IV. Proceeding Designation and Ex Parte Communications

This proceeding is designated as "quasi-legislative" consistent with Pub. Util. Code § 1701.1(c)(1). Rules 7(a)(4) and 7(d) of the Commission's Rules of Practice and Procedure provide that ex parte communications are permitted in this quasi-legislative proceeding without restriction or reporting requirements unless and until the Commission modifies this determination of category.

IT IS ORDERED that:

1. A rulemaking is instituted on the Commission's own motion to address the requirements of Senate Bill 1563 (Ch. 674, Stats. 2002) (Pub. Util. Code § 709). The focus of this rulemaking will be the topics identified in this order unless modified by the Commission, Assigned Commissioner or assigned Administrative Law Judge.

2. This rulemaking is preliminarily categorized as quasi-legislative as that term is defined in Rule 5(d) of the Commission's Rules of Practice and Procedure.

3. Persons interested in having their names added to the service list for this proceeding shall follow the procedures described in this order.

4. Parties interested in providing comments regarding the topics of this rulemaking shall file and serve their comments on or before 60 days from the date of mailing of this order in accordance with the Commission's Rules of Practice and Procedure and the procedures described in this order.

5. The opening comments will be the parties' opportunity, under Rule 6(c)(2) of the Commission's Rules of Practice and Procedure, to respond to the preliminary categorization, need for hearing, and preliminary scoping memo set forth in this Order Instituting Rulemaking.

6. This order shall be posted at the Commission's Web Site and served by regular mail on all of the following:


a. All telecommunications carriers holding certificates of public convenience and necessity or wireless registration.


b. All parties to Rulemaking (R.) 95-01-020 and Investigation 95-01-021 and to R.01-05-046.


c. All cities and counties.


d. The following state agencies:

This order is effective today.

Dated April 3, 2003, at San Francisco, California.

ATTACHMENT A

BILL NUMBER: SB 1563 CHAPTERED

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 709 of the Public Utilities Code is amended to

read:

709. The Legislature hereby finds and declares that the policies

for telecommunications in California are as follows:

(a) To continue our universal service commitment by assuring the

continued affordability and widespread availability of high-quality

telecommunications service to all Californians.

(b) To encourage the development and deployment of new

technologies and the equitable provision of services in a way that

efficiently meets consumer need and encourages the ubiquitous

availability of a wide choice of state-of-the-art services.

(c) To assist in bridging the "digital divide" by encouraging

expanded access to state-of-the-art technologies for rural,

inner-city, low-income, and disabled Californians.

(d) To promote economic growth, job creation, and the substantial

social benefits that will result from the rapid implementation of

advanced information and communications technologies by adequate

long-term investment in the necessary infrastructure.

(e) To promote lower prices, broader consumer choice, and

avoidance of anticompetitive conduct.

(f) To remove the barriers to open and competitive markets and

promote fair product and price competition in a way that encourages

greater efficiency, lower prices, and more consumer choice.

(g) To encourage fair treatment of consumers through provision of

sufficient information for making informed choices, establishment of

reasonable service quality standards, and establishment of processes

for equitable resolution of billing and service problems.

SEC. 2. Section 709 of the Public Utilities Code is amended to

read:

709. The Legislature hereby finds and declares that the policies

for telecommunications in California are as follows:

(a) To continue our universal service commitment by assuring the

continued affordability and widespread availability of high-quality

telecommunications services to all Californians.

(b) To focus efforts on providing educational institutions, health

care institutions, community-based organizations, and governmental

institutions with access to advanced telecommunications services in

recognition of their economic and societal impact.

(c) To encourage the development and deployment of new

technologies and the equitable provision of services in a way that

efficiently meets consumer need and encourages the ubiquitous

availability of a wide choice of state-of-the-art services.

(d) To assist in bridging the "digital divide" by encouraging

expanded access to state-of-the-art technologies for rural,

inner-city, low-income, and disabled Californians.

(e) To promote economic growth, job creation, and the substantial

social benefits that will result from the rapid implementation of

advanced information and communications technologies by adequate

long-term investment in the necessary infrastructure.

(f) To promote lower prices, broader consumer choice, and

avoidance of anticompetitive conduct.

(g) To remove the barriers to open and competitive markets and

promote fair product and price competition in a way that encourages

greater efficiency, lower prices, and more consumer choice.

(h) To encourage fair treatment of consumers through provision of

sufficient information for making informed choices, establishment of

reasonable service quality standards, and establishment of processes

for equitable resolution of billing and service problems.

SEC. 3. Section 709.3 is added to the Public Utilities Code, to

read:

709.3. (a) (1) No later than April 1, 2003, the commission shall

convene a proceeding to develop a plan for encouraging the widespread

availability and use of advanced communications infrastructure. The

proceeding shall encourage participation that includes a broad cross

section of the communications industries, including those entities

that the commission does not regulate, as well as users and community

representatives. The commission shall also encourage participation

by community-based organizations, including, but not limited to,

nonprofit community technology programs and libraries that have

demonstrated success in assisting low-income residents in bridging

the digital divide.

(2) For the purposes of this section, "nonprofit community

technology program" means a community-based nonprofit organization

that is exempt from taxation under Section 501(c)(3) of the Internal

Revenue Code and engages in diffusing technology into local

communities and training local communities that have no access to, or

have limited access to, the Internet and other technologies.

(b) The mission of the plan is to identify factors preventing the

ubiquitous availability and use of advanced communications services,

assess the consequences of, and develop strategies for, addressing

these factors while encouraging the deployment of adequate investment

for advanced communications infrastructure that serves the public

good and is consistent with the policies described in Section 709.

(c) The commission shall submit a report of its findings and

recommendations to the Governor and Legislature, not later than

December 31, 2004.

(d) This section shall remain in effect only until January 1,

2005, and as of that date is repealed, unless a later enacted

statute, that is enacted before January 1, 2005, deletes or extends

that date.

SEC. 4. Section 2 of this bill incorporates amendments to Section

709 of the Public Utilities Code proposed by both this bill and SB

1863. It shall only become operative if (1) both bills are enacted

and become effective on or before January 1, 2003, (2) each bill

amends Section 709 of the Public Utilities Code, and (3) this bill is

enacted after SB 1863, in which case Section 1 of this bill shall

not become operative.

(END OF ATTACHMENT A)

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