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.