Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/04/2017 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB80 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 80 | TELECONFERENCED | |
| *+ | SB 85 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 80-TELECOMMUNICATIONS: DISABLED SUBSCRIBERS
1:48:52 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 80.
1:49:19 PM
SORCHA HAZELTON, Staff, Senator Mia Costello, Alaska State
Legislature, introduced SB 80 on behalf of the sponsor reading
from the following prepared statement:
The bill before you, Senate Bill 80, seeks to improve
technology and services available to deaf, hard-of-
hearing, and speech impaired Alaskans. This is a
provision to expand the Regulatory Commission of
Alaska's authority to collect surcharges to support
these programs beyond current limitations. As the
world moves toward more mobile devices, the expansion
of services offered and of the surcharge is necessary
to reflect the development of wireless and voice over
internet protocol (VoIP) services. Page 1, Lines 13 &
14 illustrate this portion of the bill, and include
these additional telecommunication services beyond the
traditional wireline telephone. Currently, technology
offered by the Regulatory Commission of Alaska (RCA)
is outdated and doesn't reflect the capabilities of
the digital world. Through this bill, the RCA will be
st
better able to provide for the 21 century needs of
the deaf, hard-of-hearing, and speech-impaired
communities. In members' packets, you'll also find a
support letter from the Governor's Council on
Disabilities and Special Education.
To provide some background, in the 1990s, the
Legislature tasked the RCA with adopting regulations
to require telephone companies to provide access to
public telecommunication services to these groups of
Alaskans, in the form of the telecommunications relay
service or TRS. (3AAC 51) TRS system includes services
like teletype units (TTY), captioned telephones
(CapTel), and video relay. In addition, the RCA
provides assistance devices like amplified phones that
also give hard of hearing Alaskans more independence.
During the establishment of initial regulations, the
Commission found the most appropriate funding source
for this equipment and service was through a Universal
Access surcharge added to local phone rates and
appearing as a line item on customers' bills. At the
onset of this program, wired technology was the most
prevalent, the Alaska Relay system is wirelined, and
so only wired technology was permitted to have the
surcharge added. Today, the program is still limited
to services like TTY and CapTel telephones which send
text over landlines. Because of the limitation, not
only can the RCA not add a surcharge to mobile
devices, but they cannot provide mobile technology to
the disabled communities. Just as hearing Alaskans
have shifted from landlines to cell phones, deaf, hard
of hearing, and speech impaired subscribers have also
shifted to mobile technology. Statute currently
prevents the RCA from providing these modern pieces of
technology. Despite this, wirelined equipment remains
more valuable in Alaska than elsewhere because of
lower internet speeds in certain parts of the state.
Passage of SB 80 could expand the number of lines
surcharged by more than 990,000. The mobile and VoIP
services included in this expansion mirror the FCC and
other states which already have these subscribers
contribute to their respective TRS funds. Over the
last seven years the number of landlines in the state
has dropped roughly 47%, with a 5.7% decrease in the
last year alone. It is because of this that in March
2016, the surcharge was increased nine-fold. There
were more landlines in 1991, when this obligation was
given to the RCA. At that point, the surcharge was the
equivalent of $0.52/$1.04 per line. At the moment, the
surcharge is 9¢/18¢. The amount of the surcharge is
decided on through a public hearing process. Expanding
the base of surcharge would lower the cost per user,
and still maintain the needed funding for the program.
The latest numbers available for TRS technology uses
is for December 2016. There were roughly 4000 TTY and
CapTel calls made in December by the approximately
1300 individuals served by the RCA. More modern
technology is the Video Relay Service, but only about
a third of Alaska's deaf population have video phones.
While this system was established to ease
communication between the deaf, hard of hearing, and
speech impaired communities and the hearing world,
there are eight times as many calls between impacted
Alaskans as there are to those of normal hearing,
making the use of technologies designed for the deaf
and hard of hearing crucial to these communities in
our state.
This bill expands access to modern technology for
Alaska's deaf, hard of hearing, and speech impaired
communities by expanding the devices that can be
surcharged by the Regulatory Commission of Alaska. SB
80 reflects advances in technology, updating statutes
formed in the 1990s to encompass the mobile devices of
the 21st century.
1:54:00 PM
SENATOR STEVENS asked the amount that must be collected and the
expected cost to cell phone users.
MS. HAZELTON deferred the question to the RCA commissioner.
1:55:02 PM
NORMAN ROKEBERG, Commissioner, Regulatory Commission of Alaska,
Anchorage, Alaska, stated that he had been working on this issue
since he joined the commission and realized how out of date the
existing statute is. The primary intention of the bill is to
untie the commission's hands, starting with replacing the term
"telephone" with "telecommunications." This will expand the
number and types of devices that can provide services to the
disabled community. Second, the bill replaces the term "speech
impaired" with the term "speech disabled."
He referred to page 1, line 14, and explained that the new
language "for each telecommunications service" expands where the
surcharge may be applied to include wireless and voice over
internet (VoIP). It will significantly increase the ability to
collect as well as reduce and more equitably spread the
surcharge. The bill is not intended to increase revenue per se.
Responding to an earlier question, he said the current budget is
about $288,000 per year and the goal is to amass working capital
of about $300,000. The idea is to have a consistent and stable
source of income to expand the number of devices that can be
provided. He explained that the program started with about
297,000 landlines in 1992 and peaked at 560,000 in 2009. In
December 2016, the number had fallen to 256,000 and the trend
continues downward. He noted the bill packet includes a copy of
form 477 that provides a picture from December 2015 where
wireless amounted to 678,000, whereas a combination of wireline
and VoIP subscription was about 300,000.
He offered to answer questions.
CHAIR COSTELLO said she became aware of this issue when
Commissioner Rokeberg invited her to attend an RCA meeting.
SENATOR MEYER asked if he has suggestions for amendments to the
bill.
MR. ROKEBERG said he believes the bill is close to perfect, but
he is aware that one person has a suggestion for the bill.
SENATOR MEYER asked if telecommunications includes cable,
computers and phones.
MR. ROKEBERG said that's correct. The statutory definition of
"telecommunications" is found in AS 42.05.990(13).
SENATOR MEYER asked if all subscribers are assessed the
surcharge or just disabled subscribers.
MR. ROKEBERG said every landline subscriber pays the surcharge
and the services are provided by Sprint by order of the
commission. A request for proposal (RFP) goes out every five
years and Sprint has been the provider for four years. He
reiterated that the problem is that just landline subscribers
pay the surcharge and the number of those subscribers is
diminishing. Last year the rate had to be increased to 9¢/18¢ to
maintain cashflow to provide the service. Expanding the base of
the surcharge would lower the cost per user to perhaps 4¢/5¢,
maintain cashflow, and have a slightly larger surplus to expand
equipment services. Just this month they authorized an
iPad/tablet pilot program starting in July to expand digital
equipment to those who need it.
2:06:43 PM
SENATOR MEYER asked if this could include vision impaired.
MR. ROKEBERG said the statute is limited to the deaf, hard of
hearing, and speech disabled community.
SENATOR MEYER said he would think it would impact a lot of
disabled people if this pertains to internet service, cable, and
cell phones.
MR. ROKEBERG agreed adding that the surcharge would be confined
to current landlines, wireless and voice over internet
providers. That may be too broad, but the current statute is too
narrow. Adopting the definition of telecommunications in the
statute would avoid the problem of having to return to the
legislature for any new telecommunications technology. He drew a
parallel to changing the chemical composition of designer street
drugs.
SENATOR MEYER asked if the surcharge is on the subscriber's plan
or each phone.
MR. ROKEBERG said each phone.
SENATOR STEVENS summarized his understanding that the surcharge
for every landline and wireless phone is expected to be 4¢/5¢.
MR. ROKEBERG said reducing the surcharge to that amount is his
current estimate and the goal. Including wireless would spread
the cost more equitably.
2:12:24 PM
SENATOR HUGHES commented that the background information in the
packet includes information from Matanuska Telephone Association
that shows that the population of MatSu has more than doubled
since 1992 yet the number of landlines has decreased. "It really
demonstrates how much cellphones are in use."
She asked him to reiterate how many cellphones are in use
compared to the number of landlines.
MR. ROKEBERG said the FCC form 477 indicates that in December
2015, there were 678,000 wireless phones as opposed to 300,000
VoIP and landlines. He noted the letter in the packets where he
did a "back of the napkin" calculation showing that 900,000
lines would generate $432,000 per year in revenue, which is
about $32,000 more than is collected now. That is hopefully
enough to implement the tablet program and restart offering
amplified phones. The goal is to reduce costs to consumers.
SENATOR HUGHES asked him to clarify the numbers in the budget.
MR. ROKEBERG said the current budget is $288,000 per year and
they're collecting about $400,000. The current surcharge is
9¢/18¢ for residential or a business multiline. The two-tiered
system makes projected calculations a little difficult and the
commission is discussing whether to do away with it.
SENATOR HUGHES asked if any telecommunication utilities offer
just internet and television, not phone service. She also asked
if the utilities that provide phone, television, and internet
are required to provide new services that support the use of an
iPad or laptop or television.
MR. ROKEBERG clarified that the RCA is very limited in the
regulation it provides to the telecommunication industry. "We do
not regulate the internet; we do not regulate cable; we do not
regulate a number of things." The RCA's regulatory authority is
limited to phone lines in rural areas and issues such as
"carrier of last resort." The commission also collects the
Alaska Universal Services Fund and distributes it to the
carriers that meet the criteria. Another small area of authority
is the annualized review that is done in concert with the FCC
for wireline certification. "By and large, generally, it would
not be unfair to say the telecommunications industry is not
largely regulated by the state."
SENATOR HUGHES summarized that this legislation requires
telecommunication utilities to provide services on
telecommunication devices so it's more than just a wireline
telephone or cellphone. It would include a laptop and iPad and
television. She asked if the utilities are going to need to
provide services that they aren't currently providing on these
other kinds of devices that are not phones.
MR. ROKEBERG clarified that the RCA regulates the signal going
through the device and the consumer selects the device "unless
they're disabled and we're providing it for them."
2:24:12 PM
DEAN GATES, representing himself, Anchorage, Alaska, said he is
president of the Alaska Deaf Council and he hopes the board
discusses and votes to support SB 80 when it meets this coming
Thursday. Until then, he is speaking for himself in support of
SB 80. He forwarded the bill to the 10 members on the board and
shared some correspondence and received positive feedback but
that's anecdotal. He agreed with the earlier statement that the
bill is "nearly perfect." He emphasized that the Alaska Relay
system is very important for accessibility for the deaf and hard
of hearing community to be able to call a business, order a
pizza or find out flight information. "So, it is very important
to bring the TRS system into the digital age, which this bill is
intended to do."
MR. GATES said he forwarded the bill to the executive director
of the watchdog group, Telecommunications for the Deaf, Inc. and
the director sent an email saying that the bold changes to the
TRS language by the State of Alaska "are good." It clarifies
three things. One, that it is telecommunication service, not
telephone service. Two, changing the label from "speech
impaired" to "speech disabled" is a better way to recognize
people who are speech disabled. Three, it recognizes the use of
devices beyond just the landline telephone. He also cautioned
Mr. Gates to ensure that the regulatory body and provider for
TRS agree that this is what the bill is intended to do and what
its effect will be.
He said he believes it is wise to spread the burden for the TRS
program among all users of telecommunication services.
2:29:51 PM
MR. GATES said despite thinking that the bill is nearly perfect,
he has a few suggestions for changes. Page 2, line 7, change the
language to say, "or if the subscriber is an organization that
represents or has a principle purpose to provide services to
persons who are deaf, hard of hearing, or speech disabled as
determined by the commission." This would allow organizations
such as Access Alaska, Hope Community Services, and SAIL to
qualify for an equipment distribution program. The second
suggestion is to amend the language in the current statute to
"people first" language. For example, "an organization
representing persons who are deaf" instead of "an organization
representing the deaf." He said he isn't opposed to the bill
moving forward as is and he appreciates Senator Costello
bringing it forward. He hopes to submit a letter of support from
the Alaska Deaf Council after its next meeting.
CHAIR COSTELLO said her staff, Ms. Hazelton, will get in touch
for the exact language.
SENATOR GARDNER recalled that the statutes were changed several
years ago to replace the term "disabled people" with "person
with a disability." She observed that this bill uses that
terminology, but it seems a bit archaic. She asked him to
comment on the issue.
MR. GATES said he recalls that the Governor's Council on
Disabilities supported replacing throughout the statutes the
term "mental retardation" to "a person with an intellectual
developmental disability." His suggestions today follow what was
done several years ago to use person first language.
2:35:48 PM
PATRICK REINHART, Executive Director, Governor's Council on
Disabilities, responded to Senator Gardner's question saying the
term "mentally retarded" was removed from state lexicon, but it
wasn't a comprehensive change to people first language. The term
"handicapped" was also removed from state lexicon several years
ago. He highlighted that the council has an excellent
publication on its website that explains what constitutes people
first language for different disability groups.
Mr. Reinhart stated that the Governor's Council on Disabilities
reviewed SB 80 and discussed it with Commissioner Rokeberg.
Overall, they agree with the purpose of spreading the funding
mechanism to support the type of services that are provided,
including telecommunication relay service and the equipment
support program for people who need that support. The council
supports the bill and believes that Mr. Gates suggestions are
reasonable.
2:38:44 PM
CHAIR COSTELLO closed public testimony on SB 80 and held the
bill in committee for further consideration.
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