Amended in Senate April 23, 2013

Amended in Senate April 16, 2013

Senate Bill No. 129

Introduced by Senator Wright

(Coauthor: Assembly Member Gomez)

January 23, 2013

An act to amend Section 2881 of begin insert , and to repeal Section 278.5 of, end insert 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.

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Under

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begin insert (1) end insert begin insert   end insert begin insert Under end insert 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 exceed 0.5%, 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 to submit a report on the fiscal status of the programs to the Legislature on or before December 31 of each year. Existing law requires the report to include, among other things, an evaluation of options for controlling program expenses and program efficiency, as specified.

This bill would extend imposition of the surcharge until January 1, 2020. The bill would extend the reporting requirements until January 1, 2021, and begin insert would require the commission to submit the report to the Legislature on or before March 1 of each year. This bill end insert 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. begin insert As part of the report that is due no later than March 1, 2014, this bill would require the commission to evaluate options for controlling the program costs of providing speech generating devices, and include any information on barriers to participation by eligible subscribers. end insert

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(2) Existing law requires the commission to design and implement a program to provide access to a speech-generating telecommunications device to any subscriber who is certified as having a speech disability at no charge additional to the basic exchange rate. Existing law also requires the commission to expand the deaf and disabled program to include assistance to individuals with speech disabilities, including assistance in purchasing speech-generating devices, accessories, and mounting systems, and specialized telecommunications equipment.

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This bill would delete the provisions requiring the commission to expand the program to include assistance to individuals with speech disabilities, including assistance in purchasing speech-generating devices, accessories, and mounting systems, and specialized telecommunications equipment.

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(3) Existing law states the intent of the Legislature that existing members of the Deaf and Disabled Telecommunications Program Administrative Committee should serve out their current terms of office as members of the committee, but not to exceed July 1, 2003. Existing law requires the committee to develop and submit, not later that October 1, 2002, recommendations to the commission for administration and governance of the deaf and disabled programs, as prescribed.

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The bill would repeal these provisions.

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Under

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begin insert (4) end insert begin insert   end insert begin insert Under end insert the Public Utilities begin delete Act end delete begin insert Act, end insert 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: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 278.5 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

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278.5.  

(a) It is the intent of the Legislature that existing
members of the Deaf and Disabled Telecommunications Program
Administrative Committee should serve out their current terms of
office as members of the committee, but not to exceed July 1,
2003.

(b) The Deaf and Disabled Telecommunications Program
Administrative Committee shall develop and submit, not later than
October 1, 2002, recommendations to the commission for the
administration and governance of the programs described in
Sections 2881, 2881.1, and 2881.2, including recommendations
for the establishment of a designated office and program function,
within state government, staffed in a manner designed to provide
expert oversight and governance to ensure the long-term quality
and integrity of programs and services offered through the Deaf
and Disabled Telecommunications Program.

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begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

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 (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 (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 rules to implement this
subdivision and subdivision (e) by January 1, 2014.

(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.

(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), begin insert and end insert (c), begin delete and (i), end delete to recover costs as they are incurred under
this section. The surcharge shall be in effect until January 1, 2020.
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.

(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.

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(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.

(j)

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begin insert ( end insert begin insert i) end insert  The commission may direct a telephone corporation subject
to its jurisdiction to comply with its determinations and
specifications pursuant to this section.

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(k)

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begin insert ( end insert begin insert j) end insert  The commission shall annually review the surcharge level
and the balances in the funds established pursuant to subdivision
(g). Until January 1, 2020, the commission may make, within the
limits set by subdivision (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.

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(l)

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begin insert ( end insert begin insert k) end insert  The commission shall prepare and submit to the Legislature,
on or before begin delete December 31 end delete begin insert March 1 end insert 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 (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.

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

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(m)

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begin insert ( end insert begin insert l) end insert  The report described in subdivision begin delete (l) end delete begin insert (k) end insert that is due no later
than begin delete December 31, 2013 end delete begin insert March 1, 2014 end insert , 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.

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(n)

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begin insert ( end insert begin insert m) end insert  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.

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(o)

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begin insert (n) end insert  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.

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(p)

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

(2) A report submitted pursuant to subdivision begin delete (l) end delete begin insert (k) end insert shall be
submitted in compliance with Section 9795 of the Government
Code.

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begin insert SEC. 3. end insert   

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.

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begin insert SEC. 4. end insert   

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

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