Amended in Senate April 16, 2013

Senate BillNo. 129


Introduced by Senator Wright

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(Coauthor: Assembly Member Gomez)

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January 23, 2013


An act to amend Section 2881 of the Public Utilities Code, relating to telecommunications, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 129, as amended, Wright. Deaf and disabled telecommunications program.

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 telecommunications universal service programs, including the deaf and disabled programs, which are funded through the Deaf and Disabled Telecommunications Program Administrative Committee Fund. Existing law, until January 1, 2014, requires the commission to establish a surcharge, not to exceedbegin delete 0.5 %,end deletebegin insert 0.5%,end insert that is uniformly applied to a subscriber’s intrastate telephone service charges to allow providers of the equipment and service provided pursuant to the deaf and disabled programs to recover their costs. Existing law, until January 1, 2016, requires the commission tobegin insert submit aend insert reportbegin delete specified information relative toend deletebegin insert onend insert the fiscal status of the programs to the Legislature on or before December 31 of each year.begin insert Existing law requires the report to include, among other things, an evaluation of options for controlling program expenses and program efficiency, as specified.end insert

This bill would extend imposition of the surcharge until January 1,begin delete 2024end deletebegin insert 2020end insert. The bill would extend the reporting requirements until January 1,begin delete 2025.end deletebegin insert 2021, and would also require the report to include an evaluation of any modification to the program that would maximize participation and funding opportunities under similar federal programs.end insert

Under the Public Utilities Act a violation of any order, decision, rule, direction, demand, or requirement of the commission by a public utility is a crime.

Because the bill would require an order or decision of the commission to extend the surcharge funding the deaf and disabled programs and because a violation of these requirements would be a crime, the bill would impose a state-mandated local program by expanding the definition of a crime.

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.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 2881 of the Public Utilities Code is
2amended to read:

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2881.  

(a) The commission shall design and implement a
4program to provide a telecommunications device capable of serving
5the needs of individuals who are deaf or hearing impaired, together
6with a single party line, at no charge additional to the basic
7exchange rate, to a subscriber who is certified as an individual
8who is deaf or hearing impaired by a licensed physician and
9surgeon, audiologist, or a qualified state or federal agency, as
10determined by the commission, and to a subscriber that is an
11organization representing individuals who are deaf or hearing
12impaired, as determined and specified by the commission pursuant
13to subdivision (h). A licensed hearing aid dispenser may certify
14the need of an individual to participate in the program if that
15individual has been previously fitted with an amplified device by
P3    1the dispenser and the dispenser has the individual’s hearing records
2on file prior to certification. In addition, a physician assistant may
3certify the needs of an individual who has been diagnosed by a
4physician and surgeon as being deaf or hearing impaired to
5participate in the program after reviewing the medical records or
6copies of the medical records containing that diagnosis.

7(b) The commission shall also design and implement a program
8to provide a dual-party relay system, using third-party intervention
9to connect individuals who are deaf or hearing impaired and offices
10of organizations representing individuals who are deaf or hearing
11impaired, as determined and specified by the commission pursuant
12to subdivision (h), with persons of normal hearing by way of
13intercommunications devices for individuals who are deaf or
14hearing impaired and the telephone system, making available
15reasonable access of all phases of public telephone service to
16telephone subscribers who are deaf or hearing impaired. In order
17to make a dual-party relay system that will meet the requirements
18of individuals who are deaf or hearing impaired available at a
19reasonable cost, the commission shall initiate an investigation,
20conduct public hearings to determine the most cost-effective
21method of providing dual-party relay service to the deaf or hearing
22impaired when using a telecommunications device, and solicit the
23advice, counsel, and physical assistance of statewide nonprofit
24consumer organizations of the deaf, during the development and
25implementation of the system. The commission shall apply for
26certification of this program under rules adopted by the Federal
27Communications Commission pursuant to Section 401 of the
28federal Americans with Disabilities Act of 1990 (Public Law
29101-336).

30(c) The commission shall also design and implement a program
31whereby specialized or supplemental telephone communications
32equipment may be provided to subscribers who are certified to be
33disabled at no charge additional to the basic exchange rate. The
34certification, including a statement of visual or medical need for
35specialized telecommunications equipment, shall be provided by
36a licensed optometrist, physician and surgeon, or physician
37assistant, acting within the scope of practice of his or her license,
38or by a qualified state or federal agency as determined by the
39commission. The commission shall, in this connection, study the
40feasibility of, and implement, if determined to be feasible, personal
P4    1income criteria, in addition to the certification of disability, for
2determining a subscriber’s eligibility under this subdivision.

3(d) (1) The commission shall also design and implement a
4program to provide access to a speech-generating device to any
5subscriber who is certified as having a speech disability at no
6charge additional to the basic exchange rate. The certification shall
7be provided by a licensed physician, licensed speech-language
8pathologist, or qualified state or federal agency. The commission
9shall provide to a certified subscriber access to a speech-generating
10device that is all of the following:

11(A) A telecommunications device or a device that includes a
12telecommunications component.

13(B) Appropriate to meet the subscriber’s needs for access to,
14and use of, the telephone network, based on the recommendation
15of a licensed speech-language pathologist.

16(C) Consistent with the quality of speech-generating devices
17available for purchase in the state.

18(2) The commission shall adopt rules to implement this
19subdivision and subdivision (e) by January 1, 2014.

20(e) All of the following apply to any device or equipment
21described in this section that is classified as durable medical
22equipment under guidelines established by the United States
23Department of Health and Human Services:

24(1) It is the intent of the Legislature that the commission be the
25provider of last resort and that eligible subscribers first obtain
26coverage from any available public or private insurance.

27(2) The commission may require the subscriber to provide
28information about coverage for any or all of the cost of the device
29or equipment that is available from any public or private insurance,
30the cost to the subscriber of any deductible, copayment, or other
31relevant expense, and any related benefit cap information.

32(3) The total cost of any device or equipment provided to a
33subscriber under this section shall not exceed the rate of
34reimbursement provided by Medi-Cal for that device or equipment.

35(f) Nothing in this section requires the commission to provide
36training to a subscriber on the use of a speech-generating device.

37(g) The commission shall establish a rate recovery mechanism
38through a surcharge not to exceed one-half of 1 percent uniformly
39applied to a subscriber’s intrastate telephone service, other than
40one-way radio paging service and universal telephone service,
P5    1both within a service area and between service areas, to allow
2providers of the equipment and service specified in subdivisions
3(a), (b), (c), and (i), to recover costs as they are incurred under this
4section. The surcharge shall be in effect until January 1,begin delete 2024end deletebegin insert 2020end insert.
5The commission shall require that the programs implemented under
6this section be identified on subscribers’ bills, and shall establish
7a fund and require separate accounting for each of the programs
8implemented under this section.

9(h) The commission shall determine and specify those statewide
10organizations representing the deaf or hearing impaired that shall
11receive a telecommunications device pursuant to subdivision (a)
12or a dual-party relay system pursuant to subdivision (b), or both,
13and in which offices the equipment shall be installed in the case
14of an organization having more than one office.

15(i) (1) The commission shall expand the program created by
16this section to include assistance to individuals with speech
17 disabilities that impair the individual’s access to, and use of, the
18telephone network. The commission shall ensure that
19speech-generating devices, accessories, and mounting systems,
20and specialized telecommunications equipment, including infrared
21telephones, speaker phones, and telephone interface devices, are
22funded through the program.

23(2) The commission shall ensure that only individuals who are
24both residents of the state and speech impaired as certified by a
25licensed physician, licensed speech-language pathologist, or
26qualified state or federal agency are eligible.

27(3) The commission shall provide to each eligible applicant the
28appropriate equipment consistent with the recommendation of a
29licensed speech-language pathologist.

30(4) The commission shall ensure that the equipment provided
31pursuant to this subdivision is consistent with the economy,
32efficiency, and quality of equipment that is available for purchase
33in the state.

34(j) The commission may direct a telephone corporation subject
35to its jurisdiction to comply with its determinations and
36specifications pursuant to this section.

37(k) The commission shall annually review the surcharge level
38and the balances in the funds established pursuant to subdivision
39(g). Until January 1,begin delete 2024end deletebegin insert 2020end insert, the commission may make, within
40the limits set by subdivision (g), any necessary adjustments to the
P6    1surcharge to ensure that the programs supported thereby are
2adequately funded and that the fund balances are not excessive. A
3fund balance that is projected to exceed six months’ worth of
4projected expenses at the end of the fiscal year is excessive.

5(l) The commission shall prepare and submit to the Legislature,
6on or before December 31 of each year, a report on the fiscal status
7of the programs established and funded pursuant to this section
8and Sections 2881.1 and 2881.2. The report shall include a
9statement of the surcharge level established pursuant to subdivision
10(g) and revenues produced by the surcharge, an accounting of
11program expenses, and an evaluation of options for controlling
12those expenses and increasing program efficiency, including, but
13not limited to, all of the following proposals:

14(1) The establishment of a means test for persons to qualify for
15program equipment or free or reduced charges for the use of
16telecommunication services.

17(2) If and to the extent not prohibited under Section 401 of the
18federal Americans with Disabilities Act of 1990 (Public Law
19101-336), the imposition of limits or other restrictions on maximum
20usage levels for the relay service, which shall include the
21development of a program to provide basic communications
22requirements to all relay users at discounted rates, including
23discounted toll-call rates, and, for usage in excess of those basic
24requirements, at rates that recover the full costs of service.

25(3) More efficient means for obtaining and distributing
26equipment to qualified subscribers.

27(4) The establishment of quality standards for increasing the
28efficiency of the relay system.

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29(5) Any modification to the program in order to maximize
30participation and funding opportunity under similar federal
31programs.

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32(m) The report described in subdivision (l) that is due no later
33than December 31, 2013, shall evaluate options for controlling the
34program costs of providing speech-generating devices and include
35information on any barriers to participation in the program by
36eligible subscribers.

37(n) In order to continue to meet the access needs of individuals
38with functional limitations of hearing, vision, movement,
39manipulation, speech, and interpretation of information, the
40commission shall perform ongoing assessment of, and if
P7    1appropriate, expand the scope of the program to allow for
2additional access capability consistent with evolving
3telecommunications technology.

4(o) The commission shall structure the programs required by
5this section so that a charge imposed to promote the goals of
6universal service reasonably equals the value of the benefits of
7universal service to contributing entities and their subscribers.

8(p) (1) The requirement for submitting a report imposed under
9subdivision (l) is inoperative on January 1,begin delete 2025end deletebegin insert 2021end insert, pursuant
10to Section 10231.5 of the Government Code.

11(2) A report submitted pursuant to subdivision (l) shall be
12submitted in compliance with Section 9795 of the Government
13Code.

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SEC. 2.  

No reimbursement is required by this act pursuant to
15Section 6 of Article XIII B of the California Constitution because
16the only costs that may be incurred by a local agency or school
17district will be incurred because this act creates a new crime or
18infraction, eliminates a crime or infraction, or changes the penalty
19for a crime or infraction, within the meaning of Section 17556 of
20the Government Code, or changes the definition of a crime within
21the meaning of Section 6 of Article XIII B of the California
22Constitution.

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SEC. 3.  

This act is an urgency statute necessary for the
24immediate preservation of the public peace, health, or safety within
25the meaning of Article IV of the Constitution and shall go into
26immediate effect. The facts constituting the necessity are:

27In order to avoid administrative and reporting disruptions with
28respect to the state’s deaf and disabled telecommunications
29universal service programs, to maintain compliance with federal
30telecommunications universal service program requirements, and
31to encourage continued investments in the development and
32manufacture of technology and software that advances the
33communications capabilities of the deaf and disabled, it is
34necessary for this act to take effect immediately.



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