AB2443 - Telephone corporations: carriers of last resort.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2443 Introduced by Assembly Member McKinnor February 20, 2026 An act to add Article 1.5 (commencing with Section 2878) to Chapter 10 of Part 2 of Division 1 of the Public Utilities Code, relating to communications. LEGISLATIVE COUNSEL'S DIGEST AB 2443, as introduced, McKinnor. Telephone corporations: carriers of last resort. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission, on or before February 1, 1995, to issue an order initiating an investigation and open proceeding to examine the current and future definitions of universal service in telecommunications. Pursuant to that provision, the commission issued a decision involving carriers of last resort, including the withdrawal process for carriers of last resort, defined as a carrier who provides local exchange service and stands ready to provide basic service to any customer requesting basic service within a specified area. This bill would require the commission to develop a reasonable process for a carrier of last resort to be relieved, on or before January 1, 2029, of that status in areas where customers have other options for voice service. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Article 1.5 (commencing with Section 2878) is added to Chapter 10 of Part 2 of Division 1 of the Public Utilities Code, to read: Article 1.5. Carriers of Last Resort 2878. (a) The commission shall develop a reasonable process for a carrier of last resort to be relieved, on or before January 1, 2029, of that status in areas where customers have other options for voice service. (b) For purposes of this section, “carrier of last resort” has the same meaning as defined in Section 275.6. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.