3: How is the Program funded?

Funds for the DDTP are collected via a surcharge on the bills of all telecommunications service providers offering intrastate service in California. The surcharge appears on consumer bills as “CA Relay Service and Communications Device Fund” The surcharge is a percentage of intrastate charges. Each telephone company in California, including local, long distance, cellular and radio carriers, and resellers, assess and collect the monthly surcharge and remit those revenues to the State Treasury.

For many years, the surcharge revenues were placed in a private trust housed with the Bank of America. In 1999, the State Legislature enacted SB 669, mandating that the surcharge revenues for the DDTP, and all the other Commission’s Universal Telephone Service programs be moved into the state fiscal system.