BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1712
                                                                  Page  1

          Date of Hearing:   June 28, 2000

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

                   SB 1712 (Polanco) - As Amended:  June 12, 2000 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          study and report to the Legislature on whether the definition of  
          universal service should be broadened to include video and data  
          services.

           FISCAL EFFECT  

          The PUC indicates minor absorbable costs to complete the study.

           COMMENTS  

           Purpose  . According to the author, advances in technology are  
          bringing to the marketplace new Internet accessing devices such  
          as televisions, hand-held computers and Internet phones.  The  
          author states that the evolution of technology and the merging  
          of historically diverse media (such as cellular telephones with  
          limited Internet access) warrants a new definition of universal  
          service that will include voice, video, and data.

          Chapter 278, Statutes of 1994 (AB 3643, Polanco), required the  
          PUC to open a proceeding to examine the current and future  
          definitions of universal service.  Pursuant to that legislation,  
          the PUC issued a decision in 1996 that defines the elements that  
          constitute universal service that should be available to  
          everyone in California at affordable rates.  AB 3643 also called  
          for a periodic review of the basic service elements in order to  
          ensure that the definition is kept current.  The PUC's 1996  
          decision recommends undertaking a review of the universal  
          service elements three years after completion of the initial  
          review. 








                                                                  SB 1712
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           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081