BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
MARTHA M. ESCUTIA, CHAIRWOMAN
SB 210 - Bowen Hearing Date: April
5, 2005 S
As Amended: March 14, 2005 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC) to design and implement programs to assist the deaf and
hearing impaired to communicate on the telephone. The Deaf and
Disabled Telecommunications Program (DDTP) implements a dual-party
relay system, using third-party intervention to connect
individuals who are deaf or hearing impaired to persons of normal
hearing. The program also supplies equipment to the affected
individuals to allow the use of the dual-party relay service.
Funding for the DDTP comes from a surcharge on telephone bills set
at a level established by the CPUC not to exceed 0.5% The
surcharge authority expires on January 1, 2006.
This bill extends the surcharge authority until January 1, 2010.
BACKGROUND
Since the 1980's the CPUC has administered the DDTP to provide
access to basic telephone service for Californians who have
difficulty using the telephone.
The DDTP has two components:
The California Relay Service (CRS) provides certified
telecommunications customers, who are hearing impaired or
deaf, with 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. The CPUC had
this program certified through the Federal Communications
Commission's (FCC's) rules adopted pursuant to the Americans
with Disabilities Act of 1990.
The California Telephone Access Program (CTAP) provides
supplemental telephone communications equipment for
subscribers certified to be disabled to accommodate access to
the telecommunications network.
The DDTP is funded by a surcharge that appears on all
Californian's telephone bills as the "CA Relay Service and
Communications Devices Fund." The surcharge is capped at one half
of one percent for each phone user's intrastate phone bill. The
CPUC sets the exact charge, which is now at 0.30%. From July 2004
to December 2004 the surcharge collected $30.2 million - paying
for 67,880 new pieces of equipment and 2.6 million calls. The
surcharge is expected to collect a total of $69.6 million for
fiscal year 2004-05.
COMMENTS
1) The Need to Extend the Surcharge -- Continuation of the
DDTP surcharge through 2010 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 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 basic telephone service will continue to be available to
hearing impaired, deaf and other individuals with specified
disabilities. The surcharge provides funding for uniform
access to the network for all users and is best affected
through its current means with its program continuing to be
under the auspice of the CPUC.
Supporters of this bill believe extension of the surcharge is
vital to providing continued non-discriminatory, affordable
access to basic telephone service in California. It is
essential to giving seniors and people with disabilities
access to equipment which will allow for increased
independence, safety and security.
2) Technological Change Will Affect Funding - While the DDTP
surcharge is assessed in a competitively neutral way, new
technologies will not be subject to this and other public
purpose program surcharges without statutory changes.
Specifically, Voice Over Internet Protocol (VOIP) is
increasingly used by businesses and, to a lesser degree,
individuals. As more customers use VOIP the revenues from
surcharges on traditional telephone service will decline.
This will require surcharge levels to increase to raise the
same amount of revenue. Currently the revenue lost to VOIP
is not material, but the Legislature, and perhaps the FCC,
will need to deal with this in the near future.
3) Related Legislation - AB 1735 (Assembly Utilities and
Commerce Committee), also extends the sunset until January 1,
2010 and it is waiting in the Assembly to be assigned to a
policy committee.
AB 219 (Chavez - Chapter 109, statues of 2001) was
substantially similar to SB 210, as it also extended the
sunset another 4 years. AB 219 was approved by this
committee on a 7-0 vote.
POSITIONS
Sponsor:
Author
Support:
California Council of the Blind
California Coalition of Agencies Serving the Deaf and Hard of
Hearing
Oppose:
None on file
Randy Chinn/Melanie Gutierrez
SB 210 Analysis
Hearing Date: April 5, 2005