BILL ANALYSIS Ó
SB 129
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Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 129 (Wright) - As Amended: June 5, 2013
Policy Committee: Utilities and
Commerce Vote: 12-0
Urgency: Yes State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill extends the sunset on the Public Utilities
Commission's (PUC) authority to collect a surcharge on
intrastate telephone service to fund the Deaf and Disabled
Telecommunications Program from January 1, 2016 until January 1,
2020. Additionally, this bill:
1)Extends the annual 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.
2)Deletes a duplicative provision requiring PUC to design and
implement a program for individuals with speech disabilities.
The PUC is still required to expand the DDTP to include
assistance to individuals with speech disabilities, including
assistance in purchasing speech-generating devices,
accessories, mounting systems and specialized
telecommunications equipment.
3)Repeals the obsolete provision that allows existing members of
the DDTP Administrative Committee to serve out their current
terms of office as members of the Committee, but not to exceed
July 1, 2003.
4)Repeals the obsolete provision that requires the DDTP
Administrative 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.
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FISCAL EFFECT
Annual revenues of $35 million to $55 million to the DDTP
Administrative Committee Fund (special fund) from extending the
rate surcharge authority.
COMMENTS
1)Purpose. According to the author, thousands of Californians
find using a standard telephone challenging 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. This legislation continues
funding for this program.
2)Background. In 1979, legislation was enacted codifying the
PUC's existing program to
provide specialized equipment to the deaf and hard of hearing.
Specifically, the statute mandated that the PUC design and
implement a program to provide telecommunication devices to
deaf and hard-of hearing consumers. 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.
DDTP is administered and operated by the PUC with advisory
input from two advisory boards and with program services and
equipment provided by vendors under contract with PUC. 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.
3)DDTP Fund Audit. On January 10, 2013, the Department of
Finance released a performance audit of the PUC that
identified significant weaknesses in the PUC's budget
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operation that negatively affect the PUC's ability to prepare
and present reliable and accurate budget information. The DDTP
Administrative Fund was one of the funds highlighted by the
audit and its budget numbers continue to be reviewed and
adjusted.
4)Administrative Fees. The PUC's administrative fees for this
program increased dramatically from approximately $230,000 in
FY 08-09 to over $1.1 million in FY 11-12. The CPUC reports
that this increase was due to historic accounting errors as
staff was not correctly billing their time to the program.
However, as the number of staff working on the program
remained constant, the PUC does not expect significant changes
to the CPUC administrative charge going forward. The annual
report will provide information necessary to review this
program.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081