BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1723
                                                                  Page  1

          Date of Hearing:   May 9, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

             AB 1723 (Utilities and Commerce Committee) - As Introduced:   
                                   March 15, 2001 

          Policy Committee:                               
          UtilitiesVote:17-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Requires the Public Utilities Commission (PUC) to implement a  
            program to provide statewide toll-free access, using a single  
            toll-free number, to a telephonic reading system for  
            individuals with print-reading disabilities. 

          2)Authorizes any state or local government entity or nonprofit  
            organization doing business in the state to apply to the PUC  
            to establish and operate a telephonic reading system.  

          3)Requires the PUC to develop protocols and guidelines for the  
            system.

           FISCAL EFFECT  

          1)Annual General Fund operating costs in the range of $300,000.   
            (This estimate is base on the costs of the six existing  
            systems plus costs of client outreach and staff support.)

          2)Annual cost in the range of $250,000 to $500,000 to provide  
            statewide toll-free access for qualified individuals.

          3)The PUC would incur minor costs (less than $100,000) to  
            develop protocols and implement the program.

           COMMENTS  

           1)Background  .  Persons who cannot read due to a disability often  








                                                                  AB 1723
                                                                  Page  2

            have to forgo timely access to newspapers, magazines, and  
            other periodicals.  Telephonic reading systems, in which the  
            caller can hear the reading of various printed materials, can  
            be accessed by using a standard touch-tone telephone.  There  
            are six telephonic reading systems in the state --in San  
            Francisco, Los Angeles, Fresno, San Diego, and two systems in  
            Sacramento.  Up to 24 users can access each center  
            simultaneously, but persons calling from outside a center's  
            calling area (generally a 12-mile radius) cannot utilize the  
            service without incurring long distance telephone charges.   

           2)Purpose  .  This bill would increase the availability to a  
            telephonic reading service for all qualified residents in the  
            state by providing statewide toll-free access to a single  
            system.  Individuals eligible to receive the service would be  
            those who qualify pursuant to federal regulations for loans of  
            library materials tailored for blind and other physically  
            handicapped persons.  This includes those certified as blind,  
            persons whose visual disability prevents them from reading  
            standard printed material, persons unable to use standard  
            printed material because of physical limitations, persons  
            certified as having a reading disability, and persons with a  
            reading disability from an organic dysfunction.  

           3)Prior Legislation  .  Last year, AB 2757 (Utilities and Commerce  
            Committee), which was substantially similar to this bill, was  
            vetoed by the governor.  AB 2757 proposed to fund the program  
            from the revenues in the Deaf and Disabled Telecommunication  
            Program (DDTP) fund, which was established to provide  
            telecommunications devices to the disabled.  The governor  
            indicated concern that implementation of the new program could  
            negatively affect funding for other important activities  
            within the DDTP.  AB 1723 does not designate any funding  
            source for the telephonic reading program, thus an  
            appropriation would be needed to fund the program.  

           4)Budget-Related Provision  .  The 2000-01 Budget Act provided  
            $185,000 within the State Library's budget for local grants to  
            support telephonic reading systems.  Section 5 of AB 1723  
            states legislative intent that these funds be used to fund the  
            established reading centers from October 1, 2000 until  
            September 30, 2001.  This language is not practical, however,  
            since (1) the budget funding is only available for expenditure  
            until June 30, 2001 unless it is reappropriated and (2) this  
            bill would not take affect until January 1, 2002-after the  








                                                                  AB 1723
                                                                  Page  3

            time period specified in the intent language.

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