2. Background

On April 14, 2006, the Staff of the Commission's Telecommunications³ and Strategic Planning⁴ Divisions published a comprehensive report on the Public Policy Programs, which described each program and the need for review. On April 25 and 26, 2006, the Assigned Commissioner convened two workshops to take comment from interested parties on the scope and objectives of this proceeding.⁵

On May 25, 2006, the Commission opened this rulemaking to conduct a comprehensive review of its Telecommunications Public Policy Programs - California LifeLine, Payphone Programs, Deaf and Disabled Telecommunications Program (DDTP),⁶ and California Teleconnect Fund (CTF). To initiate the formal review, the Commission posed a series of questions regarding these programs and set filing dates for initial comments and proposals as well as reply comments. The Commission also stated that at least three public participation hearings would be held at locations throughout the state.

Initial comments and proposals were filed on July 28, 2006,⁷ with reply comments following on September 15, 2006. Public Participation Hearings were held in San Diego,⁸ Oxnard,⁹ and Sacramento.¹⁰ Comments focused on changes needed to the LifeLine program, including the affordability of telephone service and the need to include wireless services in the LifeLine program. Many LifeLine consumers also wanted to purchase additional communication services without losing the discount.

On July 13, 2007, the assigned Commissioner and Administrative Law Judge issued a ruling and scoping memo to define the specific issues to be addressed for each program. A workshop focused on General Order (GO) 153 was convened on August 15, 2007.¹¹ A summary of the extensive input provided in this Rulemaking can be found at Appendix A.

On June 12, 2008, the Commission issued D.08-06-020, addressing the CTF, Payphone, and DDTP programs. This decision concluded the Commission's review of these four public policy programs, leaving only the California LifeLine Program for consideration by the Commission.

A proposed decision on California LifeLine was issued in April 2009. This Proposed Decision was subsequently withdrawn after a request from the Legislature so that the Legislature could consider additional statutory changes in 2009 and 2010.¹²

³ Now known as the Communications Division.

⁴ Now known as the Policy & Planning Division.

⁵ The workshops occurred on April 25 and 26, 2006, and were well-attended.

⁶ The Deaf and Disabled Telecommunications Program was established by the Commission to comply with Pub. Util. Code §§ 2881-2881.2. The Legislature updated the Commission's oversight of the program with Pub. Util. Code § 278, which formalized the advisory board and created a fund to be overseen by the state Controller.

⁷ The following parties submitted initial comments: Assistive Technology Law Center, Pacific Bell Telephone Company dba AT&T California, California Cable and Telecommunication Association, California Coalition of Agencies Serving the Deaf and Hard of Hearing, California Communications Access Foundation, California Council of the Blind, California Payphone Association, California Community Technology Policy Group and Latino Issues Forum, Cingular Wireless, Citizens/Frontier Telephone, Cox California, Cricket Communications, Disability Rights Advocates, Division of Ratepayer Advocates, Equipment Program Advisory Committee, FONES4All, Greenlining Institute, 14 Small Local Exchange Carriers, SureWest Telephone, Telecommunications Access for the Deaf and Disabled Advisory Committee, The Utility Reform Network and National Consumer Law Center, Verizon California Inc., Verizon Wireless, Winston Ching, and the World Institute on Disabilities.

⁸ September 25, 2006. See R.06-05-028 Public Participation Hearings Volume 1.

⁹ October 26, 2006. See R.06-05-028 Public Participation Hearings Volume 2.

¹⁰ November 3, 2006. See R.06-05-028 Public Participation Hearings Volume 3.

¹¹ Staff Report on August 15, 2007 Workshop in Rulemaking on the Commission's Own Motion to Review the Telecommunications Public Policy Programs, R.06-05-028.

¹² The Legislature approved AB 2213 (Fuentes) to replace the term residential with the term households in order to require that a lifeline telephone service subscriber be provided with one lifeline subscription, as defined by the commission, at his or her principal place of residence. The Governor signed AB 2213 into law on September 25, 2010.