BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1563|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1563
          Author:   Polanco (D)
          Amended:  8/7/02
          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

           SENATE FLOOR  :  26-8, 5/28/02
          AYES:  Alarcon, Alpert, Bowen, Burton, Chesbro, Dunn,  
            Escutia, Figueroa, Karnette, Kuehl, Machado, McPherson,  
            Morrow, Murray, O'Connell, Ortiz, Peace, Perata, Polanco,  
            Romero, Scott, Sher, Soto, Speier, Torlakson,  
            Vasconcellos
          NOES:  Ackerman, Brulte, Haynes, Johnson, Knight,  
            McClintock, Oller, Poochigian

           ASSEMBLY FLOOR  :  47-27, 8/23/02 - See last page for vote


           SUBJECT  :    Telecommunications:  services

           SOURCE  :     Author


           DIGEST  :    This bill a) expands the Legislature's  
          declaration of the State's telecommunications policy and b)  
                                                           CONTINUED





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          requires the State Public Utilities Commission 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.

           Assembly Amendments  a) change date of report; b) provide a  
          definition for "nonprofit community technology program";  
          clarify mission of the plan; and d) incorporate and  
          doublejoin provisions of SB 1863 (Bowen).

           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.

          This bill expands the State's codified telecommunications  
          policy declarations, and requires the State 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.   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.   Encourage fair treatment of consumers through  
               provisions of sufficient information for making  
               informed choices, establishment of reasonable service  
               quality standards, and establishment of processes for  







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               equitable resolution of billing and service problems.
              
          2.Contains doublejoining 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 a 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.

           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.
           
          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 percent  
          increase in households with Internet access.  It cited a 21  
          percent rise in the number of households with access to  
          computers; and a hike in the number of Americans using the  
          Internet from 32 percent online in December 1998 to 44  
          percent in August 2000. 








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          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. 

           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.

             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 December 1,  
            2004. 

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  
          AYES:  Alquist, Aroner, Calderon, Cardenas, Cardoza,  
            Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Correa, Diaz,  
            Dutra, Firebaugh, Frommer, Goldberg, Havice, Horton,  
            Jackson, Keeley, Kehoe, Koretz, Liu, Longville,  
            Lowenthal, Matthews, Migden, Nakano, Nation, Negrete  
            McLeod, Rod Pacheco, Papan, Pavley, Reyes, Salinas,  
            Shelley, Simitian, Steinberg, Strom-Martin, Thomson,  







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            Vargas, Washington, Wayne, Wiggins, Wright, Wesson
          NOES:  Aanestad, Ashburn, Bogh, Briggs, Bill Campbell, John  
            Campbell, Cogdill, Cox, Daucher, Dickerson, Harman,  
            Hollingsworth, Kelley, La Suer, Leach, Leonard, Leslie,  
            Maddox, Maldonado, Mountjoy, Robert Pacheco, Pescetti,  
            Richman, Strickland, Wyland, Wyman, Zettel


          NC:kb  8/26/02   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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