BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1563
                                                                  Page  1

          SENATE THIRD READING
          SB 1563 (Polanco)
          As Amended August 7, 2002
          Majority vote 

           SENATE VOTE  :26-8  
           
           UTILITIES AND COMMERCE     10-5 APPROPRIATIONS      17-6        
           
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          |Ayes:|Wright, Calderon,         |Ayes:|Steinberg, Alquist,       |
          |     |Canciamilla, Diaz,        |     |Aroner, Cohn, Corbett,    |
          |     |Horton, Kelley, Nation,   |     |Correa, Diaz, Firebaugh,  |
          |     |Papan, Reyes, Simitian    |     |Goldberg, Maldonado,      |
          |     |                          |     |Negrete McLeod, Papan,    |
          |     |                          |     |Pavley, Simitian, Keeley, |
          |     |                          |     |Wiggins, Wright           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Pescetti, Bill Campbell,  |Nays:|Bates, Ashburn, Daucher,  |
          |     |John Campbell, La Suer,   |     |Robert Pacheco, Runner,   |
          |     |Maddox                    |     |Zettel                    |
           ----------------------------------------------------------------- 

           SUMMARY  :  Expands the state's codified telecommunications policy  
          declarations, and requires the California Public Utilities  
          Commission (PUC) to develop a plan for encouraging widespread  
          availability of advanced telecommunications infrastructure.   
          Specifically,  this bill  :  
           
          1)Declares that it is among the state's telecommunications  
            policies to:

             a)   Assist in bridging the "digital divide" by encouraging  
               expanded access to state-of-the-art technologies for rural,  
               inner-city, low-income, and disabled Californians.

             b)   To promote economic growth, job creation, and the  
               substantial social benefits that will result from the rapid  
               implementation of advanced information and communications  
               technologies by adequate long-term investment in the  
               necessary infrastructure.

             c)   To encourage fair treatment of consumers through  
               provisions of sufficient information for making informed  








                                                                  SB 1563
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               choices, establishment of reasonable service quality  
               standards, and establishment of processes for equitable  
               resolution of billing and service problems.

          2)Contains double-joining language to SB 1863 (Bowen) relating  
            to encouraging expanded access to state-of-the-art  
            technologies for rural, inner city, low-income, and disabled  
            Californians.

          3)Requires PUC to convene a proceeding to develop a plan for  
            encouraging the widespread availability of advanced  
            telecommunication infrastructure, including broad cross  
            section of the telecommunications industries, community-based  
            organizations, and non-profit community technology programs. 

          4)Requires PUC to submit a report to the Governor and the  
            Legislature by December 2004 on its findings and  
            recommendations regarding the plan.

          5)Sunsets the provisions relating to development of the plan and  
            the report on January 1, 2005.

           EXISTING LAW:  

          1)Declares the policies for telecommunications in California,  
            which include:

             a)   A commitment to universal service;

             b)   Encouraging development and deployment of new  
               technologies in a way that encourages availability of a  
               wide choice of state-of-the-art services;

             c)   Promoting economic growth, job creation, and the like by  
               adequate long-term investment in the necessary  
               infrastructure;

             d)   Promoting lower prices, broader consumer choice, and  
               avoiding anti-competitive conduct; and,

             e)   Promoting competition to encourage efficiency, lower  
               prices, and consumer choice.

          2)Requires telephone corporations to furnish customers with  
            sufficient information to make informed service and provider  








                                                                  SB 1563
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            choices, including service options, pricing, and terms and  
            conditions of service.

          3)Requires telephone corporations to provide customers with  
            information concerning the regulatory process and how they can  
            participate in those processes and resolve complaints.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  This bill adds to the state's telecommunications  
          policies, the goal of bridging the digital divide.  The concept  
          that the society should not be separated into those who have  
          access to information, and those who don't.

          In October 2000, the U.S. Commerce Department's National  
          Telecommunications and Information Administration issued a  
          report showing that the overall level of U.S. digital inclusion  
          is rapidly increasing.  As evidence of the rise in the level of  
          digital access, the report cited a 58% increase in households  
          with Internet access.  It cited a 21% rise in the number of  
          households with access to computers; and a hike in the number of  
          Americans using the Internet from 32% online in December 1998 to  
          44% in August 2000.  

          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, the report said.  For  
          example, persons with disabilities are only half as likely to  
          have access to the Internet as those without a disability.   
          Large gaps also remain between Internet access rates for  
          African-Americans and Latinos when measured against the national  
          average of Internet penetration, the report said. 


           Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083  
                                     FN: 0006554