BILL ANALYSIS
AB 994
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 994 (Wright)
As Amended June 19, 2000
Majority vote
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|ASSEMBLY: |76-0 |( January 26, |SENATE: |39-0 |( July 6, 2000 |
| | |2000 ) | | |) |
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Original Committee Reference: U. & C.
SUMMARY : Requires the California Public Utilities Commission
(CPUC) to study the feasibility of establishing telephone
cooperatives in California by January 1, 2002, and reauthorizes
statutes related to telecommunications rates and telephone
bills.
The Senate amendments add language to the Assembly version of
this bill that:
1)Extend the sunset date from January 1, 2001 to January 1,
2005, for the program establishing a local rate structure
designed to reduce disparities in rates charged by small,
independent telephone corporations. Requires the Legislative
Analyst to conduct a review of the program by February 1,
2002.
2)Extend the sunset date from January 1, 2001 to July 1, 2001,
allowing CPUC to ban non-communications related charges on
telephone bills.
3)Establish intent language regarding charges on telephone
bills.
AS PASSED BY THE ASSEMBLY , this bill required CPUC to study the
feasibility of establishing telephone cooperatives in California
and report to the Legislature and the Governor by January 1,
2002.
FISCAL EFFECT : CPUC reports minor, one-time costs to conduct
the study, and absorbable costs under existing workload to
complete the proceeding.
COMMENTS : This bill was amended in the Senate to include
AB 994
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provisions extending the sunset date for the statutes
authorizing the High Cost A Fund (Fund), and banning
non-telecommunications charges on customer telephone bills. The
Fund subsidizes service provided by 21 incumbent local telephone
corporations, which encourages the extension of universal
telephone service to rural areas. This subsidy takes the form
of a surcharge on the telephone bills of all ratepayers in the
state. For the last four years, the surcharge has been zero due
the program's expenses being paid for out of the prior year's
balance.
Existing law restricts the type of charges that can be included
in a telephone bill to communications-related goods and services
until January 1, 2001. The provisions in this bill extend that
sunset date by six months to allow CPUC time to complete an
ongoing rulemaking procedure to adopt consumer protection rules
similar to those spelled out in that section of law.
Analysis prepared by : Jonathan Buttle / U. & C. / (916)
319-2083
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