Telephone corporations: carriers of last resort.

Assembly Member McKinnor's telecommunications reform legislation establishes new procedures for telephone corporations to modify their carrier of last resort obligations while maintaining essential communication services. The bill creates two pathways for carriers to amend their status: in unpopulated areas with no existing basic exchange service customers, and in well-served areas where multiple providers offer alternative voice services.

The legislation requires the California Public Utilities Commission to adopt a map by December 2026 designating well-served areas eligible for amended status. Telephone corporations must fulfill specific obligations before receiving relief, including providing alternative voice basic service to existing customers, offering discounted broadband plans to eligible consumers, and funding technology upgrades for public safety agencies through a newly created grant program.

The bill implements consumer protection measures, requiring carriers to notify affected customers and stakeholders of proposed changes. Customers may contest a carrier's assertion that an area is well-served by requesting an independent third-party review. If the review confirms a lack of adequate alternative services, the carrier must continue providing basic exchange service at that location. The commission retains authority to enforce compliance and must determine a broader transition plan by January 2027 for areas not qualifying under the bill's initial provisions.