BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           712 (Padilla)
          
          Hearing Date:  5/18/2009        Amended: 5/5/2009
          Consultant:  Bob Franzoia       Policy Vote: Energy 10-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 712 would require an information and referral  
          service provider to operate a "211" system in a manner that is  
          consistent with the applicable orders of the Federal  
          Communications Commission (FCC) and the Public Utilities  
          Commission (PUC).  This bill would designate the California  
          Health and Human Services Agency (CHHSA) as the state's lead  
          entity.  This bill would provide that an information and  
          referral services provider and its employees, directors,  
          officers, and agents are not liable to any person in a civil  
          action for injuries or losses to persons or property, as a  
          result of an act or omission, unless the act or omission  
          constituted willful or wanton misconduct.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           CHHSA planning, develop-          Unknown, $500 to $1,000  
          initially, potentially General/
          ment and resource allocation      more; decreasing in future  
          years                  Federal/
                                                                  Special*
                                                                  
          Federal matching funds             Unknown, major cost pressure   
           General      
          requirement

          * Fees
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          According to the bill, there are 21 counties with established  
          211 systems serving 86 percent of the state's population.  The  
          PUC anticipates applications in 2009 from










           Kings, Santa Cruz, San Benito, and Shasta Counties.

          Under FCC -delegated authority, the PUC, which established  
          procedures for 211 dialing in California under authority  
          delegated by the FCC and under its state law authority to  
          regulate public utilities, currently evaluates requests for and  
          authorizes the use of the 211 dialing code under rules  
          established by the PUC.  This bill is consistent with PUC  
          programs, practice, and policies, and would have no significant  
          impact fiscal or administrative impact on PUC programs or  
          practices.

          The CHHSA shall be the lead agency, and shall be responsible for  
          all of the following:
          - Performing planning, administrative, fiscal, and reporting  
          functions required under any state and federal 211 funding  
          program.
          - Developing a plan for implementation of 211 services  
          throughout the state.
          - Allocating 211 funds to entities.

          Page 2
          SB 712 (Padilla)
          
          Staff notes that the role and funding of the lead agency, as set  
          forth in this bill, is unclear.  For example, this bill requires  
          the lead agency to allocate federal and state funds made  
          available for the development, implementation and administration  
          of the 211 system, to maximize the federal funds available to  
          information and referral providers, to include a reasonable  
          administration fee sufficient to support the activities of the  
          lead agency, and to ensure any fund-matching requirement is met.  
           However, the next code section, Government Code 53128.3, as  
          added by the bill, indicates the lead agency may be funded by  
          federal funds, upon appropriation by the Legislature, and by  
          other public and private sources.  Will the lead agency use the  
          administrative fee to support its activities and forego General  
          Fund support?  Does the lead agency have the authority to levy a  
          fee on, presumably, 211 providers?  How will the lead agency  
          match the federal funds with General Funds and for what purpose?  
           It is unclear from the language in the bill if the funds could  
          be used to assist 211 providers with their operating costs.   
          Staff recommends the bill be amended to clarify the role of the  
          lead agency and the funding provisions.

          This bill is similar to AB 2283 (Chu) 2004 which was vetoed by  










          the Governor with the following message:

          Ensuring that persons have access to information and referral to  
          social services is of great importance to me.  However, it is  
          premature to enact legislation that requires federal funding  
          that has yet to be passed by Congress.

          The California Public Utilities Commission has begun the process  
          of implementing 211 and can continue with its work in this area  
          until the Congressional bill is enacted.