California Enacts New Law Adjusting PUC Audit Requirements  

California has enacted a new law that would now require the commission to audit the books and records of each telephone corporation if the utility has over 10,000 customers and would require the commission to review or audit the books and records of the utility if the utility has 10,000 or fewer customers. The bill would require these reviews or audits to be conducted for regulatory purposes, rather than regulatory and tax purposes.  The bill would provide that a review or audit conducted in connection with a rate proceeding will be deemed to fulfill the applicable requirements for review or audit.  Beginning January 15, 2020, and every year thereafter, the Commission must post on its internet website its standard practice audit manual, titled Utility Audit, Finance and Compliance Branch UAFCB Audit and Attestation Standard Practice, and updates to that manual, if any.  The law is scheduled to take effect January 1, 2020.   

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The Regulatory Mix Today: California Enacts New Law Adjusting Audit Requirements, FCC Launches Online Portal Public Safety and Enterprise Interference Compliance, FCC releases 4Q Inflation Adjustment for Cable Operators, FCC Sees Comment on Improving Form 470

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FCC Launches Online Portal for Public Safety and Enterprise Interference Complaints 

The FCC’s Enforcement Bureau (EB) announced  the launch of the new interference complaint intake portal for public safety and enterprise service providers.  The new portal is intended for use by public safety and industry complainants.  The portal will be on the FCC’s home page 

(www.fcc.gov) and will accept such complaints. 

Consumers experiencing difficulties with a range of communications services, including wireless interference problems, should continue to use the Commission’s existing Consumer Complaint Center (https://consumercomplaints.fcc.gov/hc/en-us). 

FCC Releases 4Q 2019 Inflation Adjustment for Cable Operators 

The FCC announced the most recent inflation adjustment factors for cable operators.  For operators filing quarterly using FCC Form 1240, the 4Q19 inflation factor is 1.0242%.  Operators calculating the Inflation Factor for a True-Up Period that includes some portion of the 4Q19 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0242.” Operators using this factor for calculating the Projected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996 version) as “1.0242.” 

FCC Seek Comment on Improving Form 470

In a press release, the Wireline Competition Bureau (WCB) and the Office of the Managing Director seek comment on the Universal Service Administrative Company’s (USAC) drop-down menu options for the FCC Form 470, the form that E-Rate program applicants use to solicit bids from service providers for E-Rate eligible services.  Specifically, the WCB is seeking comment on whether and how these dropdown menu choices may be improved to minimize the potential for applicant confusion, address concerns about the current FCC Form 470 drop-down menu options, and, to the extent practicable, to reduce administrative burdens on applicants and service providers.  Information received during this comment period will be used to develop the FCC Form 470 drop-down menu options for future funding years in time for applicants to conduct their competitive bidding for funding year (FY) 2021. 

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.