
					(2)
					<html:span class="EnSpace"/>
					All Californians deserve reliable, affordable, fast, and safe communication options, no matter who they are, where they live, or why they need to be connected.
				</html:p>
				<html:p>
					(3)
					<html:span class="EnSpace"/>
					The transition to advanced fiber optic networks is key to creating equity and positive impacts on California education, health care, agriculture, public safety, workforce development, and the economy.
				</html:p>
				<html:p>
					(4)
					<html:span class="EnSpace"/>
					Californians are moving swiftly to abandon the legacy network because it does not provide the benefits of modern communication technologies, with more choosing to use advanced services every year.
				</html:p>
				<html:p>
					(5)
					<html:span class="EnSpace"/>
					California must develop a responsible and equitable transition plan that ensures all Californians have access to the connectivity they need.
				</html:p>
				<html:p>
					(6)
					<html:span class="EnSpace"/>
					The transition should include a phased approach that over time ensures customers have access to communication services that are equally or more reliable
				and affordable, before transitioning away from the old legacy network.
				</html:p>
				<html:p>
					(7)
					<html:span class="EnSpace"/>
					As part of the transition, no Californian will be left without reliable voice service in their home, including the ability to contact 9-1-1.
				</html:p>
				<html:p>
					(8)
					<html:span class="EnSpace"/>
					The purposes of this act are to ensure California’s longstanding commitment to universal service is not compromised by changes to the telecommunications marketplace and to ensure the public may benefit from the transition away from legacy networks. To that end, this act establishes a comprehensive and robust process for a telephone corporation to seek changes to its obligations as a carrier of last resort for eligible areas only, and requirements to ensure the public benefits from those changes.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					By choosing to enact legislation affecting a narrow scope of areas with robust competition or no direct impact to an existing population, it is the intent of the Legislature to allow the Public Utilities Commission to continue commission Rulemaking 24-06-012 (June 20, 2024), Order Instituting Rulemaking Proceeding to Consider Changes to the Commission’s Carrier of Last Resort Rules, for areas that are not eligible areas under this act.
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_9AF376A0-556B-4257-8E7C-4AF9DE34C711">
			<ns0:Num>SEC. 2.</ns0:Num>
			<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'1.5.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 2878" ns3:type="locator">
				Article 1.5 (commencing with Section 2878) is added to Chapter 10 of Part 2 of Division 1 of the 
				<ns0:DocName>Public Utilities Code</ns0:DocName>
				, to read:
			</ns0:ActionLine>
			<ns0:Fragment>
				<ns0:LawHeading id="id_9AADD732-BA2F-4A03-9442-07A5C7D211EA" type="ARTICLE">
					<ns0:Num>1.5.</ns0:Num>
					<ns0:LawHeadingVersion id="id_1CEF6914-11B9-465A-8C61-99AFCBDA15CF">
						<ns0:LawHeadingText>Carriers of Last Resort</ns0:LawHeadingText>
					</ns0:LawHeadingVersion>
					<ns0:LawSection id="id_E1038628-ADBA-4029-9F0B-E501FA7983FB">
						<ns0:Num>2878.</ns0:Num>
						<ns0:LawSectionVersion id="id_3C08D627-7BCC-4B48-B85B-AF9C44F06F5B">
							<ns0:Content>
								<html:p>For purposes of this article, all of the following definitions apply:</html:p>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									(1)
									<html:span class="EnSpace"/>
									“Alternative voice basic service” means a retail service made available through a technology or service arrangement by a provider that provides, as a stand-alone service or as part of a bundled service, all of the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									Voice access interconnected with the public switched telephone network.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									Access to emergency 9-1-1 service and E-9-1-1 service in compliance with current state and federal laws and regulations.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									Compatibility with a backup power source.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									A billing option with monthly rates and without contract or early termination penalties.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									Access to the California Relay Service pursuant to Section 2881 for deaf or hearing-impaired persons or individuals with speech disabilities.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									Access to customer service for information about service termination, repair, and billing inquiries.
								</html:p>
								<html:p>
									(G)
									<html:span class="EnSpace"/>
									Free access to 800 and 8YY toll-free services with no additional usage charges for such calls.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									“Alternative voice basic service” shall be a separate definition from “basic service,” as defined in
						  commission Decision 12-12-038 (December 24, 2012), Order Instituting Rulemaking Regarding Revisions to the California High Cost Fund B Program, and does not encompass any obligations of any other service except as defined in this section.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									“Amended status” means the status of a telephone corporation that has been granted relief from carrier of last resort status in a census block or census blocks.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									“Amended status area” means a census block or census blocks for which a telephone corporation has been granted relief from carrier of last resort status.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									“Broadband service” means a mass-market retail service by wire or radio provided to customers in the state that provides the capability to transmit data to,
						  and receive data from, all or substantially all internet endpoints, including, but not limited to, any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up internet access service.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									“Carrier of last resort” has the same meaning as defined in Section 275.6.
								</html:p>
								<html:p>
									(f)
									<html:span class="EnSpace"/>
									“Commitment letter” means an affidavit signed by an officer of a telephone corporation with legal authority to bind the telephone
						  corporation to its obligations.
								</html:p>
								<html:p>
									(g)
									<html:span class="EnSpace"/>
									“Comparatively priced alternative voice basic service” means an alternative voice basic service that is competitively priced in relation to the relevant telephone corporation’s nondiscounted basic exchange telephone service when considering all the alternatives in the amended status area and the functionalities of the alternatives.
								</html:p>
								<html:p>
									(h)
									<html:span class="EnSpace"/>
									“Compliance” means following an applicable commission rule or order, corrective action plan, or other remedy, or completing a commission corrective action plan or other remedy, including payment of an applicable fine, for a census block subject to an application under this article.
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									“Eligible area” means a census block that is either
						  of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									A census block that is well-served.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									A census block where the United States Census Bureau reports no population and where a telephone corporation provides no basic exchange service to any customer address located within its telephone service territory.
								</html:p>
								<html:p>
									(j)
									<html:span class="EnSpace"/>
									“Eligible small business customer” means a traditional landline customer with five or fewer lines, that is not subject to a separate contract for copper-based voice services and fits the “microbusiness” definition in paragraph (2) of subdivision (d) of Section 14837 of the Government Code.
								</html:p>
								<html:p>
									(k)
									<html:span class="EnSpace"/>
									“Notice” means a written communication.
								</html:p>
								<html:p>
									(l)
									<html:span class="EnSpace"/>
									“Public safety agency technology upgrade grant” means a grant awarded to a law enforcement agency, as defined in Section 13670 of the Penal Code, for new technology, or an upgrade to existing copper-based systems, to transition to a modern communication system.
								</html:p>
								<html:p>
									(m)
									<html:span class="EnSpace"/>
									“Qualifying public assistance program” means any of the following programs:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The California Alternate Rates for Energy (CARE) program described in Section 739.1.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The State Supplementary Payment Program for the Aged, Blind and Disabled implemented pursuant to the Burton-Moscone-Bagley Citizens’ Income Security Act for Aged, Blind and Disabled Californians (Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the
						  Welfare and Institutions Code).
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									The Temporary Assistance for Needy Families program pursuant to Part A (commencing with Section 401) of Title IV of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.).
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									Covered California, as described in Title 22 (commencing with Section 100500) of the Government Code.
								</html:p>
								<html:p>
									(6)
									<html:span class="EnSpace"/>
									Medi-Cal, as described in the Medi-Cal Act (Chapter 7 (commencing with Section 14000.4) of Part 3 of Division 9 of the Welfare and Institutions Code).
								</html:p>
								<html:p>
									(7)
									<html:span class="EnSpace"/>
									Supplemental security income benefits pursuant to Title XVI of the Social Security Act (Section 1381 of Title 42 of the United States Code).
								</html:p>
								<html:p>
									(n)
									<html:span class="EnSpace"/>
									“Small business security and alarm system technology migration assistance” means a voucher provided to an eligible small business customer for costs associated with transitioning alarm system services.
								</html:p>
								<html:p>
									(o)
									<html:span class="EnSpace"/>
									“Telephone corporation” has the same meaning as defined in Section 234.
								</html:p>
								<html:p>
									(p)
									<html:span class="EnSpace"/>
									“Well-served” means at least three different facilities-based service providers, not including the basic exchange offering over copper infrastructure from the telephone corporation that is acting as the carrier of last resort,
						  offer alternative voice basic service in the relevant area, in compliance with commission rules developed and implemented pursuant to Section 776.2, and at least one of the service providers is a wireline provider, at least two of the service providers offer alternative voice basic service at prices comparable to tariffed basic service, as confirmed by the commission, at least one of the service providers participates in the lifeline telephone service program pursuant to the Moore Universal
						  Telephone Service Act (Article 8 (commencing with Section 871) of Chapter 4 of Part 1), and an alternative voice basic service is available to
						  all of the broadband-serviceable locations in the area, as those broadband-serviceable locations are set forth in the most recent publicly available Federal Communications Commission National Broadband Map showing fixed and wireless broadband coverage or in other telephone, broadband, and wireless service data available to the commission.
								</html:p>
								<html:p>
									(q)
									<html:span class="EnSpace"/>
									“Voice over Internet Protocol” has the same meaning as defined in Section 239. 
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_A5D99C3A-7C04-47CA-A1D5-0F20D5C4EEFB">
						<ns0:Num>2878.1.</ns0:Num>
						<ns0:LawSectionVersion id="id_DBD79565-C418-47B7-8F3B-E43FC4540574">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									A telephone corporation that seeks to amend its status as a carrier of last resort under this article may submit a request to the commission for amended status in an eligible area, consistent with this article.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									(1)
									<html:span class="EnSpace"/>
									Subject to this article and other conditions imposed by the commission consistent with this article, the commission shall approve, or amend and approve, a request for amended status from a telephone corporation.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Upon the commission approving a request for amended status from a telephone corporation pursuant to this article, the commission shall grant the telephone corporation relief from its carrier of last resort status within the amended status area, consistent with Sections 2878.2 and 2878.3.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									In an existing proceeding, the commission shall, on or before December 15, 2026, adopt a map designating well-served areas. The map adopted by the commission shall include data from the wireless coverage maps adopted pursuant to commission Rulemaking 23-02-016 (March 1, 2023), Order Instituting Rulemaking Proceeding to Consider Rules to Implement the Broadband Equity, Access, and Deployment
						  Program,
						  from the Federal Communications Commission’s National Broadband
						  Map, or from other telephone, broadband, and wireless service data available to the commission.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									A telephone corporation shall be in compliance with General Order 133-E, Rules Governing Telecommunications Services, or a successor to that general order adopted by the commission, for the preceding 12 months in order to be eligible to request amended status.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_857F3330-C53C-49E4-B5C1-D06D08D5BAE0">
						<ns0:Num>2878.2.</ns0:Num>
						<ns0:LawSectionVersion id="id_760A5B17-BAD4-4180-B081-31879B7B116F">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									In an existing proceeding, the commission shall, in consultation with the Office of Emergency Services, on or before December 15, 2026, adopt a process through which a telephone corporation seeking to amend its status as a carrier of last resort under this article may submit to the commission a request for amended status for an area where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									The process adopted pursuant to subdivision (a) shall include, at minimum, all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Authorization for a telephone corporation seeking to amend
						  its status as a carrier of last resort under this section to file a Tier 2 advice letter to request amended status and, notwithstanding any other statute or rule, to modify the basic exchange service tariff accordingly.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Public notification requirements.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									(A)
									<html:span class="EnSpace"/>
									A procedure for an applicable household or a representative of that household to challenge a request for amended status, before the request for amended status has been approved by the commission, on the basis that the applicable area does have a population or that the telephone corporation does provide basic exchange
						  service to a customer address within the applicable area.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The commission shall provide for a process to submit a challenge to the proposal for amended status to a third-party review entity.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The commission shall not approve a request for amended status for an area for which there is a pending challenge.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									The commission shall provide 90 days for a challenge of a request for amended status.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									Upon receipt of a challenge to a request for amended status, the
						  commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area does have a population or that the telephone corporation does provide basic exchange service to a customer address within the applicable area. Upon the commission or third-party review entity approving a challenge, the commission shall not approve a request for amended status for the applicable census block.
								</html:p>
								<html:p>
									(G)
									<html:span class="EnSpace"/>
									The commission may contract with a third-party review entity to review a challenge described in this paragraph, consistent with both of the following:
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									If the commission contracts with a third-party review entity, the telephone corporation seeking to amend its status as a carrier of last resort under this article shall reimburse the commission for the costs of contracting with the third-party review entity.
								</html:p>
								<html:p>
									(ii)
									<html:span class="EnSpace"/>
									A telephone corporation seeking to amend its status as a carrier of last resort may recommend third-party review entities to the commission in a request for amended status.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Upon the commission approving a request for amended status from a telephone corporation pursuant to this section, the commission shall grant the telephone corporation relief from its carrier of last resort status within the amended status
						  area.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_8132EDD1-E251-469E-8E69-436821023C2F">
						<ns0:Num>2878.3.</ns0:Num>
						<ns0:LawSectionVersion id="id_C4F55924-91A4-42CA-AEDE-03132836CF6E">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									In an existing proceeding, the commission shall, in consultation with the Office of Emergency Services, on or before December 15, 2026, adopt a process through which a telephone corporation seeking to amend its status as a carrier of last resort under this article may submit to the commission a request for amended status for an area that is well-served, based on the map adopted by the commission pursuant to Section 2878.1.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									The process adopted pursuant to subdivision (a) shall include, at minimum, all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Authorization for a telephone corporation seeking to amend its status as a
						  carrier of last resort under this section to file a Tier 2 advice letter to request amended status and, notwithstanding any other statute or rule, to modify the basic exchange service tariff accordingly.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									A process to notify affected customers when a request for amended status is being considered by the commission. The notice shall include a map of each proposed amended status area as described in the request for amended status.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									A process to notify affected customers when a request for amended status has been approved by the commission.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									(A)
									<html:span class="EnSpace"/>
									A procedure for an applicable household or a representative of that household to challenge a request for amended status, before the request for amended status has been approved by the commission, on the basis that the applicable area is not well-served.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The commission shall provide for a process to submit a challenge to the proposal for amended status to a third-party review entity.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The commission shall not approve a request for amended status for an area for which there is a pending challenge.
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									The commission shall provide 180 days for a challenge of a request for amended status.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									Upon receipt of a
						  challenge to a request for amended status, the commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area is not well-served. Upon the commission or third-party review entity approving a challenge, the commission shall not approve a request for amended status for the applicable census block.
								</html:p>
								<html:p>
									(G)
									<html:span class="EnSpace"/>
									The commission may contract with a third-party review entity to review a challenge described in this paragraph, consistent with both of the following:
								</html:p>
								<html:p>
									(i)
									<html:span class="EnSpace"/>
									If the commission contracts with a third-party review entity, the
						  telephone corporation seeking to amend its status as a carrier of last resort under this article shall reimburse the commission for the costs of contracting with the third-party review entity.
								</html:p>
								<html:p>
									(ii)
									<html:span class="EnSpace"/>
									A telephone corporation seeking to amend its status as a carrier of last resort may recommend third-party review entities to the commission in a request for amended status.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									(A)
									<html:span class="EnSpace"/>
									A procedure for an affected customer to challenge their inclusion in an amended status area, after the request for amended status has been approved by the commission, on the basis that the applicable area is not well-served.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The commission shall provide for a process to submit a challenge to the proposal for amended status to a
						  third-party review entity.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The commission shall impose reasonable timeliness requirements for an affected customer’s challenge to their inclusion in an amended status area, which shall prohibit a challenge from being submitted more than 180 days after notification is provided pursuant to paragraph (3).
								</html:p>
								<html:p>
									(D)
									<html:span class="EnSpace"/>
									Upon receipt of a challenge to a request for amended status, the commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
								</html:p>
								<html:p>
									(E)
									<html:span class="EnSpace"/>
									The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area is not well-served. Upon the commission or third-party review entity approving a
						  challenge, the commission shall not approve a request for amended status for the applicable area.
								</html:p>
								<html:p>
									(F)
									<html:span class="EnSpace"/>
									The commission may contract with a third-party review entity, which may be the same third-party review entity contracted with pursuant to paragraph (4), to review a challenge described in this paragraph.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									The commission shall approve, or amend and approve, a telephone corporations’s advice letter requesting relief from its carrier of last resort status within the amended status area upon
						  the occurrence of all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									The commission approves the request for amended status from the telephone corporation pursuant to this section.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									At least 180 days have passed since the first notification was provided to the affected customer pursuant to paragraph (3) of subdivision (b).
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									All challenges received by the commission pursuant to paragraph (4) or (5) of subdivision (b) have been resolved.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_D1697631-803A-4E60-80A1-8C4DF6B8EEF8">
						<ns0:Num>2878.4.</ns0:Num>
						<ns0:LawSectionVersion id="id_80BF9D32-B1C5-4B4B-97FE-E07E96030873">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									A telephone corporation granted relief from its carrier of last resort status within an amended status area that is well-served, pursuant to Section 2878.3, shall do all the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									(A)
									<html:span class="EnSpace"/>
									Within six years from the effective date a telephone corporation first obtains amended status, the telephone corporation shall demonstrate that it has made accessible its advanced fiber optics buildout to at least three times the number of residential units in the state as the number of basic exchange customers the telephone corporation had as of the
						  effective date of its first request for amended status, one-half of which shall be in areas that are not well-served as of the effective date it first obtained amended status. The telephone corporation shall provide an annual report to the executive director of the commission certifying all of the following:
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The telephone corporation made accessible its advanced fiber optics buildout consistent with subparagraph (A).
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									The telephone corporation had a positive year-over-year increase in its advanced fiber optics buildout in the state and deployment in unserved and underserved areas.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									Provide continuing service to a customer who subscribes to basic exchange service for at least 12 months from the date the telephone corporation obtains amended status in the area if the customer elects not to transition to an alternative voice basic service.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									To the extent technically feasible, offer an existing residential customer a comparatively priced alternative voice basic service for at least 24 months from the date the telephone corporation obtains amended status. For purposes of this paragraph, comparatively priced alternative voice basic service shall, in addition to meeting the requirements of subdivision (a) of Section 2878, provide interoperability with legacy devices utilizing copper for alarm systems, point-of-sale devices, and medical monitoring
						  devices.
								</html:p>
								<html:p>
									(4)
									<html:span class="EnSpace"/>
									To the extent technically feasible, offer a discounted broadband plan in each amended status area to eligible consumers for at least 24 months from the date the telephone corporation obtains amended status. To qualify, a household shall have an income that is at or below 400 percent of the federal poverty guidelines or at least one member of the household shall participate in a qualifying public assistance program.
								</html:p>
								<html:p>
									(5)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, offer small business security and alarm system technology migration assistance in each amended status area to eligible small business customers who transition to an alternative voice basic service by providing a voucher to eligible small business customers for costs
						  associated with transitioning alarm system services. Vouchers shall be administered by the telephone corporation and participation in the program reported annually to the commission.
								</html:p>
								<html:p>
									(6)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, provide funding for public safety agency technology upgrade grants to be administered by the Board of State and Community Corrections to public safety agencies that have at least one service connection located in an amended status area. Administrative costs incurred by the Board of State and Community Corrections shall be recouped from the grant fund.
								</html:p>
								<html:p>
									(7)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, provide funding to the Office of Emergency Services for grants
						  and programs to tribal governments, community-based organizations, and local
						  governments that focus on public outreach and awareness of modern communications, including, but not limited to, alternative voice basic services, for those with low incomes, disabilities, language barriers, older adults, and residents in high-risk areas, to help them prepare for, respond to, and recover from emergencies.
								</html:p>
								<html:p>
									(8)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, provide funding for programs to develop community-based digital literacy resources in amended status areas.
								</html:p>
								<html:p>
									(9)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, provide funding for a workforce development program in amended status areas that includes, but is not limited to, enhanced skills training, mentoring, education
						  reimbursement, and career development programs for nonmanagement employees.
								</html:p>
								<html:p>
									(10)
									<html:span class="EnSpace"/>
									Conduct a minimum of one informational workshop in each legislative district that includes one or more amended status areas, and conduct a minimum of one additional informational workshop in other legislative districts upon request from the Assembly Member or Senator representing the districts.
								</html:p>
								<html:p>
									(11)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, maintain an internet website and toll-free number dedicated to answering questions regarding the amended status process.
								</html:p>
								<html:p>
									(12)
									<html:span class="EnSpace"/>
									For at least 24 months from the date the telephone corporation obtains amended status, engage in fair labor practices and
						  workforce training for employees that may be impacted by carrier of last resort relief.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									A telephone corporation granted relief from its carrier of last resort status within an amended status area that is well-served pursuant to Section 2878.3, or where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area pursuant to Section 2878.2, shall comply with all of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Any transition, construction, maintenance, or installation of communications infrastructure pursuant to this article shall not result in the involuntary elimination of existing
						  union-represented technician positions who build and maintain the legacy copper network without first offering the displaced technicians either retention, retraining, or placement in another union-represented position. Job titles and employee classifications in a collective bargaining agreement without an existing job preservation guarantee shall not be entitled to the benefits provided for under this paragraph.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									For any transition, construction, maintenance, or installation of communications infrastructure pursuant to this article performed by regular full-time workers employed directly by an employer responsible for the transition, construction, maintenance, or installation, the employer shall pay the workers prevailing wages or their bargained contractual wage rates.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									Upon commencing any transition, construction, maintenance, or installation of communications
						  infrastructure pursuant to this article, the telephone corporation shall submit to the commission and the relevant policy committees of the Legislature a workforce compliance plan, which shall include all of the following:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									Documentation of compliance with all workforce provisions.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									A plan for using union labor.
								</html:p>
								<html:p>
									(C)
									<html:span class="EnSpace"/>
									A description of any retraining programs for existing workers.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									The commission may impose a remedy,
						  after notice and a reasonable opportunity to cure, if a telephone corporation fails to meet any requirement of subdivision (a) or (b). The remedies may include those authorized in Section 1701.6 or pursuant to Chapter 11 (commencing with Section 2100) of Part 1.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_5EF9A0A8-2EA5-4A8E-8FB9-22C2D4BE6E0E">
						<ns0:Num>2878.5.</ns0:Num>
						<ns0:LawSectionVersion id="id_432DD2A3-AC74-4FB7-B320-69035F3677A7">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									(1)
									<html:span class="EnSpace"/>
									The requirements in this section only apply to a telephone corporation that has received amended status.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The requirements in this section apply for 10 years after a telephone corporation has received amended status.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									(1)
									<html:span class="EnSpace"/>
									A telephone corporation that has received amended status shall provide alternative voice basic service to any residential consumer that is unable to obtain alternative voice basic service from any provider in the well-served area if both of the following occur:
								</html:p>
								<html:p>
									(A)
									<html:span class="EnSpace"/>
									The residential consumer notifies the telephone corporation
						  or commission that no alternative voice basic service is available in the well-served area.
								</html:p>
								<html:p>
									(B)
									<html:span class="EnSpace"/>
									The commission determines that no alternative voice basic service is available.
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									No later than 30 days after the receipt of the residential consumer’s notification under subparagraph (A) of paragraph (1), the commission shall determine whether alternative voice basic service is available in the area.
								</html:p>
								<html:p>
									(3)
									<html:span class="EnSpace"/>
									When the telephone corporation can demonstrate that circumstances have changed, the telephone corporation may submit a notice to the executive director of the commission, or the executive director’s designee, that identifies an alternative voice basic service available at the residential consumer’s
						  location.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_F0F4B964-B1AA-4086-ACC5-DD70D4BF50CF">
						<ns0:Num>2878.6.</ns0:Num>
						<ns0:LawSectionVersion id="id_2882B4CE-91B0-406E-96BE-5D06E61FEFA1">
							<ns0:Content>
								<html:p>The Public Safety Agency Technology Upgrade Grant Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the fund are hereby continuously appropriated without regard to fiscal year to the commission for purposes of paragraph (6) of subdivision (a) of Section 2878.4. The fund may accept donations from nongovernmental entities.</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_D9D82183-7B00-4BA9-808A-69195EA5ED21">
						<ns0:Num>2878.7.</ns0:Num>
						<ns0:LawSectionVersion id="id_8A8EAE50-918A-48D4-93E8-5E9E23120B5F">
							<ns0:Content>
								<html:p>A telephone corporation shall provide continuing service to a customer who participates in the lifeline program pursuant to the Moore Universal Telephone Service Act (Article 8 (commencing with Section 871) of Chapter 4 of Part 1) for a period of three years from the date the telephone corporation is granted amended status for the area in which the customer is located, during which time the telephone corporation shall provide to the customer transition assistance to a comparatively priced alternative voice basic service.</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
					<ns0:LawSection id="id_B6B13F59-5D0D-41B6-A3C7-2217329B6767">
						<ns0:Num>2878.8.</ns0:Num>
						<ns0:LawSectionVersion id="id_055F0CE7-2846-4DF0-ADD6-A280CE0A72CA">
							<ns0:Content>
								<html:p>
									(a)
									<html:span class="EnSpace"/>
									This article does not apply to legacy computer-aided dispatch systems or intrastate legacy time-division multiplexing services used to directly connect land mobile radio systems used for public safety.
								</html:p>
								<html:p>
									(b)
									<html:span class="EnSpace"/>
									This article does not apply to any inhabited island that is not part of the mainland area of the state and is not accessible by bridge or road, if any part of the island is well-served.
								</html:p>
								<html:p>
									(c)
									<html:span class="EnSpace"/>
									Upon the commission’s approval of a telephone corporation’s amended status, the amended status area shall no longer require a carrier of last resort. In that amended status area, the commission shall not designate any other entity, including, but not limited to, providers of Voice over Internet Protocol service, wireless service, or other Internet Protocol-enabled services, as a successor carrier of last resort for that census block.
								</html:p>
								<html:p>
									(d)
									<html:span class="EnSpace"/>
									This article does not modify the regulatory authority of the commission over alternative voice basic services or Voice over
						  Internet Protocol services.
								</html:p>
								<html:p>
									(e)
									<html:span class="EnSpace"/>
									This article does not modify or reduce the obligations of a telephone corporation to be the carrier of last resort in any area that is not an eligible area for amended status.
								</html:p>
								<html:p>
									(f)
									<html:span class="EnSpace"/>
									This article does not authorize a telephone corporation to, as part of its advice letter requesting relief from its carrier of last resort status, modify its obligations related to either of the following:
								</html:p>
								<html:p>
									(1)
									<html:span class="EnSpace"/>
									Tariffs required for the 911 or Next Generation 911 service pursuant to the Warren-911-Emergency Assistance Act (Article 6 (commencing with section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code).
								</html:p>
								<html:p>
									(2)
									<html:span class="EnSpace"/>
									The telephone corporation’s designation as an eligible telecommunications carrier pursuant to Section 54.201 of Title 47 of the Code of Federal Regulations.
								</html:p>
							</ns0:Content>
						</ns0:LawSectionVersion>
					</ns0:LawSection>
				</ns0:LawHeading>
			</ns0:Fragment>
		</ns0:BillSection>
		<ns0:BillSection id="id_6DD09B22-1F54-45C8-B2CB-4620F45B9D9A">
			<ns0:Num>SEC. 3.</ns0:Num>
			<ns0:Content>
				<html:p>
					No reimbursement is required by this act pursuant to Section 6 of Article XIII
					<html:span class="ThinSpace"/>
					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
					<html:span class="ThinSpace"/>
					B of the California Constitution.
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
	</ns0:Bill>
</ns0:MeasureDoc>
Last Version Text Digest Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission, on or before February 1, 1995, to issue an order initiating an investigation and open proceeding to examine the current and future definitions of universal service in telecommunications. Pursuant to that provision, the commission issued a decision involving carriers of last resort, including the withdrawal process for carriers of last resort, defined as a carrier who provides local exchange service and stands ready to provide basic service to any customer requesting basic service within a specified area. This bill would require the commission, in consultation with the Office of Emergency Services, to adopt a process through which a telephone corporation acting as a carrier of last resort is authorized to seek relief from their carrier of last resort obligations in a census block where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area, and in a census block that is well-served, as defined. The bill would require the commission, on or before December 15, 2026, to adopt a map designating well-served areas. The bill would require that the process include specified notice and challenge requirements. The bill would require a telephone corporation to meet certain requirements during specified time periods following the date that amended status is granted by the commission, as provided. The bill would create the Public Safety Agency Technology Upgrade Grant Fund, provide that moneys in the fund are continuously appropriated to the commission for purposes of public safety agency technology upgrade grants, and authorize the fund to accept donations from nongovernmental entities. The bill would exempt specified services and locations from its provisions. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.