BILL ANALYSIS SB 669 Page 1 Date of Hearing: August 16, 1999 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Roderick Wright, Chair SB 669 (Polanco) - As Amended: July 13, 1999 AS PROPOSED TO BE AMENDED SENATE VOTE : 37-1 SUBJECT : Local emergency telephone systems: Public Utilities Commission. SUMMARY : Requires the Department of General Services (DGS) to consult with city and county officials to accomplish its responsibilities with respect to 911 telephone service, and codifies the advisory boards for six telecommunications programs administered by the California Public Utilities Commission (CPUC). Specifically, this bill : 1)Adds a representative from a city and from a county to the list of entities DGS must regularly consult when considering the state's 911 emergency response service. 2)Creates six advisory boards to advise CPUC regarding the implementation, development, and administration of specified programs. 3)Requires CPUC to determine the number and qualifications of the members of each advisory board, and prescribes certain matters of organization and procedure for each advisory board. 4)Requires each board to submit an annual budget to CPUC for approval and a report describing the activities of the board. 5)Creates a fund in the State Treasury for each advisory board. 6)Requires CPUC on or before July 1, 2000, to report to the Governor and the Legislature regarding a transition plan designed to protect the efficiency and effectiveness of programs associated with those funds. 7)Specifies that all revenues collected by telephone corporations to fund these programs shall be submitted to CPUC pursuant to a schedule established by the Commission. These SB 669 Page 2 moneys would be transferred to the State Controller for deposit in the appropriate fund. 8)Requires CPUC to conduct financial audits of the revenues for each of the funds, and to conduct compliance audits of each program. EXISTING LAW directs the Communications Division of DGS to consult regularly with specified agencies, officials, and entities to accomplish its responsibilities with respect to the establishment by local agencies of 911 telephone service. Provides for various programs relating to telephone corporations to be administered by CPUC, and paid for in the utility rates authorized by CPUC. These programs include low-income ratepayer assistance, energy efficiency, and telephone service for deaf and disabled individuals. FISCAL EFFECT : Unknown. COMMENTS : 1)Existing law requires DGS to consult regularly with various agencies, officials, and entities regarding the establishment by local agencies of 911 emergency response service. The list of those to be consulted includes the State Fire Marshall, the Department of Health Services, the Office of Traffic Safety, the Office of Emergency Services, the Council on Criminal Justice, and telecommunications providers. This bill adds representatives of a city or of a county to the list of entities to be consulted by DGS. According to the author, cities and counties play a critical role in maintaining an effective 911 emergency response program and therefore should be involved in discussions on ways to fulfill the state's responsibility to provide emergency services. 2)This bill codifies the advisory boards for each of six programs relating to telephone corporations and creates special accounts in the state treasury to hold the program funds in trust. The Department of Finance and Attorney General's Office have informally expressed their preference that the funding for these programs be kept with the state and that the advisory boards be codified. The six telecommunications advisory boards created by this bill advise CPUC regarding the implementation, development, and SB 669 Page 3 administration of these programs, and carry out the programs subject to CPUC's direction, control, and approval. 3)This bill statutorily establishes the following six telecommunications advisory boards and funds: a) The California High-Cost Fund-A Administrative Committee and Fund, designed to keep rates for rural telephone companies low. b) The California High-Cost Fund-B Administrative Committee and Fund, designed to keep rates for rural customers low. c) The Universal Lifeline Telephone Service Trust Administrative Committee and Fund, designed to provide low-cost telephone service to low-income households. d) The Deaf and Disabled Telecommunications Program Administrative Committee and Fund, designed to provide discounted telephone service and equipment to the deaf and disabled. e) The Payphone Service Providers Committee and Fund, designed to provide consumer protection to pay telephone customers. f) The California Teleconnect Fund Administrative Committee and Fund, designed to fund advanced communications services for schools, libraries, and community organizations. REGISTERED SUPPORT / OPPOSITION : Support California Public Utilities Commission Opposition None on file. Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083 SB 669 Page 4