BILL ANALYSIS � 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 129 - Wright Hearing Date:
April 2, 2013 S
As Introduced: January 23, 2013 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC) to design and implement a universal service program to
provide a telecommunications device, dual-party relay system,
and specialized equipment to enable persons who are deaf,
hearing impaired, or disabled to use the telecommunications
network at no charge additional to the basic exchange rate.
Current law requires the CPUC to design and implement a program
to provide access to a speech-generating device to enable
individuals with speech disabilities to use the
telecommunications network at no charge additional to the basic
exchange rate, and requires the CPUC to adopt rules for this
program by January 1, 2014.
Current law requires the CPUC to recover the costs of the deaf
and disabled universal service program through a customer
surcharge of not more than one-half of 1 percent of charges for
intrastate telephone service, effective until January 1, 2014.
This bill extends this CPUC's deaf and disabled
telecommunications program and authority to collect the
surcharge to fund it until January 1, 2024.
BACKGROUND
Deaf and Disabled Telecommunications Program - The Deaf and
Disabled Telecommunications Program (DDTP), first established in
1979, is one of several universal service programs designed to
ensure that affordable telecommunications service is
ubiquitously available to all Californians. The program
currently provides service in three general categories: (1)
specialized telecommunications devices for deaf and
hard-of-hearing individuals; (2) dual-party relay system to
connect deaf and hard-of-hearing individuals to hearing parties;
and (3) specialized telecommunications equipment to individuals
with hearing, vision, mobility, speech and cognitive
disabilities. As required by AB 136 (Beall, 2011), the CPUC
currently is developing rules, to be effective January 1, 2014,
for the program to provide access to a speech-generating device
to individuals with a certified speech disability.
The DDTP is administered by the CPUC, with input from two
advisory boards, and with program services and equipment
provided to eligible persons by contractors. The California
Telephone Access Program distributes equipment to individuals
who are certified as eligible by specified health care
professionals. The California Relay Service is a dual party
relay system with operators that connect a user of specialized
telecommunications devices with any other telephone user. The
CPUC, contractors, and advisory committees conduct outreach to
increase participation and ensure awareness among veterans and
non-English speakers, streamline eligibility certification with
health care professionals, and incorporate new technologies and
services that respond to consumers' telecommunications needs.
Funding of the Program - Current law effective until January 1,
2014, requires funding of the DDTP through a customer surcharge
of not more than one-half of 1 percent of charges for intrastate
telephone service, including landline, wireless, and Voice over
Internet Protocol service. The CPUC is authorized to adjust the
surcharge to meet program expenses. It currently is set at 0.20
percent. The CPUC reports the following total program
expenditures for the past few years:
Fiscal Year Total Expenditures
2008-09 $69.5 million
2009-10 $60.1 million
2010-11 $66 million
2011-12 $68.6 million
COMMENTS
1. Author's Purpose . According to the author, this bill
ensures that funding is available to continue the DDTP that
enables thousands of Californians who are challenged using
a standard telephone because of difficulty seeing, hearing,
speaking, moving or other disability.
2. Program Benefits Public . Stakeholders point to many
benefits of the DDTP program. It has been critical for
deaf and disabled individuals to function in society; stay
connected with family, friends and the community; live
independently; work and contribute to the economy; and have
access to 911 emergency services and other public safety
services. Stakeholders also praise the program for
evolving as new technologies, including wireless devices,
become available to meet the needs of individuals with
functional limitations.
3. Length of Sunset Extension . This bill extends the DDTP
for 10 years from 2014 to 2024. Other telecommunications
universal service programs funded by a customer surcharge
have been extended in recent years for considerably fewer
years, such as three to four years for the California High
Cost Fund A and B by SB 3 (Padilla, 2011). The rapidly
evolving nature of telecommunications services, including
migration of customers from landline to wireline and
Internet-based services, may impact the customer base for
this surcharge in a manner that impacts funding stability.
Thus, legislative review may be warranted sooner than 10
years. Thus, the author and committee may wish to consider
amending the bill to extend authority to collect the DDTP
surcharge to January 1, 2020.
4. Related Federal Programs . At the federal level, the
Federal Communications Commission administers several
programs to ensure that telecommunications equipment
manufacturers and services and certain video services are
accessible to people with disabilities, if such access is
readily achievable. These programs generally complement
state programs such as the DDTP, but they are always under
review in connection with new technologies and services.
Likewise, the CPUC should continuously review its universal
service programs to determine if modifications to align
with federal programs provide greater funding opportunities
for eligible Californians. Thus, the author and committee
may wish to consider amending the bill to require that the
CPUC's annual report to the Legislature on the DDTP program
include recommendations for any modification to the program
in order to maximize participation and funding
opportunities under similar federal programs.
5. Ratepayer Impact . Because the deaf and disabled program
is funded entirely by a telephone customer surcharge, any
extension of the program will increase costs and ratepayer
impact.
POSITIONS
Sponsor:
California Public Utilities Commission
Support:
AT&T
Association of Regional Center Agencies
California ALS Advocacy Committee
California Commission on Aging
California Communications Association
California's Independent Telecommunications Companies
Consumer Federation of California
Division of Ratepayer Advocates
SureWest Communications
Oppose:
None on file
Jacqueline Kinney
SB 129 Analysis
Hearing Date: April 2, 2013