California Assembly Advances Constitutional Amendment That Could Remove Telecommunications And Broadband From CPUC Oversight

If approved by the Senate and voters, ACA 9 would give the Legislature broad authority to reassign telecommunications and broadband regulation to a new state agency.

The California Assembly has passed Assembly Constitutional Amendment 9 (“ACA 9”), a proposed constitutional amendment that could fundamentally reshape how telecommunications and broadband services are regulated in California. The measure passed the Assembly on May 18, 2026, by a 67-1 vote, with 12 members not voting, and has been referred to the California Senate Rules Committee.

If ultimately approved by the Senate and California voters, ACA 9 would remove the current constitutional requirement that owners and operators of telephone and telegraph facilities be treated as public utilities subject to the California Public Utilities Commission (“CPUC”) framework. Importantly, ACA 9 would not immediately eliminate existing telecommunications regulation under the California Public Utilities Code. Rather, it would remove a constitutional constraint and give the Legislature far greater flexibility to decide which state entity regulates telecommunications and broadband services, and under what statutory framework.

Executive Summary

ACA 9 is significant for telecommunications, broadband, VoIP, wireless, cable, and infrastructure providers operating in California because it could mark a structural shift away from CPUC-centered utility regulation.

If enacted, ACA 9 would:

• Remove “telephone and telegraph messages” from the constitutional definition of public utilities, eliminating the current constitutional basis for mandatory CPUC oversight of telephone corporations;
• Authorize the Legislature to reassign CPUC duties relating to telephone corporations, telecommunications service, and broadband service to another state entity;
• Express the intent to establish a separate state broadband agency by January 1, 2028;
• Expand the CPUC from five to nine commissioners, with four commissioners appointed by legislative leadership rather than the Governor;
• Require the CPUC to consider affordability when setting utility rates; and
• Move certain CPUC procedural authority out of the Constitution and into statute, making those procedures more amendable by future legislation.

For regulated communications providers, the practical takeaway is that California may be moving toward a bifurcated regulatory model: energy, water, and traditional utility rate regulation could remain with a restructured CPUC, while broadband and telecommunications oversight could migrate to a new broadband-focused agency or other legislative structure.

What ACA 9 Would Change

1. Removal of the Constitutional Mandate for CPUC Telecom Oversight

Article XII of the California Constitution currently treats entities that own, operate, control, or manage facilities for the transmission of telephone and telegraph messages as public utilities. ACA 9 would repeal that specific constitutional requirement.

The amendment would also add language authorizing the Legislature to prescribe the CPUC’s duties, functions, and jurisdiction relating to telephone corporations, telecommunications service, and broadband service, including by reassigning those duties to another state entity.

This is the core telecom issue. ACA 9 does not itself deregulate telecommunications carriers, eliminate certification requirements, terminate surcharge obligations, or repeal existing CPUC rules. Instead, it would give the Legislature authority to redesign the regulatory structure without being constrained by the current constitutional treatment of telephone utilities.

2. Creation of a Separate Broadband Agency

ACA 9 states the intent of the people to establish, by January 1, 2028, a state entity separate from the CPUC to promote universal broadband infrastructure deployment, increase broadband adoption, and promote a competitive broadband market.

That constitutional language should be read alongside AB 2289, a companion measure that would establish the Office of Broadband and Digital Equity (“OBDE”) within the Government Operations Agency and transfer several broadband and telecommunications programs currently administered by the CPUC or the California Department of Technology to that office. Committee analysis of AB 2289 states that, beginning July 1, 2028, OBDE would become the centralized state department for broadband and digital equity activities and the only state agency authorized to establish rules or regulations for broadband internet access service and internet service providers.

Taken together, ACA 9 and AB 2289 suggest a broader legislative effort to move California broadband policy away from a traditional public-utility framework and toward a specialized broadband and digital equity agency.

3. Restructuring the CPUC’s Governance

• ACA 9 would expand the CPUC from five commissioners to nine commissioners. Under the proposed structure:
• Five commissioners would be appointed by the Governor;
• Two commissioners would be appointed by the Senate Committee on Rules; and
• Two commissioners would be appointed by the Speaker of the Assembly.

This would reduce the Governor’s exclusive appointment control over the CPUC and give the Legislature a direct appointment role. The Assembly Utilities and Energy Committee analysis notes that shared appointment authority could broaden representation and reduce the ability of a single administration to reshape the CPUC quickly but also could create internal friction or further politicize the Commission.

4. Affordability as a Constitutional Rate setting Consideration

ACA 9 would require CPUC, when fixing rates, to consider it affordability.

Although this provision appears directed primarily at California’s energy affordability concerns, it could have indirect implications for any services that remain subject to CPUC rate setting or surcharge-related proceedings. The Assembly analysis flags that adding “affordability” without a statutory definition could create interpretive ambiguity and litigation risk.

Why California Is Considering This Reform

The stated policy rationale is to narrow and refocus the CPUC’s portfolio. The Assembly committee analysis describes the CPUC as the largest state utility regulator in the nation, overseeing privately owned electric, gas, water, and communications companies, railroad safety, rail transit, and passenger-for-hire carriers.

According to the bill author, Assemblymember Tasha Boerner, ACA 9 is intended to return structural reform authority to elected representatives and allow the CPUC to focus on issues such as energy affordability, climate goals, and utility safety.

The Assembly analysis also ties the proposal to long-running concerns over CPUC accountability, utility safety, rising electricity rates, and the Commission’s broad jurisdiction.

For the communications sector, however, the key question is whether California’s telecom and broadband policy should continue to be administered through a public-utility commission model or through a more broadband-specific agency focused on deployment, adoption, digital equity, and market competition.

Why This Matters for Communications Providers

ACA 9 could create both opportunity and uncertainty for communications providers.

On one hand, a specialized broadband office could result in a more focused state-level broadband policy framework, particularly for deployment grants, digital equity programs, mapping, infrastructure coordination, and adoption initiatives. The CPUC currently manages a broad suite of broadband and communications programs, including broadband infrastructure grants, California LifeLine, the California Teleconnect Fund, broadband adoption programs, broadband mapping, and provider licensing/regulation.

On the other hand, shifting jurisdiction away from the CPUC could raise transitional questions for:

• CPCN and registration requirements;
• state universal service and surcharge obligations;
• service quality and outage reporting rules;
• emergency preparedness and backup power requirements;
• pole attachment and infrastructure access issues;
• broadband grant administration;
• consumer protection enforcement;
• carrier-of-last-resort obligations;
• VoIP and wireless regulatory treatment; and
• pending CPUC proceedings and enforcement matters.

Because ACA 9 would amend the Constitution rather than directly rewrite the Public Utilities Code, many practical details would depend on implementing legislation. Providers should therefore monitor both ACA 9 and related statutory proposals, including AB 2289.

Current Status and Next Steps

ACA 9 has cleared the Assembly and is now in the Senate. Because it is a proposed constitutional amendment, it must receive approval by two-thirds of each house of the Legislature before being submitted to California voters. The Assembly committee analysis confirms that proposed constitutional amendments are submitted to the electorate and take effect if approved by a majority of votes cast.

The Governor does not sign or veto a legislative constitutional amendment. If the Senate approves ACA 9 by the required margin, California voters would have the final say at a statewide election.

The measure’s 67-1 Assembly vote gives it substantial political momentum, particularly because it received overwhelming support in the first chamber. Still, the proposal must clear the Senate and then be approved by voters before any constitutional change takes effect.

Key Compliance Takeaways

Communications providers operating in California should treat ACA 9 as a potentially major structural development, but not as an immediate deregulation event.

For now:

• Existing CPUC requirements remain in place unless and until changed by statute or Commission action.
• ACA 9 would remove a constitutional mandate, not automatically repeal the Public Utilities Code.
• The most significant operational impacts would likely arise through follow-on legislation assigning telecom and broadband functions to a new office or agency.
• Providers should monitor whether pending or future legislation addresses licensing, broadband regulation, surcharges, service quality, consumer protection, and program administration.

Companies with active CPUC matters should assess whether any transition rules may affect pending applications, investigations, grants, or compliance obligations.

Bottom Line

ACA 9 could become one of the most consequential California utility-regulatory reforms in decades. For telecommunications and broadband providers, the amendment’s importance lies less in immediate legal changes and more in the authority it would give the Legislature to redesign California’s communications regulatory architecture.

If enacted, California could move away from treating telecommunications and broadband primarily as matters of CPUC public-utility regulation and toward a separate broadband-focused governance model. Providers should begin tracking the proposal now, particularly because the measure has already received overwhelming support and is paired with companion legislation that would create a new Office of Broadband and Digital Equi

Please contact us if your company provides telecommunications, broadband, VoIP, wireless, cable, or infrastructure services in California and would like assistance assessing how ACA 9 and related implementing legislation could affect your regulatory obligations.

The CommLaw Group is monitoring the proposal closely and can help clients evaluate potential impacts on CPUC authority, certification and registration obligations, surcharge and universal service requirements, broadband program participation, consumer protection compliance, and pending CPUC matters. We can also assist with legislative tracking, regulatory risk assessments, stakeholder engagement, and preparation of comments or advocacy materials as California considers whether to restructure its telecommunications and broadband regulatory framework.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.