BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1734|
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THIRD READING
Bill No: AB 1734
Author: Assembly Utilities and Commerce Committee
Amended: 5/13/02 in Senate
Vote: 27 - Urgency
SENATE ENERGY, U.&C. COMMITTEE : 8-0, 4/9/02
AYES: Bowen, Morrow, Alarcon, Battin, Murray, Sher,
Vasconcellos, Vincent
SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/6/02
AYES: Alpert, Battin, Bowen, Johannessen, Johnson,
Karnette, Perata, Poochigian
ASSEMBLY FLOOR : Not relevant
SUBJECT : Telecommunications services
SOURCE : State Public Utilities Commission
DIGEST : This bill makes changes to the Deaf and Disabled
Telecommunications Program, within the State Public
Utilities Commission.
ANALYSIS : Current law establishes programs to enable and
subsidize telecommunications service for the deaf, hearing
impaired, and handicapped.
The Deaf and Disabled Telecommunications Program (DDTP) was
established about 20 years ago and provides
telecommunications services to approximately 500,000
persons who are deaf, hearing impaired, or handicapped. It
CONTINUED
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is estimated that three million people may be eligible for
service. The current program budget is approximately $56
million, but is projected to be $69 million in 2002-03,
accounting for an already approved expansion in relay
service. DDTP revenues are derived from a surcharge on all
intrastate telecommunications billings.
The Deaf and Disabled Telecommunications Program
Administrative Committee (DDTPAC) advises the State Public
Utilities Commission (PUC) on the administration of this
program. DDTPAC's budget is approximately $2.6 million.
Current law establishes a fund in the state treasury to
receive monies in support of this program and to disburse
monies to pay for this program. The PUC is required to
transfer funding for these programs from a PUC-administered
account to this account by July 1, 2002.
This bill authorizes the PUC, subject to annual
appropriation of funds by the Legislature, to contract with
others to operate the telecommunications programs for the
deaf, hearing impaired, and handicapped, and makes
supportive findings.
This bill, commencing July 1, 2003, renames the DDTPAC as
the Telecommunications Access for Deaf and Disabled
Administrative Committee (TADDAC) and requires that not
less than two-thirds of the committee membership be deaf or
disabled.
This bill specifies, commencing July 1, 2003, that any
increased staffing costs incurred by the PUC for the
oversight and administration of the program be funded by
the Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
This bill delays the transfer of program funds from the PUC
to the TADDAC account in the treasury until July 1, 2003 by
which time the TADDAC must develop a transition plan for
program administration and governance and submit it to the
PUC.
This bill requires the PUC to employ staff overseeing the
deaf and disabled telecommunications program who, to the
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extent feasible and consistent with state civil service
requirements, are members of the deaf and disabled
community.
Background
Since the 1980's, the PUC has administered programs to
assist the deaf and disabled in using telephone service.
The programs provide specialized telecommunications
equipment, discounted telephone rates, and a
telecommunications translator service, known as a
dual-party relay service, through which the deaf can
communicate with others. Funding for these programs is
provided by a surcharge on telecommunications service,
which has been kept in accounts administered by the PUC.
Aggregate program costs are about $50 million annually.
These programs are currently contracted out, with the
DDTPAC providing advice and program administration to the
PUC.
SB 669 (Polanco), Chapter 677, Statutes of 1999, was
enacted to move this account, as well as all specially
funded telecommunications accounts, from the PUC into the
state treasury. The transfer of funds into the state
treasury meant that fund administrators and programmatic
employees could no longer be contracted out without
legislative authorization, a restriction affecting 94
employees. Consequently, SB 669 also required the PUC to
develop a plan to have the programs administered by state
employees instead of being contracted out.
The PUC's transition plan suggested three approaches to
changing the current system:
Option 1 makes the administrative and programmatic
employees into PUC state employees.
Option 2 obtains contracting out authority.
Option 3 transfers the employees to another state
agency serving the disabled.
This bill chooses Option 2.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
PUC staff for contract Potential increased costs of $220
Special*
administration annually beginning 2003-04,
offset by
surcharge revenue
Contract for admini- Unknown costs or savings. Any
increased Special*
stration costs should be offset by
surcharge
revenues
TADDA Committee Potential cost savings of $185
annually, Special*
beginning 2003-04
Funds transfer Delays, from July 1, 2002 to
July 1, 2003, Special*
the transfer of an
unknown amount from
the DEAF Trust to
the DDTPACF
*Deaf and Disabled Telecommunications Program
Administrative Committee Fund (DDTPACF)
SUPPORT : (Verified 5/14/02)
State Public Utilities Commission (source)
California Coalition of Agencies Serving Deaf and Hard of
Hearing, Inc.
Deaf Community Services of San Diego, Inc.
Greater Los Angeles Council on Deafness, Inc.
Office of Ratepayer Advocates
Orange County Deaf Equal Access Foundation
Self Help for Hard of Hearing People
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6 individuals
NC:cm 5/15/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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