BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 136
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 136 (Beall) - As Amended:  April 26, 2011 

          Policy Committee:                              
          UtilitiesVote:15-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill expands the Deaf and Disabled Telecommunications 
          Program (DDTP) to include assistance to persons with speech 
          disabilities. Specifically, this bill:

          1)Requires the Public Utilities Commission (PUC) to expand the 
            DDTP to include assistance in purchasing speech-generating 
            devices, accessories, mounting systems, and specialized 
            telecommunications equipment, including infrared telephones, 
            speaker phones, and telephone interface devices.

          2)Requires the PUC to prescribe eligibility standards, ensuring 
            that only individuals who are speech impaired as certified by 
            a licensed physician, licensed speech-language pathologist, or 
            qualified state or federal agency, are eligible.

          3)Requires the PUC to provide each eligible applicant with the 
            appropriate equipment, consistent with the recommendation of a 
            licensed speech-language pathologist.

           FISCAL EFFECT 

          The PUC indicates it would require a contract to provide advice 
          regarding speech-generating devices, since the commission lacks 
          expertise in this area, which involves specialized medical 
          equipment that sometimes incorporates a telecommunications 
          component.  The PUC would also have to amend its existing DDTP 
          administrative contract to encompass this work. The first-year 
          personnel and contract costs would be in the range of $500,000, 
          with ongoing costs of around $400,000. 









                                                                  AB 136
                                                                  Page  2

          In addition, the costs to provide equipment would depend on the 
          number of applicants for assistance, which is unknown.  Assuming 
          equipment is provided for 1,000 applicants each year at an 
          average cost of $11,000, annual costs would be $11 million. 

          The Deaf and Disabled Telecommunications Program Administrative 
          Committee Fund is projected to have a balance of $10.9 million 
          as of June 30, 2012. Additional costs at a level described above 
          would likely require an increase in the DDTP surcharge rate that 
          funds this program.

           


          COMMENTS  

           1)Background  . The DDTP is administered by the PUC to provide 
            individuals who are deaf and disabled with equipment and relay 
            services through the California Telephone Access Program 
            (CTAP) and the California Relay Service.  The DDTP and CTAP 
            provide a telecommunications device capable of serving the 
            needs of individuals who are deaf or hearing impaired, 
            together with a single party line, at no charge additional to 
            the basic exchange rate. Funds for the DDTP-totaling $69 
            million for 2011-12-are collected via a 0.2% surcharge applied 
            to every telephone subscribers' interstate telecommunication 
            service.

           2)Purpose  . According to the author, AB 136 will further not only 
            the intent of the DDTP, but also state and federal 
            antidiscrimination laws, including the Americans with 
            Disabilities Act, which is intended to ensure that people with 
            disabilities have access to auxiliary aids and services 
            necessary to ensure effective communication.  The author 
            argues that "no individual should be prevented from making or 
            receiving a telephone call now that the technology exists to 
            make it possible through the state program established to 
            ensure that very access".

           Analysis Prepared by :    Chuck Nicol / APPR. / (916) 319-2081