BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1741
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          SENATE THIRD READING
          SB 1741 (Bowen)
          As Amended July 3, 2000
          Majority vote

           SENATE VOTE  :22-13  
           
           UTILITIES & COMMERCE 9-3        APPROPRIATIONS      14-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Wright, Calderon,         |Ayes:|Migden, Alquist, Aroner,  |
          |     |Cardenas, Mazzoni, Papan, |     |Cedillo, Corbett, Davis,  |
          |     |Reyes, Villaraigosa,      |     |Kuehl, Papan, Romero,     |
          |     |Vincent, Wesson           |     |Shelley, Thomson, Wesson, |
          |     |                          |     |Wiggins, Wright           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Pescetti, Campbell,       |Nays:|Campbell, Ackerman,       |
          |     |Maddox                    |     |Ashburn, Brewer,          |
          |     |                          |     |Maldonado, Runner         |
           ----------------------------------------------------------------- 

           SUMMARY  :  Requires the California Public Utilities Commission  
          (CPUC) to request authority from the Federal Communications  
          Commission (FCC) to require telephone corporations to establish  
          technology specific area codes and to permit even digit dialing  
          within the technology specific area code and the underlying  
          pre-existing area code.  Specifically,  this bill  : 

          ) Declares legislative intent that when CPUC has no reasonable  
            alternative other than to create a new area code that it do so  
            with the least inconvenience for customers.

          2)Requires CPUC request authority from FCC not later than March  
            31, 2001 to require telephone corporations to establish  
            technology specific area codes.

          3)Requires CPUC to request authority from FCC to permit 7-digit  
            dialing within the technology specific area code and the  
            underlying pre-existing area code or codes.

          4)Requires CPUC to perform a telephone utilization study,  
            implement all reasonable conservation measures, and implement  
            the technology specific area code, if authorized, prior to  
            authorizing further area code relief in an affected area.








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          5)Requires CPUC to establish technology specific area codes  
            unless it finds that:  a) exercising such authority would be  
            more disruptive to customers; or, b) it will not adequately  
            extend the life of the area code.

          6)Prohibits CPUC from implementing any authority granted by FCC  
            in a manner that impairs number portability.

           EXISTING LAW  : 

          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),  
            except for that authority FCC specifically delegates to the  
            states. 

          2)Prohibits an area code from being assigned solely on the  
            provision of a specific type of telecommunications service or  
            use of a specific authority. 

          3)Requires 10-digit dialing for all telephone calls within and  
            between all area codes covered by an area code overlay.

          4)Requires CPUC to develop and implement specified conservation  
            measures to efficiently allocate telephone numbers based on  
            its authority and pursuant to its delegated authority from  
            FCC.

          5)Requires CPUC to obtain utilization data from the NANP  
            Administrator for any area code for which relief is proposed,  
            prior to adopting a plan for, or setting a date for, relief.

           FISCAL EFFECT  :  Absorbable costs to CPUC to seek the specified  
          authority.

           COMMENTS  :  In 1947, California was assigned three area codes.   
          By 1992 that number had expanded to 13 codes and in recent years  
          has grown significant to where by the end of 1999, California  
          had 25 area codes.  At the current pace, California was expected  
          to have 41 area codes by the end of 2002.  Last year, Assembly  
          Bill 406 (Knox), Chapter 809, Statutes of 1999, required CPUC to  
          develop and implement any available conservation measures to  
          efficiently allocate telephone numbers.  In April 1999, CPUC  
          sought authority from FCC to implement certain conservation  
          measures include mandatory pooling, the ability to seek data to  
          conduct utilization studies of telephone corporations among  







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          other things.  At that time, CPUC also sought a waiver of  
          Section 52.19(c)(3) of Title 47 of the Code of Federal  
          Regulations to implement a technology specific or  
          service-specific area code.  In September 1999, FCC granted  
          CPUC's authority to implement specified conservation measures.   
          No action has yet been taken on CPUC's technology specific  
          waiver petition.  The author has introduced this bill in  
          furtherance of the relief sought by that petition in order "to  
          provide relief from unnecessary and inconvenient area code  
          proliferation."

          FCC has historically prohibited service-specific and technology  
          specific overlays on the grounds that it would be unreasonably  
          discriminatory and would unduly inhibit competition.  Recently,  
          however, FCC indicated that "though it continues to believe that  
          service-specific or technology specific overlays raise serious  
          competitive issues that must be carefully considered, in light  
          of the increased urgency of the numbering crisis, it is  
          appropriate at least to reexamine FCC's policies and consider  
          whether to modify or lift the restriction on such area code  
          relief measures."

          This bill requires CPUC to seek further authority from FCC to  
          implement technology specific area codes and to permit 7-digit  
          dialing within that code and the underlying pre-existing area  
          codes.  As described above, CPUC has already filed a waiver  
          petition and FCC is currently involved in a rulemaking to  
          consider that petition.  FCC issued a First Report and Order in  
          March 2000 where it failed to address the use of technology  
          specific overlays or 10-digit dialing among other issues.  FCC  
          stated its intent to address those issues in subsequent orders  
          regarding number resource optimization.  Thus, FCC should be  
          able to incorporate the request to waive its 10-digit dialing  
          requirement solely for purposes of implementing a technology  
          specific service-specific overlay in its next Report and Order.

          This bill further establishes the framework under which CPUC  
          would operate if the requested authority is received from FCC.   
          Specifically, CPUC is directed to consider further impacts on  
          the citizens of this state prior to granting the relief  
          requested from FCC.  It is not clear whether FCC will issue  
          general rules or delegate specific authority to states.  Thus,  
          it is important that these additional factors, such as the level  
          of disruption to customers and the extent to which the life of  
          the area code is extended, are considered by CPUC prior to  
          implementing technology specific area codes.  







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          Cellular Carriers Association of California (CCAC) believe that  
          the "technology specific overlay does not offer a viable  
          solution to the problem of telephone number scarcity throughout  
          the state."  CCAC further asserts that "it is anti-competitive  
          and discriminates among communication technologies and would  
          result in consumer nightmare relative to the reprogramming of  
          millions of wireless phones." 


           Analysis Prepared by  :  Carolyn Veal-Hunter / U. & C. / (916)  
          319-2083 


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