BILL NUMBER: AB 2958	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wright
   (Coauthors:  Assembly Members Cox, and Diaz
   (Coauthor: Senator Perata)

                        FEBRUARY 25, 2002

   An act to add and repeal Article 1.5 (commencing with Section
2880) to Chapter 10 of Part 2 of Division 1 of the Public Utilities
Code, relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2958, as introduced, Wright.    Telecommunications: regulatory
framework.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
The commission issued a decision to adopt a new regulatory framework
program and price adjustment formula for Pacific Bell and GTE
California, Incorporated, on October 8, 1998.  In that decision, the
commission, among other things, ordered that a previously suspended
price adjustment formula continue and that sharing be suspended for
Pacific Bell and GTE California.
   This bill would require that, consistent with the commission
decision, price cap index productivity factors, sharing mechanisms
and its components, and related elements for Pacific Bell and GTE
California, Incorporated, be suspended until not earlier than January
1, 2007.  The bill would require that in regulating telephone
corporations under these provisions, the commission maintain its
authority to regulate prices for all services subject to its
jurisdiction and continue to have authority to move service between
all pricing categories.  The bill would provide that its provisions
do not add to or subtract from any existing authority of the
commission to regulate the quality of service provided by telephone
corporations.  These provisions would be repealed on January 1, 2007
.
   The bill would make a finding that a special law is necessary and
that a general law cannot be made applicable within the meaning of
subdivision (b) of Section 16 of Article IV of the California
Constitution.
   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.  Article 1.5 (commencing with Section 2880) is added to
Chapter 10 of Part 2 of Division 1 of the Public Utilities Code, to
read:

      Article 1.5.  Regulatory Framework

   2880.  (a) It is the intent of the Legislature to maintain the
progress created by the commission's new regulatory framework for
telephone corporations, which includes the establishment of an
atmosphere in which telephone corporations have incentives to operate
efficiently, introduce new products, and provide better service.
   (b) The Legislature finds and declares all of the following:
   (1) The commission's new regulatory framework has allowed
consumers to benefit from low, stable prices, as well as from the
fast deployment of important new technologies.
   (2) The state's telecommunications market is in a state of
transition and thus, maintaining the investment incentives created by
the commission's new regulatory framework, while at the same time
protecting consumers and promoting competition, is vital to the state'
s economy.
   (3) Telephone corporations regulated under the new regulatory
framework's incentive-based or price cap mechanism require certainty
with respect to the provisions of the framework that will apply to
them.
   2880.2.  (a) Consistent with commission Decision 98-10-026, any
price cap index productivity factor, sharing mechanism and its
component, and related elements shall be suspended until not earlier
than January 1, 2007.
   (b) In regulating telephone corporations under this section, the
commission shall maintain its authority to regulate prices for all
services subject to its jurisdiction and shall continue to have
authority to move service between all pricing categories.
   (c) Nothing in this section may add to or subtract from any
existing authority of the commission to regulate the quality of
service provided by telephone corporations.
   (d) This section applies only to those telephone corporations that
were the subject of commission Decision 98-10-026.
   2880.3.  This article shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 2.  The Legislature finds and declares that, because of the
unique circumstances applicable only to Pacific Bell and GTE
California, Incorporated, a statute of general applicability cannot
be enacted within the meaning of subdivision (b) of Section 16 of
Article IV of the California Constitution.  Therefore, this special
statute is necessary.