BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 129
          Author:   Wright (D), et al.
          Amended:  4/30/13
          Vote:     27 - Urgency

           
           SENATE ENERGY, UTILITIES & COMMUNIC. COMM.  :  11-0, 4/2/13
          AYES:  Padilla, Fuller, Cannella, Corbett, De León, DeSaulnier,  
            Hill, Knight, Pavley, Wolk, Wright

           SENATE APPROPRIATIONS COMMITTEE  :  6-1, 5/6/13
          AYES:  De León, Walters, Hill, Lara, Padilla, Steinberg
          NOES:  Gaines


           SUBJECT  :    Deaf and disabled telecommunications program

           SOURCE  :     Public Utilities Commission


           DIGEST  :    This bill extends the sunset on the Public Utilities  
          Commissions (PUC) authority to collect a surcharge on intrastate  
          telephone service to fund the Deaf and Disabled  
          Telecommunications Program (DDTP) until January 1, 2020.

           ANALYSIS  :    

          Existing law:

          1. Requires PUC 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  
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             telecommunications network at no charge additional to the  
             basic exchange rate.

          2. Requires PUC 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 PUC to adopt rules for this program by January  
             1, 2014.

          3. Requires PUC to design and implement a program to provide  
             access to a speech-generating telecommunications device to  
             any subscriber who is certified as having a speech disability  
             at no charge additional to the basic exchange rate. 

          4. Requires PUC to expand the deaf and disabled program to  
             include assistance to individuals with speech disabilities,  
             including assistance in purchasing speech-generating devices,  
             accessories, and mounting systems, and specialized  
             telecommunications equipment.

          5. Requires, until January 1, 2014, the PUC to establish a  
             surcharge, not to exceed 0.5%, that is uniformly applied to a  
             subscriber's intrastate telephone service charges to allow  
             providers of the equipment and service provided pursuant to  
             the deaf and disabled programs to recover their costs.

          6. Requires the PUC to submit a report on the fiscal status of  
             the programs to the Legislature on or before December 31 of  
             each year, until January 1, 2016.

          This bill:

           1. Extends the surcharge to fund the DDTP until January 1,  
             2020.

           2. Extends the reporting requirements until January 1, 2021,  
             and requires the PUC to submit the report to the Legislature  
             on or before March 1 of each year.

           3. Requires the report to include an evaluation of any  
             modification to the DDTP that would maximize participation  
             and funding opportunities under similar federal programs, and  
             requires the PUC to evaluate options for controlling the DDTP  

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             costs of providing speech generating devices, and include any  
             information on barriers to participation by eligible  
             subscribers.

           4. Deletes provisions requiring PUC to expand the DDTP to  
             include assistance to individuals with speech disabilities,  
             including assistance in purchasing speech-generating devices,  
             accessories, and mounting systems, and specialized  
             telecommunications equipment.
           5. Repeals the provisions that states that existing members of  
             the DDTP Administrative Committee should serve out their  
             current terms of office as members of the Committee, but not  
             to exceed July 1, 2003 and requires the Committee to develop  
             and submit, not later than October 1, 2002, recommendations  
             to PUC for administration and governance of the deaf and  
             disabled programs, as prescribed.

           Background
           
          The 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.  DDTP 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, Chapter 404,  
          Statutes of 2011), the PUC currently is developing rules, to be  
          effective January 1, 2014, for DDTP to provide access to a  
          speech-generating device to individuals with a certified speech  
          disability.

          The DDTP is administered by the PUC, 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  
          PUC, contractors, and advisory committees conduct outreach to  
          increase participation and ensure awareness among veterans and  

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          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  .  Existing law effective until January 1,  
          2014, requires funding of the DDTP through a customer surcharge  
          of not more than one-half of 1% of charges for intrastate  
          telephone service, including landline, wireless, and Voice over  
          Internet Protocol service.  PUC is authorized to adjust the  
          surcharge to meet program expenses.  It currently is set at  
          0.20%.  PUC 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
           
          According to the author's office, thousands of Californians are  
          challenged using a standard telephone because of difficulty  
          seeing, hearing, speaking, moving or remembering.  DDTP enables  
          these citizens to communicate, be reached by friends and  
          loved-ones, and to receive health and safety impacting services  
          connecting them by telephone to emergency, medical, and business  
          entities.  In addition, if the surcharge expires California  
          would be out of compliance with the Americans with Disabilities  
          Act requirement to provide relay services.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, there are  
          annual revenues of $35 million to $55 million to the DDTP  
          Administrative Committee Fund (special fund) from rate  
          surcharges.

           SUPPORT :   (Verified  5/7/13)

          Public Utilities Commission (source)
          Area 4 Agency on Aging
          Association of Regional Center Agencies

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          AT&T
          California Commission on Aging
          California Communications Access Foundation
          California Communications Association
          California Senior Leaders Alliance
          California Senior Legislature
          California's Independent Telecommunications Companies
          Consumer Federation of California
          Disability Rights Education and Defense Fund
          Division of Ratepayer Advocates
          State Independent Living Council
          SureWest Communications

          JG:k  5/7/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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