AN ACT
 1-1     relating to expanding the specialized telecommunications devices
 1-2     assistance program and contracts for special features of the
 1-3     telecommunications relay access service.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 56.021, Utilities Code, is amended to
 1-6     read as follows:
 1-7           Sec. 56.021.  UNIVERSAL SERVICE FUND ESTABLISHED.  The
 1-8     commission shall adopt and enforce rules requiring local exchange
 1-9     companies to establish a universal service fund to:
1-10                 (1)  assist local exchange companies in providing basic
1-11     local telecommunications service at reasonable rates in high cost
1-12     rural areas;
1-13                 (2)  reimburse local exchange companies for revenue
1-14     lost by providing tel-assistance service under Subchapter C;
1-15                 (3)  reimburse the telecommunications carrier that
1-16     provides the statewide telecommunications relay access service
1-17     under Subchapter D;
1-18                 (4)  finance the specialized telecommunications
1-19     [device] assistance program established under Subchapter E; and
1-20                 (5)  reimburse the department, the Texas Commission for
1-21     the Deaf and Hard of Hearing, and the commission for costs incurred
1-22     in implementing this chapter and Chapter 57.
1-23           SECTION 2.  Subchapter D, Chapter 56, Utilities Code, is
1-24     amended by adding Section 56.1085 to read as follows:
 2-1           Sec. 56.1085.  SPECIAL FEATURES FOR RELAY ACCESS SERVICE.
 2-2     (a)  The commission may contract for a special feature for the
 2-3     state's telecommunications relay access service if the commission
 2-4     determines:
 2-5                 (1)  the feature will benefit the communication of
 2-6     persons with an impairment of hearing or speech;
 2-7                 (2)  installation of the feature will be of benefit to
 2-8     the state; and
 2-9                 (3)  the feature will make the relay access service
2-10     available to a greater number of users.
2-11           (b)  If the carrier selected to provide the
2-12     telecommunications relay access service under Section 56.108 is
2-13     unable to provide the special feature at the best value to the
2-14     state, the commission may make a written award of a contract for a
2-15     carrier to provide the special feature to the telecommunications
2-16     carrier whose proposal is most advantageous to the state,
2-17     considering:
2-18                 (1)  the factors provided by Section 56.108(b); and
2-19                 (2)  the past performance, demonstrated capability, and
2-20     experience of the carrier.
2-21           (c)  The commission shall consider each proposal in a manner
2-22     that does not disclose the contents of the proposal to a
2-23     telecommunications carrier making a competing proposal.
2-24           (d)  The commission's evaluation of a telecommunications
2-25     carrier's proposal shall include the considerations provided by
2-26     Section 56.108(d).
 3-1           SECTION 3.   Subsection (a), Section 56.109, Utilities Code,
 3-2     is amended to read as follows:
 3-3           (a)  The telecommunications carrier selected to provide the
 3-4     telecommunications relay access service under Section 56.108 or the
 3-5     carrier selected to provide a special feature for [that provides]
 3-6     the telecommunications relay access service under Section 56.1085
 3-7     shall be compensated at rates and on terms provided by the
 3-8     carrier's contract with the commission.
 3-9           SECTION 4.  Subsection (a), Section 56.110, Utilities Code,
3-10     is amended to read as follows:
3-11           (a)  An advisory committee to assist the commission in
3-12     administering this subchapter is composed of the following persons
3-13     appointed by the commission:
3-14                 (1)  two persons with disabilities that impair the
3-15     ability to effectively access the telephone network other than
3-16     disabilities described by Subdivisions (2)-(7);
3-17                 (2)  one deaf person recommended by the Texas Deaf
3-18     Caucus;
3-19                 (3) [(2)]  one deaf person recommended by the Texas
3-20     Association of the Deaf;
3-21                 (4) [(3)]  one person with a hearing impairment
3-22     recommended by Self-Help for the Hard of Hearing;
3-23                 (5) [(4)]  one person with a hearing impairment
3-24     recommended by the American Association of Retired Persons;
3-25                 (6) [(5)]  one deaf and blind person recommended by the
3-26     Texas Deaf/Blind Association;
 4-1                 (7) [(6)]  one person with a speech impairment and one
 4-2     person with a speech and hearing impairment recommended by the
 4-3     Coalition of Texans with Disabilities;
 4-4                 (8) [(7)]  two representatives of telecommunications
 4-5     utilities, one representing a nonlocal exchange utility and one
 4-6     representing a local exchange company, chosen from a list of
 4-7     candidates provided by the Texas Telephone Association;
 4-8                 (9) [(8)]  two persons, at least one of whom is deaf,
 4-9     with experience in providing relay services recommended by the
4-10     Texas Commission for the Deaf and Hard of Hearing; and
4-11                 (10) [(9)]  two public members recommended by
4-12     organizations representing consumers of telecommunications
4-13     services.
4-14           SECTION 5.  Section 56.111, Utilities Code, is amended to
4-15     read as follows:
4-16           Sec. 56.111.  ADVISORY COMMITTEE DUTIES.  The advisory
4-17     committee shall:
4-18                 (1)  monitor the establishment, administration, and
4-19     promotion of the statewide telecommunications relay access service;
4-20                 (2)  advise the commission in pursuing a service that
4-21     meets the needs of persons with an impairment of hearing or speech
4-22     in communicating with other telecommunications services users; and
4-23                 (3)  advise the commission and the Texas Commission for
4-24     the Deaf and Hard of Hearing, at the request of either commission,
4-25     regarding any issue related to the specialized telecommunications
4-26     [device] assistance program established under Subchapter E,
 5-1     including:
 5-2                       (A)  devices or services suitable to meet the
 5-3     needs of persons with disabilities [the hearing-impaired and
 5-4     speech-impaired] in communicating with other users of
 5-5     telecommunications services; and
 5-6                       (B)  oversight and administration of the program.
 5-7           SECTION 6.  The heading to Subchapter E, Chapter 56,
 5-8     Utilities Code, is amended to read as follows:
 5-9           SUBCHAPTER E.  SPECIALIZED TELECOMMUNICATIONS [DEVICE]
5-10                             ASSISTANCE PROGRAM
5-11           SECTION 7.  Sections 56.151 through 56.154, Utilities Code,
5-12     are amended to read as follows:
5-13           Sec. 56.151.  SPECIALIZED TELECOMMUNICATIONS [DEVICE]
5-14     ASSISTANCE PROGRAM.  The commission and the Texas Commission for
5-15     the Deaf and Hard of Hearing by rule shall establish a specialized
5-16     telecommunications assistance program to provide financial
5-17     assistance to [certain] individuals with disabilities that impair
5-18     the individuals' ability to effectively access the telephone
5-19     network [who are deaf or have an impairment of hearing or speech]
5-20     to enable the individuals to purchase specialized equipment or
5-21     services to provide telephone network access that is functionally
5-22     equivalent to that enjoyed by individuals without disabilities [an
5-23     impairment of hearing or speech]. The agencies may adopt joint
5-24     rules that identify devices and services eligible for vouchers
5-25     under the program.
5-26           Sec. 56.152.  ELIGIBILITY.  The Texas Commission for the Deaf
 6-1     and Hard of Hearing by rule shall prescribe eligibility standards
 6-2     for individuals, including deaf individuals and individuals who
 6-3     have an impairment of hearing or speech, to receive an assistance
 6-4     voucher under the program.  To be eligible, an individual must be a
 6-5     resident of this state who has access to a telephone line in the
 6-6     individual's home or place of business.
 6-7           Sec. 56.153.  VOUCHERS.  (a)  The Texas Commission for the
 6-8     Deaf and Hard of Hearing shall determine a reasonable price for a
 6-9     basic specialized telecommunications device or basic specialized
6-10     services to provide telephone network access from a home or
6-11     business [for the deaf (TDD or TTY)] and distribute to each
6-12     eligible applicant a voucher that guarantees payment of that amount
6-13     to a distributor of new specialized telecommunications devices
6-14     described by Section 56.151 or to a provider of services described
6-15     by that section.  The Texas Commission for the Deaf and Hard of
6-16     Hearing may issue a voucher for a service only if the service is
6-17     less expensive than a device eligible for a voucher under the
6-18     program to meet the same need.
6-19           (b)  A voucher must have the value printed on its face.  The
6-20     individual exchanging a voucher for the purchase of a specialized
6-21     telecommunications device or service is responsible for payment of
6-22     the difference between the voucher's value and the price of the
6-23     device or service.
6-24           (c)  The commission and the Texas Commission for the Deaf and
6-25     Hard of Hearing by rule shall provide that a distributor of devices
6-26     or a provider of services will receive not more than the full price
 7-1     of the device or service [a specialized telecommunications device]
 7-2     if the recipient of a voucher exchanges the voucher for a device or
 7-3     service that the distributor or provider sells for less than the
 7-4     voucher's value.
 7-5           (d)  An individual who has exchanged a voucher for a
 7-6     specialized telecommunications device is not eligible to receive
 7-7     another voucher before the seventh anniversary of the date the
 7-8     individual exchanged the previously issued voucher unless, before
 7-9     that date, the recipient develops a need for a different type of
7-10     telecommunications device or service under the program because the
7-11     recipient's disability changes or the recipient acquires another
7-12     disability.
7-13           (e)  An individual is not eligible for a voucher if the Texas
7-14     Commission for the Deaf and Hard of Hearing has issued a voucher to
7-15     another individual in the individual's household for a device or
7-16     service to serve the same telephone line.
7-17           (f) [(e)]  The Texas Commission for the Deaf and Hard of
7-18     Hearing shall:
7-19                 (1)  process each application for a voucher to
7-20     determine eligibility of the applicant; and
7-21                 (2)  give each eligible applicant a voucher on payment
7-22     of a $35 fee.
7-23           (g) [(f)]  The Texas Commission for the Deaf and Hard of
7-24     Hearing shall maintain a record regarding each individual who
7-25     receives a voucher under the program.
7-26           (h) [(g)]  The Texas Commission for the Deaf and Hard of
 8-1     Hearing shall deposit money collected under the program to the
 8-2     credit of the universal service fund.
 8-3           Sec. 56.154.  COMMISSION DUTIES.  (a)  Not later than the
 8-4     45th day after the date the commission receives a voucher a
 8-5     telecommunications device distributor presents for payment or a
 8-6     voucher a telecommunications service provider presents for payment,
 8-7     the commission shall pay to the distributor or service provider the
 8-8     lesser of the value of a voucher properly exchanged for a
 8-9     specialized telecommunications device or service or the full price
8-10     of the device or service for which a voucher recipient exchanges
8-11     the voucher.  The payments must be made from the universal service
8-12     fund.
8-13           (b)  The commission may investigate whether the presentation
8-14     of a voucher for payment represents a valid transaction for a
8-15     telecommunications device or service under the program.  The Texas
8-16     Commission for the Deaf and Hard of Hearing shall cooperate with
8-17     and assist the commission in an investigation under this
8-18     subsection.
8-19           (c)  Notwithstanding Section 56.153(a), the commission may:
8-20                 (1)  delay payment of a voucher to a distributor of
8-21     devices or a service provider if there is a dispute regarding the
8-22     amount or propriety of the payment or whether the device or service
8-23     is appropriate or adequate to meet the needs of the person to whom
8-24     the Texas Commission for the Deaf and Hard of Hearing issued the
8-25     voucher until the dispute is resolved;
8-26                 (2)  provide that payment of the voucher is conditioned
 9-1     on the return of the payment if the device is returned to the
 9-2     distributor or if the service is not used by the person to whom the
 9-3     voucher was issued; and
 9-4                 (3)  provide an alternative dispute resolution process
 9-5     for resolving a dispute regarding a subject described by
 9-6     Subdivision (1) or (2).
 9-7           SECTION 8.  Subsection (a), Section 56.155, Utilities Code,
 9-8     is amended to read as follows:
 9-9           (a)  The commission shall allow a telecommunications utility
9-10     to recover the universal service fund assessment related to the
9-11     specialized telecommunications [device] assistance program through
9-12     a surcharge added to the utility's customers' bills.
9-13           SECTION 9.  (a)  In accordance with Subsection (c), Section
9-14     311.031, Government Code, which gives effect to a substantive
9-15     amendment enacted by  the same  legislature  that codifies the
9-16     amended statute, the text of Section 56.021, Subsection (a),
9-17     Section 56.110, Sections 56.111, 56.151, 56.152, 56.153, and
9-18     56.154, and Subsection (a), Section 56.155, Utilities Code, as set
9-19     out in Sections 1, 4, 5, 6, 7, and 8 of this Act, gives  effect  to
9-20     changes  made  by Chapter 149, Acts of the 75th Legislature,
9-21     Regular Session, 1997.
9-22           (b)  To the  extent of any conflict, this Act prevails over
9-23     another Act of the 76th Legislature, Regular Session, 1999,
9-24     relating to nonsubstantive additions to and corrections in enacted
9-25     codes.
9-26           SECTION 10.  This Act takes effect September 1, 1999.
 10-1          SECTION 11.  The importance of this legislation and the
 10-2    crowded condition of the calendars in both houses create an
 10-3    emergency and an imperative public necessity that the
 10-4    constitutional rule requiring bills to be read on three several
 10-5    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1441 passed the Senate on
         April 23, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 28, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1441 passed the House, with
         amendment, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor