BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
           ------------------------------------------------------------ 
          |                               |1563(Polanco)               |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date:  5/13/02         |Amended: 4/30/02            |
          |-------------------------------+----------------------------|
          |Consultant:  Lisa Matocq       |Policy Vote: E, U & C 8-0   |
          |                               |                            |
          |                               |                            |
           ------------------------------------------------------------ 
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          SB 1563 requires the Public Utilities Commission (PUC) to,  
          by February 1, 2004, submit a report to the Governor and  
          Legislature identifying where telecommunications  
          infrastructure is inadequate, and recommending strategies  
          for encouraging investment in infrastructure, as specified.  


                              Fiscal Impact (in thousands)
           
          Major Provisions                      2002-03             2003-04          
            2004-05                   Fund  
          
          Proceedings and report     Unknown costs, probably under $150.      
          Special*
                                    Increased costs should be offset by 
                                    fee revenues.

          *Public Utilities' Reimbursement Account (PURA)
          
          STAFF COMMENTS:  

          In preparing the report, the PUC is required to convene a  
          specified proceeding. 
           
          The bill also modifies the legislative findings in the  
          Public Utilities Act which identify California's policies  
          for telecommunications, by adding two policies:

           "to assist in bridging the 'digital divide' by  










            encouraging expanded access to state-of-the-art  
            technologies by rural, inner city, low-income, and  
            disabled Californians"
           "to encourage fair treatment of consumers through the  
            provision of sufficient information for making informed  
            choices, establishment of reasonable service quality  
            standards, and establishment of processes for equitable  
            resolution of billing and service problems" 

          PURA revenues are derived from an annual fee imposed on  
          utilities.  Therefore, any increased costs should be offset  
          by fee revenues.   Costs are based on similar proceedings  
          and reports.