Enrolled Bill Summary

            Senate Bill 560 amends the Utilities Code to provide for the regulation of telecommunications utilities. The act provides that it is the policy of this state that telephone services, including cable, wireless, and advanced telecommunications services, must be priced reasonably for all customers. The act sets parameters for introducing and pricing new telecommunications services, as well as for promotions for existing services, and prohibits predatory, anticompetitive pricing or discount practices. The act caps basic local service rates for residential and business customers at the current level until September 1, 2005, and reduces the switched-access rates charged to long distance companies for use of the local network and requires them to pass the savings on to customers. The act also repeals the requirement that companies competing with incumbent local exchange companies make major investments in new facilities and infrastructure.

            Senate Bill 560 sets forth customer protection standards and requires the Public Utility Commission to promote customer education and awareness of the changes in the telecommunications market and to adopt and enforce rules requiring telecommunications utilities to provide clear, uniform, and understandable information to customers. The act also includes provisions relating to the unauthorized switching of a selected service provider (slamming) and the imposition of unauthorized charges (cramming). The commission is required to review, evaluate, and report to the legislature, not later than January 1, 2001, on the availability and pricing of telecommunications and information services in rural and high cost areas. The act also extends the sunset date of the commission and the Office of Public Utility Counsel to September 1, 2005.