BILL ANALYSIS
AB 219
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CONCURRENCE IN SENATE AMENDMENTS
AB 219 (Utilities Committee)
As Amended May 1, 2001
2/3 vote. Urgency
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|ASSEMBLY: |73-1 |(April 16, |SENATE: |39-0 |(May 29, 2001) |
| | |2001) | | | |
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Original Committee Reference: U. & C.
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. The program, funded through the existing surcharge is
known as the Deaf and Disabled Telecommunications Program
(DDTP). Provides for a loan from the California High Cost
Fund-B (CHCF-B), another universal service fund, to the DDTP
fund (Deaf Trust), to continue operations until surcharge
authorization takes place.
The Senate amendments add Section 270.1 to the Public Utilities
Code to allow CHCF-B to loan operating funds to Deaf Trust for
the cost of operating the program for six months and provide for
reimbursement to CHCF-B from the Deaf Trust, with interest.
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.
AS PASSED BY THE ASSEMBLY , this bill extended the authorization
for collection of the DDTP surcharge and for continued Deaf
Trust program operation through January 1, 2006.
FISCAL EFFECT : Continuation of DDTP surcharge on telephone
bills totals about $45 million.
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.
AB 219
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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
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 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.
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. The loan from CHCF-B will
allow the program to continue to operate while surcharge
authorization is pending and until surcharge monies are again
collected. An additional amendment is proposed to clarify that
the monies will be repaid to the CHCF-B on June 30, 2002 and
until that time will be held in a balancing account separate
from DDTP operational and administrative funds. This alleviates
any concerns regarding DDTP remaining under CPUC fiscal control
until July 1, 2002, while CHCF-B moves to the state treasury on
July 1, 2001.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083
AB 219
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FN: 0001046