BILL NUMBER: AB 1734	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 13, 2002
	AMENDED IN SENATE  APRIL 30, 2002
	AMENDED IN SENATE  APRIL 16, 2002
	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 Sections 270.1 and 278 of, and to add 
Section   Sections 278.5 and  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.
   (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 the commission to 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   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  , commencing July 1, 2003,  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 the administration and
governance 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 and, to the extent
feasible, that one of those members have experience in the
administration of similar deaf and disabled telecommunications
programs.  The bill would require  , commencing July 1, 2003,
 that any staffing costs incurred by the commission for the
oversight and administration of the deaf and disabled
telecommunications programs be funded by moneys appropriated from the
Deaf and Disabled Telecommunications Program Administrative
Committee Fund.
   (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, including nonprofit 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:  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.  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   programs  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   programs  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 in the DEAF Trust deposited in the
memorandum account for purposes of reimbursing the California
High-Cost Fund-B Trust shall revert to the Controller for deposit in
the California High-Cost Fund-B Trust Committee Fund in the State
Treasury rather than the 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   Commencing on July 1,
2003, there  is hereby created the 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.
   (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 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.  To the extent feasible, one of
those members shall have experience in the administration of programs
similar to those provided for in Sections 2881, 2881.1, and 2881.2.
 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  
Administrative Committee shall 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 the administration and
governance of the programs described in Sections 2881, 2881.1, and
2881.2, including 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, 2003,
and continuing thereafter, the commission shall transfer the moneys
received, and all unexpended revenue collected prior to July 1, 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.
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
programs specified in subdivision (a), including all costs of the
committee and the commission associated with the 
administration and oversight of the program and the fund.
   (d) Staffing costs incurred by the commission for oversight and
  administration and oversight of the programs and the
fund.
   (d) Commencing on July 1, 2003, staffing costs incurred by the
commission for oversight and  administration of the programs
described in subdivision (a) shall be funded by moneys appropriated
from the Deaf and Disabled Telecommunications Program Administrative
Committee Fund.
  SEC. 3.   Section 278.5 is added to the Public Utilities Code,
to read:
   278.5.  (a) It is the intent of the Legislature that existing
members of the Deaf and Disabled Telecommunications Program
Administrative Committee should serve out their current terms of
office as members of the committee, but not to exceed July 1, 2003.
   (b) The Deaf and Disabled Telecommunications Program
Administrative Committee shall develop and submit, not later than
October 1, 2002, recommendations to the commission for the
administration and governance of the programs described in Sections
2881, 2881.1, and 2881.2, including 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.
  SEC. 4.   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
  cost-effective  and timely deployment of new and
emerging telecommunications technologies, to the extent fiscally and
economically feasible.
   (b) 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, including
nonprofit 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.  
  SEC. 5.   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 ensure the programs specified in Sections 2881,
2881.1, and 2881.2 of the Public Utilities Code remain in continuous
operation, it is necessary for this act to take effect immediately.