BILL ANALYSIS
AB 219
Page 1
Date of Hearing: March 19, 2001
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 219 (Wright) - As Introduced: February 9, 2001
SUBJECT : Public Utilities: deaf and disabled telecommunications
program
SUMMARY : This bill extends the requirement for a recovery
mechanism through a surcharge on intrastate telephone service to
recover costs for providing telecommunications devices capable
of serving the needs of the deaf and hearing impaired and
telecommunications equipment for the disabled to January 1,
2006. This program funded through the existing surcharge is
known as the Deaf and Disabled Telecommunications Program
(DDTP). Specifically, this bill : This bill contains an urgency
measure.
EXISTING LAW : Requires the California Public Utilities
Commission (CPUC) to establish a rate recovery mechanism through
surcharges of intrastate telephone service to recover costs
specified for this program.
FISCAL EFFECT : Unknown.
COMMENTS :
Universal Service Surcharges:
The Moore Universal Telephone Service Act asserts that providing
universally available and affordable access to basic telephone
service throughout the state is an essential policy goal for
California. Through various programs funded through surcharges
such as Universal Lifeline Telephone Service (ULTS), basic
telephone service is made affordable to low-income households
and available to all customers. Affordability and availability
are secondary to those users for whom access to the network
requires special equipment due to hearing impairment or
deafness.
DDTP provides that certified telecommunications customers who
are hearing impaired or deaf have access to the
telecommunications network through a dual-party relay system
using a third party intervention to connect individuals or
AB 219
Page 2
offices of organizations representing these groups with persons
of normal hearing by way of intercommunications devices. CPUC
had this program certified through the Federal Communications
Commission's (FCC's) rules adopted pursuant to the Americans
with Disabilities Act of 1990.
DDTP also provides, through a program designed by CPUC,
supplemental telephone communications equipment for subscribers
certified to be disabled to accommodate access to the
telecommunications network. CPUC established a surcharge, which
by statute may not exceed one half of one percent, applied to
intrastate telephone service to fund the specified programs.
The Need to Extend the Surcharge:
DDTP surcharge was never intended to disappear altogether, as
the need for maintaining access to the network for persons with
disabilities is an ongoing universal service imperative.
Extension of the surcharge for specified periods of time, in
this case not to exceed five additional years, is prudent. As
demand on the telecommunications infrastructure increases, it
remains critical to keep the hearing impaired and deaf as well
as other telecommunications consumers with disabilities
connected effectively to the network.
There has been no substantial change in market structure for the
residential telephone service market in California and landline
or traditional copper wire residential basic telephone service
remains a monopoly provided service in all service areas of the
state. The surcharge applies equally to all telecommunications
users, regardless of provider of choice, on intrastate services.
Absent the funding through the existing surcharge, there is no
other effective, economically viable means of providing the type
of equipment and relay service required to maintain access to
the telecommunications network for deaf or hearing impaired
individuals or for other individuals with specified
disabilities. The detriment to the overall health, safety and
well-being of these individuals that removal of the funding,
which allows them to have access to the network for basic
telephone services at the same cost as other users, would cause
is profound.
Staff Recommends:
Continuation of DDTP surcharge through 2006 will allow deaf,
AB 219
Page 3
hearing impaired and other disabled individuals to continue to
have the same affordable access to basic telephone service in
California that other users continue to enjoy. The existing cap
of one half of one percent would remain in effect for the
duration of the extension of the surcharge. No consumer will
pay higher prices as a result of the extension of the surcharge
and universal basic telephone service will continue to be
available to hearing disabled, deaf and other individuals with
specified disabilities. The surcharge provides funding for
uniform access to the network for all users and is best effected
through its current means with its program continuing to be
under the auspice of CPUC and existing advisory boards.
Extension of the surcharge is vital to providing continued
non-discriminatory, affordable access to basic telephone service
in California.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
Deaf Counseling Advocacy & Referral Agency
Office of Ratepayer Advocates (ORA)
3 individuals
Opposition
None on file.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083