BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1563|
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THIRD READING
Bill No: SB 1563
Author: Polanco (D)
Amended: 5/20/02
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-0, 4/23/02
AYES: Bowen, Morrow, Alarcon, Battin, Murray, Sher,
Speier, Vincent
SENATE APPROPRIATIONS COMMITTEE : 9-1, 5/13/02
AYES: Alpert, Bowen, Burton, Escutia, Karnette, McPherson,
Murray, Perata, Speier
NOES: Johnson
SUBJECT : Telecommunications: services
SOURCE : Author
DIGEST : This bill requires the State Public Utilities
Commission 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.
ANALYSIS : 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.
CONTINUED
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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.
This bill also requires the State Public Utilities
Commission (PUC) 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 PUC reexamine
universal service in the context of expanding the types of
services it encompasses. Each time the PUC, after
discussions with service providers and customers, declined
to expand the scope of services, citing cost issues. The
PUC's latest examination is due imminently, but some
observers don't believe the PUC will reach conclusions that
are any different from its prior conclusions.
The PUC 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
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answer directory assistance calls. Last year, the PUC
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: 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 PUC 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 PUC 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 PUC has already taken some steps to
address the issue, notably the creation of the California
Teleconnect Fund.
2.Definition of Universal Service . Previous bills before
the Legislature asked or required the PUC to consider
expanding the universal service definition, which the PUC
declined to do. This bill takes a different tact by
asking the PUC 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 PUC to include
a broad cross section of interests, including those
service providers which are not regulated by the PUC, in
developing the plan.
3.Prior Legislation . AB 1289 (Moore), Chapter 1274,
Statutes of 1993, required the PUC to consider 1)
broadening the list of services included within the
universal service definition, and 2) how to encourage the
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deployment of advanced communications infrastructure.
SB 2150 (Peace), Chapter 266, Statutes of 1998, required
the PUC to consider whether the regulatory structure
encourages companies to provide high-speed communications
services.
SB 1712 (Polanco), Chapter 943, Statutes of 2000,
encouraged the PUC to consider redefining universal
telephone service to include video and data services and
to promote equity of access to such services.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
NC:kb 5/21/02 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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