BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1723
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1723 (Utilities Committee)
          As Amended  July 18, 2001
          2/3 vote.
           
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          |ASSEMBLY:  |73-0 |(June 5, 2001)  |SENATE: |33-1 |(September 13, |
          |           |     |                |        |     |2001)          |
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           Original Committee Reference:    U. & C.  

           SUMMARY  : Requires the California Public Utilities Commission  
          (CPUC) to design and implement a program, on or before July 1,  
          2002, to provide toll-free access throughout California to  
          telephonic reading systems for citizens with print disabilities.  
           Specifically,  this bill  :  

          1)Authorizes any agency, instrumentality or political  
            subdivision of the state or any non-profit organization in the  
            state to apply to CPUC for funding to establish and operate a  
            new telephonic reading system, and for reimbursement of  
            certain operational costs.

          2)Appropriates up to $800 thousand from the California  
            Teleconnect Fund (CTF) Trust Account to the State Library  
            (SL), with unused funds to revert to CTF on July 1, 2002.   
            These funds will provide funding for infrastructure to put  
            telephonic reading systems in libraries.

           The Senate amendments  reduce the amount of funding to the  
          estimated start up costs for the SL to implement the program and  
          clarify parameters for application of CTF funds to this program.

           EXISTING LAW  :

          Requires CPUC to establish a rate recovery mechanism through a  
          surcharge on intrastate telephone service to recover the costs  
          for providing telecommunications devices capable of serving the  
          needs of deaf, hearing impaired, and disabled.

          Establishes the Deaf and Disabled Telecommunications Program  
          Administrative Committee (DDTPAC) to advise CPUC regarding  
          development, implementation, and administration of these  
          programs and DDTPAC Fund as a repository for the funds collected  








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          by the surcharge.

           AS PASSED BY THE ASSEMBLY  ,  this bill provides funding from CTF  
          for the Telephonic Reading Systems in libraries for hearing and  
          print disabled individuals.
           
          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 $500,000 to $800,000 to provide  
            statewide toll-free access for qualified individuals.

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

           COMMENTS  :  In addition to the existing programs currently  
          provided under DDTPAC, this bill would add programs to assist  
          print disabled individuals under those programs for which DDTPAC  
          advises CPUC.  In addition to the programs funded through DDTP  
          surcharge, this bill would add a separate program funded through  
          a $185,000 allocation within the SL budget, to provide toll-free  
          access to telephonic reading systems for citizens with print  
          disabilities.  The initial infrastructure for the telephonic  
          reading systems shall be funded through an appropriation from  
          the CTF Trust of up to $800 thousand, with the unused portion to  
          revert to CTF on July 1, 2002.  

          Each telephonic reading system provided allows access with the  
          use of individual passwords issued only to persons who are  
          eligible under the criteria established by the National Library  
          Service for blind and physically handicapped pursuant to federal  
          regulations.  The systems are available through public libraries  
          in specified cities whereby the caller can access reading  
          material such as newspapers, magazines, newsletters, broadcast  
          media schedules, transit route and schedule information and  
          other reference materials.

          DDTPAC shall review the guidelines and administration of  
          existing telephonic reading systems in the state and issue  
          recommendations to CPUC relating to the establishment of new  
          protocols and guidelines.  These shall include  
          cost-effectiveness of supporting certain specific centers and  








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          the value of the services to Californians.  CPUC shall have no  
          liability for the content of information and shall have full  
          control over the level of funding of the telephonic reading  
          system, including cost control measures.

           
          Analysis Prepared by  :  Kelly Boyd / U. & C. / (916) 319-2083 



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