BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1863| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1863 Author: Bowen (D) Amended: 7/18/02 Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 8-0, 4/9/02 AYES: Bowen, Morrow, Alarcon, Battin, Murray, Sher, Vasconcellos, Vincent SENATE FLOOR : 37-0, 4/22/02 AYES: Ackerman, Alarcon, Alpert, Battin, Bowen, Brulte, Burton, Chesbro, Dunn, Figueroa, Haynes, Johannessen, Johnson, Karnette, Knight, Kuehl, Machado, Margett, McClintock, McPherson, Monteith, Morrow, Murray, O'Connell, Ortiz, Peace, Perata, Polanco, Poochigian, Romero, Scott, Sher, Soto, Speier, Torlakson, Vasconcellos, Vincent ASSEMBLY FLOOR : 56-7, 8/8/02 - See last page for vote SUBJECT : Telecommunications services SOURCE : Author DIGEST : This bill adds to the State's articulated policies for telecommunications. Assembly Amendments state the intent of the Legislature that the State Public Utilities Commission should provide a nonprofit community technology program with discounts comparable to those that are provided to schools and CONTINUED SB 1863 Page 2 libraries to address inequality of access to advanced telecommunications services, and double-joins the bill to SB 1563 (Polanco). ANALYSIS : 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 adds to the State's telecommunications policies. Specifically, the bill: 1.Declares that it is a state telecommunications policy to focus efforts on providing educational institutions, health care institutions, community based organizations, and governmental institutions with access to advanced telecommunications services in recognition of their economic and societal impact. 2.Declares the intent of the Legislature that any program administered by the State Public Utilities Commission (PUC) that address the inequality of access to advanced communication services by providing those services to schools and libraries at a discounted price should also provide comparable discounts to nonprofit community technology programs. 3.Defines a nonprofit community technology program as a community-based 501(c)(3) tax-exempt that disseminates technology in local communities and trains local communities with limited access to the Internet and other technologies. 4.Is double-joined to SB 1563 (Polanco). 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 SB 1863 Page 3 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 percent surcharge on telephone bills, provides funding for telephone service discounts of 50 percent to schools, libraries, and 25 percent to community-based organizations. Since its inception, more than 99 percent 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 percent of the money in the CTF has been awarded to schools SB 1863 Page 4 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 8/8/02) California Community Technology Policy Group Office of Ratepayer Advocates The Children's Partnership ASSEMBLY FLOOR AYES: Aroner, Bogh, Calderon, Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez, Chu, Cohn, Correa, Diaz, Dickerson, Dutra, Firebaugh, Frommer, Goldberg, Harman, Havice, Horton, Jackson, Keeley, Kehoe, Koretz, Leslie, Liu, Longville, Lowenthal, Maddox, Maldonado, Matthews, Nakano, Nation, Negrete McLeod, Oropeza, Rod Pacheco, Papan, Pavley, Pescetti, Reyes, Richman, Salinas, Shelley, Simitian, Steinberg, Strickland, Strom-Martin, Thomson, Vargas, Washington, Wayne, Wiggins, Wright, Zettel, Wesson NOES: Aanestad, Ashburn, Bill Campbell, John Campbell, Leach, Mountjoy, Wyland NC:kb 8/9/02 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****