BILL ANALYSIS AB 818 Page 1 ASSEMBLY THIRD READING AB 818 (Knox) As Amended April 28, 1999 Majority vote UTILITIES AND COMMERCE 11-0 APPROPRIATIONS 21-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, |Ayes:|Migden, Brewer, Ashburn, | | |Campbell, Cardenas, | |Battin, Cedillo, Davis, | | |Frusetta, Maddox, | |Pescetti, Hertzberg, | | |Mazzoni, Papan, Reyes, | |Kuehl, Maldonado, Papan, | | |Vincent, Wesson | |Romero, Runner, Shelley, | | | | |Steinberg, Thomson, | | | | |Wesson, Wiggins, Wright, | | | | |Zettel, Aroner | ----------------------------------------------------------------- SUMMARY : Requires the California Public Utilities Commission (CPUC) to develop and implement any available measures to efficiently allocate telephone numbers to California's citizens. Specifically, this bill : 1)Requires CPUC to develop specified measures aimed at efficiently allocating telephone numbers. 2)Requires CPUC to request that the Federal Communications Commission (FCC) delegate specific authority to the states for the purpose of enabling CPUC to implement specified measures that would assist in the efficient allocation of telephone numbers. 3)Requires CPUC to request that telecommunications providers provide information relating to the number of used and unused numbers in all telephone prefixes that they posses. 4)Requires CPUC to institute, as an interim measure, that telecommunications providers assign numbers to their customer first from prefixes that are more than 25% used, and only from prefixes with less than 25% use when numbers are not otherwise available. EXISTING LAW : AB 818 Page 2 1)Provides in the Telecommunications Act of 1996 (1996 Act) that FCC has exclusive jurisdiction over the provision of telephone numbers pursuant to the North American Numbering Plan (NANP). 2)Provides for the North American Numbering Plan Administrator (NANPA) to notify the telephone industry when area code relief is required and to initiate and develop an area code relief plan. 3)Requires CPUC to conduct public hearings in the affected geographical region prior to implementing a new area code to inform members of the public about the proposed area code relief options. FISCAL EFFECT : CPUC estimates first-year costs from the Utility Reimbursement Account of $235,000, including one-time costs of $150,000 for programming, and costs of $170,000 in the second and third years for three staff positions to collect and analyze data for the required audit and to review company performance for compliance with CPUC rules on assignment of telephone numbers. COMMENTS : California has experienced a significant increase in the number of area codes in the last few years. In fact, the number of area codes in California has doubled since 1991. The increase in the number of area codes has caused confusion and frustration among telephone customers. Additionally, business consumers have been both inconvenienced and financially impacted by the need to purchase new letterhead, business cards, and notify customers and contacts of their new telephone numbers. Within each geographic area of the United States, area codes are assigned by an administrator that is responsible for assigning central office codes to itself and other carriers. Those codes are then used to distribute telephone numbers to customers. Today, telephone numbers are only assigned in blocks of 10,000 to the telecommunications service providers who request them. CPUC noted that "this is true whether the service provider has 10 customers or 9,500 customers in the area served by that block of 10,000 numbers." Last year, CPUC challenged an order of FCC that specifically forbade the states from exploring opportunities to allocate numbers in a more efficient manner. The 1996 Act delegated full jurisdiction over "numbering " AB 818 Page 3 issues to FCC. FCC has delegated to the states limited authority to implement area code relief by doing one of the following: a) ordering an area code split; b) ordering an overlay; or, c) realignment of an existing area code boundary. This bill recognizes that FCC has the final jurisdiction in this area. Thus, this bill requires CPUC to seek delegated authority to provide certain additional relief such as: a) establishing minimum use measures; b) returning unused numbers; and, c) establishing individual number pooling, mandatory number pooling in 1000 telephone number blocks, and interim unassigned number pooling. This bill is consistent with the sort of relief being requested in U.S. Senate Bill 765 (R-Collins), introduced in the United States Congress, which urges FCC to delegate such authority to state commissions. In an effort to address these issues at the earliest possible opportunity, CPUC has already filed a petition to FCC seeking authority to pursue several telephone code conservation measures and efficient number use practices, consistent with the relief sought by the author of this bill. CPUC, in its desire to seek additional relief, has also filed a petition that seeks a waiver to implement a technology specific area code. This bill also requires CPUC to require that telephone providers begin to use numbers currently assigned to them more efficiently. As an interim measure, this could have the effect of stalling the introduction of new area codes. This bill also instructs CPUC to conduct an audit of telephone industry use rates and submit its report to the Legislature on or before July 1, 2002. The information obtained through this study will give CPUC significant data to use in developing and implementing additional measures to support the efficient allocation of telephone numbers in California. Analysis Prepared by : Carolyn Veal-Hunter / U. & C. / (916) 319-2083 FN: 0001141