AB 14

The bill does all of the following: 1) makes changes to the authority of the Public

Service Commission (PSC) over telecommunications utilities; 2) imposes

requirements on certain intrastate switched access rates; 3) eliminates mandatory

telecommunications tariffs except for intrastate switched access service; 4) specifies

the PSC's authority over interconnected voice over Internet protocol (interconnected

VOIP) service; 5) makes changes to the PSC's authority for ensuring universal access

to telecommunications service; 6) imposes requirements regarding the availability

of basic voice service; 7) makes changes to requirements for the use of another

person's transmission equipment and property by public utilities and

telecommunications providers; and 8) makes other changes to telecommunications

regulation.

Telecommunications utility regulation

Under current law, with certain exceptions, the PSC regulates a

telecommunications provider that provides basic local exchange service as either 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. In addition, ATUs, like certain other persons who provide

active retail voice communications service, must collect from customers and remit to

the PSC a monthly police and fire protection fee that is used for shared revenue

payments.

ATUs.

Under this bill, ATUs are subject to the intrastate switched access rate,

tariff, and interconnected VOIP requirements described below, and to the monthly

police and fire protection fee described above. In addition, the bill limits the

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

PSC may impose requirements that relate only to the following: 1) submission of