BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 669
                                                          Page  1

ASSEMBLY THIRD READING
SB 669 (Polanco)
As Amended August 30, 1999
Majority vote 

  SENATE VOTE  :  37-1

  UTILITIES AND COMMERCE          11-0                 
APPROPRIATIONS      21-0        
  
 ----------------------------------------------------------------- 
|Ayes:|Wright, Pescetti,         |Ayes:|Migden, Brewer, Ackerman, |
|     |Calderon, Campbell,       |     |Ashburn, Campbell,        |
|     |Cardenas, Frusetta,       |     |Cedillo, Davis,           |
|     |Maddox, Mazzoni, Papan,   |     |Hertzberg, Kuehl,         |
|     |Reyes, Wesson             |     |Maldonado, Papan, Romero, |
|     |                          |     |Runner, Keeley,           |
|     |                          |     |Steinberg, Thomson,       |
|     |                          |     |Wesson, Wiggins, Wright,  |
|     |                          |     |Zettel, Aroner            |
|-----+--------------------------+-----+--------------------------|
|     |                          |     |                          |
 ----------------------------------------------------------------- 
  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:

   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  







                                                          SB 669
                                                          Page  2

     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; and,

   f)   The California Teleconnect Fund Administrative Committee  
     and Fund, designed to fund advanced communications services  
     for schools, libraries, and community organizations.

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 CPUC.  These 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  







                                                          SB 669
                                                          Page  3

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  :  CPUC estimates special fund costs of about  
$200,000 in 1999-2000 and $400,000 annually thereafter to  
administer the programs.

 COMMENTS  :  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.

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 administration of these programs, and carry out the programs  
subject to CPUC's direction, control, and approval.  


  Analysis Prepared by  :  Joseph Lyons / U. & C. / (916) 319-2083 

                                                      FN: 0002933