BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
SB 1863 - Bowen Hearing
Date: April 9, 2002 S
As Amended: April 1, 2002
Non-FISCAL B
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DESCRIPTION
Current law establishes the policy of "universal telephone
service." Current regulations provide for the California
Teleconnect Fund, which provides discounted telephone
service to schools, libraries, health care institutions,
and community-based organizations.
This bill establishes state policy to focus efforts on
providing educational institutions, health care
institutions, community based organizations, and
governmental institutions with access to advanced
telecommunications services.
BACKGROUND
California has a long history of encouraging the widespread
deployment of telecommunications service. A number of
programs exist to subsidize telephone service in rural
areas, for the deaf and handicapped, and for the poor.
Eight years ago, the Legislature passed and the Governor
signed AB 3643 (Moore & Polanco), Chapter 278, Statutes of
1994, an uncodified measure which recognized that state
action was necessary to prevent society from splitting into
two different "information worlds," one that was
information rich, and the other that was information poor.
That dichotomy has come to be known as the digital divide.
AB 3643 addressed the issue by requiring the California
Public Utilities Commission (CPUC) to look at universal
service in the context of changes in technology and
information availability. The bill declared that
"Universal service must be defined in a way that ensures
all segments of California society have access to the
technology that will allow them to enjoy the benefits of
the Information Age and the Information Superhighway."
Among the principles in the bill was that "health care,
community, and government institutions be early recipients
of the benefits of the Information Age."
The CPUC responded to the AB 3643 mandate in part by
creating the California Teleconnect Fund (CTF). This fund,
currently budgeted at $57.125 million annually and funded
by a 0.31% surcharge on telephone bills, provides funding
for telephone service discounts of 50% to schools,
libraries, and 25% to community-based organizations. Since
its inception, more than 99% of the program funds have gone
to discounts for schools and libraries.
This bill buttresses the basis for the CTF program by
codifying the uncodified language from AB 3643 upon which
the CTF is based.
In 1996, Congress enacted legislation similar to AB 3643,
requiring that schools, health care providers, and
libraries have access to advanced communications services.
The resulting program, known as the e-rate program,
provides $2.25 billion in telecommunication service
discounts nationwide.
COMMENTS
Who can receive grants? As noted above, virtually 100% of
the money in the CTF has been awarded to schools and
libraries. Community-based organizations (CBOs) believe
they've grown exponentially in terms of providing, through
their community technology centers, people with an
important channel for bridging the digital divide.
However, they contend they receive a miniscule amount of
money from the CTF and it's not fair to provide them with a
lower discount rate than schools and libraries.
This bill is designed to open the discussion on who should
be allowed to apply to the CTF for grants and what types of
grants (and discounts) those applicants should be allowed
to receive.
POSITIONS
Sponsor:
Author
Support:
California Community Technology Policy Group
Office of Ratepayer Advocates
The Children's Partnership
Oppose:
None on file
Randy Chinn
SB 1863 Analysis
Hearing Date: April 9, 2002