BILL ANALYSIS
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THIRD READING
Bill No: SB 210
Author: Bowen (D)
Amended: 3/14/05
Vote: 21
SEN. ENERGY, UTIL. & COMMUNICATIONS COMM. : 10-0, 4/5/05
AYES: Escutia, Alarcon, Battin, Bowen, Campbell, Cox,
Dunn, Kehoe, Murray, Simitian
NO VOTE RECORDED: Morrow
SENATE APPROPRIATIONS COMMITTEE : 10-0, 4/18/05
AYES: Migden, Aanestad, Alquist, Ashburn, Bowen, Dutton,
Florez, Ortiz, Poochigian, Speier
NO VOTE RECORDED: Battin, Escutia, Murray
SUBJECT : Telecommunications: telephone corporations:
surcharge
SOURCE : Author
DIGEST : This bill extends the sunset, from January 1,
2006 to January 1, 2010, on the surcharge on intrastate
telephone service used to pay for the Deaf and Disabled
Telecommunications Program, which provides
telecommunications devices and services to the deaf and
hearing impaired and to the disabled.
ANALYSIS : Existing law requires the Public Utilities
Commission (PUC) to design and implement programs to assist
the deaf and hearing impaired to communicate on the
CONTINUED
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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 PUC not to exceed 0.5
percent. The surcharge authority expires on January 1,
2006.
This bill extends the surcharge authority until January 1,
2010.
Comments
Since the 1980's, the PUC has administered the DDTP to
provide access to basic telephone service for Californians
who have difficulty using the telephone.
The DDTP has two components:
1. 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 PUC had this program certified
through the Federal Communications Commission's (FCC's)
rules adopted pursuant to the Americans with
Disabilities Act of 1990.
2. 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 PUC sets the exact charge, which is now at
0.30 percent. From July 2004 to December 2004 the
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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.
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 remains 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 PUC.
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.
Pending legislation . AB 1735 (Assembly Utilities and
Commerce Committee), currently in the Assembly
Appropriations Committee, is identical to this bill.
Prior legislation . AB 219 (Chavez), Chapter 109, Statutes
of 2001, also extended the sunset for four years, from
January 1, 2002 to January 1, 2006.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2005-06 2006-07
2007-08 Fund
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DDTP surcharge Annual revenues of $60,000+
annuallySpecial*
to fund the DDTP
* Deaf and Disabled Telecommunications Program Fund
SUPPORT : (Verified 4/20/05)
California Council of the Blind
California Coalition of Agencies Serving the Deaf and Hard
of Hearing
California Telephone Association
SBC
NC:mel 4/20/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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