BILL ANALYSIS SB 1741 Page 1 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. SB 1741 Page 2 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 SB 1741 Page 3 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. SB 1741 Page 4 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 FN: 0006170