BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 991
                                                          Page  1

Date of Hearing:   May 19, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

          AB 991 (Papan) - As Amended: April 22, 1999 

Policy Committee:                              Utilities and  
Commerce     Vote:                             7-1
             Information Technology                 5-0

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

This bill requires one of two courses of action for the Public  
Utilities Commission (PUC) depending on whether the Federal  
Communications Commission adopts an order regarding high speed  
data services.  The pending FCC order relates to allowing  
competitive local exchange carriers (LECs) to provide high speed  
data services over a single telephone line provided by the  
incumbent LEC.  (This is termed "line sharing." ) Specifically,  
if the FCC: 

1)Adopts the order by January 2000, the PUC is required to  
  implement the order within 90 days.  

2)Fails to adopt the order by January 2000, the PUC is to  
  examine the implications of the FCC's consideration and, if it  
  determines such service to be appropriate, the PUC is to adopt  
  rules implementing the service.

  FISCAL EFFECT  :

Absorbable costs to the PUC.

  COMMENTS  :

The author has introduced this bill to give California  
residential consumers a choice of high speed data providers  
using "digital subscriber line" (DSL) technology.  DSL allows a  
high speed data channel to run on higher frequencies above the  
frequency used to deliver analog voice signals.  By separating  
the line into a voice channel and a high-speed data channel, a  








                                                          AB 991
                                                          Page  2

single telephone line can carry both voice and data services  
simultaneously and, potentially, each service could be provided  
by a different carrier. DSL provides residential users with the  
ability to connect to the Internet at speeds 50 times faster  
than modems.  This bill is intended to ensure that customers can  
choose to receive DSL service from either the incumbent LEC or a  
competitive LEC at an affordable price.

  Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081