AMENDED IN SENATE JULY 17, 2025
AMENDED IN ASSEMBLY JUNE 19, 2025
AMENDED IN ASSEMBLY MAY 5, 2025
AMENDED IN ASSEMBLY APRIL 22, 2025
AMENDED IN ASSEMBLY MARCH 17, 2025
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
94
Introduced by Assembly Member McKinnor
February 6, 2025
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, and making an appropriation therefor.
Vote: majority Appropriation: yes Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
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, in consultation with the Office of Emergency Services, to adopt a process through which a telephone corporation acting as a carrier of last resort is authorized to seek relief from their carrier of last resort obligations in a census block where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area, and in a census block that is well-served, as defined. The bill would require the commission, on or before December 15, 2026, to adopt a map designating well-served areas. The bill would require that the process include specified notice and challenge requirements. The bill would require a telephone corporation to meet certain requirements during specified time periods following the date that amended status is granted by the commission, as provided.
The bill would create the Public Safety Agency Technology Upgrade Grant Fund, provide that moneys in the fund are continuously appropriated to the commission for purposes of public safety agency technology upgrade grants, and authorize the fund to accept donations from nongovernmental entities.
The bill would exempt specified services and locations from its provisions.
This bill would make legislative findings to that effect.
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.
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:
(1) The state encourages the deployment of advanced telecommunications capability to all Californians by utilizing regulatory forbearance measures that promote competition in the local telecommunications market, or other methods that encourage infrastructure investment.
(2) All Californians deserve reliable, affordable, fast, and safe communication options, no matter who they are, where they live, or why they need to be connected.
(3) The transition to advanced fiber optic networks is key to creating equity and positive impacts on California education, health care, agriculture, public safety, workforce development, and the economy.
(4) Californians are moving swiftly to abandon the legacy network because it does not provide the benefits of modern communication technologies, with more choosing to use advanced services every year.
(5) California must develop a responsible and equitable transition plan that ensures all Californians have access to the connectivity they need.
(6) The transition should include a phased approach that over time ensures customers have access to communication services that are equally or more reliable and affordable, before transitioning away from the old legacy network.
(7) As part of the transition, no Californian will be left without reliable voice service in their home, including the ability to contact 9-1-1.
(8) The purposes of this act are to ensure California’s longstanding commitment to universal service is not compromised by changes to the telecommunications marketplace and to ensure the public may benefit from the transition away from legacy networks. To that end, this act establishes a comprehensive and robust process for a telephone corporation to seek changes to its obligations as a carrier of last resort for eligible areas only, and requirements to ensure the public benefits from those changes.
(b) By choosing to enact legislation affecting a narrow scope of areas with robust competition or no direct impact to an existing population, it is the intent of the Legislature to allow the Public Utilities Commission to continue commission Rulemaking 24-06-012 (June 20, 2024), Order Instituting Rulemaking Proceeding to Consider Changes to the Commission’s Carrier of Last Resort Rules, for areas that are not eligible areas under this act.
SEC. 2.
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
For purposes of this article, all of the following definitions apply:
(a) (1) “Alternative voice basic service” means a retail service made available through a technology or service arrangement by a provider that provides, as a stand-alone service or as part of a bundled service, all of the following:
(A) Voice access interconnected with the public switched telephone network.
(B) Access to emergency 9-1-1 service and E-9-1-1 service in compliance with current state and federal laws and regulations.
(C) Compatibility with a backup power source.
(D) A billing option with monthly rates and without contract or early termination penalties.
(E) Access to the California Relay Service pursuant to Section 2881 for deaf or hearing-impaired persons or individuals with speech disabilities.
(F) Access to customer service for information about service termination, repair, and billing inquiries.
(G) Free access to 800 and 8YY toll-free services with no additional usage charges for such calls.
(2) “Alternative voice basic service” shall be a separate definition from “basic service,” as defined in commission Decision 12-12-038 (December 24, 2012), Order Instituting Rulemaking Regarding Revisions to the California High Cost Fund B Program, and does not encompass any obligations of any other service except as defined in this section.
(b) “Amended status” means the status of a telephone corporation that has been granted relief from carrier of last resort status in a census block or census blocks.
(c) “Amended status area” means a census block or census blocks for which a telephone corporation has been granted relief from carrier of last resort status.
(d) “Broadband service” means a mass-market retail service by wire or radio provided to customers in the state 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.
(e) “Carrier of last resort” has the same meaning as defined in Section 275.6.
(f) “Commitment letter” means an affidavit signed by an officer of a telephone corporation with legal authority to bind the telephone corporation to its obligations.
(g) “Comparatively priced alternative voice basic service” means an alternative voice basic service that is competitively priced in relation to the relevant telephone corporation’s nondiscounted basic exchange telephone service when considering all the alternatives in the amended status area and the functionalities of the alternatives.
(h) “Compliance” means following an applicable commission rule or order, corrective action plan, or other remedy, or completing a commission corrective action plan or other remedy, including payment of an applicable fine, for a census block subject to an application under this article.
(i) “Eligible area” means a census block that is either of the following:
(1) A census block that is well-served.
(2) A census block where the United States Census Bureau reports no population and where a telephone corporation provides no basic exchange service to any customer address located within its telephone service territory.
(j) “Eligible small business customer” means a traditional landline customer with five or fewer lines, that is not subject to a separate contract for copper-based voice services and fits the “microbusiness” definition in paragraph (2) of subdivision (d) of Section 14837 of the Government Code.
(k) “Notice” means a written communication.
(l) “Public safety agency technology upgrade grant” means a grant awarded to a law enforcement agency, as defined in Section 13670 of the Penal Code, for new technology, or an upgrade to existing copper-based systems, to transition to a modern communication system.
(m) “Qualifying public assistance program” means any of the following programs:
(1) The California Alternate Rates for Energy (CARE) program described in Section 739.1.
(2) The State Supplementary Payment Program for the Aged, Blind and Disabled implemented pursuant to the Burton-Moscone-Bagley Citizens’ Income Security Act for Aged, Blind and Disabled Californians (Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code).
(3) The Temporary Assistance for Needy Families program pursuant to Part A (commencing with Section 401) of Title IV of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.).
(4) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.
(5) Covered California, as described in Title 22 (commencing with Section 100500) of the Government Code.
(6) Medi-Cal, as described in the Medi-Cal Act (Chapter 7 (commencing with Section 14000.4) of Part 3 of Division 9 of the Welfare and Institutions Code).
(7) Supplemental security income benefits pursuant to Title XVI of the Social Security Act (Section 1381 of Title 42 of the United States Code).
(n) “Small business security and alarm system technology migration assistance” means a voucher provided to an eligible small business customer for costs associated with transitioning alarm system services.
(o) “Telephone corporation” has the same meaning as defined in Section 234.
(p) “Well-served” means at least three different facilities-based service providers, not including the basic exchange offering over copper infrastructure from the telephone corporation that is acting as the carrier of last resort,
offer alternative voice basic service in the relevant area, in compliance with commission rules developed and implemented pursuant to Section 776.2, and at least one of the service providers is a wireline provider, at least one two of the service providers offers a comparatively priced alternative voice basic service, offer alternative voice basic service at prices comparable to tariffed basic service, as confirmed by the commission, at least one of the service providers participates in the lifeline telephone service program pursuant to the Moore Universal
Telephone Service Act (Article 8 (commencing with Section 871) of Chapter 4 of Part 1), and an alternative voice basic service is available to
all of the broadband-serviceable locations in the area, as those broadband-serviceable locations are set forth in the most recent publicly available Federal Communications Commission National Broadband Map showing fixed and wireless broadband coverage. coverage or in other telephone, broadband, and wireless service data available to the commission.
(q) “Voice over Internet Protocol” has the same meaning as defined in Section 239.
(a) A telephone corporation that seeks to amend its status as a carrier of last resort under this article may submit a request to the commission for amended status in an eligible area, consistent with this article.
(b) (1) Subject to this article and other conditions imposed by the commission consistent with this article, the commission shall approve approve, or amend and approve, a request for amended status from a telephone corporation.
(2) Upon the commission approving a request for amended status from a telephone corporation pursuant to this article, the commission shall grant the telephone corporation relief from its carrier of last resort status and obligations within the amended status area, consistent with Sections 2878.2 and 2878.3.
(c) In an existing proceeding, the commission shall, on or before December 15, 2026, adopt a map designating well-served areas. The map adopted by the commission shall include data from the wireless coverage maps adopted pursuant to commission Rulemaking 23-02-016 (March 1, 2023), Order Instituting Rulemaking Proceeding to Consider Rules to Implement the Broadband Equity, Access, and Deployment
Program, or
from the Federal Communications Commission’s National Broadband Map.
Map, or from other telephone, broadband, and wireless service data available to the commission.
(d) A telephone corporation shall be in compliance with General Order 133-E, Rules Governing Telecommunications Services, or a successor to that general order adopted by the commission, for the preceding 12 months in order to be eligible to request amended status.
(a) In an existing proceeding, the commission shall, in consultation with the Office of Emergency Services, on or before December 15, 2026, adopt a process through which a telephone corporation seeking to amend its status as a carrier of last resort under this article may submit to the commission a request for amended status for an area where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area.
(b) The process adopted pursuant to subdivision (a) shall include, at minimum, all of the following:
(1) Authorization for a telephone corporation seeking to amend
its status as a carrier of last resort under this section to file a Tier 2 advice letter to request amended status. status and, notwithstanding any other statute or rule, to modify the basic exchange service tariff accordingly.
(2) Public notification requirements.
(3) (A) A procedure for an applicable household or a representative of that household to challenge a request for amended status, before the request for amended status has been approved by the commission, on the basis that the applicable area does have a population or that the telephone corporation does provide basic exchange service to a customer address within the applicable area.
(B) The commission shall provide for a process to submit a challenge to the proposal for amended status to a third party third-party review entity.
(C) The commission shall not approve a request for amended status for an area for which there is a pending challenge.
(D) The commission shall provide 90 days for a challenge of a request for amended status.
(E) Upon receipt of a challenge to a request for amended status, the commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
(F) The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area does have a population or that the telephone corporation does provide basic exchange service to a customer address within the applicable area. Upon the commission or third-party review entity approving a challenge, the commission shall not approve a request for amended status for the applicable census block.
(G) The commission may contract with a third-party review entity to review a challenge described in this paragraph, consistent with both of the following:
(i) If the commission contracts with a third-party review entity, the telephone corporation seeking to amend its status as a carrier of last resort under this article shall reimburse the commission for the costs of contracting with the third-party review entity.
(ii) A telephone corporation seeking to amend its status as a carrier of last resort may recommend third-party review entities to the commission in a request for amended status.
(c) Upon the commission approving a request for amended status from a telephone corporation pursuant to this section, the commission shall grant the telephone corporation relief from its carrier of last resort status and obligations within the amended status
area.
(a) In an existing proceeding, the commission shall, in consultation with the Office of Emergency Services, on or before December 15, 2026, adopt a process through which a telephone corporation seeking to amend its status as a carrier of last resort under this article may submit to the commission a request for amended status for an area that is well-served, based on the map adopted by the commission pursuant to Section 2878.1.
(b) The process adopted pursuant to subdivision (a) shall include, at minimum, all of the following:
(1) Authorization for a telephone corporation seeking to amend its status as a
carrier of last resort under this section to file a Tier 2 advice letter to request amended status. status and, notwithstanding any other statute or rule, to modify the basic exchange service tariff accordingly.
(2) A process to notify affected customers when a request for amended status is being considered by the commission. The notice shall include a map of each proposed amended status area as described in the request for amended status.
(3) A process to notify affected customers when a request for amended status has been approved by the commission.
(4) (A) A procedure for an applicable household or a representative of that household to challenge a request for amended status, before the request for amended status has been approved by the commission, on the basis that the applicable area is not well-served.
(B) The commission shall provide for a process to submit a challenge to the proposal for amended status to a third-party review entity.
(C) The commission shall not approve a request for amended status for an area for which there is a pending challenge.
(D) The commission shall provide 180 days for a challenge of a request for amended status.
(E) Upon receipt of a challenge to a request for amended status, the commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
(F) The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area is not well-served. Upon the commission or third-party review entity approving a challenge, the commission shall not approve a request for amended status for the applicable census block.
(G) The commission may contract with a third-party review entity to review a challenge described in this paragraph, consistent with both of the following:
(i) If the commission contracts with a third-party review entity, the telephone corporation seeking to amend its status as a carrier of last resort under this article shall reimburse the commission for the costs of contracting with the third-party review entity.
(ii) A telephone corporation seeking to amend its status as a carrier of last resort may recommend third-party review entities to the commission in a request for amended status.
(5) (A) A procedure for an affected customer to challenge their inclusion in an amended status area, after the request for amended status has been approved by the commission, on the basis that the applicable area is not well-served.
(B) The commission shall provide for a process to submit a challenge to the proposal for amended status to a third-party review entity.
(C) The commission shall impose reasonable timeliness requirements for an affected customer’s challenge to their inclusion in an amended status area, which shall prohibit a challenge from being submitted more than 180 days after notification is provided pursuant to paragraph (3).
(D) Upon receipt of a challenge to a request for amended status, the commission or a third-party review entity, if applicable, shall review and approve, modify, or deny the challenge within 30 days.
(E) The commission or third-party review entity shall approve a challenge if there is a preponderance of evidence that the applicable area is not well-served. Upon the commission or third-party review entity approving a challenge, the commission shall not approve a request for amended status for the applicable area.
(F) The commission may contract with a third-party review entity, which may be the same third-party review entity contracted with pursuant to paragraph (4), to review a challenge described in this paragraph.
(c) The commission shall grant the telephone corporation approve, or amend and approve, a telephone corporations’s advice letter requesting relief from its carrier of last resort status and obligations within the amended status area upon
the occurrence of all of the following:
(1) The commission approves the request for amended status from the telephone corporation pursuant to this section.
(2) At least 180 days have passed since the first notification was provided to the affected customer pursuant to paragraph (3) of subdivision (b).
(3) All challenges received by the commission pursuant to paragraph (4) or (5) of subdivision (b) have been resolved.
(a) A telephone corporation granted relief from its carrier of last resort status and obligations within an amended status area that is well-served, pursuant to Section 2878.3, shall do all the following:
(1) (A) Within six years from the effective date a telephone corporation first obtains amended status, the telephone corporation shall demonstrate that it has made accessible its advanced fiber optics buildout to at least three times the number of residential units in the state as the number of basic exchange customers the telephone corporation had as of the effective date of its first request for amended status, one-half of which shall be in areas that are not well-served as of the effective date it first obtained amended status. The telephone corporation shall provide an annual report to the executive director of the commission certifying all of the following:
(B) The telephone corporation made accessible its advanced fiber optics buildout consistent with subparagraph (A).
(C) The telephone corporation had a positive year-over-year increase in its advanced fiber optics buildout in the state and deployment in unserved and underserved areas.
(2) Provide continuing service to a customer who subscribes to basic exchange service for at least 12 months from the date the telephone corporation obtains amended status in the area if the customer elects not to transition to an alternative voice basic service.
(3) To the extent technically feasible, offer an existing residential customer a comparatively priced alternative voice basic service for at least 24 months from the date the telephone corporation obtains amended status. For purposes of this paragraph, comparatively priced alternative voice basic service shall, in addition to meeting the requirements of subdivision (a) of Section 2878, provide interoperability with legacy devices utilizing copper for alarm systems, point-of-sale devices, and medical monitoring devices.
(4) To the extent technically feasible, offer a discounted broadband plan in each amended status area to eligible consumers for at least 24 months from the date the telephone corporation obtains amended status. To qualify, a household shall have an income that is at or below 400 percent of the federal poverty guidelines or at least one member of the household shall participate in a qualifying public assistance program.
(5) For at least 24 months from the date the telephone corporation obtains amended status, offer small business security and alarm system technology migration assistance in each amended status area to eligible small business customers who transition to an alternative voice basic service by providing a voucher to eligible small business customers for costs associated with transitioning alarm system services. Vouchers shall be administered by the telephone corporation and participation in the program reported annually to the commission.
(6) For at least 24 months from the date the telephone corporation obtains amended status, provide funding for public safety agency technology upgrade grants to be administered by the Board of State and Community Corrections to public safety agencies that have at least one service connection located in an amended status area. Administrative costs incurred by the Board of State and Community Corrections shall be recouped from the grant fund.
(7) For at least 24 months from the date the telephone corporation obtains amended status, provide funding to the Office of Emergency Services for grants and programs to tribal governments, community-based organizations, and local governments that focus on public outreach and awareness of modern communications, including, but not limited to, alternative voice basic services, for those with low incomes, disabilities, language barriers, older adults, and residents in high-risk areas, to help them prepare for, respond to, and recover from emergencies.
(8) For at least 24 months from the date the telephone corporation obtains amended status, provide funding for programs to develop community-based digital literacy resources in amended status areas.
(9) For at least 24 months from the date the telephone corporation obtains amended status, provide funding for a workforce development program in amended status areas that includes, but is not limited to, enhanced skills training, mentoring, education reimbursement, and career development programs for nonmanagement employees.
(10) Conduct a minimum of one informational workshop in each legislative district that includes one or more amended status areas, and conduct a minimum of one additional informational workshop in other legislative districts upon request from the Assembly Member or Senator representing the districts.
(11) For at least 24 months from the date the telephone corporation obtains amended status, maintain an internet website and toll-free number dedicated to answering questions regarding the amended status process.
(12) For at least 24 months from the date the telephone corporation obtains amended status, engage in fair labor practices and workforce training for employees that may be impacted by carrier of last resort relief.
(b) A telephone corporation granted relief from its carrier of last resort status within an amended status area that is well-served pursuant to Section 2878.3, or where the United States Census Bureau reports no population and where the telephone corporation provides no basic exchange service to any customer address located within the area pursuant to Section 2878.2, shall comply with all of the following:
(1) Any transition, construction, maintenance, or installation of communications infrastructure pursuant to this article shall not result in the involuntary elimination of existing union-represented technician positions who build and maintain the legacy copper network without first offering the displaced technicians either retention, retraining, or placement in another union-represented position. Job titles and employee classifications in a collective bargaining agreement without an existing job preservation guarantee shall not be entitled to the benefits provided for under this paragraph.
(2) For any transition, construction, maintenance, or installation of communications infrastructure pursuant to this article performed by regular full-time workers employed directly by an employer responsible for the transition, construction, maintenance, or installation, the employer shall pay the workers prevailing wages or their bargained contractual wage rates.
(3) Upon commencing any transition, construction, maintenance, or installation of communications infrastructure pursuant to this article, the telephone corporation shall submit to the commission and the relevant policy committees of the Legislature a workforce compliance plan, which shall include all of the following:
(A) Documentation of compliance with all workforce provisions.
(B) A plan for using union labor.
(C) A description of any retraining programs for existing workers.
(c) The commission may impose a remedy,
after notice and a reasonable opportunity to cure, if the a telephone corporation fails to meet any requirement described in of subdivision (a). (a) or (b). The remedies may include those authorized in Section 1701.6 or pursuant to Chapter 11 (commencing with Section 2100) of Part 1.
(a) (1) The requirements in this section only apply to a telephone corporation that has received amended status.
(2) The requirements in this section apply for 10 years after a telephone corporation has received amended status.
(b) (1) A telephone corporation that has received amended status shall provide alternative voice basic service to any residential consumer that is unable to obtain alternative voice basic service from any provider in the well-served area if both of the following occur:
(A) The residential consumer notifies the telephone corporation or commission that no alternative voice basic service is available in the well-served area.
(B) The commission determines that no alternative voice basic service is available.
(2) No later than 30 days after the receipt of the residential consumer’s notification under subparagraph (A) of paragraph (1), the commission shall determine whether alternative voice basic service is available in the area.
(3) When the telephone corporation can demonstrate that circumstances have changed, the telephone corporation may submit a notice to the executive director of the commission, or the executive director’s designee, that identifies an alternative voice basic service available at the residential consumer’s location.
The Public Safety Agency Technology Upgrade Grant Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the fund are hereby continuously appropriated without regard to fiscal year to the commission for purposes of paragraph (6) of subdivision (a) of Section 2878.4. The fund may accept donations from nongovernmental entities.
A telephone corporation shall provide continuing service to a customer who participates in the lifeline program pursuant to the Moore Universal Telephone Service Act (Article 8 (commencing with Section 871) of Chapter 4 of Part 1) for a period of three years from the date the telephone corporation is granted amended status for the area in which the customer is located, during which time the telephone corporation shall provide to the customer transition assistance to a comparatively priced alternative voice basic service.
2878.7.2878.8.
(a) This article does not apply to legacy computer-aided dispatch systems or intrastate legacy time-division multiplexing services used to directly connect land mobile radio systems used for public safety.
(b) This article does not apply to any inhabited island that is not part of the mainland area of the state and is not accessible by bridge or road, if any part of the island is well-served.
(c) Upon the commission’s approval of a telephone corporation’s amended status, the amended status area shall no longer require a carrier of last resort. In that amended status area, the commission shall not designate any other entity, including, but not limited to, providers of Voice over Internet Protocol service, wireless service, or other Internet Protocol-enabled services, as a successor carrier of last resort for that census block.
(d) This article does not modify the regulatory authority of the commission over alternative voice basic services or Voice over Internet Protocol services.
(e) This article does not modify or reduce the obligations of a telephone corporation to be the carrier of last resort in any area that is not an eligible area for amended status.
(f) This article does not authorize a telephone corporation to, as part of its advice letter requesting relief from its carrier of last resort status, modify its obligations related to either of the following:
(1) Tariffs required for the 911 or Next Generation 911 service pursuant to the Warren-911-Emergency Assistance Act (Article 6 (commencing with section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code).
(2) The telephone corporation’s designation as an eligible telecommunications carrier pursuant to Section 54.201 of Title 47 of the Code of Federal Regulations.
The Legislature finds and declares that Section 2 of this act, which adds subparagraph (D) of paragraph (1) of subdivision (a) of Section 2878.4 to the Public Utilities Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to order to protect the confidential and proprietary information of an entity subject to Section 2 of this act, it is necessary that this act limit the public’s right of access to that information.
SEC. 4.SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.