Telephone corporations: carriers of last resort.

Assembly Member McKinnor's telecommunications reform legislation establishes a framework for telephone corporations to modify their "carrier of last resort" obligations in specific geographic areas while ensuring continued access to essential communication services. The bill creates a process for carriers to seek relief from universal service requirements in census blocks that either have no population or are deemed "well-served" by multiple providers.

Under the proposal, the Public Utilities Commission must adopt a map by December 2026 designating well-served areas where at least three facilities-based providers offer alternative voice services. Carriers granted relief in these areas must meet several obligations, including expanding fiber optic infrastructure to three times their current customer base within six years, with half of that expansion in underserved areas. They must also maintain basic exchange service for existing customers for 12 months and offer comparably priced alternative voice service for 24 months.

The legislation establishes the Public Safety Agency Technology Upgrade Grant Fund to help law enforcement agencies modernize their communications systems. Additional carrier requirements include providing discounted broadband plans for low-income households, technology migration assistance for small businesses, and funding for digital literacy programs and workforce development in affected areas. The bill maintains existing carrier obligations in areas not eligible for relief and preserves the commission's regulatory authority over alternative voice and VoIP services.

To protect consumers during the transition, the bill requires carriers to continue providing service for up to 10 years to residential customers who cannot obtain alternative voice service in well-served areas. It also mandates public workshops in affected legislative districts and establishes procedures for customers to challenge their inclusion in areas where carrier obligations are modified.