BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 2757

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          GOVERNOR'S VETO

          AB 2757 (Utilities Committee)
          As Amended June 21, 2000
          2/3 vote

           ASSEMBLY:      77-0 (May 30, 2000) SENATE:   32-0 (August 18,  
          2000)     

          ASSEMBLY:      73-3 (August 21, 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 2/3 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  










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            operation of five telephonic reading centers from October 1,  
            2000 until September 30, 2001.
           
          EXISTING LAW :  

          1)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.

          2)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  










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            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  
          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 to 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 proceeding 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  










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          requirement to 2/3 from a simple majority.  


           GOVERNOR'S VETO MESSAGE  :  

           
               This measure would expand funding for  
               telecommunications programs aimed at providing  
               toll-free access and operational costs for the  
               establishment of telephonic reading systems for  
               individuals who are visually impaired.

               I am concerned that implementation of this program  
               could negatively affect funding for other important  
               activities within the Deaf and Disabled  
               Telecommunications Program (DDTP).  In addition,  
               spending caps within the DDTP could be impacted by the  
               implementation of a telephonic reading system,  
               particularly when there are no complete estimates of  
               the level of use anticipated for these systems.  I  
               believe it is premature to enact this measure without  
               the data sufficient to estimate the impact of the  
               program.

               I do, however, support actions that enhance the  
               quality of life for blind Californians.  Last year, my  
               budget included more than $70,000 for recreational  
               therapists, $200,000 for three additional teachers and  
               provided $200,000 for Braille transcription at the  
               California Special School for the Blind.  I also  
               signed a bill last year that allowed for publishers of  
               instructional materials to provide software for  
               transcription into Braille.

               I would be open to a bill next year that would allow  
               the Public Utilities Commission (PUC) to determine,  
               after appropriate review, how the blind could be  
               further accommodated by this fund.



           Analysis Prepared by  :    Jonathan Buttle / U. & C. / (916)  










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          319-2083 



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