BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1563
                                                                  Page  1

          Date of Hearing:   August 14, 2002

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                   SB 1563 (Polanco) - As Amended:  August 7, 2002 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            10-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Requires the Public Utilities Commission (PUC) to conduct a  
            proceeding to identify reasons why advanced communications  
            technologies are not commonly available and to develop  
            strategies for more widespread deployment of such  
            technologies.  The commission is to report its findings and  
            make recommendations to the Legislature by December 31, 2004.

          2)Expands the Legislature's declaration of the state's  
            telecommunications policy to encompass:

             a)   Assisting in bridging the "digital divide" for rural,  
               inner city, low-income and disabled California.

             b)   Encouraging fair treatment of consumers by providing  
               information for making informed choices and establishing  
               reasonable service quality standards and processes for  
               equitable resolution of billing and service problems.

           FISCAL EFFECT  

          Absorbable special fund costs (Public Utilities Reimbursement  
          Account) for the commission to conduct the proceeding and report  
          its recommendations to the Legislature.  (Staff resources needed  
          to conduct the proceeding in the required time frame may require  
          reprioritizing of other commission workload.) 

           COMMENTS  









                                                                  SB 1563
                                                                  Page  2

           Purpose  .  In October 2000, the U.S. Commerce Department's  
          National Telecommunications and Information Administration  
          issued a report on telecommunications information access.  The  
          report concluded that, while Internet access and computer  
          ownership have risen for almost all groups, noticeable divides  
          exist between those with different income and education levels,  
          different racial and ethnic groups, old and young, single and  
          dual- parent families and those with and without disabilities.   
          For example, large gaps remain between Internet access rates for
          African-Americans and Latinos when measured against the national  
          average of Internet penetration.  This bill requires the PUC to  
          recommend a strategy for addressing the digital divide within  
          California.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081