BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                               DEBRA BOWEN, CHAIRWOMAN
          

          AB 1734 -  Assembly Utilities & Commerce                     
          Hearing Date:  April 9, 2002              A
          As Amended:         April 2, 2002                       
          FISCAL/URGENCY                  B
               
                                                                            
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                                      DESCRIPTION
           
           Current law  establishes programs to enable and subsidize  
          telecommunications service for the deaf, hearing impaired, and  
          handicapped.  The Deaf and Disabled Telecommunications Program  
          Administrative Committee (DDTPAC) advises the California Public  
          Utilities Commission (CPUC) on the administration of this  
          program.  

           Current law  establishes a fund in the state treasury to receive  
          monies in support of this program and to disburse monies to pay  
          for this program.  The CPUC is required to transfer funding for  
          these programs from a CPUC-administered account to this account  
          by July 1, 2002.

           This bill  authorizes the CPUC to contract with others to operate  
          the telecommunications programs for the deaf, hearing impaired,  
          and handicapped, and makes supportive findings.
           
           This bill  renames the DDTPAC as the Telecommunications Access  
          for Deaf and Disabled Administrative Committee (TADDAC) and  
          requires that not less than two-thirds of the committee  
          membership be deaf or disabled.  

           This bill  delays the transfer of program funds from the CPUC to  
          the TADDAC account in the treasury until July 1, 2003 by which  











          time the TADDAC must develop a transition plan for program  
          administration and governance and submit it to the CPUC.

           This bill  requires the CPUC to employ staff overseeing the deaf  
          and disabled telecommunications program who, to the extent  
          feasible and consistent with state civil service requirements,  
          are members of the deaf and disabled community.

                                      BACKGROUND
           
          Since the 1980's, the CPUC has administered programs to assist  
          the deaf and disabled in using telephone service.  The programs  
          provide specialized telecommunications equipment, discounted  
          telephone rates, and a telecommunications translator service,  
          known as a dual-party relay service, through which the deaf can  
          communicate with others.  Funding for these programs is provided  
          by a surcharge on telecommunications service, which has been  
          kept in accounts administered by the CPUC. Aggregate program  
          costs are about $50 million annually. These programs are  
          currently contracted out, with the DDTPAC providing advice and  
          program administration to the CPUC.  

































          SB 669 (Polanco), Chapter 677, Statutes of 1999, was enacted to  
          move this account, as well as all specially funded  
          telecommunications accounts, from the CPUC into the state  
          treasury.  The transfer of funds into the state treasury meant  
          that fund administrators and programmatic employees could no  
          longer be contracted out without legislative authorization, a  
          restriction affecting 94 employees.  Consequently, SB 669 also  
          required the CPUC to develop a plan to have the programs  
          administered by state employees instead of being contracted out.  
           

          The CPUC's transition plan suggested three approaches to  
          changing the current system:

          Option 1 makes the administrative and programmatic employees  
          into CPUC state employees.
          Option 2 obtains contracting out authority. 
          Option 3 transfers the employees to another state agency serving  
          the disabled.  

          This bill chooses Option 2.
                                           
                                      COMMENTS
          
           1.Transfer deadline  .  Of the specially funded telecommunications  
            accounts, only the account for the deaf and disabled  
            telecommunications program has not been transferred to the  
            state treasury.  The delay is the result of concerns about  
            program administration by the deaf and disabled community.   
            The community is concerned it may lose influence over the  
            programs once control is transferred to a state agency or the  
            program administration is put out to bid.  This bill addresses  
            those concerns by assuring that the deaf and disabled  
            community continues to have a voice through its membership on  
            the TADDAC, requiring the TADDAC to provide a recommendation  
            for program administration, and articulating legislative  
            findings that the program expand outreach through continued  
            consultation with, and participation by, the deaf and disabled  
            community.  This bill extends the deadline for transfer by an  
            additional year.  However, the bill provides for fund transfer  
             commencing  July 1, 2003. Given that the transfer of this  
            program lags that of the other telecommunications funds,  the  
            author and committee may wish to consider  requiring that the  
            transfer occur  not later than  June 30, 2003.










           
          2.Changing representation  .  Current law requires the DDTPAC to  
            have "appropriate representation" from the deaf and disabled  
            community.  The bill requires that at least two-thirds of the  
            membership of the re-named TADDAC be deaf or disabled.   
            Currently there are 12 members on the DDTPAC of which 7 (58%)  
            come from the deaf and disabled community.  Only those 7 may  
            vote.

            While it's clearly important for the CPUC to hear from the  
            community it serves, requiring such a large portion of the  
            membership to be deaf or disabled may deny the CPUC input from  
            others who can contribute to ensuring the program efficiently  
            delivers the services it was set up to provide.  

            It's important to note that the purpose of the TADDAC is much  
            broader than simply providing the CPUC with expertise on the  
            targeted community.  Rather, the purpose of this committee is  
            to advise the CPUC on program administration, which calls for  
            expertise in program operation and structure.  The CPUC has  
            historically relied on its administrative committee for broad  
            ranging program advice, as the CPUC lacks internal expertise  
            on program administration.   The author and committee may wish  
            to consider  whether a membership that is required to be at  
            least half from the deaf or disabled community would strike a  
            better balance than the 2/3 requirement currently in the bill.
           
           3. Technical amendments .  The author will offer technical  
             amendments in committee to clarify language and correct  
             drafting errors.
           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (51-0) (unrelated version)
          Assembly Utilities and Commerce Committee                       
          (11-0) (unrelated version)

                                       POSITIONS
           
           Sponsor:
           
          California Public Utilities Commission

           Support:










           
          California Coalition of Agencies serving Deaf and Hard of  
          Hearing, Inc.
          Deaf Community Services of San Diego, Inc.
          Greater Los Angeles Council on Deafness, Inc.
          Office of Ratepayer Advocates
          Orange County Deaf Equal Access Foundation
          Self Help for Hard of Hearing People
          6 individuals
           
          Oppose:
           
          None on file

          










          Randy Chinn 
          AB 1734 Analysis
          Hearing Date:  April 9, 2002