AB 696

This bill: 1) makes changes to the authority of the Public Service Commission

(PSC) over telecommunications utilities; 2) imposes limits on charges for access

services by telecommunications utilities; 3) specifies the PSC's authority over

interconnected voice over Internet protocol (VOIP) service; 4) makes changes to the

PSC's authority for ensuring universal access to telecommunications service; and 5)

requires certain telecommunications providers to make electronic call records

available to other telecommunications providers.

PSC regulation of telecommunications utilities

Under current law, a telecommunications provider that provides basic local

exchange service is defined to be a telecommunications utility. The PSC's authority

over a telecommunications utility depends on whether the PSC has certified the

telecommunications utility as a telecommunications utility (TU) or an alternative

telecommunications utility (ATU). In general, the PSC has certified as TUs those

telecommunications providers that are incumbent local exchange carriers (ILECs)

under federal law, which are telecommunications providers that resulted from the

breakup of the Bell System pursuant to a federal antitrust action. In general, the

PSC has certified as ATUs those telecommunications providers that are competitive

local exchange carriers (CLECs) under federal law, which are telecommunications

providers that compete with ILECs to provide basic local exchange service.

Under current law, TUs are subject to varying degrees of regulation by the PSC,

depending on certain factors, such as whether the TU has elected price regulation,

under which the PSC regulates the rates charged by a TU, but not the TU's rate of

return. The degree of PSC regulation also depends on whether a TU is a cooperative

association, or whether the TU is a "small TU," which is a TU that had fewer than

50,000 access lines in this state on January 1, 1984. With certain exceptions, current

law exempts an ATU from PSC regulation, except that, if certain conditions are

satisfied, the PSC may impose on an ATU a requirement that otherwise applies to

a TU or other public utility.

With respect to ATUs, the bill limits the requirements that the PSC may

impose. Under the bill, the PSC may impose requirements on an ATU that relate

only to the following: 1) submission of stockholder and other business management

information; 2) PSC examination of accounting and other business records; 3) use of

and connection to transmission equipment and property by other

telecommunications providers; 4) confidential treatment of records by the PSC; 5)

rates and costs of unbundled network elements; 6) interconnection agreements and

other interconnection requirements; 7) telephone caller identification, pay-per-call,

and toll-free services; 8) PSC privacy rules; 9) universal service and contributions

to the state universal service fund; 10) impairment of speed, quality or efficiency of

services, products, or facilities offered to consumers; 11) access to

telecommunications emergency services; 12) compliance with price lists, contracts,