BILL NUMBER: SB 129	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 23, 2013
	AMENDED IN SENATE  APRIL 16, 2013

INTRODUCED BY   Senator Wright
   (Coauthor: Assembly Member Gomez)

                        JANUARY 23, 2013

   An act 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. 
   Under 
    (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.  
   Under 
    (4)     Under  the Public Utilities
 Act   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: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

   SECTION 1.    Section 278.5 of the   Public
Utilities Code   is repealed.  
   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. 
   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 (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), 
and  (c),  and (i),  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. 
   (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) 
    (   i)  The commission may direct a telephone
corporation subject to its jurisdiction to comply with its
determinations and specifications pursuant to this section. 
   (k) 
    (   j)  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. 
   (l) 
    (   k)  The commission shall prepare and submit
to the Legislature, on or before  December 31  
March 1  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.

   (m) 
    (   l)  The report described in subdivision
 (l)   (k)  that is due no later than
 December 31, 2013   March 1, 2014  , 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. 
   (n) 
    (   m)  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. 
   (o) 
    (n)  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. 
   (p) 
    (   o)  (1) The requirement for submitting a
report imposed under subdivision  (l)   (k)
 is inoperative on January 1, 2021, pursuant to Section 10231.5
of the Government Code.
   (2) A report submitted pursuant to subdivision  (l)
  (k)  shall be submitted in compliance with
Section 9795 of the Government Code.
   SEC. 2.   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.
   SEC. 3.   SEC. 4.   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.