BILL ANALYSIS
AB 219
Page 1
ASSEMBLY THIRD READING
AB 219 (Utilities Committee)
As Introduced February 9, 2001
2/3 vote. Urgency
UTILITIES AND COMMERCE 15-0 APPROPRIATIONS 16-0
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|Ayes:|Wright, Pescetti, |Ayes:|Migden, Daucher, Alquist, |
| |Calderon, John Campbell, | |Aroner, Ashburn, Corbett, |
| |Canciamilla, Cardenas, | |Goldberg, Maldonado, |
| |Diaz, Jackson, Kelley, | |Robert Pacheco, Papan, |
| |Leonard, Maddox, Nation, | |Shelley, Simitian, |
| |Papan, Reyes, Wesson | |Thomson, Wesson, Wiggins, |
| | | |Zettel |
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SUMMARY : 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).
EXISTING LAW requires the California Public Utilities Commission
(CPUC) to establish a rate recovery mechanism through surcharges
on intrastate telephone service to recover costs specified for
this program.
FISCAL EFFECT : Continuation of DDTP surcharge on telephone
bills totals about $45 million.
COMMENTS :
1)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.
AB 219
Page 2
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
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 of 1%, applied to intrastate
telephone service to fund the specified programs.
2)The Need to Extend the Surcharge. The 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.
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
AB 219
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cause is profound.
Continuation of DDTP surcharge through 2006 will allow deaf,
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 of 1% 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.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083
FN: 0000303