(a) The commission shall, on or before February 1, 2001, issue an order initiating an investigation and opening a proceeding to examine the current and future definitions of universal service. That proceeding shall include public hearings that encourage participation by a broad and diverse range of interests from all areas of the state, including, but not limited to, all of the following:

1. (1) Consumer groups.
2. (2) Communication service providers, including all providers of high-speed access services.
3. (3) Facilities-based telephone providers.
4. (4) Information service providers and Internet access providers.
5. (5) Rural and urban users.
6. (6) Public interest groups.
7. (7) Representatives of small and large businesses and industry.
8. (8) Local agencies.

9. (9) State agencies, including, but not limited to, all of the following:

   1. (A) The Government Operations Agency.
   2. (B) The State Department of Education.
   3. (C) The State Department of Public Health.
   4. (D) The California State Library.
10. (10) Colleges and universities.

(b) The objectives of the proceeding set forth in subdivision (a) shall include all of the following:

1. (1) To investigate the feasibility of redefining universal service in light of current trends toward accelerated convergence of voice, video, and data, with an emphasis on the role of basic telecommunications and Internet services in the workplace, in education and workforce training, access to health care, and increased public safety.
2. (2) To evaluate the extent to which technological changes have reduced the relevance of existing regulatory regimes given their current segmentation based upon technology.
3. (3) To receive broad-based input from a cross section of interested parties and make recommendations on whether video, data, and Internet service providers should be incorporated into an enhanced Universal Lifeline Service program, as specified, including relevant policy recommendations regarding regulatory and statutory changes and funding options that are consistent with the principles set forth in subdivision (c) of Section 871.7.

4. (4) To reevaluate prior definitions of basic service in a manner that will, to the extent feasible, effectively incorporate the latest technologies to provide all California residents with all of the following:

   1. (A) Improved quality of life.
   2. (B) Expanded access to public and private resources for education, training, and commerce.
   3. (C) Increased access to public resources enhancing public health and safety.
   4. (D) Assistance in bridging the “digital divide” through expanded access to new technologies by low income, disabled, or otherwise disadvantaged Californians.
5. (5) To assess projected costs of providing enhanced universal lifeline service in accordance with the intent of this article, and to delineate the subsidy support needed to maintain the redefined scope of universal service in a competitive market.
6. (6) To design and recommend an equitable and broad-based subsidy support mechanism for universal service in competitive markets in a manner that conforms with subdivision (c) of Section 871.7.
7. (7) To develop a process to periodically review and revise the definition of universal service to reflect new technologies and markets consistent with subdivision (c) of Section 871.7.
8. (8) To consider whether similar regulatory treatment for the provision of similar services is appropriate and feasible.

(d) The recommendations of the commission shall be consistent with state policies for telecommunications as set forth in Section 709, and with all of the following principles:

1. (1) Universal service shall, to the extent feasible, be provided at affordable prices regardless of linguistic, cultural, ethnic, physical, financial, and geographic considerations.
2. (2) Consumers shall be provided access to all information needed to allow timely and informed choices about telecommunications products and services that are part of the universal service program and how best to use them.
3. (3) Education, health care, community, and government institutions shall be positioned as early recipients of new and emerging technologies so as to maximize the economic and social benefits of these services.