WASHINGTON-A controversial plan to give California telecom consumers a bill of rights, one which appeared headed for passage this month over objections from mobile-phone carriers, has turned into a free for all.
Last week, two California Public Utilities Commission members-including one previously allied with bill-of-rights author Commissioner Carl Wood (D)-said they are writing alternate proposals.
The Wood plan, supported by consumer advocates, state lawmakers, newspapers and California Attorney General Bill Lockyer, is likely dead.
The spotlight now shifts to new bills of rights being written by Commissioners Susan Kennedy (D) and Geoffrey Brown (D). The two documents are expected to be released this week. The commission may seek public comment on an expedited basis and schedule a vote on the Wood, Kennedy and Brown measures at the May 27 meeting.
But there is every reason to believe the vote will be further delayed, as has been the case since last fall.
Indeed, the bill of rights could become so embroiled in controversy that no vote is held on it this year. Such an outcome effectively would kill the initiative, since GOP Gov. Arnold Schwarzenegger plans to replace term-ending Commissioners Wood and Loretta Lynch (D), who backs the bill of rights, next year. A newly revamped PUC also could throw out a bill of rights approved this year. Whatever action the PUC may take on a bill of rights, litigation is assured.
The dramatic turn of events comes amid aggressive industry lobbying and heavy pressure by Schwarzenegger and his staff on the independent state agency, particularly on Brown, the swing vote on the PUC.
“Commissioner Wood and I have disagreed on some points of change. … The alternate will consist of elimination of the provisions relating to privacy that are controversial-not the entire section-and we will take advertising regulation out of the document,” said Brown.
Until last week, Wood had the support of Commissioners Brown and Lynch-that is, enough votes to win passage of the bill of rights by the five-member commission. Lynch could not be reached for comment.
“We’re pleased the commissioners are weighing the serious effects that wireless regulations would have on California consumers and the California economy,” said the Cellular Telecommunications & Internet Association. “Regulations only make sense when markets don’t work. This is clearly not the case for wireless in California.”
Schwarzenegger, who ousted former Democratic Gov. Gray Davis in last November’s recall election, strongly supports deregulation. Playing to that sentiment, the mobile-phone industry has spent nearly $600,000 on lobbying to protest against the proposed bill of rights, which would force wireless carriers to change the way they conduct business in the state. If a bill of rights is enacted, other states could decide to emulate California.
With the bill of rights having been transformed inevitability into a state of confusion over the course of a week, the mobile-phone industry can rest a little easier.
“I think everything is in flux,” said Lester Wong, a telecom adviser to PUC President Michael Peevey (D).
Wong said Peevey does not support the Wood plan, but is not opposed to consumer protection rules for telecom subscribers. He said he has not seen Kennedy’s and Brown’s bill of rights proposals.
Last year, Kennedy announced plans to craft a separate consumer bill of rights that would exempt wireless carriers from new rules. But she later dropped the effort in recognition of Schwarzenegger’s regulatory moratorium, which did not officially extend to the PUC.
“Our alternate will be focused on empowering consumers and fixing real problems that may exist out in the market-not on establishing more expensive, burdensome regulations that someone thinks are needed, without relying on valid, empirical data,” said Ross LaJeunesse, chief of staff to Kennedy.
It is unclear whether Kennedy will shield wireless carriers from new consumer protection guidelines.
Wong signaled Peevey might not be willing to embrace such a rule. “It would be hard to get over that [wireless exemption],” said Wong.
The Kennedy plan is expected to be less onerous for wireless carriers than Wood’s or Brown’s plans and more to the liking of industry and Schwarzenegger.
Wood has been working on the bill of rights the past four years. Now, eight months before he retires from the PUC, Wood can only watch as the measure is wrestled out of his control.
“I’m disappointed,” said Wood, who was told by Brown last Tuesday of the latter’s decision to break ranks on the bill of rights.
Perhaps a little bitter, too.
“I think he [Brown] is na
