BILL ANALYSIS AB 2757 Page 1 Date of Hearing: April 26, 2000 ASSEMBLY COMMITTEE ON APPROPRIATIONS Carole Migden, Chairwoman AB 2757 (Utilities and Commerce) - As Amended: April 11, 2000 Policy Committee: Utilities and Commerce Vote: 9-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill: 1)Requires the Public Utilities Commission (PUC) to implement a program to provide statewide toll-free access, using a single toll-free number, to a telephonic reading system for individuals with print-reading disabilities. 2)Limits expenditures for these systems to 20 percent of authorized maximum revenues in the Deaf and Disabled Telecommunications Program Administrative Committee Fund. 3)Authorizes any state or local government entity or nonprofit organization doing business in the state to apply to the PUC to establish and operate a telephonic reading system. FISCAL EFFECT 1)Annual special fund costs in excess of $1 million to provide statewide toll-free access for qualified individuals. 2)Estimated start-up costs (special fund) of around $70,000 for equipment and annual operating costs (special fund) of around $60,000 for each operator of a system. The total number of system operators is unknown, but annual costs for the six existing systems would be over $300,000. 3)The PUC would incur special fund costs of about $100,000 to develop protocols and implement the program. COMMENTS AB 2757 Page 2 1)Background . Persons who cannot read print due to a disability often have to forgo timely access to newspapers, magazines, and other periodicals. Telephonic reading systems, in which the caller can hear the reading of various printed materials, can be accessed by using a standard touch-tone telephone. There are six telephonic reading systems in the state-in San Francisco, Los Angeles, Fresno, San Diego, and two systems in Sacramento. Up to 24 users can access each center simultaneously, but persons calling from outside a center's calling area (generally a 12-mile radius) cannot utilize the service without incurring long distance telephone charges. 2)Purpose . This bill would increase the availability to a telephonic reading service for all qualified residents in the state by providing statewide toll-free access to a single system. Individuals eligible to receive the service would be those who qualify pursuant to federal regulations for loans of library materials tailored for blind and other physically handicapped persons. This includes those certified as blind; persons whose visual disability prevents them from reading standard printed material; persons unable to use standard printed material because of physical limitations; persons certified as having a reading disability; and persons with a reading disability from an organic dysfunction. 3)Funding . The program would be funded from revenues in the Deaf and Disabled Telecommunication Program (DDTP) fund, which was established to provide telecommunications devices to the disabled. Revenues to the fund come from a surcharge established by the PUC on intrastate telephone service which has a statutory ceiling of 0.5 percent. The current surcharge level is 0.19 percent, or less than one-half of the maximum allowable charge. Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081