BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 129| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 129 Page 2 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 CONTINUED SB 129 Page 3 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 CONTINUED SB 129 Page 4 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 CONTINUED SB 129 Page 5 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 **** END **** CONTINUED