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        
           
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          |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
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          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