BILL ANALYSIS 1
1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
SB 1563 - Polanco Hearing
Date: April 23, 2002 S
As Amended: April 22, 2002 FISCAL B
1
5
6
3
DESCRIPTION
Current law articulates California's telecommunications
policies. These policies include universal service,
encouraging the ubiquitous availability of a wide choice of
state-of-the-art telecommunications services, and adequate
investment in telecommunications infrastructure.
This bill adds to those policies by:
1)Specifically articulating a desire to bridge the "digital
divide."
2)Making explicit a policy of encouraging fair treatment of
consumers by providing them with necessary information,
establishing reasonable service quality standards, and
creating processes to resolve billing and service
problems.
3)Substituting a desire to "promote a level playing field"
for the current policy of "avoiding anti-competitive
conduct."
This bill also requires the California Public Utilities
Commission (CPUC) to convene a proceeding to develop a plan
for encouraging the ubiquitous availability of advanced
telecommunications infrastructure, and to report back to
the Legislature by February 1, 2004.
BACKGROUND
California's telecommunications policy has a long history
of promoting universal service and consumer-friendly
practices. Over the last several years, there's been
increasing interest in the telecommunications
infrastructure and the availability of advanced
communications service, due to a recognition of the
"digital divide" issue and the positive effects that
advanced communications infrastructure can have on the
economic development prospects of a region.
Recent legislation has focused on having the CPUC
re-examine universal service in the context of expanding
the types of services it encompasses. Each time the CPUC,
after discussions with service providers and customers,
declined to expand the scope of services, citing cost
issues. The CPUC's latest examination is due imminently,
but some observers don't believe the CPUC will reach
conclusions that are any different from its prior
conclusions.
The CPUC has long established service quality standards for
traditional telephone service. These standards are
articulated in General Order No. 133 and include
measurements of delays in installing new telephone lines,
customer reports of service dissatisfaction, and time to
answer directory assistance calls. Last year, the CPUC
opened a proceeding to establish consumer protection rules
for telecommunications services (Order Instituting
Rulemaking 00-02-004). The basis for those rules are six
policies: 1) product information disclosure, 2) customer
choice, 3) privacy, 4) public participation, 5) oversight
and enforcement, 6) accurate bills and redress. Those
rules are due to be released in the near future. In
addition, the CPUC responds to specific circumstances where
service quality or customer service issues arise, such as
individual customer complaints or customer-classwide
deceptive sales practices allegations. In the context of
its current review of the regulatory framework for Pacific
Bell and Verizon, the CPUC also required extensive customer
surveys of service quality.
COMMENTS
1.Digital Divide . The bill explicitly adds to the state's
telecommunications policies the goal of bridging the
"digital divide," which refers to the unequal degree of
access to computer and communications capabilities
throughout society and the impact of such inequality on
the quality of life for those individuals and
communities. The CPUC has already taken some steps to
address the issue, notably the creation of the California
Teleconnect Fund.
2.Level That Playing Field . The author's rationale for
replacing the concept of "avoidance of anticompetitive
conduct" with "promote a level playing field among
providers" is that anticompetitive conduct is already
illegal, so a policy statement on avoiding
anticompetitive conduct is redundant. Promoting a level
(regulatory) playing field encompasses the concept of
avoiding anticompetitive behavior, but more importantly,
it's also a broader statement aimed at requiring
regulatory fairness.
3.Definition of Universal Service . Previous bills before
the Legislature asked or required the CPUC to consider
expanding the universal service definition, which the
CPUC declined to do. This bill takes a different tact by
asking the CPUC to develop a plan which encourages the
deployment of advanced communications infrastructure, and
report such a plan back to the Legislature by February 1,
2004. The bill specifically requires the CPUC to include
a broad cross section of interests, including those
service providers which are not regulated by the CPUC, in
developing the plan.
4.Prior Legislation . AB 1289 (Moore), Chapter 1274,
Statutes of 1993, required the CPUC to consider 1)
broadening the list of services included within the
universal service definition, and 2) how to encourage the
deployment of advanced communications infrastructure.
SB 2150 (Peace), Chapter 266, Statutes of 1998 required
the CPUC to consider whether the regulatory structure
encourages companies to provide high-speed communications
services.
SB 1712 (Polanco), Chapter 943, Statutes of 2000,
encouraged the CPUC to consider redefining universal
telephone service to include video and data services and
to promote equity of access to such services.
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Randy Chinn
SB 1563 Analysis
Hearing Date: April 23, 2002