BILL ANALYSIS Appropriations Committee Fiscal Summary AB 2757 (Wright) Hearing Date: 8/7/00 Amended: 6/21/00 Consultant: Bob Franzoia Policy Vote: E,U&C 6-1 ____________________________________________________________ ___ BILL SUMMARY: AB 2757 would extend from 1/1/01 to 1/1/05 a surcharge on intrastate telephone service for the purpose of recovering the costs for providing telecommunications devices for the hearing impaired. The bill would require the Public Utilities Commission (PUC) to implement a program to provide free access to telephonic reading systems for individuals with print disabilities. The bill would state the intent of the Legislature that $185,000 of the amount appropriated to the California State Library for local assistance in the 2000 Budget Act of 2000 be used by the to fund the operations of telephonic reading centers in certain cities, from 10/1/00 to 9/30/01, in implementation of the bill. Fiscal Impact (in thousands) Major Provisions 2000-01 2001-02 2002-03 Fund Program extension $140 one time to develop protocolsSpecial* and implement the program; similar ongoing costs Surcharge $300 (for existing centers) to $1,000Special* (revenues) annually; funded by estimated increase in existing authorization of less than 0.05 percent * Deaf & Disabled Telecommunications Program Administrative Committee Fund STAFF COMMENTS: 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 reading centers in the state, one each in Fresno, Los Angeles, San Francisco and San Diego and two in Sacramento. Up to 24 users can access each center simultaneously, but persons calling from outside a center's calling area (about 12 miles) cannot utilize the service without incurring long distance telephone charges. This bill would provide statewide toll-free access to a single system. Persons eligible to access the service would be those who qualify under federal regulations for loans of library materials tailored for blind and other physically handicapped persons. The program would be funded from revenues in the Deaf and Disabled Telecommunications Program Administrative Committee 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 is 0.19. The fiscal impact of the intent language is to urge the State Library to use $185,000 of funds it received in the 2000 Budget Act to fund telephonic reading centers (for costs incurred between 10/1/00 and 9/30/01) until the revenues authorized by this bill become available.