BILL ANALYSIS AB 2757 Page 1 ASSEMBLY THIRD READING AB 2757 (Utilities Committee) As Amended April 11, 2000 Majority vote UTILITIES AND COMMERCE 9-0 APPROPRIATIONS 21-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, |Ayes:|Migden, Campbell, | | |Cardenas, Frusetta, | |Ackerman, Alquist, | | |Maddox, Mazzoni, Papan, | |Aroner, Ashburn, Brewer, | | |Reyes, Wesson | |Cedillo, Corbett, Davis, | | | | |Kuehl, Maldonado, Papan, | | | | |Romero, Runner, Shelley, | | | | |Thomson, Wesson, Wiggins, | | | | |Wright, Zettel | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY: Requires the California Public Utilities Commission (CPUC) to establish and implement a toll-free number to access telephonic reading systems for individuals with print disabilities, and authorizes specified entities to apply to CPUC for funds to establish and operate new telephonic reading systems. Specifically, this bill : 1)Expands the scope of the advisory functions of the Deaf and Disabled Telecommunications Program (DDTP) Administrative Committee to encompass programs for people who are print disabled. 2)Directs CPUC to design and implement a program to provide toll-free access to telephonic reading systems for California residents with print disabilities by July 1, 2001, using a single toll-free number and authorizes specified entities to apply to CPUC for funding to establish a new telephonic reading system. 3)Defines a telephonic reading system to be a system where a caller can hear print material such as newspapers, magazines, newsletters, broadcast media schedules, and other time sensitive materials read to them which are operated by either divisions of the state of California or nonprofit organizations. AB 2757 Page 2 4)Limits expenditures to fund the program to 20% of the maximum funds collected by the DDTP Administrative Committee Fund (DDTP Fund). 5)Requires CPUC to reimburse any authorized operational expenses that telephonic reading systems may occur after January 1, 2001, and make retroactive payments to a system after the implementation of the measure. Makes various findings and declarations regarding the telephonic reading system and cites the legislation as the Kevin Starr Access to Information Act of 2000. EXISTING LAW : Requires CPUC to establish a rate recovery mechanism through a surcharge on intrastate telephone service to recover the costs for providing telecommunications devices capable of serving the needs of the deaf, hearing impaired and disabled, known as DDTP Fund. Establishes the DDTP Administrative Committee to advise CPUC regarding the development, implementation, and administrations of these programs, and the DDTP Fund as repository for the funds collected by the surcharge. FISCAL EFFECT : CPUC estimates special fund costs for two staff positions of $82,462 during the first year and $140,924 annually thereafter. CPUC would incur special fund costs of about $100,000 to develop protocols and to implement the program. Equipment start-up costs (special fund) are estimated at $70,000, and annual operating costs (special fund) are estimated at $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. COMMENTS : 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. Within the state, there are six telephonic reading systems. Persons calling from outside the calling area of the site's location (local calling areas are generally limited to a radius of approximately 12 miles) cannot use the service without incurring long distance telephone charges. This has resulted in AB 2757 Page 3 a significant underusage of the program by the print disabled in this state. Access to the system is restricted to individuals who qualify under federal regulations. The California State Library estimates the total California client base is 47,819, and is made up of approximately 77% blind or visually impaired (i.e., 36,711), 13% who are learning disabled (i.e., 6,434), 6% who cannot manipulate print due to a physical disability (i.e., 2,794), and the rest not reporting a disability. DDTP was established by the Legislature [SB 1782 (Rains), Chapter 454, Statutes of 1982] to provide telecommunications devices to the disabled. DDTP currently funds three programs for deaf, hearing impaired, and disabled people. The ceiling for DDTP surcharge is set by statute at 0.5%. For 2000, CPUC is assessing the surcharge at 0.28%, less than the authorized amount, for a total budget of $57.4 million. This bill will not increase the statutory cap. This bill gives CPUC latitude in establishing the program for toll-free access, as well as standards for telephonic reading systems across the state. Additionally, this bill allows for retroactive payments for operational expenses after the implementation of the program. These provisions were included in this bill because the funding for five of the sites ends as of September 30, 2000, so they can continue operations between October 1, 2000, and the date CPUC implements the program. Analysis Prepared by : Jonathan Buttle / U. & C. / (916) 319-2083 FN: 0004822