BILL ANALYSIS AB 2757 Page 1 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 AB 2757 Page 2 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 AB 2757 Page 3 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 AB 2757 Page 4 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) AB 2757 Page 5 319-2083 FN: 0007564