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 


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