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  








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  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  








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  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  









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