BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
                                           1723 (Wright)
          Hearing Date:  9/10/01          Amended: 7/18/01       
          Consultant:  Bob Franzoia           Policy Vote: E, U&C   
          9-0           
          ____________________________________________________________ 
          ___
          BILL SUMMARY: AB 1723 would authorize the State Librarian  
          to provide toll-free telephone access to telephonic reading  
          systems for persons with print disabilities.  The bill  
          would authorize the State Librarian to operate a telephonic  
          reading system or fund the operation of such a system  
          operated by qualifying entities.  The bill would  
          appropriate $2,000,000 from the California Teleconnect Fund  
          Administrative Committee Fund to the State Library to fund  
          the seven existing telephonic reading centers until 7/1/02.  
           Any funds appropriated to the State Library, which are not  
          encumbered by 7/1/02, revert to the fund.

                              Fiscal Impact (in thousands)
           
          Major Provisions            2001-02             2002-03              
           2003-04            Fund  
          
          Appropriation      $2,000                          Special*

          California Teleconnect Fund Administrative Committee Fund
          
          STAFF COMMENTS: SUSPENSE FILE.

          The California Teleconnect Fund provided approximately $50  
          million annually of discounted telecommunications services  
          to schools, libraries, hospitals, and community-based  
          organizations, paid for by every California telephone  
          customer via a 0.185 percent surcharge on their bill.   
          Qualifying organizations receive a 50 percent discount off  
          the best rate they can negotiate with telecommunication  
          providers.

          Reading centers in Los Angeles (2), Sacramento (2), Fresno,  
          San Diego, and San Francisco serve an estimated 47,819  
          print disabled Californian's.  Newsline for the Blind,  
          which is used in Sacramento, Los Angeles, San Diego, San  
          Francisco, and Fresno, allows callers to have any newspaper  
          they choose read to them by a synthesized computer voice.   
          Newsline for the Blind is a 24-line system and is  










          accessible 24 hours a day.  The Telephone Reader system,  
          which operates at separate sites in Sacramento and Los  
          Angeles, uses human voice recordings and local newspapers  
          to provide digital files of the entire contents of current  
          day papers that are computer-ready for application to the  
          system.  The Telephone Reader system is under the full  
          control of the telephonic reading site operator who  
          determines what material will be recorded manually and the  
          center rely on volunteer readers to record these materials.

          These programs received federal funding through 9/30/00.   
          State funding was made available for these sites from  
          10/1/00 to 9/30/01, through an appropriate of $245,000 in  
          the 2000-01 Budget Act.




          Page 2
          AB 1723 (Wright)


          The seven telephonic reading centers are located in urban  
          areas which make these materials financially available to  
          the users who live in the estimated 12-mile local calling  
          area radius.  Users of these systems are literally being  
          read a newspaper over the telephone, which means calls can  
          last up to one hour.  For those who live outside the local  
          calling area, the long-distance telephone costs to have a  
          newspaper read to them could be prohibitive; even at $0.07  
          per minute, a one hour call could cost $4.20.  For this  
          reason, the current system isn't used often by those who  
          would have to make a long distance call in order to have a  
          newspaper read to them.

          This bill authorizes the State Librarian to establish and  
          operate a new toll-free access line, which would allow  
          persons with print disabilities who don't live near a  
          telephone reading center to call from their homes without  
          paying long-distance telephone charges.  According to the  
          State Library, the estimated annual cost for statewide  
          toll-free telephone service to telephonic reading centers  
          under this bill would be in the range of $492,000 to  
          $830,000.  Staff recommends the bill be amended to reduce  
          the appropriation to up to $830,000 to reflect the maximum  
          cost estimate of the State Library.










           
          The Public Utilities Commission indicates that as much as  
          $90 million in unobligated funds may be available in  
          reserve.