BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2757| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2757 Author: Assembly Utilities and Commerce Committee Amended: 6/21/00 in Senate Vote: 27 SENATE ENERGY, U.&C. COMMITTEE : 6-1, 6/27/00 AYES: Bowen, Hughes, Kelley, Murray, Solis, Vasconcellos NOES: Mountjoy SENATE APPROPRIATIONS COMMITTEE : 9-1, 8/7/00 AYES: Alpert, Bowen, Johnson, Karnette, Kelley, Leslie, McPherson, Perata, Vasconcellos NOES: Mountjoy ASSEMBLY FLOOR : 77-0, 5/30/00 - See last page for vote SUBJECT : Public utilities: telephonic reading system SOURCE : Lighthouse for the Blind DIGEST : This bill requires the California Public Utilities Commission to establish and implement a toll-free number to access telephonic reading systems for individuals with print disabilities. ANALYSIS : Current law authorizes the California Public Utilities Commission (PUC) to impose a surcharge of up to 0.5 percent on each telephone bill to fund the Deaf and Disabled Telecommunications Program (DDTP), which sunsets on January 1, 2001. The surcharge set by the PUC is currently at 0.28 percent CONTINUED AB 2757 Page 2 This bill extends the sunset on the DDTP surcharge to January 1, 2005. Current law establishes a DDTP administrative committee to advise the PUC on telecommunications services and programs to provide telecommunications equipment for the deaf and disabled. This committee also carries out telecommunications programs approved and controlled by the PUC. This bill expands the definition of programs handled by the committee to extend to "print disabled" persons who are unable to read due to visual impairments and dyslexia, but also orthopedic disabilities that prevent them from handling books, turning pages, etc. This bill establishes the Kevin Starr Access to Information Act and authorizes up to 20 percent of the total telephone surcharge funds collected under the DDTP to be used to develop a program to provide toll-free access to telephonic reading centers by people with visual impairments, dyslexia and orthopedic disabilities which prevent them from handling or manipulating reading materials. This program must be implemented by the PUC by July 1, 2001. This bill defines "telephonic reading system" to mean a system operated by or under the control or sponsorship of the State of California, or by any nonprofit corporation doing business in this State whereby the caller can hear the reading of materials such as newspapers, periodicals, broadcast media schedules, transit route and schedule information, and other time sensitive materials as determined by the operator of the system. This bill requires the committee to review the guidelines and administration of existing telephone reading systems that serve the print disabled, and issue recommendations to the PUC regarding new protocols and guidelines. This bill requires the PUC to establish new protocols and guidelines for telephonic reading systems based on those recommendations. These protocols should take into account the cost-effectiveness of a telephonic reading center and AB 2757 Page 3 whether the publications meet local, regional, and foreign language needs of all Californians. This bill authorizes any State or local agency or any nonprofit organization doing business with the State to apply to establish and operate a telephone reading system. This bill requires the PUC to reimburse any authorized operational expenses paid or incurred by a telephonic reading system established between January 1, 2001, and July 1, 2002, excluding any operating costs covered by grants or donations. This bill states legislative intent that $185,000 of an amount appropriated in the Budget Act of 2000 be used by the California State Library to fund the operations of telephonic reading centers in San Diego, Fresno, San Francisco, and Sacramento from October 1, 2000, to September 30, 2001. (This money is currently in the budget bill that's pending before the Governor). Background Sponsored by San Francisco Lighthouse for the Blind, this bill proposes to add a program to the existing DDTP fund whereby a single toll-free telephone number would provide access to the statewide telephonic reading system. The bill also proposes to create more telephonic reading centers, complete with telephone equipment and services. The California State Library is California's agency for the National Library Service of the Library of Congress, which provides recorded library materials to people with reading disabilities in the United States. Today, six California centers - two in Sacramento, and one each in Los Angeles, San Diego, San Francisco and Fresno - serve an estimated 47,819 print disabled Californians. These programs are currently funded by a federal grant which expires this year, and this bill proposes to fund them with state money from an existing telephone surcharge. The system lets people listen to a newspaper of their choice read either by a recorded voice or a computerized synthesized voice, depending on the system. A person has a AB 2757 Page 4 password and access code, allowing them to enter a computerized system and select from a number of choices. Under the existing federally-funded program, there are two different types of telephonic reading systems in California - Newsline for the Blind (which is used in five California locations) and Telephone Reader (which is used at one of the Sacramento sites). The Newsline for the Blind system allows callers to have any newspaper they choose read to them by a synthesized computer voice. Newsline is a 24-line system and is accessible 24 hours a day. Costs associated with operating a Newsline site include $30,000 for the central computer, a $5,000 start-up fee (paid to Newsline), a $2,000 annual fee, along with general phone line installation charges. The total start-up costs are estimated by the sponsor to be $39,000, with annual ongoing costs for fees, maintenance, and personnel running about $39,000. The Telephone Reader system uses human voice recordings and local newspapers provide digital files of the entire contents of current day (or in the case of the Sacramento Bee , the previous day) that are computer-ready for application to the system. The Telephone Reader system is under the full control of the telephonic reading site operator who determines what material will be recorded manually and the centers rely on volunteer readers to record these materials. Expenses for the Telephone Reader system include the one-time cost of a 24-line computer system at approximately $28,000, software modules, phone line installation and recording equipment. Total start-up costs are estimated at $74,200, with ongoing annual expenses estimated at $93,500. Comments 1. Toll-Free Access . The six telephonic reading centers in California are located in densely populated areas which make these materials readily available to many users who live in the estimated 12-mile local calling area radius. People who use these systems are literally being read a newspaper over the telephone, meaning calls can last up AB 2757 Page 5 to an hour. For those who live outside the local calling area, the long-distance telephone costs to have a newspaper read to them could be prohibitive - even at seven cents per minute, an hour-long call would cost a person $4.20. For this reason, the current system isn't used often by people who would have to make a long-distance call in order to have a newspaper read to them. Estimated costs for establishing and operating a toll-free line for this purpose range from $500,000 to $1.5 million, depending on how much this line is used. Page 10, lines 21-28, of the bill requires the CPUC to consider the cost-effectiveness of supporting a telephonic reading center and the value of its service to Californians before establishing such a center. The author and committee may wish to consider whether this cost-effectiveness test should also be applied to the toll-free line. 2. Expanding the Use of the Surcharge . Current law allows the PUC to place a surcharge of up to 0.5 percent on each California phone bill in order to fund the existing DDTP. Right now, the surcharge is at 0.28 percent and raises about $57.3 million to fund the existing programs. The DDTP surcharge is also limited under current law to paying for things that make the telephone usable for the deaf and disabled, such as the telephone relay service and equipment for the deaf and handicapped. It doesn't pay for the items which the deaf and disabled use the telephone to gain access to, such as having a book, newspaper, or transit schedule read to them over the phone. This bill expands the items that the money raised from the surcharge can be used to pay for to include the operation of a toll-free access line, the operational costs of existing telephone reading centers, creating new telephonic reading centers, and to have the items that the deaf and disabled will have access to (such as a telephonic newspaper reading system). The author and committee may wish to consider whether this expansion is AB 2757 Page 6 appropriate. 2. Increasing the Amount of the Surcharge . As noted above, current law allows the PUC to place a surcharge of up to 0.5 percent on each California phone bill in order to fund the existing DDTP. Right now, the surcharge is at 0.28 percent and raises about $57.3 million to fund the existing programs. This bill permits the PUC to use 20 percent - or 0.1 percent of the 0.5 percent authorized under current law - of the DDTP fund to pay for the programs under this bill (these programs are currently paid for by federal grants). If a telephone surcharge of 0.28 percent raises $57.3 million, that means the full 0.5 percent surcharge would raise about $102 million - meaning a maximum about $20.4 million could be diverted to fund the programs authorized under this bill. If the maximum amount is diverted, it would reduce the funding level for the existing programs to about $37 million, which could require the CPUC to raise the surcharge from the existing 0.28 percent level if it determines it needs to recoup that lost money to pay for existing programs. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes Fiscal Impact (in thousands) Major Provisions 2000-01 2001-02 2002-03 Fund Program extension $140 one time to develop protocols Special* 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 AB 2757 Page 7 *Deaf and Disabled Telecommunications Program Administrative Committee Fund SUPPORT : (Verified 8/11/00) Lighthouse for the Blind (source) California Council for the Blind California Optometric Association Californians for Disability Rights, Inc. Independent Living Resource Center San Francisco National Federation of the Blind of California, Inc. Office of Ratepayer Advocates Protection and Advocacy, Inc. Recording for the Blind and Dyslexic ASSEMBLY FLOOR AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn, Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs, Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra, Firebaugh, Florez, Frusetta, Gallegos, Granlund, Havice, Honda, House, Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach, Lempert, Leonard, Longville, Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni, Migden, Nakano, Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan, Pescetti, Reyes, Romero, Runner, Scott, Shelley, Steinberg, Strickland, Strom-Martin, Thompson, Thomson, Torlakson, Villaraigosa, Vincent, Washington, Wayne, Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg NC:kb 8/14/00 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****