BILL ANALYSIS AB 2757 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2757 (Utilities Committee) As Amended June 21, 2000 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |( May 30, 2000 |SENATE: |32-0 |( August 18, | | | |) | | |2000 ) | ----------------------------------------------------------------- Original Committee Reference: U. & C. 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. The Senate amendments : 1)Extend the sunset date for the Deaf and Disabled Telecommunications Program (DDTP) to January 1, 2005, requiring a 2/3rds vote for passage; extend the date to July 1, 2002 for CPUC to design and implement the program. 2)Provide that any agency operating a telephonic reading system may apply to CPUC between January 1, 2001 and July 1, 2002, for reimbursement of operational costs not paid for from funds provided exclusively for the telephonic reading system; expand the protocols and guidelines for telephonic reading systems. 3)Provide CPUC with authority to audit any agency or group operating a telephonic reading center receiving DDTP funds. 4)Restrict the liability regarding content that CPUC can incur for funding a telephonic reading center. 5)Add intent language for an $185,000 Budget appropriation for operation of five telephonic reading centers from October 1, 2000, until September 30, 2001. EXISTING LAW : ) Requires CPUC to establish a rate recovery mechanism through a AB 2757 Page 2 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 the DDTP Fund. 1)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. AS PASSED BY THE ASSEMBLY , this bill: 1)Expanded the scope of the advisory functions of the DDTP Administrative Committee to encompass programs for people who are print disabled. 2)Directed 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 authorized specified entities to apply to CPUC for funding to establish a new telephonic reading system. 3)Defined 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. 4)Limited expenditures to fund the program to 20% of the maximum funds collected by the DDTP Administrative Committee Fund. 5)Required 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. Made various findings and declarations regarding the telephonic reading system and cites the legislation as the Kevin Starr Access to Information Act of 2000. FISCAL EFFECT : CPUC estimates special fund costs for two staff AB 2757 Page 3 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 : 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 a significant underusage of the program by the print disabled in this state. 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. Senate amendments extend the sunset date for DDTP from January 1, 2001 to January 1, 2005, and make other technical changes to this bill. The amendments were at the request of CPUC, in order to address technical issues with this bill, such as incorporating the normal 18 month timeframe for CPUC to conduct the necessary proceedings and meet various hearing and due process requirements, jurisdiction and liability concerns, retroactive payment of operational costs, and the extension of the DDTP sunset date to continue the existing program. Extension of the sunset date resulted in increasing the vote requirement to 2/3 from a simple majority. Analysis Prepared by : Jonathan Buttle / U. & C. / (916) 319-2083 FN: 0005943