Telephone corporations: carriers of last resort.

Assembly Member McKinnor's telecommunications reform legislation establishes new procedures for telephone companies to relinquish their "carrier of last resort" status, which currently requires them to provide basic telephone service to all customers in designated areas. The bill creates a framework for carriers to withdraw from areas where alternative voice services are readily available or unpopulated.

Under the proposed changes, telephone corporations can relinquish their carrier status in "eligible areas" by notifying the California Public Utilities Commission (CPUC). Eligible areas must either have no population and no existing customers, or be "well-served" by at least three alternative voice service providers, including one wireline carrier offering comparably priced service. The bill requires carriers to modify their basic service tariffs upon withdrawal and maintain service for two years to customers who successfully demonstrate a lack of alternatives through a carrier-funded challenge process.

For areas not meeting the "eligible" criteria, the legislation directs the CPUC to develop transition requirements through an existing rulemaking proceeding. This process must incorporate input from stakeholders, including public safety agencies. The bill defines alternative voice services as those providing public telephone network access, 911 capability, and backup power compatibility, while specifying that the CPUC retains no regulatory authority over these alternative services.

The measure preserves existing law that makes violations of CPUC requirements a criminal offense. While this provision creates a state-mandated local program by potentially increasing enforcement duties, the bill stipulates that no state reimbursement is required since the changes only affect the definition or penalties of crimes.