1-1 By: A. Smith of Harris (Senate Sponsor - Lucio) H.B. No. 653 1-2 (In the Senate - Received from the House May 5, 1993; 1-3 May 6, 1993, read first time and referred to Committee on Economic 1-4 Development; May 13, 1993, reported favorably by the following 1-5 vote: Yeas 9, Nays 0; May 13, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Parker x 1-9 Lucio x 1-10 Ellis x 1-11 Haley x 1-12 Harris of Dallas x 1-13 Harris of Tarrant x 1-14 Leedom x 1-15 Madla x 1-16 Rosson x 1-17 Shapiro x 1-18 Wentworth x 1-19 A BILL TO BE ENTITLED 1-20 AN ACT 1-21 relating to the establishment of an education tariff for certain 1-22 telecommunications services. 1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-24 SECTION 1. Article XIV, Public Utility Regulatory Act 1-25 (Article 1446c, Vernon's Texas Civil Statutes), is amended by 1-26 adding Section 96B to read as follows: 1-27 Sec. 96B. (a) The commission by rule shall require a 1-28 dominant carrier to file a tariff containing a reduced rate for a 1-29 telecommunications service the commission finds is directly related 1-30 to a distance learning activity that is or could be conducted by an 1-31 educational institution in this state. 1-32 (b) The commission rules shall specify: 1-33 (1) the telecommunications services that qualify under 1-34 this section; 1-35 (2) the process by which an educational institution 1-36 qualifies for a reduced rate; 1-37 (3) the date by which a dominant carrier shall file a 1-38 tariff; 1-39 (4) guidelines and criteria by which the services and 1-40 reduced rates shall further the goals stated in Subsection (d) of 1-41 this section; and 1-42 (5) any other requirements, terms, and conditions that 1-43 the commission determines to be in the public interest. 1-44 (c) A tariff filing by a dominant carrier under this 1-45 section: 1-46 (1) shall concern only the implementation of this 1-47 section; 1-48 (2) is not a rate change under Section 43 of this Act; 1-49 and 1-50 (3) does not affect any of the carrier's other rates 1-51 or services. 1-52 (d) The services and reduced rates shall be designed to: 1-53 (1) encourage the development and offering of distance 1-54 learning activities by educational institutions; 1-55 (2) meet the distance learning needs identified by the 1-56 educational community; and 1-57 (3) recover the long-run incremental costs of 1-58 providing the services, to the extent those costs can be 1-59 identified, so as to avoid subsidizing educational institutions. 1-60 (e) The commission is not required to determine the long-run 1-61 incremental cost of providing a service before approving a reduced 1-62 rate for the service. Until cost determination rules are developed 1-63 and the rates established under this section are changed as 1-64 necessary to ensure proper cost recovery, the reduced rates 1-65 established by the commission shall be equal to 75 percent of the 1-66 otherwise applicable rate. After the commission develops cost 1-67 determination rules for telecommunications services generally, it 1-68 shall ensure that a reduced rate approved under this section 2-1 recovers service-specific long-run incremental costs and avoids 2-2 subsidization. 2-3 (f) An educational institution or dominant carrier may at 2-4 any time request the commission to: 2-5 (1) provide for a reduced rate for a service directly 2-6 related to a distance learning activity that is not covered by 2-7 commission rules; 2-8 (2) change a rate; 2-9 (3) amend a tariff; or 2-10 (4) amend a commission rule. 2-11 (g) If the commission determines that a change requested 2-12 under Subsection (f) is appropriate, it shall make the requested 2-13 change. 2-14 (h) In this section: 2-15 (1) "Distance learning" means instruction, learning, 2-16 and training that is transmitted from one site to one or more sites 2-17 by telecommunications services that are used by an educational 2-18 institution predominantly for such instruction, learning, or 2-19 training, including video, data, voice, and electronic information. 2-20 (2) "Educational institution" means and includes 2-21 accredited primary or secondary schools owned or operated by state 2-22 and local governmental entities or private entities; institutions 2-23 of higher education as defined by Section 61.003, Education Code; 2-24 private institutions of higher education accredited by a recognized 2-25 accrediting agency as defined by Section 61.003(13), Education 2-26 Code; the Central Education Agency, its successors and assigns; 2-27 regional education service centers established and operated 2-28 pursuant to Sections 11.32 and 11.33, Education Code; and the Texas 2-29 Higher Education Coordinating Board, its successors and assigns. 2-30 SECTION 2. As soon as possible after the effective date of 2-31 this Act, the Public Utility Commission of Texas shall adopt rules 2-32 as prescribed by Section 96B, Public Utility Regulatory Act 2-33 (Article 1446c, Vernon's Texas Civil Statutes), as added by this 2-34 Act. 2-35 SECTION 3. The importance of this legislation and the 2-36 crowded condition of the calendars in both houses create an 2-37 emergency and an imperative public necessity that the 2-38 constitutional rule requiring bills to be read on three several 2-39 days in each house be suspended, and this rule is hereby suspended, 2-40 and that this Act take effect and be in force from and after its 2-41 passage, and it is so enacted. 2-42 * * * * * 2-43 Austin, 2-44 Texas 2-45 May 13, 1993 2-46 Hon. Bob Bullock 2-47 President of the Senate 2-48 Sir: 2-49 We, your Committee on Economic Development to which was referred 2-50 H.B. No. 653, have had the same under consideration, and I am 2-51 instructed to report it back to the Senate with the recommendation 2-52 that it do pass and be printed. 2-53 Parker, 2-54 Chairman 2-55 * * * * * 2-56 WITNESSES 2-57 FOR AGAINST ON 2-58 ___________________________________________________________________ 2-59 Name: Vicki Oswalt x 2-60 Representing: Public Utility Commission 2-61 City: Austin 2-62 ------------------------------------------------------------------- 2-63 Name: Geoff Fletcher x 2-64 Representing: Texas Education Agency 2-65 City: Austin 2-66 ------------------------------------------------------------------- 2-67 Name: W. Scott McCollough x 2-68 Representing: 2-69 City: Austin 2-70 ------------------------------------------------------------------- 3-1 Name: Richard L. Simms x 3-2 Representing: Consortium of St.Orgs./Educ 3-3 City: Denton 3-4 -------------------------------------------------------------------