BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1734
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1734 (Wright)
          As Amended May 13, 2002
          2/3 vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(May 10, 2001)  |SENATE: |38-0 |(May 16, 2002) |
           ----------------------------------------------------------------- 
                      (vote not relevent)

          Original Committee Reference:   U. & C.  

           SUMMARY :  Modifies the Deaf and Disabled Telecommunications  
          Program (DDTP) within the California Public Utilities Commission  
          (PUC).
           
          The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Authorize PUC, subject to annual appropriation of funds by the  
            Legislature, to contract with others to operate Deaf and  
            Disabled Telecommunications Program (DDTP), and makes related  
            findings and declarations.

          2)As of July 1, 2003, rename the Deaf and Disabled  
            Telecommunications Program Administrative Committee as the  
            Telecommunications Access for Deaf and Disabled Administrative  
            Committee (hereafter "committee").

          3)Require PUC to establish qualifications for the specifying  
            that at least two-thirds of the committee members shall be  
            deaf or disabled.

          4)State the intent of the Legislature that existing members of  
            the committee should serve out their current terms, but not  
            beyond July 1, 2003.

          5)Require the committee to make recommendations to PUC for  
            administration and governance of DDTP, including  
            recommendations for the establishment of a designated office  
            and program function, within state government, that is staffed  
            in a manner to provide expert oversight and governance to  
            ensure the long-term integrity of DDTP.

          6)Specify that, commencing July 1, 2003, any increased staffing  








                                                                  AB 1734
                                                                  Page  2

            costs incurred by PUC for the oversight and administration of  
            DDTP be funded by the Deaf and Disabled Telecommunications  
            Program Administrative Committee Fund.

          7)Delay transfer of program funds from PUC to the committee fund  
            in the State Treasury until July 1, 2003, by which time the  
            committee must develop a transition plan for program  
            administration and governance and submit it to PUC.

          8)Permit PUC to enter into personal service contracts under  
            state civil service law for telecommunication services for the  
            deaf and disabled community.

          9)Require PUC to employ staff overseeing DDTP who are members of  
            the deaf and disabled community, to the extent feasible and  
            consistent with state civil service requirements.



           EXISTING LAW  :

          1)Creates DDTP to enable and subsidize telecommunications  
            service for the deaf, hearing impaired, and handicapped.   
            Among other things, DDTP provides telecommunications services  
            and equipment to persons who are deaf or disabled.

          2)Establishes the committee to advise PUC regarding the  
            implementation and administration of DDTP.

          3)Created a fund in the State Treasury to receive money in  
            support of DDTP and to disburse monies to pay for it.  PUC is  
            required to transfer funding for these programs from a  
            PUC-administered account to this account by July 1, 2002.

           AS PASSED BY THE ASSEMBLY , this bill set forth a policy for  
          encouraging the development and deployment of infrastructure to  
          support new technologies for provision of telecommunications  
          services in a way that efficiently meets consumer need and  
          encourages availability of state-of-the-art services.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, potential increased costs, offset by surcharge  
          revenues, and potential cost savings, beginning in 2003,  
          attributable owing to the changes to the committee structure. 









                                                                  AB 1734
                                                                  Page  3

           COMMENTS  :  DDTP was established about 20 years ago and provides  
          telecommunications services to approximately 500,000 persons who  
          are deaf, hearing impaired, or handicapped.  The committee  
          advises PUC on the administration of the program.  DDTPAC's  
          budget is approximately $2.6 million.  It is estimated that  
          three million people may be eligible for service.  The current  
          program budget is approximately $56 million, but is projected to  
          be $69 million in 2002-03, accounting for an already approved  
          expansion in relay service.  DDTP revenues are derived from a  
          surcharge on all intrastate telecommunications billings.

          PUC has long administered programs to assist the deaf and  
          disabled in using telephone service.  The programs provide  
          specialized telecommunications equipment, discounted telephone  
          rates, and a 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 PUC.

          These programs are currently contracted out to private vendors,  
          with the committee providing advice and program administration  
          to PUC.

          SB 669 (Polanco), Chapter 677, Statutes of 1999, was enacted to  
          move this account, as well as all specially funded  
          telecommunications accounts, from PUC 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 PUC  
          to develop a plan to have the programs administered by state  
          employees instead of being contracted out.

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

          1)Converting the administrative and programmatic employees into  
            PUC state employees.

          2)Secure authority to contract out for the services.

          3)Transfer the employees to another state agency serving the  
            disabled.









                                                                  AB 1734
                                                                  Page  4

          This bill authorizes PUC, subject to annual appropriation of  
          funds by the Legislature, to contract with others to operate the  
          telecommunications programs for the deaf, hearing impaired, and  
          disabled.

          This bill was substantially amended in the Senate and the  
          Assembly-approved provisions of this bill were deleted.  This  
          bill as amended is not consistent with the Assembly version of  
          this bill. 


           Analysis prepared by  :    Paul Donahue / U. & C. / (916) 319-2083



                                                               FN: 0004876