BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 210
                                                                  Page  1

          Date of Hearing:   June 13, 2005

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Lloyd E. Levine, Chair
                     SB 210 (Bowen) - As Amended:  March 14, 2005

           SENATE VOTE  :   36-1
           
          SUBJECT  :   Telecommunications: telephone corporations:  
          surcharge.

           SUMMARY  :   Extends the sunset from 2006 to 2010 on the  
          California Public Utilities Commission's (PUC) authority to fund  
          the Deaf and Disabled Telecommunications Program (DDTP).

           EXISTING LAW  :

          1)Requires the PUC to design and implement a program to provide  
            a telecommunication device capable of serving the needs of  
            individuals and organizations who are certified as either  
            representing or being deaf or hearing impaired at no charge  
            beyond the basic exchange rate.

          2)Requires the PUC to design and implement a program to provide  
            a dual party relay system, using third party intervention to  
            connect individuals who are deaf or hearing impaired with  
            offices of organizations that represent individuals who are  
            deaf or hearing impaired.

          3)Requires the PUC to establish a surcharge not to exceed one  
            half of one percent to pay for providers of equipment and  
            services.  The PUC surcharge authority sunsets on January 1,  
            2006.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :  The purpose of this bill is to allow a successful  
          program that assures that the deaf and disabled have access to  
          suitable telecommunications equipment does not terminate in 2006  
          when the PUC's statutory authority to fund the programs expires.  


           Brief history:  Since the 1980's, the PUC has administered  
          programs that assist the deaf and disabled in using telephone  
          service. The programs are collectively known as the DDTP. The  








                                                                  SB 210
                                                                  Page  2

          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. 

          Currently, an estimated 400,000 to 450,000 people use equipment  
          provided under the DDTP. In the six months between July 2004 and  
          December 2004, the DDTP connected 2.6 million calls through the  
          California Relay Service.

          The following are descriptions of each of the DDTP programs:

           ----------------------------------------------------------------- 
          |Telecommunications|This program provides for the distribution of |
          | Devices for the  |telecommunications devices for the deaf       |
          |Deaf              |(TDDs) to certified deaf and hearing impaired |
          |                  |telephone subscribers, to any school or       |
          |                  |organization representing the deaf or hearing |
          |                  |impaired and state agencies having            |
          |                  |significant contact with the public.          |
          |------------------+----------------------------------------------|
          |California Relay  |This program provides the deaf and hearing    |
          |Service           |impaired with direct access to California's   |
          |                  |public switched telephone network.  The       |
          |                  |California Relay Service (CRS) uses third     |
          |                  |party intervention to provide 24 hour contact |
          |                  |with any other telephone subscriber.          |
          |------------------+----------------------------------------------|
          |Supplemental      |This program provides specialized             |
          |Telecommunications|telecommunications equipment to consumers     |
          | Devices for the  |with hearing, vision, mobility, speech and    |
          |Disabled          |cognitive disabilities.  Examples of this     |
          |                  |equipment are amplifying devices, telephone   |
          |                  |ringer signals, speakerphones and cordless    |
          |                  |phones.                                       |
           ----------------------------------------------------------------- 
           
          Funding for the programs  :  While current law authorizes the PUC  
          to establish a ratepayer surcharge of up to one-half of one  
          percent (0.50%) on all intrastate telephone service to fund the  
          DDTP programs, the PUC has set the surcharge at .30%. The PUC's  
          authority to collect this charge expires on January 1, 2006.  
          This bill extends the PUC's authority to collect the funds  
          necessary to administer the DDTP program until 2010. 









                                                                  SB 210
                                                                  Page  3

           The need to extend the program:  Continuation of the DDTP  
          surcharge through 2010 will allow deaf, hearing impaired and  
          other disabled individuals to continue to have affordable access  
          to basic telephone service.  The existing cap of one half of one  
          percent would remain in effect for the duration of the extension  
          of the surcharge.      
                     
           RELATED LEGISLATION  : 

          AB 1735 (Committee on Utilities and Commerce) also extends the  
          sunset until January 1, 2010. The bill passed this committee on  
          April 11, 2005 on a 10-0 vote.  

          AB 219 (Committee on Utilities and Commerce), 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 15-0 vote in 2001.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Council of the Blind
          California Coalition of Agencies Serving the Deaf and Hard of  
          Hearing.
          Verizon

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :   Edward Randolph  / U. & C. / (916)  
          319-2083