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