SENATE BILL NO. 80 "An Act relating to telecommunications services for certain disabled subscribers; and providing for an effective date." 1:35:39 PM SENATOR MIA COSTELLO, SPONSOR, explained the legislation. She stated that the bill allowed the Regulatory Commission of Alaska to assess a surcharge to provide technology that met 21st century needs of the deaf, hard of hearing, and speech disabled communities. 1:36:27 PM SORCHA HAZELTON, STAFF, SENATOR MIA COSTELLO, explained the Sectional Analysis. She stated that the first section made the changes that allowed the commission to expand its surcharge allowance. She stated that Section 2 was the effective date. Ms. Hazelton explained the bill: Senate Bill 80 updates state statute to improve technology service for Alaska's deaf, hard of hearing, and speech impaired community. The Committee Substitute incorporates "person first" language to respectfully acknowledge those individuals with disabilities. In the early 1990s, the Legislature granted the Regulatory Commission of Alaska (RCA) the authority to require telephone utilities to serve the deaf, hard of hearing, and speech impaired citizens of Alaska. These policies allowed telephonic communication between impacted Alaskans and those without impairment. This is accomplished through a telecommunications relay service (TRS) that provides interpretive service operators to relay tele-typed, voice, or signed messages from one party to another. The provider also runs an equipment distribution and outreach program allowing access to public telephone service for this subscriber group. Currently, the program's scope and the surcharges which fund it are limited in statute to wired devices like tele-type units (TTY) and CapTel telephones. This limitation is antiquated given the expanded use of cell phones and other technology. RCA regulations provide for cost recovery through a surcharge which is currently only applied to the dwindling number of landline telephones. With a statewide move toward wireless (mobile/cellular) phones and Voice over Internet Protocol (VoIP) technology, the most efficient and effective service to this subscriber group is lacking resources from the diminished wirelines to which a surcharge applies. SB 80 allows the RCA to provide equipment and services that best serve the communities' needs. This bill allows the RCA to more equitably assess the TRS surcharge to a growing number of cell phone and VoIP users, expand the type of telecommunication devices and software available to disabled subscribers, and provides for a July 1, 2017, effective date which correlates with the operating agreement cycle with the current TRS provider. SB 80 modernizes and enhances services provided to Alaskans with disabilities and allows for greater independence and an improved quality of life. Senator Micciche wondered if there would be an increase in consumer's bills. Ms. Hazelton deferred to the commission. She stated that the surcharge would be lowered, because the base would expand. Senator Olson queried the effect on the rural and remote sites. Senator Costello deferred to Mr. Rokeberg. 1:43:28 PM NORMAN ROKEBERG, COMMISSIONER, REGULATORY COMMISSION OF ALASKA (via teleconference), spoke in support of the bill. He pointed out that the surcharge was not a universal access charge, but rather a telecommunications relay service surcharge. He stated that the bill would enable the commission to lower the surcharge by two-thirds. He announced that there were currently over 900,000 lines in Alaska, and only 258,000 were paying a surcharge. He stated that the concept was to more equitably spread the charge, and lower the cost overall. Senator Olson queried the expected average surcharge as compared to the current surcharge, especially for those who were not currently paying. Mr. Rokeberg stated that the current level was nine cents per wire line and eighteen cents per business multi-line. He felt that the rate could be lowered to four to five cents per line for both residential and business. He explained that there was currently a two-tiered system, with residents paying less than business lines. He stated that there was a discussion with the industry, and it appeared that the rates could be lowered by up to 57 percent. He stressed that cellular customers would be charged a fee that they were not currently paying. 1:47:37 PM Senator Olson surmised that the 600,000 individuals who were not currently paying the surcharge would see an increase. Mr. Rokeberg replied in the affirmative. He stressed that the mobile and cellular users would see an increase four to five cents per month. Senator Olson queried the number of users in rural Alaska. Mr. Rokeberg responded that he did not know the number as related to geographic dispersion between cellular and landlines. Senator Olson assumed that some people in rural Alaska would see an increase on their bills. Mr. Rokeberg agreed. Senator Micciche surmised that the user currently paid 9 cents per line per month at $1.08 per line for wired communications. Mr. Rokeberg replied that wired lines were paying 9 cents for residential and 18 cents for multiline businesses. The objective was to lower the overall cost to 4 cents for both residential. He stated that the approximately 600,000 mobile phone users would see a very small increase of 50 cents per year. Co-Chair MacKinnon CLOSED public testimony. 1:50:58 PM AT EASE 1:51:21 PM RECONVENED Vice-Chair Bishop addressed the fiscal note. Vice-Chair Bishop MOVED to REPORT CSSB 80 (L&C) from committee with individual recommendations and attached fiscal note. There being NO OBJECTION, it was so ordered. CSSB 80(L&C) was REPORTED out of committee with "no recommendation" and with previously published zero fiscal note: FN 1(CED). 1:53:25 PM AT EASE 1:53:57 PM RECONVENED Co-Chair MacKinnon discussed the committee meeting schedule.