Bill Text: CA SB1462 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Telecommunications: California Broadband Council.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-09-27 - Chaptered by Secretary of State. Chapter 338, Statutes of 2010. [SB1462 Detail]

Download: California-2009-SB1462-Amended.html

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BILL NUMBER: SB 1462	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 7, 2010

INTRODUCED BY   Senator Padilla

                        FEBRUARY 19, 2010

   An act to  amend Sections 2889.4, 2889.5, and 2894 of the
Public Utilities   add Chapter 13 (commencing with
Section 8885) to Division 1 of Title 2 of the Government  Code,
relating to telecommunications.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1462, as amended, Padilla.  Public utilities: local
exchange carriers.   Telecommunications: California
Broadband Council.  
   The existing federal Telecommunications Act of 1996 establishes a
program for the regulation of telecommunications to attain the goal
of local competition, while implementing specific, predictable, and
sufficient federal and state mechanisms to preserve and advance
universal service, consistent with certain universal service
principles. The universal service principles include the principle
that consumers in all regions of the nation, including low-income
consumers and those in rural, insular, and high-cost areas, should
have access to telecommunications (including broadband) and
information services, including interexchange services and advanced
telecommunications and information services, that are reasonably
comparable to those services provided in urban areas and that are
available at rates that are reasonably comparable to rates charged
for similar services in urban areas. That act additionally requires
the Federal Communications Commission and each state commission with
regulatory jurisdiction over telecommunications services, in
California the Public Utilities Commission, to encourage the
deployment on a reasonable and timely basis of advanced
telecommunications capability to all Americans by utilizing, in a
manner consistent with the public interest, convenience, and
necessity, price cap regulation, regulatory forbearance, measures
that promote competition in the local telecommunications market, or
other regulating methods that remove barriers to infrastructure
investment. The act defines "advanced telecommunications capability,"
without regard to any transmission media or technology, as
high-speed, switched, broadband telecommunications capability that
enables users to originate and receive high-quality voice, data,
graphics, and video telecommunications using any technology. 

   This bill would establish the California Broadband Council
composed of specified members. The bill would impose specified duties
on the council relating to the promotion of broadband deployment and
adoption throughout the state.  
   Existing law regulating the provision of telecommunications
services requires a local exchange service provider to provide
prescribed consumer protections relating to pay-per-use telephone
service features and verification of changes in service providers.
 
   This bill would revise those provisions to refer to local exchange
carriers instead of local exchange service providers. 

   Under existing law, the disclosure of any information by an
interexchange telephone corporation, a local exchange telephone
corporation, or a provider of commercial mobile radio service, as
defined, in good faith compliance with the terms of a state or
federal court warrant or order or administrative subpoena issued at
the request of a law enforcement official or other federal, state, or
local governmental agency for law enforcement purposes, is a
complete defense against specified civil actions for the wrongful
disclosure of that information.  
   This bill would revise that reference to a local exchange
telephone corporation to, instead, refer to a local exchange carrier.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Chapter 13 (commencing with Section
8885) is added to Division 1 of Title 2 of the   Government
Code   , to read:  
      CHAPTER 13.  CALIFORNIA BROADBAND COUNCIL


   8885.  The California Broadband Council is established in state
government for the purpose of promoting broadband deployment and
adoption throughout the state for the benefit of all Californians.
   8886.  The membership of the California Broadband Council shall
include all of the following:
   (a) The State Chief Information Officer, or his or her designee.
   (b) The President of the Public Utilities Commission, or his or
her designee.
   (c) The Secretary of California Emergency Management, or his or
her designee.
   (d) The Superintendent of Public Instruction, or his or her
designee.
   (e) The Director of General Services, or his or her designee.
   (f) The Secretary of Business, Transportation and Housing, or his
or her designee.
   (g) The President of the California Emerging Technology Fund, or
his or her designee.
   (h) A member of the Senate, appointed by the Senate Committee on
Rules.
   (i) A member of the Assembly, appointed by the Speaker of the
Assembly.
   8887.  Duties of the California Broadband Council shall include,
but not be limited to, all of the following:
   (a) Ensuring communication among state agencies regarding
California's participation in proceedings related to the National
Broadband Plan adopted by the Federal Communications Commission.
   (b) Ensuring that state agencies share all relevant information in
order to maximize California's opportunities for federal and private
funding for broadband deployment and adoption.
   (c) Ensuring that all relevant state agencies are made aware of
actions necessary to fully implement recommendations in the 2008
Broadband Task Force Report.
   (d) Identifying opportunities for state agencies and state
broadband networks to share facilities, rights-of-way, or other
resources related to broadband deployment and adoption.
   (e) Taking any other actions to ensure that state agencies are
coordinating efforts and resources to promote broadband deployment
and adoption.
   8888.  (a) The President of the Public Utilities Commission shall
call the first meeting of the California Broadband Council, to be
held not later than March 1, 2011. The President of the Public
Utilities Commission shall serve as chair of the council for the
first meeting.
   (b) At the first meeting, the members of the council shall choose
a chair for subsequent meetings, and may choose a vice chair to act
as chair when the chair is unavailable.
   (c) Subsequent meetings of the council shall be convened as
determined by the chair of the council, but in no event shall the
meetings be convened less than three times annually.  
  SECTION 1.    Section 2889.4 of the Public
Utilities Code is amended to read:
   2889.4.  (a) A local exchange carrier that offers and charges for
pay per use features that do not require an access code to be dialed
to activate the service shall provide a new residential subscriber,
including an existing residential customer ordering an additional
line, during the verbal service order process, with information about
those features. The representatives of a carrier shall offer that
subscriber blocking options for those features.
   (b) (1) A local exchange carrier that offers the features
described in subdivision (a) shall advise an existing residential
subscriber who inquires about the features, or who seeks a bill
adjustment for the inadvertent or unauthorized use of those per use
custom calling features, that the features can be blocked and shall
inquire as to whether the subscriber would like to block any or all
of the features.
   (2) (A) A local exchange carrier that offers the features
described in subdivision (a) shall provide notice to all existing
residential subscribers not later than May 1, 2000, describing all
features provided on a per use basis, the charge for each activation,
any additional usage or other charges, and detailed information
about the ability to block these features.
   (B) The notice shall contain a toll-free number for further
information and shall contain a noticeable postcard size bill insert
that may be returned in the subscriber's bill envelope if they wish
to block any or all of the per use features described in subdivision
(a).
   (c) A local exchange service subscriber that has not blocked per
use features in accordance with this section is entitled to a
one-time bill adjustment that shall equal the sum of the charges for
every incident that occurred during the first billing cycle pursuant
to which the subscriber notifies the local exchange carrier that
inadvertent or unauthorized activation occurred with regard to those
per use services that do not require coded dialing to activate. The
one-time bill adjustment shall include an adjustment for any
additional usage charges occurring as a result of inadvertent or
unauthorized activation. The adjustment shall take the form of a
credit to the subscriber's account if the existing technology or
facilities of the local exchange carrier measure usage and permit a
usage credit to be determined and provided.
   (d) Nothing in this section prohibits a local exchange carrier
from providing additional bill adjustments at its discretion in
connection with charges imposed for features described in subdivision
(a).  
  SEC. 2.    Section 2889.5 of the Public Utilities
Code is amended to read:
   2889.5.  (a) A telephone corporation, or any person, firm, or
corporation representing a telephone corporation, shall not make any
change or authorize a different telephone corporation to make any
change in the provider of any telephone service for which competition
has been authorized of a telephone subscriber until all of the
following steps have been completed:
   (1) The telephone corporation, its representatives or agents shall
thoroughly inform the subscriber of the nature and extent of the
service being offered.
   (2) The telephone corporation, its representatives or agents shall
specifically establish whether the subscriber intends to make any
change in his or her telephone service provider, and explain any
charges associated with that change.
   (3) For sales of residential service, the subscriber's decision to
change his or her telephone service provider shall be confirmed by
an independent third-party verification company, or as provided in
paragraph (5). For purposes of this provision, the confirmation by a
third-party verification company shall be made as follows:
   (A) The third-party verification company shall meet each of the
following criteria:
   (i) Be independent from the telephone corporation that seeks to
provide the subscriber's new service.
   (ii) Not be directly or indirectly managed, controlled, or
directed, or owned wholly or in part, by the telephone corporation
that seeks to provide the new service or by any corporation, firm, or
person who directly or indirectly manages, controls, or directs, or
owns more than 5 percent of the telephone corporation.
   (iii) Operate from facilities physically separate from those of
the telephone corporation that seeks to provide the subscriber's new
service.
   (iv) Not derive commissions or compensation based upon the number
of sales confirmed.
   (B) The telephone corporation seeking to verify the sale shall do
so by connecting the subscriber by telephone to the third-party
verification company or by arranging for the third-party verification
company to call the subscriber to confirm the sale.
   (C) The third-party verification company shall obtain the
subscriber's oral confirmation regarding the change, and shall record
that confirmation by obtaining appropriate verification data. The
record shall be available to the subscriber upon request. Information
obtained from the subscriber through confirmation shall not be used
for marketing purposes. Any unauthorized release of this information
is grounds for a civil suit by the aggrieved subscriber against the
telephone corporation or its employees who are responsible for the
violation.
   (D) Notwithstanding subparagraphs (A), (B), and (C), a service
provider shall not be required to comply with these verification
requirements when the customer directly calls the local service
provider to make changes in service providers. However, a service
provider shall not avoid the verification requirements by asking a
subscribing customer to contact a local exchange carrier directly to
make any change in the service provider. A local exchange carrier
shall be required to comply with these verification requirements for
its own competitive services. However, a local exchange carrier shall
not be required to perform any verification requirements for any
changes solicited by another telephone corporation.
   (4) For a sale of residential service, the telephone corporation
seeking to verify the change in service, in addition to the
requirements of paragraph (3), shall notify the subscriber by United
States Postal Service that the subscriber's telephone service
provider has been changed. The service provider that initiated the
change shall send that notice within 14 days of the date of the
change. The notice shall provide the subscriber with clear, legible
notice of the change in service provider, and shall include a
customer service telephone number for the subscriber to call if the
subscriber did not authorize the change in service.
   (5) Confirmation of a sale of residential service may be made
using an electronic means that complies with Section 64.1120 of Title
47 of the Code of Federal Regulations in effect as of June 17, 2008.

   (6) For sales of all nonresidential services, the subscriber's
decision to change his or her service provider shall be confirmed
through any of the following means:
   (A) Independent third-party verification, as set forth in
paragraph (3).
   (B) The telephone corporation shall mail to the subscriber an
information package seeking confirmation of his or her change in the
telephone corporation. The information package shall describe the new
service and shall include a postage prepaid postcard or mailer that
the subscriber can use to deny, cancel, or confirm a service order,
as soon as possible, and wait 14 days after the information package
is mailed before making the change in the telephone corporation. The
telephone corporation shall make the change only if the subscriber
does not cancel the change in service order.
   (C) Verify the subscriber's change in his or her telephone service
provider by obtaining the subscriber's signature on a document fully
explaining the nature and extent of the action. The document shall
be a separate document, the sole purpose of which is to explain the
nature and extent of the action.
   (D) Obtain the subscriber's authorization through an electronic
means that takes the information, including the calling number, and
confirms the change to which the subscriber has given his or her
consent.
   (7) Where the telephone corporation obtains a written order for
service, the document shall thoroughly inform the subscriber of the
nature and extent of the action. The subscriber shall be furnished
with a copy of the signed document. The subscriber by his or her
signature on the document shall indicate a full understanding of the
relationship being established with the telephone corporation. If a
written subscriber solicitation or other document contains a letter
of agency authorizing a change in service provider, in combination
with other information including, but not limited to, inducements to
subscribers to purchase service, the solicitation shall include a
separate document, the sole purpose of which is to explain the nature
and extent of the action. If any part of a mailing to a prospective
subscriber is in language other than English, any written
authorization contained in the mailing shall be sent to the same
prospective subscriber in the same language.
   (8) The telephone corporation shall retain a record of the
verification of the sale for at least one year. These records shall
be made available to the subscriber, the Attorney General, or the
commission upon request.
   (b) If a residential or business subscriber that has not signed an
authorization notifies the telephone corporation within 90 days that
he or she does not wish to change telephone corporations, the
subscriber shall be switched back to his or her former telephone
corporation at the expense of the telephone corporation that
initiated the change.
   (c) For purposes of this section, competitive services are those
services where subscribers have the ability to presubscribe to a
telephone service provider.
   (d) When a subscriber changes telephone service providers, the
change shall be conspicuously noticed on the subscriber's bill.
Notice in the following form is deemed to comply with this
subdivision:
"NOTICE: Your local (or long distance) telephone service provider
has been changed from (name of prior provider) to (name of current
provider).
  Cost of change: $ ____."

   (e) Any telephone corporation that violates the verification
procedures described in this section shall be liable to the telephone
corporation previously selected by the subscriber in an amount equal
to all charges paid by the subscriber after the violation.
   (f) In addition to the liability described in subdivision (e), any
telephone corporation that violates the verification procedures
described in this section shall credit to a subscriber any charges
paid by the subscriber in excess of the amount that the subscriber
would have been obligated to pay had the subscriber's telephone
service not been changed. The commission shall adopt regulations to
govern credits to subscribers pursuant to this subdivision.
   (g) The remedies provided by this section are in addition to any
other remedies available by law.
   (h) As described in federal law, no telephone corporation, or any
person, firm, or corporation representing a telephone corporation,
shall make any change or authorize a different telephone corporation
to make any change in the provider of any telephone service for which
competition has been authorized of a telephone subscriber without
having on file, or having instituted reasonable steps designed to
obtain, signed, dated orders for service from the subscriber. All
orders shall be in the form prescribed in federal law for letters of
agency. As described in federal law, the telephone corporation is
responsible for charges associated with disputed changes in telephone
service for which it cannot produce a signed, dated order for
service from the subscriber. This subdivision applies to all
intrastate services for which competition has been authorized.
 
  SEC. 3.    Section 2894 of the Public Utilities
Code is amended to read:
   2894.  (a) Notwithstanding subdivision (e) of Section 2891, the
disclosure of any information by an interexchange telephone
corporation, a local exchange carrier, or a provider of commercial
mobile radio service, as defined in Section 216.8, in good faith
compliance with the terms of a state or federal court warrant or
order or administrative subpoena issued at the request of a law
enforcement official or other federal, state, or local governmental
agency for law enforcement purposes, is a complete defense against
any civil action brought under this chapter or any other law,
including, but not limited to, Chapter 1.5 (commencing with Section
630) of Part 1 of Title 15 of Part 1 of the Penal Code, for the
wrongful disclosure of that information.
   (b) As used in this section the following terms have the following
meanings:
   (1) "Interexchange telephone corporation" means a telephone
corporation that is a long-distance carrier.
   (2) "Local exchange carrier" means a telephone corporation that
provides local exchange services.