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

          AB 2283 -  Chu                Hearing Date:  June 22, 2004        
          A
          As Amended:         May 4, 2004              FISCAL       B

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                                      DESCRIPTION
           
           Under current law , the Federal Communications Commission (FCC)  
          has designated "211" as the national abbreviated dialing code to  
          be used to access non-emergency community information and  
          information regarding social services.  The FCC has delegated  
          the authority to assign "211" numbers to the states.

           This bill  :

           Requires "211" operators to operate the system consistent with  
            the FCC and California Public Utilities Commission (CPUC)  
            rules. 
           Makes the CPUC responsible for selecting "211" providers.
           Authorizes the CPUC to select a lead agency to assist in the  
            implementation of a "211" dialing system statewide that will  
            be responsible for planning, implementation and allocation of  
            funds.
           Authorizes the Telecommunications Division of the Department  
            of General Services to assist in the operation of the 211  
            system.

           This bill  designates criteria the CPUC may use in selecting a  
          lead agency to include:

           Geographic diversity of representatives.
           Expertise in the information referral industry.
           Experience in statewide "211" planning and operations.
           Established relationships with California information and  
            referral providers.












           This bill  requires the lead entity to allocate federal funds to:

           Ensure the state receives the maximize amount of federal funds  
            possible.
           Consider population and poverty rates.
           Consider developmental and operations requirements.
           Ensure that any fund matching requirement is met.

           This bill  limits the lead entity to spending no more than 5% of  
          any state funds for administrative purposes and precludes the  
          lead entity from being funded by ratepayer surcharges or the  
          General Fund.










































           This bill  requires that if the CPUC designates a lead entity,  
          the CPUC shall establish a fund and require separate accounting  
          for any state or federal funds, and shall require those funds be  
          spent consistent with federal and state law.  An annual fiscal  
          report is also required.

                                      BACKGROUND
           
          Community information and referral services (I&R) help people  
          obtain social services such as housing assistance, food  
          assistance, and help with utility bills.  In 2000, the FCC has  
          designated "211" as the abbreviated telephone number for I&R  
          referral services.  Upon dialing "211," a caller will be routed  
          to an operator who in turn refers the caller to the appropriate  
          social services agency in a given county.  In 2003, the CPUC  
          established procedures for implementing "211" dialing and has  
          since selected "211" service providers in Los Angeles, Alameda,  
          Contra Costa, Orange, San Francisco, and Ventura counties.

          The heart of this bill authorizes the CPUC to designate a single  
          lead entity to coordinate "211" implementation in the 52  
          California counties that don't have "211" service and to  
          disburse federal funds, should they become available.

                                       COMMENTS
          
          1.Lead Entity vs. Service Provider  .  This measure authorizes the  
            CPUC to designate a single lead entity to coordinate "211"  
            implementation in the state's 52 counties that don't have  
            "211" service.  Even if the CPUC selects a lead entity (which  
            could be a state agency, a private business, or a non-profit  
            organization), the CPUC would still be the agency charged with  
            selecting the service provider.   The author and committee may  
            wish to consider  whether this potential bifurcation of  
            authority and responsibility is appropriate or whether it may  
            lead to confusion or a lack of accountability.
           
          2.Should The Legislature Select The Alpha Dog?   As noted above,  
            this measure authorizes, but doesn't require, the CPUC to  
            select a lead entity to encourage counties to adopt a "211"  
            system and to coordinate its implementation.  While the CPUC's  
            experience with "211" to date may very well equip it to make  
            that decision, it also may be a policy decision the  
            Legislature is better equipped to make.  Given that "211" will  










            help people get access to a wide variety of social services,  
             the author and committee may wish  to either designate the  
            state's Health & Human Services Agency as the lead entity or  
            assign the Agency, not the CPUC, with the responsibility of  
            selecting the lead entity.

           3.Should Private Businesses Or Non-Profits Be The Lead Entity?    
            Under this measure, the lead entity is responsible for a  
            variety of planning, reporting, and fiscal tasks, including  
            the allocation of any federal funding.  Under the bill, anyone  
            can be a lead entity and the lead entity performs its work  
            independently, without any oversight or accountability.  This  
            raises a number of questions regarding accountability and the  
            use of public funds.  As such,  the author and committee may  
            wish to consider  making it clear that the lead entity shall be  
            a state agency.  The state agency could then be empowered to  
            establish an advisory committee to provide assistance and  
            counsel in the administration of its duties.

           4.What If The Money Runs Out?   The program set up by this bill  
            is based on the premise that the state will receive federal  
            money to pay for it and specifically bars the use of General  
            Fund money or money from telephone customers.   The author and  
            committee may wish to consider  what happens if the federal  
            money anticipated to pay for this program doesn't materialize,  
            or materializes only for one year or so.  In the latter  
            instance, what happens in places where "211" programs are  
            established and then the funding runs out?  How will the  
            ongoing costs of the program be paid for? 
           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (59-18)
          Assembly Appropriations Committee  (15-5)
          Assembly Utilities and Commerce Committee                       
          (7-4)

                                       POSITIONS
           
           Sponsor:
           
          California Alliance of Information and Referral Services

           Support:










           
          AT&T
          California Association of Nonprofits
          California Child Care, Resource & Referral Network
          California Foundation for Independent Living Centers
          Community Technology Alliance
          Junior Leagues of California State Public Affairs Committee
          Mexican American Legal Defense and Education Fund
          Service Employees International Union
          Society of St. Vincent de Paul
          Union Labor Health Foundation

           Oppose:
           
          California Public Utilities Commission
          California Department of Finance

          





          Randy Chinn 
          AB 2283 Analysis
          Hearing Date:  June 22, 2004