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