20250AB__035393AMD INTRODUCED 2025-01-30 AMENDED_ASSEMBLY 2025-03-24 AMENDED_ASSEMBLY 2025-05-05 AMENDED_ASSEMBLY 2025-05-27 AMENDED_ASSEMBLY 2025-06-03 AMENDED_SENATE 2025-07-03 AMENDED_SENATE 2026-06-23 2025 AB AMD Introduced by Assembly Member Boerner LEAD_AUTHOR ASSEMBLY Boerner

An act to amend, repeal, and add

Section 307.6 of the Public Utilities Code, relating to the Public Utilities Commission. the Public Utilities Commission Public Utilities Commission: Independent Office of Audits and Investigations. Existing law requires the Public Utilities Commission to appoint a chief internal auditor who holds office at the pleasure of the commission.

Existing law makes the chief internal auditor responsible for the oversight of the internal audit unit and requires the chief internal auditor to plan, initiate, and perform audits of key financial, management, operational, and information technology functions within the commission to improve accountability and transparency to executive and state management.

This bill would repeal the provision providing for the appointment of the chief internal auditor and, on or before January 1, 2028, would transfer the internal audit unit of the commission and its staff to the Independent Office of Audits and Investigations, which the bill would establish within the commission, as specified. The bill would provide for the appointment and removal of the director of the office, who would have the title of Inspector General.

The bill would provide the office with access to, and authority to examine, all records, files, documents, accounts, reports, correspondence, or other property of the commission, public utilities, and other entities regulated by the commission, as specified. The bill would require the Inspector General to report to the Governor and the Legislature, as provided. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the 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.

Existing law, the Digital Equity Bill of Rights, provides that it is the principle of the state to ensure digital equity for all residents of the state, that residents shall have access to broadband that meets specific requirements, and that it is the policy of the state that, to the extent technically feasible, broadband internet subscribers benefit from equal access to broadband internet service within the service area of a broadband provider.</xhtml:p><xhtml:p>Existing law, the California Internet Consumer Protection and Net Neutrality Act of 2018, prohibits fixed and mobile internet service providers, as defined, that provide broadband internet access service, as defined, from engaging in specified actions concerning the treatment of internet traffic, including engaging in paid prioritization.</xhtml:p><xhtml:p>This bill would require every California internet service provider, except as specified, to offer for purchase to eligible households, as defined, within their California service territory affordable home internet service, as defined.

The bill would also require every California internet service provider to make commercially reasonable efforts to promote and advertise the availability of affordable home internet service for eligible households, as provided.</xhtml:p><xhtml:p>Existing law establishes within the Government Operations Agency the Department of Technology, which is supervised by the Director of Technology.

Existing law authorizes the director and the department to exercise various powers in creating and managing the information technology policy of the state.</xhtml:p><xhtml:p>This bill would, starting January 1, 2027, require California internet service providers to annually provide a report to the Department of Technology with specified information related to their affordable home internet service plans.</xhtml:p><xhtml:p>This bill would provide that the Public Utilities Commission has no jurisdiction or regulatory authority to implement, enforce, interpret, or oversee any aspect of these provisions, as specified, and would require any administrative or oversight responsibilities to be carried out exclusively by the Department of Technology.</xhtml:p><xhtml:p>This bill would make its provisions inoperative upon the implementation of a federal or state broadband subscription subsidy program for low income households that meets specified criteria.</xhtml:p>"?> MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 307.6 of the Public Utilities Code is amended to read: 307.6. (

a) The commission shall appoint a chief internal auditor, who shall hold office at the pleasure of the commission. (

b) The chief internal auditor shall be responsible for the oversight of the internal audit unit and shall plan, initiate, and perform audits of key financial, management, operational, and information technology functions within the commission to improve accountability and transparency to executive and state management. (

c) The chief internal auditor shall report their findings and recommendations directly to an audit subcommittee of the commission. (

d) The chief internal auditor shall comply with

Part 3.5 (commencing with

Section 13885) of Division of Title of the Government Code. (

e) This

section shall become inoperative on the date the internal audit unit of the commission is transferred to the Independent Office of Audits and Investigations pursuant to

Section of this act, and, as of January 1, 2028, is repealed.

SEC.

Section 307.6 is added to the Public Utilities Code , to read: 307.6. (

a) On or before January 1, 2028, the internal audit unit of the commission and its staff shall be transferred to the Independent Office of Audits and Investigations, which is hereby established within the commission to ensure all of the following:

(1) The commission is administering funds under its control, including ratepayer funds, efficiently, effectively, economically, and in compliance with applicable state and federal requirements.

(2) The commission’s programs are functioning consistent with applicable accounting standards and practices and are administered effectively, efficiently, and economically.

(3) The commission is accomplishing mandated requirements, developing an annual audit plan, administering an effective enterprise risk management program, and making efficient, effective, and financially responsible decisions.

(4) The president of the commission, the Legislature, and the Governor are fully informed concerning fraud, improper activities, and other serious abuses or deficiencies relating to the expenditure of ratepayer funds or the administration of commission programs and operations.

(5) The commission is monitoring compliance for reports prepared by the commission that are required to be submitted to the Governor and Legislature. (

b) The office shall be responsible for the oversight of the internal audit unit and shall plan, initiate, and perform audits of key financial, management, operational, and information technology functions within the commission to improve accountability and transparency to executive and state management. (

c) The director of the office shall have the title of Inspector General and shall be appointed by the Governor, subject to Senate confirmation. The Inspector General shall serve a six-year term and shall not be removed from office during that term, except for good cause. Any basis for removal of the Inspector General shall be stated in writing, shall be sent to the Secretary of the Senate and the Chief Clerk of the Assembly at the time of the removal, and shall be deemed to be a public document. (

d) The Inspector General is vested with the full authority to exercise all responsibility for maintaining a full-scope, independent, and objective audit and investigation program. (

e) The office shall have access to, and authority to examine, all records, files, documents, accounts, reports, correspondence, or other property of the commission, public utilities, and other entities regulated by the commission. An authorized representative of the office may enter any public office or institution in this state, during regular business hours, and access, examine, and reproduce all records, files, documents, accounts, reports, vouchers, correspondence files, and all other records for any audit or investigation.

An officer or employee of an agency or entity that has records or property in their possession or under their control, or otherwise has access to records, shall permit access to, and examination and reproduction of, the records or property upon the request of the Inspector General or the Inspector General’s authorized representative. (

f) In order to achieve independence and objectivity pursuant to this section, the Inspector General shall do both of the following:

(1) Report all audit and confidential investigation findings and recommendations made under the Inspector General’s jurisdiction to the Governor and Legislature on an ongoing and current basis.

(2) Report to the Governor and the Legislature at least annually, and upon request, with a

summary of the Inspector General’s investigation and audit findings and recommendations. The

summary shall be posted on the office’s internet website and shall otherwise be made available to the public upon its release to the Governor, the commission, and the Legislature. The

summary shall include, but not be limited to, significant problems discovered by the Inspector General and whether the Inspector General’s recommendations relative to audits and investigations have been implemented by the affected units and programs of the commission or affected external entities.

(3) A report submitted to the Legislature pursuant to this subdivision shall be in compliance with

Section of the Government Code.

SEC. 3. No reimbursement is required by this act pursuant to

Section 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 of the Government Code, or changes the definition of a crime within the meaning of

Section of

Article XIII B of the California Constitution. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'15.7.'%5D)" xlink:label="fractionType: LAW_SPREAD||commencingWith: 3150" xlink:type="locator">Title 15.7 (commencing with

Section 3150) is added to Part of Division of the <caml:DocName>Civil Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawHeading id="id_AFC60B04-7408-4D5C-A70B-CDC61F1597B3" type="TITLE"><caml:Num>15.7.</caml:Num><caml:LawHeadingVersion id="id_E28F0E5D-855F-4301-B14C-E057D7CDEE6D"><caml:LawHeadingText>Affordable Home Internet</caml:LawHeadingText></caml:LawHeadingVersion><caml:LawSection id="id_6DCB807E-EAF7-48AA-915B-1770EF9FC0F7"><caml:Num>3150.</caml:Num><caml:LawSectionVersion id="id_43A59199-1F11-4C5E-9718-1A7DC32FB12C"><caml:Content><xhtml:p>This title shall be known, and may be cited, as the California Affordable Home Internet Act of 2025.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_64AB0075-5E68-4666-B28F-C03686C775C6"><caml:Num>3152.</caml:Num><caml:LawSectionVersion id="id_CEC8A51D-DB75-4AFB-A9DD-36D9EB4EA152"><caml:Content><xhtml:p>As used in this title, all of the following

definitions apply:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>“Affordable home internet service” means an internet service plan or subscription that is offered for purchase to eligible households at speeds of at least megabytes per second downstream and megabytes per second upstream at a cost not to exceed fifteen dollars ($15) per month, not including taxes or other charges imposed by a government entity.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>“California internet service provider” means an internet service provider doing business within California.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“California service territory” means any address in California where a California internet service provider offers internet service to residential customers.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“Commercial mobile service” means any mobile service that is provided for profit and makes interconnected service available to the public or to such classes of eligible users as to be effectively available to a substantial portion of the public.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>“Eligible household” means a household within the California internet service provider’s California service territory with at least one resident of the household participating in a qualified public assistance program. </xhtml:p><xhtml:p>(f)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>“Internet service” means a mass-market retail service by wire or radio provided to residential customers in California that provides the capability to transmit data to, and receive data from, all or substantially all internet endpoints, including, but not limited to, any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up internet access service and digital subscriber line service, regardless of the technology used.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Internet service” does not include a commercial mobile service or a private mobile service.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>“Minimum speed requirements” means at least megabits per second downstream and megabits per second upstream and sufficient speed and latency to support distance learning and telehealth services.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>“Private mobile service” means any mobile service that is not a commercial mobile service or the functional equivalent of a commercial mobile service.

The Department of Technology may subsequently modify the definition of “private mobile service” to avoid conflict with

Section of Title of the United States Code or regulations adopted pursuant to that section.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>“Qualified public assistance program” means the Supplemental Security Income/State Supplementary Payment Program under

Chapter 3 (commencing with

Section 12000) of Part of Division of the Welfare and Institutions Code, the federal Temporary Assistance for Needy Families (TANF) program under Part A (commencing with

Section 401) of Title IV of the federal Social Security Act (42 U.S.C.

Sec. 601 et seq.), the CalFresh program established pursuant to

Chapter 10 (commencing with

Section 18900) of Part of Division of the Welfare and Institutions Code, the state health care program established pursuant to

Chapter 7 (commencing with

Section 14000) of Part of Division of the Welfare and Institutions Code, also known as the Medi-Cal program, or the federal Supplemental Security Income program established under Title XVI of the federal Social Security Act.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_64337A0F-23CD-4A06-9BEE-3259FDAB742C"><caml:Num>3154.</caml:Num><caml:LawSectionVersion id="id_0DCB29FA-9170-4CB7-BD32-B3BB9847FB1E"><caml:Content><xhtml:p>Every California internet service provider, except those exempt pursuant to

Section 3160, shall offer for purchase to eligible households within their California service territory affordable home internet service that meets minimum speed requirements.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_0C04937F-B96E-4AA2-A4D6-5446FCD3C689"><caml:Num>3156.</caml:Num><caml:LawSectionVersion id="id_6B00AEA6-DB0D-4840-9EC1-CAA4988E4DE9"><caml:Content><xhtml:p>Every California internet service provider shall make commercially reasonable efforts to promote and advertise the availability of affordable home internet service for eligible households, including, but not limited to, the prominent display of, and enrollment procedures for, that service on its internet website and in any written and commercial promotional materials developed to inform consumers in eligible households.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_54544EF5-5858-4343-8756-6C4C419ADF5F"><caml:Num>3158.</caml:Num><caml:LawSectionVersion id="id_7B45D702-5E92-48F4-BF77-8ECF7988F4F6"><caml:Content><xhtml:p>Beginning on January 1, 2027, and annually thereafter, every California internet service provider shall provide a report to the Department of Technology with the following information:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>A description of the affordable home internet service plan offered.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The number of households that purchased the service.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_F0481921-FA61-48C2-BFD6-A9FDD1B9C117"><caml:Num>3160.</caml:Num><caml:LawSectionVersion id="id_65AB5D4A-DFAC-4BD7-90CC-F430016E7761"><caml:Content><xhtml:p>The following California internet service providers are exempt from complying with the requirements of

Section 3154: </xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>A small independent telephone corporation, as defined in paragraph (6) of subdivision (

b) of

Section 275.6 of the Public Utilities Code, and its California internet service provider affiliates.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>A California internet service provider with less than 50,000 subscribers that primarily serves households for which there are no other California internet service providers offering internet service.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>A joint powers authority formed under

Chapter 5 (commencing with

Section 6500) of Division of Title of the Government Code.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>A California internet service provider that participates in the California lifeline program established pursuant to

Section 873.5 of the Public Utilities Code.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_45759FDF-57C1-4DFC-9DAC-46C3F2FD49CA"><caml:Num>3162.</caml:Num><caml:LawSectionVersion id="id_C4EBE689-3A15-4A30-9FEC-79EAC1C29F6F"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>Notwithstanding any other law, the Public Utilities Commission shall have no jurisdiction or regulatory authority to implement, enforce, interpret, or oversee any aspect of this title, including, but not limited to, by doing any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Setting or approving rates or terms for affordable home internet service plans for entities required to comply with this title.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Determining California internet service provider compliance with the requirements of this title.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Investigating, penalizing, or taking enforcement action against a California internet service provider pursuant to this title.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Administering eligibility verification processes.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Requiring California internet service providers to submit tariffs, advice letters, or data for approval under this title.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Any administrative or oversight responsibilities pursuant to this title shall be carried out exclusively by the Department of Technology.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_3D116985-AB97-4CAD-9DF2-70325790BFFD"><caml:Num>3164.</caml:Num><caml:LawSectionVersion id="id_4122CC8F-01C4-41DE-AF27-CC6E8E4E0687"><caml:Content><xhtml:p>This title shall become inoperative upon the implementation of a federal or state broadband subscription subsidy program for low-income households that meets all of the following criteria:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>Provides a recurring financial benefit, of fifteen dollars ($15) or more per month, to low-income households to offset the cost of internet service.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Applies to home internet service plans offering speeds consistent with the minimum speed requirements.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>Is supported by sustained public funding.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>Is utilized by all California internet service providers with more than 100,000 customers.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:LawHeading></caml:Fragment></caml:BillSection>"?>