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
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   2-63  Name:  Geoff Fletcher                                          x
   2-64  Representing:  Texas Education Agency
   2-65  City:  Austin
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   2-67  Name:  W. Scott McCollough                                     x
   2-68  Representing:
   2-69  City:  Austin
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    3-1  Name:  Richard L. Simms                          x
    3-2  Representing:  Consortium of St.Orgs./Educ
    3-3  City:  Denton
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