Telephone corporations: carriers of last resort.

Plain English Breakdown

The official source does not provide details on how violations of the commission's requirements will be enforced or what specific penalties may apply.

Telephone Companies: Last Resort Carriers

The bill requires the Public Utilities Commission to create a process allowing telephone companies designated as last resort carriers to stop providing this service by January 1, 2029, if customers in their area have other voice service options.

What This Bill Does

• Requires the Public Utilities Commission to develop a reasonable process for relieving a carrier of last resort status on or before January 1, 2029, in areas where customers have other voice service options.

Who It Names or Affects

• Telephone companies that provide local phone services and have been designated as last resort carriers.
• The Public Utilities Commission, which will make decisions about when a company can stop being a last resort carrier.

Terms To Know

Carrier of Last Resort

A telephone company that must provide basic phone service to any customer who asks for it in a specific area.

Limits and Unknowns

• The bill does not specify how the Public Utilities Commission will decide when companies can stop being last resort carriers.
• It is unclear what happens if there are no other voice service providers available by January 1, 2029.

Official Summary Text

AB 2443, as introduced, McKinnor.
Telephone corporations: carriers of last resort.
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 to develop a reasonable process
for a carrier of last resort to be relieved, on or before January 1, 2029, of that status in areas where customers have other options for voice service.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
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.
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.

Current Bill Text

Download Bill PDF