BILL ANALYSIS                                                                                                                                                                                                          1
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                 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                DEBRA BOWEN, CHAIRWOMAN
         

         SB 720 -  Bowen                                   Hearing Date:   
         April 8, 2003              S
         As Amended:         April 1, 2003                 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  
         (CTF), which provides discounted telephone service to schools,  
         libraries, health care institutions, and community-based  
         organizations.

          This bill  clarifies that Digital Subscriber Line (DSL) service is  
         among the services eligible for CTF discounts.

                                        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.  One of those programs is the CTF,  
         which provides discounted telephone services to schools, libraries,  
         community-based organizations, and hospitals.  The program is  
         budgeted at about $55 million annually.  Last year, this committee  
         unanimously approved SB 1863 (Bowen), Chapter 308, Statutes of 2002,  
         which codified the language upon which the CTF is based.

                                         COMMENTS
          
          More Uses For CTF Money  .  The CTF is intended to provide discount  
         access to advanced communications services.  This bill clarifies that  
         advanced communications services include DSL.  DSL provides a fast  
         connection that's useful when accessing the Internet.  There are  
         about 1.4 million DSL lines in California, with about one in ten  
         homes and businesses having DSL.  

                                        POSITIONS
          
          Sponsor:








       
      Author

       Support:
       
      California Community Technology Policy Group

       Oppose:
       
      None on file

      Randy Chinn 
      SB 720 Analysis
      Hearing Date:  April 8, 2003