1-1     By:  Barrientos                                        S.B. No. 667

 1-2           (In the Senate - Filed February 19, 1997; February 24, 1997,

 1-3     read first time and referred to Committee on Economic Development;

 1-4     April 22, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 8, Nays 0; April 22, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 667                   By:  Sibley

 1-8                                   AN ACT

 1-9     relating to the creation and administration of a program to assist

1-10     individuals who are deaf or hard of hearing or who have an

1-11     impairment of speech to purchase specialized telecommunications

1-12     devices for telephone service access.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Subtitle N, Title III, Public Utility Regulatory

1-15     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

1-16     amended by adding Sections 3.611, 3.612, and 3.613 to read as

1-17     follows:

1-18           Sec. 3.611.  SPECIALIZED TELECOMMUNICATIONS DEVICE ASSISTANCE

1-19     PROGRAM.  (a)  The commission and the Texas Commission for the Deaf

1-20     and Hard of Hearing by rule shall establish a program to provide

1-21     financial assistance to certain individuals who are deaf or have an

1-22     impairment of hearing or speech to enable the individuals to

1-23     purchase specialized equipment to provide telephone network access

1-24     that is functionally equivalent to that enjoyed by individuals

1-25     without an impairment of hearing or speech.

1-26           (b)  The Texas Commission for the Deaf and Hard of Hearing by

1-27     rule shall prescribe eligibility standards for deaf individuals and

1-28     individuals who have an impairment of hearing or speech to receive

1-29     an assistance voucher under the program.  To be eligible, an

1-30     individual must be a resident of this state who has access to a

1-31     telephone line in the individual's home or place of business.

1-32           (c)  An individual who has exchanged a voucher for a

1-33     specialized telecommunications device is not eligible to receive

1-34     another voucher before the seventh anniversary of the date the

1-35     individual exchanged the previously issued voucher.  An individual

1-36     is not eligible for a voucher if the Texas Commission for the Deaf

1-37     and Hard of Hearing has issued a voucher to another individual in

1-38     the individual's household for a device to serve the same telephone

1-39     line.

1-40           (d)  The Texas Commission for the Deaf and Hard of Hearing

1-41     shall determine a reasonable price for a basic telecommunications

1-42     device for the deaf (TDD or TTY) and distribute to each eligible

1-43     applicant a voucher that guarantees payment of that amount to a

1-44     distributor of new specialized telecommunications devices.  A

1-45     voucher must have the value printed on its face.  The individual

1-46     exchanging a voucher for the purchase of a specialized

1-47     telecommunications device is responsible for payment of the

1-48     difference between the voucher's value and the price of the device.

1-49     The commission and the Texas Commission for the Deaf and Hard of

1-50     Hearing by rule shall provide that a distributor will receive not

1-51     more than the full price of a specialized telecommunications device

1-52     if the recipient of a voucher exchanges the voucher for a device

1-53     that the distributor sells for less than the voucher's value.

1-54           (e)  The Texas Commission for the Deaf and Hard of Hearing

1-55     shall:

1-56                 (1)  process each application for a voucher to

1-57     determine eligibility of the applicant; and

1-58                 (2)  give each eligible applicant a voucher on payment

1-59     of a $35 fee.

1-60           (f)  The Texas Commission for the Deaf and Hard of Hearing

1-61     shall maintain a record regarding each individual who receives a

1-62     voucher under the program.

1-63           (g)  The Texas Commission for the Deaf and Hard of Hearing

1-64     shall deposit money collected under the program to the credit of

 2-1     the universal service fund.

 2-2           Sec. 3.612.  COMMISSION DUTIES FOR SPECIALIZED

 2-3     TELECOMMUNICATIONS DEVICE ASSISTANCE PROGRAM.  (a)  Not later than

 2-4     the 45th day after the date the commission receives a voucher a

 2-5     telecommunications device distributor presents for payment, the

 2-6     commission shall pay to the distributor the lesser of the value of

 2-7     a voucher properly exchanged for a specialized telecommunications

 2-8     device or the full price of the device for which a voucher

 2-9     recipient exchanges the voucher.  The payments must be made from

2-10     the universal service fund.

2-11           (b)  The commission may investigate whether the presentation

2-12     of a voucher for payment represents a valid transaction for a

2-13     telecommunications device under the program.  The Texas Commission

2-14     for the Deaf and Hard of Hearing shall cooperate with and assist

2-15     the commission in an investigation under this subsection.

2-16           Sec. 3.613.  RECOVERY OF SPECIALIZED TELECOMMUNICATIONS

2-17     DEVICE ASSISTANCE PROGRAM SURCHARGE.  The commission shall allow a

2-18     telecommunications utility to recover the universal service fund

2-19     assessment related to the specialized telecommunications device

2-20     assistance program through a surcharge added to the utility's

2-21     customers' bills.  The commission shall specify how each utility

2-22     must determine the amount of the surcharge and by rule shall

2-23     prohibit a utility from recovering an aggregation of more than 12

2-24     months of assessments in a single surcharge.  The rules must

2-25     require a utility to apply for approval of a surcharge before the

2-26     91st day after the date the period during which the aggregated

2-27     surcharges were assessed closes.  If a utility chooses to impose

2-28     the surcharge, the utility shall include the surcharge in the

2-29     "universal service fund surcharge" listing as provided by Section

2-30     3.604(c) of this Act.

2-31           SECTION 2.  The heading to Subtitle N, Title III, Public

2-32     Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas

2-33     Civil Statutes), is amended to read as follows:

2-34         SUBTITLE N.  TELECOMMUNICATIONS SERVICE ASSISTANCE PROGRAM;

2-35          SPECIALIZED TELECOMMUNICATIONS DEVICE ASSISTANCE PROGRAM;

2-36                           UNIVERSAL SERVICE FUND

2-37           SECTION 3.  Section 3.604, Public Utility Regulatory Act of

2-38     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

2-39     by amending Subsections (g) and (h) and adding Subsections (i),

2-40     (j), and (k) to read as follows:

2-41           (g)  The advisory committee to assist the commission in

2-42     administering this section is composed of the following persons

2-43     appointed by the commission:

2-44                 (1)  one [two] deaf person [persons] recommended by the

2-45     Texas Deaf Caucus;

2-46                 (2)  one deaf person recommended by the Texas

2-47     Association of the Deaf;

2-48                 (3) [(2)]  one hearing-impaired person recommended by

2-49     Self-Help for the Hard of Hearing;

2-50                 (4) [(3)]  one hearing-impaired person recommended by

2-51     the American Association of Retired Persons;

2-52                 (5) [(4)]  one deaf and blind person recommended by the

2-53     Texas Deaf/Blind Association;

2-54                 (6) [(5)]  one speech-impaired person and one

2-55     speech-impaired and hearing-impaired person recommended by the

2-56     Coalition of Texans with Disabilities;

2-57                 (7) [(6)]  two representatives of telecommunications

2-58     utilities, one representing a nonlocal exchange utility and one

2-59     representing a local exchange company, chosen from a list of

2-60     candidates provided by the Texas Telephone Association;

2-61                 (8) [(7)]  two persons, at least one of whom is deaf,

2-62     with experience in providing relay services recommended by the

2-63     Texas Commission for the Deaf and Hard of Hearing

2-64     [Hearing-Impaired]; and

2-65                 (9) [(8)]  two public members recommended by

2-66     organizations representing consumers of telecommunications

2-67     services.

2-68           (h)  The commission shall appoint advisory committee members

2-69     based on recommended lists of candidates submitted in accordance

 3-1     with Subdivision (7) [(6)] of Subsection (g) of this section.  The

 3-2     advisory committee shall:

 3-3                 (1)  monitor the establishment, administration, and

 3-4     promotion of the statewide telecommunications relay access service;

 3-5                 (2)  [and] advise the commission in pursuing a service

 3-6     that [which] meets the needs of the hearing-impaired and

 3-7     speech-impaired in communicating with other users of

 3-8     telecommunications services; and

 3-9                 (3)  advise the commission and the Texas Commission for

3-10     the Deaf and Hard of Hearing, at the request of either commission,

3-11     regarding any issue related  to the specialized telecommunications

3-12     device assistance program established under this subtitle,

3-13     including:

3-14                       (A)  devices suitable to meet the needs of the

3-15     hearing-impaired and speech-impaired in communicating with other

3-16     users of telecommunications services; and

3-17                       (B)  oversight and administration of the program.

3-18           (i)  The term [terms] of office of each member of the

3-19     advisory committee shall be two years.  A member whose term has

3-20     expired shall continue to serve until a qualified replacement is

3-21     appointed.

3-22           (j)  The members of the advisory committee shall serve

3-23     without compensation but shall be entitled to reimbursement at

3-24     rates established for state employees for travel and per diem

3-25     incurred in the performance of their official duties.  The

3-26     commission shall reimburse members of the advisory committee in

3-27     accordance with this subsection and shall provide clerical and

3-28     staff support to the advisory committee, including a secretary to

3-29     record the committee meetings.

3-30           (k)  The [commission's] costs associated with the advisory

3-31     committee shall be reimbursed from the universal service fund.

3-32           SECTION 4.  Subsection (a), Section 3.608, Public Utility

3-33     Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

3-34     Statutes), is amended to read as follows:

3-35           (a)  The commission shall adopt and enforce rules requiring

3-36     local exchange companies to establish a universal service fund to:

3-37                 (1)  assist local exchange companies in providing basic

3-38     local telecommunications service at reasonable rates in high cost

3-39     rural areas;

3-40                 (2)  [, to] reimburse local exchange companies for

3-41     revenues lost as a result of providing tel-assistance service under

3-42     this Act;

3-43                 (3)  [, to] reimburse the telecommunications carrier

3-44     providing the statewide telecommunications relay access service for

3-45     the hearing-impaired and speech-impaired as authorized in Section

3-46     3.604 of this Act;

3-47                 (4)  finance the specialized telecommunications device

3-48     assistance program established under Section 3.611 of this Act; and

3-49                 (5)  [, and to] reimburse the Texas Department of Human

3-50     Services, the Texas Commission for the Deaf and Hard of Hearing,

3-51     and the commission for costs incurred in implementing the

3-52     provisions of this subtitle.

3-53           SECTION 5.  The importance of this legislation and the

3-54     crowded condition of the calendars in both houses create an

3-55     emergency and an imperative public necessity that the

3-56     constitutional rule requiring bills to be read on three several

3-57     days in each house be suspended, and this rule is hereby suspended,

3-58     and that this Act take effect and be in force from and after its

3-59     passage, and it is so enacted.

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