BILL NUMBER: AB 991 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Papan FEBRUARY 25, 1999 An act to add Section 709.7 to the Public Utilities Code, relating to telecommunications. LEGISLATIVE COUNSEL'S DIGEST AB 991, as introduced, Papan. Internet access. (1) Under the Public Utilities Act, the Public Utilities Commission has the authority to regulate public utilities, including telephone corporations. This bill would enact the California High Speed Internet Access Act of 1999. The bill would require the commission, not later than January 31, 2000, to establish rules and rates for line sharing that will allow competitive data carriers to provide high bandwidth services over telephone lines simultaneously with the local exchange service provided by the telephone service provider, as prescribed. Because, under the act, a violation of those rules would be a crime, the bill would impose a state-mandated local program by creating a new crime. The bill would make related legislative findings and declarations. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares all of the following: (a) The Legislature has encouraged and continues to encourage the rapid deployment of advanced telecommunications services and capabilities to all Californians. In effect, those persons excluded from high-speed networks today will find themselves excluded from the economic opportunities of tomorrow. (b) High bandwidth connections between the telecommunications network and end users in California facilitate the availability of important new telecommunications services and capabilities, including telemedicine, distance learning, telecommuting, high-speed Internet access, and video telephony. (c) The California economy will benefit significantly from expanded competition and availability of high bandwidth services provided over the telephone network to individual consumers, small and medium sized businesses, and educational facilities. (d) Expanded competition and availability for high bandwidth services can add over $64,000,000,000 to gross state output and create over 600,000 new jobs in California by the end of the year 2001. (e) In order to ensure that California consumers will benefit from broad availability of high-speed access, affordable pricing, and the highest quality of consumer service, the Legislature must act to preserve freedom of choice for consumers in this rapidly emerging market. (f) The total control of telephone lines serving California homes and small businesses by existing telephone companies stands as a critical barrier to competition and the wide-scale deployment of affordable, high bandwidth data services. Telephone lines can carry, simultaneously, both voice service and high bandwidth data services from competing carriers. However, existing telephone service providers will not allow competitive data carriers to use existing telephone lines in order to provide high bandwidth data services. (g) It is therefore the intent of the Legislature that the Public Utilities Commission establish rules for "line sharing" that will permit competitive data carriers to provide high bandwidth data services over telephone lines simultaneously with voice services provided by existing telephone service providers. SEC. 2. Section 709.7 is added to the Public Utilities Code, to read: 709.7. (a) This section shall be known as and may be cited as the California High Speed Internet Access Act of 1999. (b) The commission shall establish rules and rates for line sharing that will allow competitive data carriers to provide high bandwidth services over telephone lines simultaneously with the local exchange service provided by the telephone service provider. (c) The rules described in subdivision (b) shall require the carriers to provide to competitive data carriers access to network infrastructure on a nondiscriminatory basis for high bandwidth shared line data services. (d) For the purpose of this section, network infrastructure includes, but is not limited to, colocation space, power, heating, ventilation, and air conditioning systems, and connectivity. (e) The commission shall, through its expedited rulemaking procedures, establish rules and rates for line sharing in the most expeditious manner possible and, in any event, not later than January 31, 2000. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.