BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   SB 720|
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                                 THIRD READING


          Bill No:  SB 720
          Author:   Bowen (D) and Alarcon (D)
          Amended:  4/22/03
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  8-1, 4/8/03
          AYES:  Bowen, Morrow, Alarcon, Battin, Dunn, Murray, Sher,  
            Vasconcellos
          NOES:  McClintock


           SUBJECT  :    Telecommunications services

           SOURCE  :     Author


           DIGEST  :    This bill clarifies that advanced  
          telecommunications services includes high speed  
          communications services such as digital subscriber line  
          (DSL) services for the purposes of the California  
          Teleconnect Fund.

           ANALYSIS  :    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 DSL service is among the services  
          eligible for CTF discounts.

           Comments
           
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                                                                SB 720
                                                                Page  
          2

          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.  SB 1863 (Bowen), Chapter 308,  
          Statutes of 2002, codified the language upon which the CTF  
          is based.

          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 is useful when accessing the Internet.   
          There are approximately 1.4 million DSL lines in  
          California, with approximately one in ten homes and  
          businesses having DSL.  

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

           SUPPORT  :   (Verified  4/22/03)

          California Community Technology Policy Group


          NC:mel  04/23/03   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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