Bill Text: CA SB1161 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Communications: Voice over Internet Protocol and

Spectrum: Slight Partisan Bill (Democrat 10-4)

Status: (Passed) 2012-09-28 - Chaptered by Secretary of State. Chapter 733, Statutes of 2012. [SB1161 Detail]

Download: California-2011-SB1161-Amended.html

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BILL NUMBER: SB 1161	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 26, 2012
	AMENDED IN SENATE  MARCH 26, 2012

INTRODUCED BY   Senator Padilla
   (Principal coauthor: Assembly Member Bradford)
   (Coauthors: Senators  Correa,  Fuller,  Lieu, 
 Price,  Rubio, and Strickland)

                        FEBRUARY 22, 2012

   An act to add Sections 239 and 710 to the Public Utilities Code,
relating to communications.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1161, as amended, Padilla. Communications: Voice over Internet
Protocol and Internet Protocol enabled communications service.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations,
as defined.
   This bill would prohibit the commission from regulating Voice over
Internet Protocol (VoIP) and Internet Protocol enabled service (IP
enabled service), as defined,  providers unless 
 except as authorized by federal law and  expressly provided
otherwise in statute. The bill would prohibit any department,
agency, commission, or political subdivision of the state from
enacting, adopting, or enforcing any law, rule, regulation,
ordinance, standard, order, or other provision having the force or
effect of law, that regulates or has the effect of regulating VoIP or
other IP enabled service, unless  authorized by federal law and
 expressly authorized by statute. The bill would specify certain
areas of law that are expressly applicable to VoIP and IP enabled
service providers.  The bill would provide that its limitations
upon the commission's regulation of VoIP and IP enabled services do
not affect the commission's existing authority over traditional
telephone service through a landline connection and does not affect
the enforcement of any state or federal criminal law or local
ordinances of general applicability that apply to the conduct of
business. 
   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.  (a) The Legislature finds and declares all of the
following:
   (1) The continued vitality and success of California's technology
and innovation sector of the economy is dependent on a business
climate that supports the national and international nature of the
Internet.
   (2) The Legislature is empowered to develop future state policy
and actions regarding Internet-based technology to further
innovation, consumer choice and protection, and economic benefits to
California.
   (3) California's innovation economy is leading the state's
economic recovery. Silicon Valley alone added 42,000 jobs in 2011, an
increase of 3.8 percent versus a national job growth rate of 1.1
percent. The newly designated "app," for application, economy has
resulted in 466,000 new jobs nationwide, with 25 percent of that
total created in California.
   (4) The Internet and Internet Protocol-based (IP-based) services
have flourished to the benefit of all Californians under the current
regulatory structure. The success of the innovation economy is a
result of an open, competitive environment that has provided
California consumers and businesses with a wide array of choices,
services, and prices.
   (5) California-based entrepreneurs and businesses are the global
leaders in IP-based services and technologies. These leading
technology companies, including content, services and infrastructure
providers, represent some of the largest employers in California,
contributing billions of dollars of economic benefit to the state.
   (6) California consumers and businesses are driving the demand for
faster networks, new and innovative apps and software, and continued
innovation. As a result of this demand, network infrastructure
companies invested billions of dollars in California in 2011.
Internet voice communications connections are up over 22 percent, and
entrepreneurs and innovators have launched close to a million apps
to meet consumer demand.
   (7) The Internet and innovative IP-based services have the power
to address critical policy issues facing California and the nation
including new telemedicine initiatives to address health care access
and affordability, educational tools to improve opportunity and
success, IP-based energy solutions to promote conservation and
efficiency, and improved Internet access to support rural economic
development and sustainability.
   (b) It is the intent of this act to reaffirm California's current
policy of regulating Internet-based services only as specified by the
Legislature and thereby achieve both of the following:
   (1) Preserve the future of the Internet by encouraging continued
investment and technological advances and supporting continued
consumer choice and access to innovative services that benefit
California.
   (2) Ensure a vibrant and competitive open Internet that allows
California's technology businesses to continue to flourish and
contribute to economic development throughout the state.
  SEC. 2.  Section 239 is added to the Public Utilities Code, to
read:
   239.  (a) "Voice over Internet Protocol" or "VoIP" means voice
communications service that does all of the following:
   (1) Uses Internet Protocol or a successor protocol to enable
real-time, two-way voice communication that originates from or
terminates at the user's location in Internet Protocol or a successor
protocol.
   (2) Requires a broadband connection from the user's location.
   (3) Permits a user generally to receive a call that originates on
the public switched telephone network and to terminate a call to the
public switched telephone network.
   (b) "Internet Protocol enabled service" or "IP enabled service"
means any service, capability, functionality, or application using
 existing  Internet Protocol, or any successor 
protocol   Internet Protocol  , that enables an end
user to send or receive a communication in  existing 
Internet Protocol format, or any successor  Internet Protocol
 format  through a broadband connection  , regardless
of whether the communication is voice, data, or video.
  SEC. 3.  Section 710 is added to the Public Utilities Code, to
read:
   710.  (a) The commission shall not exercise regulatory
jurisdiction or control over Voice over Internet Protocol and
Internet Protocol enabled  service providers  
services  except as  authorized by federal law and 
expressly directed to do so by statute or as set forth in subdivision
(c).
   (b) No department, agency, commission, or political subdivision of
the state shall enact, adopt, or enforce, either directly or
indirectly, any law, rule, regulation, ordinance, standard, order, or
other provision having the force or effect of law, that regulates or
has the effect of regulating VoIP or other IP enabled service,
unless  authorized by federal law and  expressly authorized
by statute or pursuant to subdivision (c).
   (c) Nothing in this section affects or supersedes any of the
following:
   (1) The Emergency Telephone Users Surcharge Law (Part 20
(commencing with Section 41001) of Division 2 of the Revenue and
Taxation Code) and the state's universal service programs (Section
285).
   (2) The Digital Infrastructure and Video Competition Act of 2006
(Division 2.5 (commencing with Section 5800)) or a franchise granted
by a local franchising entity, as those terms are defined in Section
5830.
   (3) The commission's authority to implement and enforce Sections
251 and 252 of the federal Communications Act of 1934, as amended (47
U.S.C. Secs. 251 and 252).
   (4) The commission's authority to require data and other
information pursuant to Section 716.
   (5) The commission's authority to address or affect the resolution
of disputes regarding intercarrier compensation, including for the
exchange of traffic that originated, terminated, or was translated at
any point into Internet Protocol format. 
   (6) The enforcement of criminal or civil laws of general
applicability, including unfair or deceptive trade practice laws,
that apply to the conduct of business.  
   (d) This section does not affect the enforcement of any state or
federal criminal or civil law or any local ordinances of general
applicability, including, but not limited to, consumer protection and
unfair or deceptive trade practice laws or ordinances, that apply to
the conduct of business.  
   (e) This section does not affect any existing regulation of, or
existing commission authority over, traditional telephone service
through a landline connection, including regulations governing
universal service and the offering of basic service and lifeline
service.