AB 1734 Assembly Bill

BILL NUMBER: AB 1734	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 2, 2002
	AMENDED IN SENATE  JULY 11, 2001

INTRODUCED BY   Committee on Utilities and Commerce (Wright (Chair),
Calderon, Canciamilla, Cardenas, Diaz, Nation, Papan, Reyes, and
Wesson)
   (Principal coauthor:  Senator Polanco)

                        MARCH 26, 2001

   An act to amend  Section 278 of   Sections
270.1 and 278 of, and to add Section 2881.4 to,  the Public
Utilities Code, relating to telecommunications  , and declaring
the urgency thereof, to take effect immediately .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1734, as amended, Committee on Utilities and Commerce.
Telecommunications services. 
   Existing  
   (1) Existing law establishes the California High-Cost Fund-B Trust
and the Deaf Equipment Acquisition Fund (DEAF Trust).  Existing law
authorizes the trustee of the California High-Cost Fund-B Trust to
transfer money, on or before September 30, 2001, to the DEAF Trust to
cover the costs of programs to provide specified telecommunications
services and equipment to deaf or disabled persons in this state.
Existing law requires that the commission reimburse the California
High-Cost Fund-B Trust for any transfer of money to the DEAF Trust.
Existing law requires that reimbursement during specified dates to
the California High-Cost Fund-B Trust be deposited in a separate
memorandum account within the DEAF Trust.  Existing law requires that
on July 1, 2002, any funds remaining in the DEAF Trust, including
amounts deposited in the memorandum account for purposes of
reimbursing the California High-Cost Fund-B Trust, revert to the
General Fund in the State Treasury, with all amounts in the
memorandum account reverting for the purpose of funding the
California High-Cost Fund-B Trust account in the State Treasury.
   This bill would instead require that on July 1, 2002, any funds in
the DEAF Trust that were deposited in the memorandum account for
purposes of reimbursing the California High-Cost Fund-B Trust revert
to the Controller for deposit in the California High-Cost Fund-B
Trust Committee Fund in the State Treasury.  The bill would also
require that on July 1, 2003, any funds remaining in the DEAF Trust,
exclusive of those funds in the memorandum account, revert to the
Deaf And Disabled Telecommunications Program Administrative Committee
Fund in the State Treasury.
   (2) Existing  law establishes the Deaf and Disabled
Telecommunications Program Administrative Committee  (committee)
 to advise the Public Utilities Commission regarding the
implementation, development, and administration of programs to
provide specified telecommunications services and equipment to
persons who are deaf or disabled  , and to carry out the programs
pursuant to the commission's direction, control, and approval 
.  Existing law establishes the Deaf and Disabled Telecommunications
Program Administrative Committee Fund in the State Treasury to carry
out the programs pursuant to the commission's direction, control,
and approval, and requires the commission to report to the Governor
and the Legislature regarding a transition plan for programs
associated with the fund.  
   This bill would authorize the commission, in carrying out its
responsibilities and functions relating to the fund, to enter into
contracts with agencies, including nonprofit entities, currently
providing services to the deaf and disabled.  
   This bill would rename the committee the Telecommunications Access
for Deaf and Disabled Administrative Committee, and delete the
authority of the committee to carry out programs pursuant to the
commission's direction, control, and approval.  The bill would
require the committee to advise the commission on certain contracts
and agreements related to deaf and disabled telecommunications
programs and to submit recommendations to the commission for
administration of certain deaf and disabled telecommunications
programs. The bill would require the commission to establish
qualifications for persons to serve as members of the committee so
that consumers of telecommunications services for the deaf and
disabled represent not less than 2/3 of the membership of the
committee.
   (3) Existing law requires that all revenues collected by telephone
corporations in rates to fund the deaf and disabled
telecommunications programs be submitted to the commission.  Existing
law requires that commencing July 1, 2002, the commission transfer
the moneys received, and all unexpended revenue collected prior to
July 1, 2002, to the Controller for deposit in the Deaf and Disabled
Telecommunications Program Administrative Committee Fund.
   This bill would instead require the commission to transfer the
moneys received, including unexpended revenue collected prior to July
1, 2003, commencing July 1, 2003.
   (4) Existing law requires the commission to design and implement
various programs to provide telecommunications services to deaf,
disabled, and hearing-impaired individuals.
   This bill would authorize the commission to contract with entities
or persons with necessary expert knowledge, ability, and experience
to provide, manage, or operate specified telecommunications services
and equipment for the deaf and disabled telecommunications programs.
The bill would require any contractor the commission selects to
deliver these services to consult with the Telecommunications Access
for Deaf and Disabled Administrative Committee regarding the
specialized needs of individuals using the deaf and disabled
telecommunications services and equipment.
   (5) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:   majority   2/3  .
Appropriation:  no.  Fiscal committee:  yes. State-mandated local
program:  no.


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

  
  SECTION 1.  The Legislature finds and declares all of the 

  SECTION 1.  Section 270.1 of the Public Utilities Code is amended
to read: 
   270.1.  (a) Notwithstanding any other provision of law, the
commission may authorize the trustee of the California High-Cost
Fund-B Trust to transfer to the Deaf Equipment Acquisition Fund Trust
(DEAF Trust) money sufficient to cover the costs of the program as
specified in subdivision (a) of Section 278, including, but not
limited to, all costs specified in subdivision (c) of Section 278.
The amount of any transfer of money authorized may not exceed the
cost of operating the program for six months.  The commission shall
also establish other terms of the transfer, as it determines to be
appropriate.
   (b) The commission shall reimburse the California High-Cost Fund-B
Trust for any transfer of money to the DEAF Trust authorized
pursuant to subdivision (a), with interest as determined by the
commission.
   (c) A sum equivalent to the amount of money transferred to the
Deaf Equipment Acquisition Fund Trust (DEAF Trust) pursuant to
subdivision (a) is hereby appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission, for allocation to the California High-Cost Fund-B Trust,
for purposes of subdivision (b).
   (d) Funds may not be transferred from the California High-Cost
Fund-B Trust to the DEAF Trust pursuant to subdivision (a) after
September 30, 2001.
   (e) Commencing on October 1, 2001, and until a date not later than
June 30, 2002, reimbursements made to the California High-Cost
Fund-B Trust pursuant to subdivisions (b) and (c) shall be deposited
in a separate memorandum account within the DEAF Trust, subject to
the terms specified in subdivision (b).
   (f) On July 1, 2002, any funds  remaining  in the
DEAF Trust  , inclusive of amounts  deposited in
the memorandum account for purposes of reimbursing the California
High-Cost Fund-B Trust  ,  shall revert to the
 General Fund in the State Treasury, with all amounts in the
memorandum account reverting for the purpose of funding 
 Controller for deposit in  the California High-Cost Fund-B
Trust  account   Committee Fund  in the
State Treasury rather than the  DEAF Trust account in the
State Treasury   Deaf and Disabled Telecommunications
Program Administrative Committee Fund.  
   (g) Commencing on July 1, 2003, any funds remaining in the DEAF
Trust, exclusive of those identified in subdivision (f), shall revert
to the Deaf and Disabled Telecommunications Program Administrative
Committee Fund in the State Treasury .   
  SEC. 2.  Section 278 of the Public Utilities Code is amended to
read: 
   278.  (a) (1) There is hereby created the  Deaf and
Disabled Telecommunications Program Administrative Committee, which
is   Telecommunications Access for Deaf and Disabled
Administrative Committee, formerly the Deaf and Disabled
Telecommunications Program Administrative Committee, as  an
advisory board to advise the commission regarding the development,
implementation, and administration of programs to provide specified
telecommunications services and equipment to persons in this state
who are deaf or disabled, as provided for in Sections 2881, 2881.1,
and 2881.2  , and to carry out the programs pursuant to the
commission's direction, control, and approval  .
   (2) In addition to the membership qualifications established by
the commission pursuant to subdivision (a) of Section 271, the
commission shall establish qualifications for persons to serve as
members of the  Deaf and Disabled Telecommunications Program
Administrative Committee to achieve appropriate representation by the
consumers of telecommunications services for the deaf and disabled
  Telecommunications Access for Deaf and Disabled
Administrative Committee so that consumers of telecommunications
services for the deaf and disabled comprise not less than two-thirds
of the membership of the committee.  It is the intent of the
Legislature that existing members of the former Deaf and Disabled
Telecommunications Program Administrative Committee should serve out
their current terms of office as members of the committee  .

   (3) As part of its advisory role, as specified in paragraph (1),
the Telecommunications Access for Deaf and Disabled Administrative
Committee shall do all of the following:
   (A) Advise the commission regarding contracts and agreements
related to the Deaf and Disabled Telecommunications Program as
specified in subdivisions (d) and (e) of Section 2881.4.
   (B) Develop and submit, not later than October 1, 2002,
recommendations to the commission for a transition plan, to be
effective July 1, 2003, for administration and governance of the
programs described in Sections 2881, 2881.1, and 2881.2.
   (C) The transition plan may contain, but need not be limited to,
recommendations pertaining to staffing and administrative structure,
and may include recommendations for the establishment of a designated
office and program function, within state government, staffed in a
manner designed to provide expert oversight and governance to ensure
the long-term quality and integrity of programs and services offered
through the Deaf and Disabled Telecommunications Program. 
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  Commencing on July 1,
 2002   2003  , and continuing thereafter,
the commission shall transfer the moneys received, and all unexpended
revenue collected prior to July 1,  2002   2003
 , to the Controller for deposit in the Deaf and Disabled
Telecommunications Program Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
   In addition, those   Those  revenues
that are collected pursuant to subdivision (d) of Section 2881 shall
be accounted for separately, as required by subdivision (b) of
Section 2881.2, and deposited in the fund created by the commission
pursuant to subdivision (b) of Section 2881.2.
   (c) Moneys appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission shall be utilized exclusively by the commission for the
 program   programs  specified in
subdivision (a), including all costs of the  board 
 committee  and the commission associated with the
administration and oversight of the program and the fund.   
  SEC. 3.  Section 2881.4 is added to the Public Utilities Code, to
read:
   2881.4.  (a) The Legislature finds and declares all of the
following:
   (1) Section 278 requires the commission to transfer to the
Controller for deposit in the Deaf and Disabled Telecommunications
Program Administrative Committee Fund all revenues collected by
telephone corporations to fund programs to provide specified
telecommunications services and equipment to deaf, disabled, and
hearing-impaired persons, as specified in Sections 2881, 2881.1, and
2881.2.
   (2) The commission issued a report to the Legislature in May 2001,
addressing compliance issues pertaining to the programs specified in
Sections 2881, 2881.1, and 2881.2, including a recommendation to
secure legislative authorization for the commission to contract with
outside entities for the provision of services and equipment mandated
by Sections 2881, 2881.1, and 2881.2.
   (3) The telecommunications services and equipment provided to
deaf, disabled, and hearing-impaired individuals and their families,
as specified in Sections 2881, 2881.1, and 2881.2, are of such a
highly specialized and technical nature that the necessary expert
knowledge, ability, and experience are not available within the
current state civil service system.
   (4) It is the intent of the Legislature, in enacting this section,
to do all of the following:
   (A) Maintain the availability of the state's current statewide
infrastructure of telecommunications services and equipment to deaf,
disabled, and hearing-impaired persons, as provided for in Sections
2881, 2881.1, and 2881.2, as essential to maintaining public health
and safety.
   (B) Authorize the commission to enter into contracts for the
provision of telecommunications services and equipment for deaf,
disabled, and hearing-impaired persons in a manner that protects and
enhances the current statewide infrastructure and coordinated
delivery of those services and equipment and includes a priority for
maintaining long-term continuity of program administration and
maximum involvement of the deaf and disabled community in program
governance.
   (C) Strengthen program priorities for expanded outreach through
continuing consultation with, and participation by, the deaf,
disabled, and hearing-impaired community in order to ensure the state'
s network of services reach hard-to-serve populations, including
rural, innercity, and urban areas.
   (D) Develop a mechanism to achieve cost effective and timely
deployment of new and emerging telecommunications technologies.
   (b) (1) In order for the commission to provide for, and ensure
continuity of, telecommunications services and equipment for the
deaf, disabled, and hearing impaired, as specified in Sections 2881,
2881.1, and 2881.2, the commission, subject to annual appropriation
of funds by the Legislature and consistent with state contracting
requirements, may contract with entities or persons that have the
necessary expert knowledge, ability, and experience to provide
telecommunications services and equipment to deaf, disabled, and
hearing-impaired persons for the programs specified in Sections 2881,
2881.1, and 2881.2.
   (2) In order for the commission to ensure continued provision of
telecommunications services and equipment for deaf, disabled, and
hearing-impaired persons, the commission, subject to annual
appropriation of funds by the Legislature and consistent with state
contracting requirements, may contract with entities or persons that
have the necessary expert knowledge, ability, and experience to
provide, manage, or operate the programs described in Sections 2881,
2881.1, and 2881.2.
   (c) The commission may enter into contracts pursuant to
subdivision (b) of Section 19130 of the Government Code for the
services and equipment contemplated by the programs described in
Sections 2881, 2881.1, and 2881.2.
   (d) The commission may include provisions that accomplish any of
the following in contracts authorized by this section:
   (1) Establish standards and procedures, including prior commission
approval, for subcontracting.
   (2) Establish standards and procedures regarding personnel and
accounting practices.
   (3) Require budget approval.
   (4) Require periodic audits.
   (5) Monitor performance and establish performance standards and
the method of evaluating performance, including remedies for
unsatisfactory performance.
   (6) Establish standards and procedures to investigate and resolve
complaints.
   (7) Provide for any other terms or restrictions as the commission
finds necessary to ensure that the public funds are used in
accordance with the goals of the Legislature and the commission.
   (e) Notwithstanding any other provision of law, any contract
entered into pursuant to this section may provide for periodic
advance payments for telecommunications services to be performed or
telecommunications equipment to be provided.  No advance payment made
pursuant to this section may exceed 25 percent of the total annual
contract amount.
   (f) Any contractor the commission selects shall demonstrate
knowledge of and the capacity to provide specialized
telecommunications services and equipment to deaf, disabled, and
hearing-impaired persons, and shall be required to consult with the
Telecommunications Access for Deaf and Disabled Administrative
Committee regarding the specialized needs of individuals utilizing
program services and equipment, as specified in Sections 2881,
2881.1, and 2881.2.
   (g) The commission shall, to the extent feasible and consistent
with state civil service requirements, employ staff overseeing the
programs described in Sections 2881, 2881.1, and 2881.2 who are
members of the deaf, disabled, and hearing-impaired community.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to allow the Public Utilities Commission, prior to July
1, 2002, to contract with providers so that the programs to provide
telecommunications services and equipment for deaf, disabled, and
hearing-impaired persons may be operational, it is necessary for this
act to take effect immediately.    following:
   (a) The Public Utilities Commission issued in May 2001, a proposed
transition plan regarding the transfer of six funds to the State
Treasury associated with telecommunications public programs created
and operated by the commission.
   (b) This act is intended to preserve the existing infrastructure
of providers of service under the programs created with the six funds
by allowing the commission, to the extent feasible, to contract with
the network of existing service providers.
  SEC. 2.  Section 278 of the Public Utilities Code is amended to
read:
   278.  (a) (1) There is hereby created the Deaf and Disabled
Telecommunications Program Administrative Committee, which is an
advisory board to advise the commission regarding the development,
implementation, and administration of programs to provide specified
telecommunications services and equipment to persons in this state
who are deaf or disabled, as provided for in Sections 2881, 2881.1,
and 2881.2, and to carry out the programs pursuant to the commission'
s direction, control, and approval.
   (2) In addition to the membership qualifications established by
the commission pursuant to subdivision (a) of Section 271, the
commission shall establish qualifications for persons to serve as
members of the Deaf and Disabled Telecommunications Program
Administrative Committee to achieve appropriate representation by the
consumers of telecommunications services for the deaf and disabled.

   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
Deaf and Disabled Telecommunications Program Administrative Committee
Fund.  All interest earned by moneys in the fund shall be deposited
in the fund.  Any unexpended revenues collected prior to the
operative date of this section shall be submitted to the commission,
and the commission shall transfer those moneys to the Controller for
deposit in the Deaf and Disabled Telecommunications Program
Administrative Committee Fund.  In addition, those revenues that are
collected pursuant to subdivision (d) of Section 2881 shall be
accounted for separately, as required by subdivision (b) of Section
2881.2, and deposited in the fund created by the commission pursuant
to subdivision (b) of Section 2881.2.
   (c) In order for the commission to carry out its responsibilities
related to the Deaf and Disabled Telecommunications Program, the
commission shall, to the extent feasible, contract with agencies,
including nonprofit entities, currently providing services to the
deaf and disabled.
   (d) Moneys appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission shall be utilized exclusively by the commission for the
program specified in subdivision (a), including all costs of the
board and the commission associated with the administration and
oversight of the program and the fund.