BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 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





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          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  







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          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  







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          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  







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            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  







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            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








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          *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

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