Amended in Senate April 30, 2013

Amended in Senate April 23, 2013

Amended in Senate April 16, 2013

Senate BillNo. 129


Introduced by Senator Wright

(Coauthor: Assembly Member Gomez)

January 23, 2013


An actbegin insert to amend Section 53112 of the Government Code, andend insert to amend Section 2881 of, and to repeal Section 278.5 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.

(1) 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 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 would require the commission to submit the report to the Legislature on or before March 1 of each year. This bill 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. 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.

(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.

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.

(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.

The bill would repeal these provisions.

(4) 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:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 53112 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

53112.  

begin insert(a)end insertbegin insertend insert All systems shall be designed to meet the specific
4requirements of each community and public agency served by the
5system. Every system, whether basic or sophisticated, shall be
6designed to have the capability of utilizing at least three of the
7methods specified in Sections 53103 to 53106, inclusive, in
8response to emergency calls. The Legislature finds and declares
9that the most critical aspect of the design of any system is the
10procedure established for handling a telephone request for
11emergency services.

12begin insert(b)end insertbegin insertend insert In addition, to maximize efficiency and utilization of the
13system, all pay telephones within each system shall, by December
1431, 1985, enable a caller to dial “911” for emergency services, and
15to reach an operator by dialing “0”, without the necessity of
16inserting a coin. At those “911” public safety answering points
17serving an area where 5 percent or more of the population, in
18accordance with the latest United States census information, speak
19a specific primary language other than English, operators who
20speak each such other language, in addition to English, shall be
21on duty or available through interagency telephone conference
22procedures at all times for “911” emergency services.

23begin insert(c)end insertbegin insertend insert In addition, all systems shall require installation of a
24telecommunications device capable of servicing the needs of the
25deaf or severely hearing impaired at the “911” public safety
P4    1answering point or points. The device shall be compatible with
2devices furnished by telephone corporations pursuant to Section
3begin delete 2831end deletebegin insert 2881end insert of the Public Utilities Code.

4

begin deleteSECTION 1.end delete
5begin insertSEC. 2.end insert  

Section 278.5 of the Public Utilities Code is repealed.

6

begin deleteSEC. 2.end delete
7begin insertSEC. 3.end insert  

Section 2881 of the Public Utilities Code is amended
8to read:

9

2881.  

(a) The commission shall design and implement a
10program to provide a telecommunications device capable of serving
11the needs of individuals who are deaf or hearing impaired, together
12with a single party line, at no charge additional to the basic
13exchange rate, to a subscriber who is certified as an individual
14who is deaf or hearing impaired by a licensed physician and
15surgeon, audiologist, or a qualified state or federal agency, as
16determined by the commission, and to a subscriber that is an
17organization representing individuals who are deaf or hearing
18impaired, as determined and specified by the commission pursuant
19to subdivision (h). A licensed hearing aid dispenser may certify
20the need of an individual to participate in the program if that
21individual has been previously fitted with an amplified device by
22the dispenser and the dispenser has the individual’s hearing records
23on file prior to certification. In addition, a physician assistant may
24certify the needs of an individual who has been diagnosed by a
25physician and surgeon as being deaf or hearing impaired to
26participate in the program after reviewing the medical records or
27copies of the medical records containing that diagnosis.

28(b) The commission shall also design and implement a program
29to provide a dual-party relay system, using third-party intervention
30to connect individuals who are deaf or hearing impaired and offices
31of organizations representing individuals who are deaf or hearing
32impaired, as determined and specified by the commission pursuant
33to subdivision (h), with persons of normal hearing by way of
34intercommunications devices for individuals who are deaf or
35hearing impaired and the telephone system, making available
36reasonable access of all phases of public telephone service to
37telephone subscribers who are deaf or hearing impaired. In order
38to make a dual-party relay system that will meet the requirements
39of individuals who are deaf or hearing impaired available at a
40reasonable cost, the commission shall initiate an investigation,
P5    1conduct public hearings to determine the most cost-effective
2method of providing dual-party relay service to the deaf or hearing
3impaired when using a telecommunications device, and solicit the
4advice, counsel, and physical assistance of statewide nonprofit
5consumer organizations of the deaf, during the development and
6implementation of the system. The commission shall apply for
7certification of this program under rules adopted by the Federal
8Communications Commission pursuant to Section 401 of the
9federal Americans with Disabilities Act of 1990 (Public Law
10101-336).

11(c) The commission shall also design and implement a program
12whereby specialized or supplemental telephone communications
13equipment may be provided to subscribers who are certified to be
14disabled at no charge additional to the basic exchange rate. The
15certification, including a statement of visual or medical need for
16specialized telecommunications equipment, shall be provided by
17a licensed optometrist, physician and surgeon, or physician
18assistant, acting within the scope of practice of his or her license,
19or by a qualified state or federal agency as determined by the
20commission. The commission shall, in this connection, study the
21feasibility of, and implement, if determined to be feasible, personal
22income criteria, in addition to the certification of disability, for
23determining a subscriber’s eligibility under this subdivision.

24(d) (1) The commission shall also design and implement a
25program to provide access to a speech-generating device to any
26subscriber who is certified as having a speech disability at no
27charge additional to the basic exchange rate. The certification shall
28be provided by a licensed physician, licensed speech-language
29pathologist, or qualified state or federal agency. The commission
30shall provide to a certified subscriber access to a speech-generating
31device that is all of the following:

32(A) A telecommunications device or a device that includes a
33telecommunications component.

34(B) Appropriate to meet the subscriber’s needs for access to,
35and use of, the telephone network, based on the recommendation
36of a licensed speech-language pathologist.

37(C) Consistent with the quality of speech-generating devices
38available for purchase in the state.

39(2) The commission shall adopt rules to implement this
40subdivision and subdivision (e) by January 1, 2014.

P6    1(e) All of the following apply to any device or equipment
2described in this section that is classified as durable medical
3equipment under guidelines established by the United States
4Department of Health and Human Services:

5(1) It is the intent of the Legislature that the commission be the
6provider of last resort and that eligible subscribers first obtain
7coverage from any available public or private insurance.

8(2) The commission may require the subscriber to provide
9information about coverage for any or all of the cost of the device
10or equipment that is available from any public or private insurance,
11the cost to the subscriber of any deductible, copayment, or other
12relevant expense, and any related benefit cap information.

13(3) The total cost of any device or equipment provided to a
14subscriber under this section shall not exceed the rate of
15reimbursement provided by Medi-Cal for that device or equipment.

16(f) Nothing in this section requires the commission to provide
17training to a subscriber on the use of a speech-generating device.

18(g) The commission shall establish a rate recovery mechanism
19through a surcharge not to exceed one-half of 1 percent uniformly
20applied to a subscriber’s intrastate telephone service, other than
21one-way radio paging service and universal telephone service,
22both within a service area and between service areas, to allow
23providers of the equipment and service specified in subdivisions
24(a), (b),begin delete andend delete (c),begin insert and (d)end insert to recover costs as they are incurred under
25this section. The surcharge shall be in effect until January 1, 2020.
26The commission shall require that the programs implemented under
27this section be identified on subscribers’ bills, and shall establish
28a fund and require separate accounting for each of the programs
29implemented under this section.

30(h) The commission shall determine and specify those statewide
31organizations representing the deaf or hearing impaired that shall
32receive a telecommunications device pursuant to subdivision (a)
33or a dual-party relay system pursuant to subdivision (b), or both,
34and in which offices the equipment shall be installed in the case
35of an organization having more than one office.

36(i) The commission may direct a telephone corporation subject
37to its jurisdiction to comply with its determinations and
38specifications pursuant to this section.

39(j) The commission shall annually review the surcharge level
40and the balances in the funds established pursuant to subdivision
P7    1(g). Until January 1, 2020, the commission may make, within the
2limits set by subdivision (g), any necessary adjustments to the
3surcharge to ensure that the programs supported thereby are
4adequately funded and that the fund balances are not excessive. A
5fund balance that is projected to exceed six months’ worth of
6projected expenses at the end of the fiscal year is excessive.

7(k) The commission shall prepare and submit to the Legislature,
8on or before March 1 of each year, a report on the fiscal status of
9the programs established and funded pursuant to this section and
10Sections 2881.1 and 2881.2. The report shall include a statement
11of the surcharge level established pursuant to subdivision (g) and
12revenues produced by the surcharge, an accounting of program
13expenses, and an evaluation of options for controlling those
14 expenses and increasing program efficiency, including, but not
15limited to, all of the following proposals:

16(1) The establishment of a means test for persons to qualify for
17program equipment or free or reduced charges for the use of
18telecommunication services.

19(2) If and to the extent not prohibited under Section 401 of the
20federal Americans with Disabilities Act of 1990 (Public Law
21101-336), the imposition of limits or other restrictions on maximum
22usage levels for the relay service, which shall include the
23development of a program to provide basic communications
24requirements to all relay users at discounted rates, including
25discounted toll-call rates, and, for usage in excess of those basic
26requirements, at rates that recover the full costs of service.

27(3) More efficient means for obtaining and distributing
28equipment to qualified subscribers.

29(4) The establishment of quality standards for increasing the
30efficiency of the relay system.

31(5) Any modification to the program in order to maximize
32participation and funding opportunity under similar federal
33programs.

34(l) The report described in subdivision (k) that is due no later
35than March 1, 2014, shall evaluate options for controlling the
36program costs of providing speech-generating devices and include
37information on any barriers to participation in the program by
38eligible subscribers.

39(m) In order to continue to meet the access needs of individuals
40with functional limitations of hearing, vision, movement,
P8    1manipulation, speech, and interpretation of information, the
2commission shall perform ongoing assessment of, and if
3appropriate, expand the scope of the program to allow for
4additional access capability consistent with evolving
5telecommunications technology.

6(n) The commission shall structure the programs required by
7this section so that a charge imposed to promote the goals of
8universal service reasonably equals the value of the benefits of
9universal service to contributing entities and their subscribers.

10(o) (1) The requirement for submitting a report imposed under
11subdivision (k) is inoperative on January 1, 2021, pursuant to
12Section 10231.5 of the Government Code.

13(2) A report submitted pursuant to subdivision (k) shall be
14submitted in compliance with Section 9795 of the Government
15Code.

16

begin deleteSEC. 3.end delete
17begin insertSEC. 4.end insert  

No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution because
19the only costs that may be incurred by a local agency or school
20district will be incurred because this act creates a new crime or
21infraction, eliminates a crime or infraction, or changes the penalty
22for a crime or infraction, within the meaning of Section 17556 of
23the Government Code, or changes the definition of a crime within
24the meaning of Section 6 of Article XIII B of the California
25Constitution.

26

begin deleteSEC. 4.end delete
27begin insertSEC. 5.end insert  

This act is an urgency statute necessary for the
28immediate preservation of the public peace, health, or safety within
29the meaning of Article IV of the Constitution and shall go into
30immediate effect. The facts constituting the necessity are:

31In order to avoid administrative and reporting disruptions with
32respect to the state’s deaf and disabled telecommunications
33universal service programs, to maintain compliance with federal
34telecommunications universal service program requirements, and
35to encourage continued investments in the development and
36manufacture of technology and software that advances the
37communications capabilities of the deaf and disabled, it is
38necessary for this act to take effect immediately.



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