BILL ANALYSIS


HUMAN SERVICES
C.S.H.B. 1330
By: Naishtat
4-9-97
Committee Report (Substituted)

BACKGROUND

People who cannot access conventional telephone equipment without
assistance due to deafness or other hearing or speech impairments are at
an economic disadvantage.  They must purchase basic telephone equipment
and still be faced with paying prohibitive costs for  assistive equipment.
This proposal suggests a way to equalize the cost for these consumers to
access the telephone through a state subsidy. 

PURPOSE

House Bill 1330 would establish the Specialized Telecommunications Device
Assistance Program. This program, monitored by the Public Utility
Commission (the commission), and administered by the Texas Commission for
the Deaf and Hard of Hearing (TCDHH), would distribute vouchers, for a
minimal fee, to eligible applicants who are deaf, hearing impaired, and/or
speech impaired.  These vouchers could be redeemed for assistive
telecommunications devices from private vendors.  This program would
remove the barriers to communication that many of our citizens face, and
bring us to the level of equal access that other states have reached. 

RULEMAKING AUTHORITY

This bill grants rulemaking authority to the Commission for the Deaf and
Hard of Hearing (TCDHH) and the Public Utility Commission in Section 1
(section 3.611(a), Public Utility Act of 1995.) Rulemaking authority is
granted to the Public Utility Commission in Section 1 (Section 3.613,
Public Utility Act of 1995.) 

SECTION BY SECTION ANALYSIS

SECTION 1.   Subtitle N, Title III, Public Utility Regulatory Act of 1995,
is amended by adding   Sections 3.611-3.613 to read as follows: 

Sec. 3.611.Specialized Telecommunications Device Assistance Program.    
   
  (a)Directs the commission and TCDHH to establish the Specialized
Telecommunications Device Assistance Program. 

  (b)  Directs the TCDHH to prescribe eligibility standards.

  (c)  Establishes restrictions for eligibility to receive a second
voucher. 

  (d)Directs the TCDHH to determine a reasonable price for a basic
assistive telecommunications device and establishes specifications for the
vouchers to be issued. 

  (e)Directs the TCDHH  to process eligibility applications and distribute
the vouchers upon payment of a $35 fee. 

  (f)Directs TCDHH to maintain records of voucher recipients.

  (g)Directs TCDHH to deposit money collected under the program to the
universal  service fund (USF). 

  Sec. 3.612. COMMISSION DUTIES FOR SPECIALIZED      TELECOMMUNICATIONS
DEVICE ASSISTANCE PROGRAM. 

  (a)  Directs the commission to reimburse the vendors from the USF and
establishes   guidelines for that payment. 

  (b)  Allows the commission to conduct investigations of  voucher
transaction   validity.    
  
  Sec. 3.613.  RECOVERY OF SPECIALIZED TELECOMMUNICATIONS DEVICE
ASSISTANCE PROGRAM SURCHARGE.  Directs the commission to allow a
telecommunication utility to recover the USF assessments from the program
created   in this subtitle  through a customer surcharge and establishes
guidelines for that   surcharge. 

SECTION 2.  The  heading to Subtitle N, Title III, Public Utility
Regulatory Act of 1995, is   amended to add the heading:  SPECIALIZED
TELECOMMUNICATIONS DEVICE   ASSISTANCE PROGRAM. 

SECTION 3.  Section 3.604, Public Utility Regulatory Act of 1995,  is
amended by amending   Subsections  (g) and (h) and adding subsections (i)
- (k) to read as follows: 

  (g)  Amended to alter the composition of the advisory committee
established by this   section. 

  (h)  Amended to direct the advisory committee established by this
section to advise   the commission and TCDHH on issues related to the
specialized telecommunications   device assistance program established
under this subtitle.   

SECTION 4.  Section 3.608 (a), Public Utility Regulatory Act of 1995, is
amended to read as   follows: 

  (a)  Amended to authorize the USF to be used to finance the program
established by   this subtitle and reimburse TCDHH for costs incurred in
implementing the   provisions of this subtitle. 

SECTION 5.  Emergency clause.

COMPARISON OF SUBSTITUTE TO ORIGINAL
  
SECTION 1. Section 3.613 RECOVERY OF SPECIALIZED TELECOMMUNICATIONS
DEVICE ASSISTANCE PROGRAM SURCHARGE.   

  Prohibits a utility from recovering an aggregation of more than 12
months of   assessments in a single surcharge.  The original version had
no such time-limit   prohibitions on the assessment of the surcharge.   

  Directs the telecommunication utilities to include the surcharge, should
they choose   to impose it, in the "universal service fund surcharge"
listing as provided by Section   3.604(c) of this Act.  The original
version directed the utilities to create a new  and   separate surcharge
listing for the program established by this subsection.