Enrolled Bill Summary

Senate Bill 980	Senate Author:  Carona et al.
Effective:  See below	House Sponsor:  Hancock

            Senate Bill 980 amends provisions of the Utilities Code relating to telecommunications services and markets.  The bill prohibits the Public Utility Commission of Texas (PUC) from requiring a telecommunications utility that is not a public utility, including a deregulated or transitioning company, to comply with a requirement or standard that is more burdensome than a requirement or standard the PUC imposes on a public utility.  The bill prohibits a department, agency, or political subdivision of Texas from regulating rates charged for, service or contract terms for, conditions for, or requirements for entry into the market for Voice over Internet Protocol services or other Internet Protocol enabled services, as those terms are defined in the bill, and sets out provisions that are not subject to this prohibition.

Senate Bill 980 sets out tariff requirements relating to a telecommunications provider not subject to rate of return regulation and makes provisions governing a certificate of convenience and necessity, a certificate of operating authority, or a service provider certificate of operating authority applicable to a transitioning company under provisions relating to the deregulation of certain incumbent local exchange company markets.  The bill prohibits the PUC, on or after September 1, 2011, from requiring a telecommunications provider to provide mandatory or optional extended area service to additional metropolitan areas or calling areas or ordering an expansion of a toll-free local calling area.

Senate Bill 980 requires the PUC to adopt rules that include procedures to ensure reasonable transparency and accountability in the administration of the universal service fund and sets requirements for support from the universal service fund that is available to deregulated markets.  The bill changes the procedures for determining whether a market should be deregulated.   Among other provisions, the bill requires a market that is deregulated as of September 1, 2011, to remain deregulated and prohibits the PUC from reregulating a market or company that has been deregulated.  An incumbent local exchange company may petition the PUC to deregulate a market of the company that the PUC previously determined should remain regulated.   Only the incumbent local exchange company is authorized to initiate a proceeding to deregulate one of the company's markets.   The bill makes changes to the conditions under which the PUC determines whether a market should remain regulated.

The bill revises provisions applicable to deregulated and transitioning companies and sets out provisions exempting a transitioning company from certain rate and price requirements.  The bill requires the PUC to review and evaluate, through the initiation of one or more proceedings, whether the universal service fund accomplishes the fund's purposes and requires the PUC to complete each proceeding required under those provisions not later than November 1, 2012.  The PUC must provide the legislature with a copy of its findings and any orders issued.  The PUC is prohibited from initiating a proceeding to review the Texas High Cost Universal Service Plan before January 2, 2012.  The bill makes provisions relating to the support available to deregulated markets, the inapplicability of certain rate and price requirements to a transitioning incumbent local exchange company, and a complaint relating to compliance filed by an affected person effective January 2, 2012.  All other provisions take effect September 1, 2011.