(House committee report) as follows: (1) Strike Section 21 of the bill (page 30, line 16, through page 31, line 11) and substitute: SECTION 21. Section 56.021, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The commission shall adopt and enforce rules requiring local exchange companies to establish a universal service fund to: (1) assist telecommunications providers local exchange companies in providing basic local telecommunications service at reasonable rates in high cost rural areas; (2) reimburse telecommunications providers local exchange companies for revenue lost by providing tel-assistance service under Subchapter C; (3) reimburse the telecommunications carrier that provides the statewide telecommunications relay access service under Subchapter D; (4) finance the specialized telecommunications device assistance program established under Subchapter E; and (5) reimburse the department, the Texas Commission for the Deaf and Hard of Hearing, and the commission for costs incurred in implementing this chapter and Chapter 57; and (6) reimburse a telecommunications carrier providing lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as amended. (2) Between Sections 27 and 28 of the bill (page 36, between lines 14 and 15) insert: SECTION 28. Subchapter D, Chapter 56, Utilities Code, is amended by adding Section 56.1085 to read as follows: Sec. 56.1085. SPECIAL FEATURES FOR RELAY ACCESS SERVICE. (a) The commission may contract for a special feature for the state's telecommunications relay access service if the commission determines: (1) the feature will benefit the communication of persons with an impairment of hearing or speech; (2) installation of the feature will be of benefit to the state; and (3) the feature will make the relay access service available to a greater number of users. (b) If the carrier selected to provide the telecommunications relay access service under Section 56.108 is unable to provide the special feature at the best value to the state, the commission may make a written award of a contract for a carrier to provide the special feature to the telecommunications carrier whose proposal is most advantageous to the state, considering: (1) the factors provided by Section 56.108(b); and (2) the past performance, demonstrated capability, and experience of the carrier. (c) The commission shall consider each proposal in a manner that does not disclose the contents of the proposal to a telecommunications carrier making a competing proposal. (d) The commission's evaluation of a telecommunications carrier's proposal shall include the considerations provided by Section 56.108(d). SECTION 29. Section 56.109(a), Utilities Code, is amended to read as follows: (a) The telecommunications carrier selected to provide the telecommunications relay access service under Section 56.108 or the carrier selected to provide a special feature for that provides the telecommunications relay access service under Section 56.1085 shall be compensated at rates and on terms provided by the carrier's contract with the commission. SECTION 30. Subsection (a), Section 56.110, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: (a) An advisory committee to assist the commission in administering this subchapter is composed of the following persons appointed by the commission: (1) two persons with disabilities that impair the ability to effectively access the telephone network other than disabilities described by Subdivisions (2)-(7); (2) one deaf person recommended by the Texas Deaf Caucus; (3) (2) one deaf person recommended by the Texas Association of the Deaf; (4) (3) one person with a hearing impairment recommended by Self-Help for the Hard of Hearing; (5) (4) one person with a hearing impairment recommended by the American Association of Retired Persons; (6) (5) one deaf and blind person recommended by the Texas Deaf/Blind Association; (7) (6) one person with a speech impairment and one person with a speech and hearing impairment recommended by the Coalition of Texans with Disabilities; (8) (7) two representatives of telecommunications utilities, one representing a nonlocal exchange utility and one representing a local exchange company, chosen from a list of candidates provided by the Texas Telephone Association; (9) (8) two persons, at least one of whom is deaf, with experience in providing relay services recommended by the Texas Commission for the Deaf and Hard of Hearing; and (10) (9) two public members recommended by organizations representing consumers of telecommunications services. SECTION 31. Section 56.111, Utilities Code, as amended by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: Sec. 56.111. ADVISORY COMMITTEE DUTIES. The advisory committee shall: (1) monitor the establishment, administration, and promotion of the statewide telecommunications relay access service; (2) advise the commission in pursuing a service that meets the needs of persons with an impairment of hearing or speech in communicating with other telecommunications services users; and (3) advise the commission and the Texas Commission for the Deaf and Hard of Hearing, at the request of either commission, regarding any issue related to the specialized telecommunications device assistance program established under Subchapter E, including: (A) devices or services suitable to meet the needs of persons with disabilities the hearing-impaired and speech-impaired in communicating with other users of telecommunications services; and (B) oversight and administration of the program. SECTION 32. The heading to Subchapter E, Chapter 56, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: SUBCHAPTER E. SPECIALIZED TELECOMMUNICATIONS DEVICE ASSISTANCE PROGRAM SECTION 33. Sections 56.151 through 56.154, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, are amended to read as follows: Sec. 56.151. SPECIALIZED TELECOMMUNICATIONS DEVICE ASSISTANCE PROGRAM. The commission and the Texas Commission for the Deaf and Hard of Hearing by rule shall establish a specialized telecommunications assistance program to provide financial assistance to certain individuals with disabilities that impair the individuals' ability to effectively access the telephone network who are deaf or have an impairment of hearing or speech to enable the individuals to purchase specialized equipment or services to provide telephone network access that is functionally equivalent to that enjoyed by individuals without disabilities an impairment of hearing or speech . The agencies may adopt joint rules that identify devices and services eligible for vouchers under the program. Sec. 56.152. ELIGIBILITY. The Texas Commission for the Deaf and Hard of Hearing by rule shall prescribe eligibility standards for individuals, including deaf individuals and individuals who have an impairment of hearing or speech, to receive an assistance voucher under the program. To be eligible, an individual must be a resident of this state who has access to a telephone line in the individual's home or place of business. Sec. 56.153. VOUCHERS. (a) The Texas Commission for the Deaf and Hard of Hearing shall determine a reasonable price for a basic specialized telecommunications device or basic specialized services to provide telephone network access from a home or business for the deaf (TDD or TTY) and distribute to each eligible applicant a voucher that guarantees payment of that amount to a distributor of new specialized telecommunications devices described by Section 56.151 or to a provider of services described by that section. The Texas Commission for the Deaf and Hard of Hearing may issue a voucher for a service only if the service is less expensive than a device eligible for a voucher under the program to meet the same need. (b) A voucher must have the value printed on its face. The individual exchanging a voucher for the purchase of a specialized telecommunications device or service is responsible for payment of the difference between the voucher's value and the price of the device or service. (c) The commission and the Texas Commission for the Deaf and Hard of Hearing by rule shall provide that a distributor of devices or a provider of services will receive not more than the full price of the device or service a specialized telecommunications device if the recipient of a voucher exchanges the voucher for a device or service that the distributor or provider sells for less than the voucher's value. (d) An individual who has exchanged a voucher for a specialized telecommunications device is not eligible to receive another voucher before the seventh anniversary of the date the individual exchanged the previously issued voucher unless, before that date, the recipient develops a need for a different type of telecommunications device or service under the program because the recipient's disability changes or the recipient acquires another disability. (e) An individual is not eligible for a voucher if the Texas Commission for the Deaf and Hard of Hearing has issued a voucher to another individual in the individual's household for a device or service to serve the same telephone line. (f) (e) The Texas Commission for the Deaf and Hard of Hearing shall: (1) process each application for a voucher to determine eligibility of the applicant; and (2) give each eligible applicant a voucher on payment of a $35 fee. (g) (f) The Texas Commission for the Deaf and Hard of Hearing shall maintain a record regarding each individual who receives a voucher under the program. (h) (g) The Texas Commission for the Deaf and Hard of Hearing shall deposit money collected under the program to the credit of the universal service fund. Sec. 56.154. COMMISSION DUTIES. (a) Not later than the 45th day after the date the commission receives a voucher a telecommunications device distributor presents for payment or a voucher a telecommunications service provider presents for payment, the commission shall pay to the distributor or service provider the lesser of the value of a voucher properly exchanged for a specialized telecommunications device or service or the full price of the device or service for which a voucher recipient exchanges the voucher. The payments must be made from the universal service fund. (b) The commission may investigate whether the presentation of a voucher for payment represents a valid transaction for a telecommunications device or service under the program. The Texas Commission for the Deaf and Hard of Hearing shall cooperate with and assist the commission in an investigation under this subsection. (c) Notwithstanding Section 56.153(a), the commission may: (1) delay payment of a voucher to a distributor of devices or a service provider if there is a dispute regarding the amount or propriety of the payment or whether the device or service is appropriate or adequate to meet the needs of the person to whom the Texas Commission for the Deaf and Hard of Hearing issued the voucher until the dispute is resolved; (2) provide that payment of the voucher is conditioned on the return of the payment if the device is returned to the distributor or if the service is not used by the person to whom the voucher was issued; and (3) provide an alternative dispute resolution process for resolving a dispute regarding a subject described by Subdivision (1) or (2). SECTION 34. Subsection (a), Section 56.155, Utilities Code, as added by Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: (a) The commission shall allow a telecommunications utility to recover the universal service fund assessment related to the specialized telecommunications device assistance program through a surcharge added to the utility's customers' bills. (3) Renumber the sections of the bill accordingly.