BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1200
                                                                  Page  1

          Date of Hearing:   May 9, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                  AB 1200 (Cardenas) - As Amended:  April 19, 2001 

          Policy Committee:                               
          UtilitiesVote:17-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          study ways to improve the handling of telecommunications matters  
          before the commission and report to the Legislature by May 1,  
          2002 regarding how best to:  

          1)Ensure equity in the application of rules among competitors. 

          2)Reduce the time for reviewing matters before the commission.

          3)Ensure that new services are brought to consumers as quickly  
            as possible. 

          4)Provide more flexibility to the utilities in providing service  
            and meeting competition.

           FISCAL EFFECT  

          Minor absorbable special fund cost (less than $100,000) to the  
          PUC.

           COMMENTS  

           Background and Purpose  .  Existing law requires local exchange  
          carriers to file applications with the PUC to significantly  
          increase service prices, introduce new services or to otherwise  
          materially change service.  These firms are also required to  
          file advice letters with the PUC when providing pricing  
          flexibility for discretionary or partially competitive services,  
          making non-substantive changes to tariffs or modifying services  
          in a non-substantive manner.  








                                                                  AB 1200
                                                                  Page  2


          In addition, recent reforms reduced the statutory time required  
          for the PUC to resolve various filings and proceedings, and  
          determined that adjudicatory matters (complaints) had to be  
          resolved within 12 months and other matters within 18 months.  

          AB 1200 calls for the PUC to further review its internal  
          processes and timelines to in part ensure that new  
          telecommunications services can be brought to Californians in  
          the shortest possible time.
           
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081