BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 129
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          SENATE THIRD READING
          SB 129 (Wright)
          As Amended  June 5, 2013
          2/3 vote.  Urgency 

           SENATE VOTE  :34-0  
          
           UTILITIES & COMMERCE             12-0                
          APPROPRIATIONS      16-0        
           
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          |Ayes:|Bradford, Patterson,      |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Buchanan, Chávez, Fong,   |     |Bocanegra, Bradford, Ian  |
          |     |Beth Gaines, Garcia,      |     |Calderon, Campos, Eggman, |
          |     |Roger Hernández, Quirk,   |     |Gomez, Hall, Holden,      |
          |     |Rendon, Skinner, Brown    |     |Linder, Pan, Quirk,       |
          |     |                          |     |Wagner, Weber             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|>                         |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Extends the sunset date on the California Public  
          Utilities Commission's (PUC's) authority to collect a surcharge  
          on intrastate telephone service to fund the Deaf and Disabled  
          Telecommunications Program (DDTP) until January 1, 2020, and  
          extends the reporting requirement until January 1, 2021.   
          Specifically,  this bill  :

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

          2)Deletes provisions requiring PUC to expand DDTP to include  
            assistance to individuals with speech disabilities, including  
            assistance in purchasing speech-generating devices,  
            accessories, and mounting systems, and specialized  
            telecommunications equipment.

          3)Repeals the provisions that states that existing members of  
            DDTP Administrative Committee should serve out their current  
            terms of office as members of the Committee, but not to exceed  
            July 1, 2003.









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          4)Requires 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.

          5)Contains an urgency clause allowing this bill to take effect  
            immediately upon enactment.

           FISCAL EFFECT  :   According to Assembly Appropriations Committee,  
          annual revenues of $35 million to $55 million to DDTP  
          Administrative Committee Fund (special fund) from extending the  
          rate surcharge authority.

           COMMENTS  :   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 seeks to  
          continue a vital program".

           Background  :  In 1979, legislation was enacted codifying PUC's  
          existing program for
          providing specialized equipment to the deaf and hard of hearing.  
           Specifically, the statute mandated that 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.  









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           DDTP funding  :  DDTP is funded by an all-end-user surcharge on  
          intrastate telephone service
          including traditional wireline, Voice over Internet Protocol and  
          wireless service phone bills.  The surcharge is billed and  
          collected by telecommunications carriers which, in turn, remit  
          the surcharge monies to a financial institution as directed by  
          the Commission or its representatives. The PUC is authorized to  
          adjust the surcharge to meet program expenses.  It currently is  
          set at 0.20 %.  

           Program expansion  :  As required by AB 136 (Beall), Chapter 404,  
          Statutes of 2011, PUC 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.  PUC reports that initial workshops are  
          underway and projects a final decision to be released later this  
          year. 

          In light of the recent DDTP expansion, this bill seeks to extend  
          the sunset date on PUC's authority to collect the surcharge from  
          January 1, 2014, to January 1, 2020.  Interested stakeholders  
          support this extension because it will ensure that people who  
          are challenged using a standard telephone because of difficulty  
          seeing, hearing, speaking, moving or remembering continue to  
          receive health and safety impacting services connecting them by  
          telephone to emergency, medical, business and other entities.   
          Absent this extension, the surcharge will expire and there will  
          be no funds to continue to provide state mandated DDTP services,  
          thus impacting the health and safety of Deaf Disabled persons  
          needing to communicate by telephone.  In addition, the state  
          would be out of compliance with federally mandated American  
          Disabilities Act.

          To ensure DDTP transparency and accountability, the bill  
          requires PUC to submit an annual report to the Legislature on  
          the fiscal status and to include recommendations for any  
          modification to the program in order to maximize participation  
          and funding opportunities under similar federal programs.


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 










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