By A. Smith of Harris                                  H.B. No. 653
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment of an education tariff for certain
    1-3  telecommunications services.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article XIV, Public Utility Regulatory Act
    1-6  (Article 1446c, Vernon's Texas Civil Statutes), is amended by
    1-7  adding Section 96B to read as follows:
    1-8        Sec. 96B.  (a)  The commission by rule shall require a
    1-9  dominant carrier to file a tariff containing a reduced rate for a
   1-10  telecommunications service the commission finds is directly related
   1-11  to a distance learning activity that is or could be conducted by an
   1-12  educational institution in this state.
   1-13        (b)  The commission rules shall specify:
   1-14              (1)  the telecommunications services that qualify under
   1-15  this section;
   1-16              (2)  the process by which an educational institution
   1-17  qualifies for a reduced rate;
   1-18              (3)  the date by which a dominant carrier shall file a
   1-19  tariff;
   1-20              (4)  guidelines and criteria by which the services and
   1-21  reduced rates shall further the goals stated in Subsection (d) of
   1-22  this section; and
   1-23              (5)  any other requirements, terms, and conditions that
   1-24  the commission determines to be in the public interest.
    2-1        (c)  A tariff filing by a dominant carrier under this
    2-2  section:
    2-3              (1)  shall concern only the implementation of this
    2-4  section;
    2-5              (2)  is not a rate change under Section 43 of this Act;
    2-6  and
    2-7              (3)  does not affect any of the carrier's other rates
    2-8  or services.
    2-9        (d)  The services and reduced rates shall be designed to:
   2-10              (1)  encourage the development and offering of distance
   2-11  learning activities by educational institutions;
   2-12              (2)  meet the distance learning needs identified by the
   2-13  educational community; and
   2-14              (3)  recover the long-run incremental costs of
   2-15  providing the services, to the extent those costs can be
   2-16  identified, so as to avoid subsidizing educational institutions.
   2-17        (e)  The commission is not required to determine the long-run
   2-18  incremental cost of providing a service before approving a reduced
   2-19  rate for the service.  Until cost determination rules are developed
   2-20  and the rates established under this section are changed as
   2-21  necessary to ensure proper cost recovery, the reduced rates
   2-22  established by the commission shall be equal to 75 percent of the
   2-23  otherwise applicable rate.  After the commission develops cost
   2-24  determination rules for telecommunications services generally, it
   2-25  shall ensure that a reduced rate approved under this section
   2-26  recovers service-specific long-run incremental costs and avoids
   2-27  subsidization.
    3-1        (f)  An educational institution or dominant carrier may at
    3-2  any time request the commission to:
    3-3              (1)  provide for a reduced rate for a service directly
    3-4  related to a distance learning activity that is not covered by
    3-5  commission rules;
    3-6              (2)  change a rate;
    3-7              (3)  amend a tariff; or
    3-8              (4)  amend a commission rule.
    3-9        (g)  If the commission determines that a change requested
   3-10  under Subsection (f) is appropriate, it shall make the requested
   3-11  change.
   3-12        (h)  In this section:
   3-13              (1)  "Distance learning" means instruction, learning,
   3-14  and training that is transmitted from one site to one or more sites
   3-15  by telecommunications services that are used by an educational
   3-16  institution predominantly for such instruction, learning, or
   3-17  training, including video, data, voice, and electronic information.
   3-18              (2)  "Educational institution" means and includes
   3-19  accredited primary or secondary schools owned or operated by state
   3-20  and local governmental entities or private entities; institutions
   3-21  of higher education as defined by Section 61.003, Education Code;
   3-22  private institutions of higher education accredited by a recognized
   3-23  accrediting agency as defined by Section 61.003(13), Education
   3-24  Code; the Central Education Agency, its successors and assigns;
   3-25  regional education service centers established and operated
   3-26  pursuant to Sections 11.32 and 11.33, Education Code; and the Texas
   3-27  Higher Education Coordinating Board, its successors and assigns.
    4-1        SECTION 2.  As soon as possible after the effective date of
    4-2  this Act, the Public Utility Commission of Texas shall adopt rules
    4-3  as prescribed by Section 96B, Public Utility Regulatory Act
    4-4  (Article 1446c, Vernon's Texas Civil Statutes), as added by this
    4-5  Act.
    4-6        SECTION 3.  The importance of this legislation and the
    4-7  crowded condition of the calendars in both houses create an
    4-8  emergency and an imperative public necessity that the
    4-9  constitutional rule requiring bills to be read on three several
   4-10  days in each house be suspended, and this rule is hereby suspended,
   4-11  and that this Act take effect and be in force from and after its
   4-12  passage, and it is so enacted.