BILL ANALYSIS
AB 991
Page 1
ASSEMBLY THIRD READING
AB 991 (Papan)
As Amended April 22, 1999
Majority vote
UTILITIES AND COMMERCE 7-1 INFORMATION
TECHNOLOGY 5-0
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|Ayes:|Wright, Campbell, Kuehl, |Ayes:|Dutra, Bates, Alquist, |
| |Papan, Reyes, Steinberg, | |Briggs, Ducheny |
| |Wesson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Florez | | |
| | | | |
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APPROPRIATIONS 15-2
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|Ayes:|Migden, Campbell, | | |
| |Corbett, Granlund, | | |
| |Hertzberg, Kuehl, Papan, | | |
| |Aroner, Runner, Shelley, | | |
| |Thomson, Wesson, Wiggins, | | |
| |Wright, Zettel | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Brewer, Ackerman | | |
| | | | |
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SUMMARY : Requires the California Public Utilities Commission
(CPUC) to monitor and participate in Federal Communications
Commissions (FCC) proceedings reviewing interconnection by
competitive data local exchange carriers (LEC) to the incumbent
local exchange carriers' (ILEC) local loop. Requires CPUC to
implement rules consistent with the FCC decision. Specifically,
this bill :
1)Enacts the California High Speed Internet Act of 1999.
2)Requires CPUC to monitor and participate in an FCC proceeding
entitled "In the Matter of Deployment of Wireline Services
AB 991
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Offering Advanced Telecommunications Capability."
3)Requires CPUC to comply with and implement any order issued by
FCC prior to January 1, 2000 within 90 days from the date that
such order becomes final.
4)Requires CPUC to expeditiously examine the technical,
operational, economic and policy implications of
intercomnnection and adopt rules, if appropriate, to require
ILECs to permit competitive data LECs to provide high
bandwidth data over telephone lines, if FCC does not adopt an
order before January 1, 2000.
EXISTING LAW:
1)Authorizes CPUC to regulate public utilities, including
telephone corporations.
2)Provides that the Telecommunications Act of 1996 (1996 Act) is
intended to stimulate competition for all services, including
advanced services such as high-speed data services.
FISCAL EFFECT : Absorbable costs to CPUC.
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
is a technology that 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 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 ILEC or a
competitive data LEC at an affordable price as soon as possible.
Customers are able to receive DSL services from a competitive
data LEC today, but must provide the service over a second line
at an additional cost of approximately $20 per month. The
sponsor, High-Speed Access Coalition, a coalition of internet
service providers, indicates that offering DSL on a shared line
with existing voice service is efficient, reduces costs and will
AB 991
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make residential DSL service more affordable.
FCC initiated a rulemaking procedure entitled "Deployment of
Wireline Services Offering Advanced Telecommunications
Capability" in August, 1998, in response to petitions suggesting
that FCC take specific actions to speed the deployment by
wireline carriers of advanced services. This bill is intended
to establish that CPUC should engage in that rulemaking and
implement FCC findings and conclusions as expeditiously as
possible so that customers can avail themselves of a choice of
providers at the earliest possible date. The author has chosen
to share the accomplishments of FCC which will be exploring
several technical, operational, economic, pricing, and cost
allocation issues associated with line-sharing in its rulemaking
proceeding.
Comments in response to the numerous questions posed are due to
FCC by June 15, 1999. Reply Comments are due by July 15, 1999.
While FCC has not stated at this time when the Report and Order
will be issued, discussions with FCC staff indicate that this is
a priority item and should be decided expeditiously. The
author's approach in this bill will enable CPUC to avail itself
of the expertise and direction of FCC policymakers that have
been reviewing issues related to advanced services since 1998.
At the completion of FCC proceedings, CPUC will be in a position
to institute an expedited rulemaking proceeding and establish
rules and rates, as directed by FCC within a 90-day time period.
If FCC does not complete its order prior to January 1, 2000,
CPUC will still be able to utilize the FCC record implement an
expedited rulemaking.
Analysis Prepared by : Carolyn Veal-Hunter / U. & C. / (916)
319-2083
FN: 0000931