BILL NUMBER: AB 136	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 30, 2011
	AMENDED IN SENATE  JUNE 30, 2011
	AMENDED IN SENATE  JUNE 14, 2011
	AMENDED IN ASSEMBLY  APRIL 26, 2011
	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Assembly Member Beall
   (Coauthors: Assembly Members Ammiano, Bradford, Buchanan, Carter,
Fletcher, Fong, Fuentes, Furutani, Garrick, Roger Hernández, Huffman,
Ma, Nestande, Swanson, and Valadao)

                        JANUARY 12, 2011

   An act to amend Section 2881 of the Public Utilities Code,
relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 136, as amended, Beall. Telecommunications: universal service:
speech disabilities.
    Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including telephone
corporations. Existing law requires the commission to oversee
administration of the state's universal service programs, including
the deaf and disabled programs. The existing deaf and disabled
universal service program, among other things, requires the
commission to design and implement a program to provide a
telecommunications device capable of serving the needs of individuals
who are deaf or hearing impaired, together with a single party line,
at no charge additional to the basic exchange rate, to any
subscriber who is certified as an individual who is deaf or hearing
impaired.
   This bill would require the commission to expand the program to
include assistance to individuals with speech disabilities, including
assistance to purchase speech-generating devices, accessories, and
mounting systems, and specialized telecommunications equipment. 
The bill would require the commission to design and implement a
program to provide access to a speech-generating device to any
subscriber who is certified as having a speech disability at no
charge additional to the basic exchange rate. The bill would require
the commission to adopt regulations to implement the program. 
The bill would require the commission to evaluate options for
controlling the program costs of providing speech-generating devices,
 and include information on any barriers to participation in the
program by eligible subscribers,  as part of an existing report
to the Legislature. 
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime. Because the bill would require the commission
to adopt regulations, the violation of which would be a crime, the
bill would impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Certain speech-generating devices are classified by the United
States Department of Health and Human Services guidelines as durable
medical equipment.  
   (b) The provision of durable medical equipment traditionally has
been a function of public and private health insurance programs.
 
   (c) It is the intent of the Legislature that public and private
health insurance programs continue to the be the provider of first
resort for speech-generating devices that are classified as durable
medical equipment and that the Public Utilities Commission only
provide access to those devices when funding from traditional public
and private health insurance policies and programs is unavailable.

   SECTION 1.   SEC. 2.   Section 2881 of
the Public Utilities Code is amended to read:
   2881.  (a) The commission shall design and implement a program to
provide a telecommunications device capable of serving the needs of
individuals who are deaf or hearing impaired, together with a single
party line, at no charge additional to the basic exchange rate, to a
subscriber who is certified as an individual who is deaf or hearing
impaired by a licensed physician and surgeon, audiologist, or a
qualified state or federal agency, as determined by the commission,
and to a subscriber that is an organization representing individuals
who are deaf or hearing impaired, as determined and specified by the
commission pursuant to subdivision  (e)   (h)
 . A licensed hearing aid dispenser may certify the need of an
individual to participate in the program if that individual has been
previously fitted with an amplified device by the dispenser and the
dispenser has the individual's hearing records on file prior to
certification. In addition, a physician assistant may certify the
needs of an individual who has been diagnosed by a physician and
surgeon as being deaf or hearing impaired to participate in the
program after reviewing the medical records or copies of the medical
records containing that diagnosis.
   (b) The commission shall also design and implement a program to
provide a dual-party relay system, using third-party intervention to
connect individuals who are deaf or hearing impaired and offices of
organizations representing individuals who are deaf or hearing
impaired, as determined and specified by the commission pursuant to
subdivision  (e)   (h)  , with persons of
normal hearing by way of intercommunications devices for individuals
who are deaf or hearing impaired and the telephone system, making
available reasonable access of all phases of public telephone service
to telephone subscribers who are deaf or hearing impaired. In order
to make a dual-party relay system that will meet the requirements of
individuals who are deaf or hearing impaired available at a
reasonable cost, the commission shall initiate an investigation,
conduct public hearings to determine the most cost-effective method
of providing dual-party relay service to the deaf or hearing impaired
when using a telecommunications device, and solicit the advice,
counsel, and physical assistance of statewide nonprofit consumer
organizations of the deaf, during the development and implementation
of the system. The commission shall apply for certification of this
program under rules adopted by the Federal Communications Commission
pursuant to Section 401 of the federal Americans with Disabilities
Act of 1990 (Public Law 101-336).
   (c) The commission shall also design and implement a program
whereby specialized or supplemental telephone communications
equipment may be provided to subscribers who are certified to be
disabled at no charge additional to the basic exchange rate. The
certification, including a statement of visual or medical need for
specialized telecommunications equipment, shall be provided by a
licensed optometrist, physician and surgeon, or physician assistant,
acting within the scope of practice of his or her license, or by a
qualified state or federal agency as determined by the commission.
The commission shall, in this connection, study the feasibility of,
and implement, if determined to be feasible, personal income
criteria, in addition to the certification of disability, for
determining a subscriber's eligibility under this subdivision. 
   (d) (1) The commission shall also design and implement a program
to provide access to a speech-generating device to any subscriber who
is certified as having a speech disability at no charge additional
to the basic exchange rate. The certification shall be provided by a
licensed physician, licensed speech-language pathologist, or
qualified state or federal agency. The commission shall provide to a
certified subscriber access to a speech-generating device that is all
of the following:  
   (A) A telecommunications device or a device that includes a
telecommunications component.  
   (B) Appropriate to meet the subscriber's needs for access to, and
use of, the telephone network, based on the recommendation of a
licensed speech-language pathologist.  
   (C) Consistent with the quality of speech-generating devices
available for purchase in the state.  
   (2) The commission shall adopt regulations to implement this
subdivision and subdivision (e).  
   (e) All of the following apply to any device or equipment
described in this section that is classified as durable medical
equipment under guidelines established by the United States
Department of Health and Human Services: 
   (1) It is the intent of the Legislature that the commission be the
provider of last resort and that eligible subscribers first obtain
coverage from any available public or private insurance.  
   (2) The commission may require the subscriber to provide
information about coverage for any or all of the cost of the device
or equipment that is available from any public or private insurance,
the cost to the subscriber of any deductible, copayment, or other
relevant expense, and any related benefit cap information.  

   (3) The total cost of any device or equipment provided to a
subscriber under this section shall not exceed the rate of
reimbursement provided by Medi-Cal for that device or equipment.
 
   (f) Nothing in this section requires the commission to provide
training to a subscriber on the use of a speech-generating device.
 
   (d) 
    (g)  The commission shall establish a rate recovery
mechanism through a surcharge not to exceed one-half of 1 percent
uniformly applied to a subscriber's intrastate telephone service,
other than one-way radio paging service and universal telephone
service, both within a service area and between service areas, to
allow providers of the equipment and service specified in
subdivisions (a), (b), (c), and  (f)   (i) 
, to recover costs as they are incurred under this section. The
surcharge shall be in effect until January 1, 2014. The commission
shall require that the programs implemented under this section be
identified on subscribers' bills, and shall establish a fund and
require separate accounting for each of the programs implemented
under this section. 
   (e) 
    (h)  The commission shall determine and specify those
statewide organizations representing the deaf or hearing impaired
that shall receive a telecommunications device pursuant to
subdivision (a) or a dual-party relay system pursuant to subdivision
(b), or both, and in which offices the equipment shall be installed
in the case of an organization having more than one office. 
   (f) 
    (i)  (1) The commission shall expand the program created
by this section to include assistance to individuals with speech
disabilities that impair the individual's access to, and use of, the
telephone network. The commission shall ensure that speech-generating
devices, accessories, and mounting systems, and specialized
telecommunications equipment, including infrared telephones, speaker
phones, and telephone interface devices, are funded through the
program.
   (2) The commission shall ensure that only individuals who are both
residents of the state and speech impaired as certified by a
licensed physician, licensed speech-language pathologist, or
qualified state or federal agency are eligible.
   (3) The commission shall provide to each eligible applicant the
appropriate equipment consistent with the recommendation of a
licensed speech-language pathologist.
   (4) The commission shall ensure that the equipment provided
pursuant to this subdivision is consistent with the economy,
efficiency, and quality of equipment that is available for purchase
in the state. 
   (g) 
    (j)  The commission may direct a telephone corporation
subject to its jurisdiction to comply with its determinations and
specifications pursuant to this section. 
   (h) 
    (k)  The commission shall annually review the surcharge
level and the balances in the funds established pursuant to
subdivision  (d)   (g)  . Until January 1,
2014, the commission may make, within the limits set by subdivision
 (d)  (g)  , any necessary adjustments to
the surcharge to ensure that the programs supported thereby are
adequately funded and that the fund balances are not excessive. A
fund balance that is projected to exceed six months' worth of
projected expenses at the end of the fiscal year is excessive.

   (i) 
    (l)  The commission shall prepare and submit to the
Legislature, on or before December 31 of each year, a report on the
fiscal status of the programs established and funded pursuant to this
section and Sections 2881.1 and 2881.2. The report shall include a
statement of the surcharge level established pursuant to subdivision
 (d)   (g)  and revenues produced by the
surcharge, an accounting of program expenses, and an evaluation of
options for controlling those expenses and increasing program
efficiency, including, but not limited to, all of the following
proposals:
   (1) The establishment of a means test for persons to qualify for
program equipment or free or reduced charges for the use of
telecommunication services.
   (2) If and to the extent not prohibited under Section 401 of the
federal Americans with Disabilities Act of 1990 (Public Law 101-336),
the imposition of limits or other restrictions on maximum usage
levels for the relay service, which shall include the development of
a program to provide basic communications requirements to all relay
users at discounted rates, including discounted toll-call rates, and,
for usage in excess of those basic requirements, at rates that
recover the full costs of service.
   (3) More efficient means for obtaining and distributing equipment
to qualified subscribers.
   (4) The establishment of quality standards for increasing the
efficiency of the relay system. 
   (j) The report described in subdivision (i) 
    (m)     The report described in subdivision
(l)  that is due no later than December 31,  2012
  2013  , shall evaluate options for controlling
the program costs of providing speech-generating devices  and
include information on any barriers to participation in the program
by eligible subscribers  . 
   (k) 
    (n)  In order to continue to meet the access needs of
individuals with functional limitations of hearing, vision, movement,
manipulation, speech, and interpretation of information, the
commission shall perform ongoing assessment of, and if appropriate,
expand the scope of the program to allow for additional access
capability consistent with evolving telecommunications technology.

   (l) 
    (o)  The commission shall structure the programs
required by this section so that a charge imposed to promote the
goals of universal service reasonably equals the value of the
benefits of universal service to contributing entities and their
subscribers. 
   (1) The requirement for submitting a report imposed under
subdivision (l) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.  
   (2) A report submitted pursuant to subdivision (l) shall be
submitted in compliance with Section 9795 of the Government Code.

   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.