By Uher, et al.                                       H.B. No. 1695
          Substitute the following for H.B. No. 1695:
          By Raymond                                        C.S.H.B. No. 1695
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the service areas of certain public utilities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article XIII, The Public Utility Regulatory Act
    1-5  (Article 1446c, Vernon's Texas Civil Statutes) is amended by adding
    1-6  Section 93A to read as follows:
    1-7  Section 93A.  (a)  To address telephone calling needs between
    1-8  nearby telephone exchanges, the commission shall initiate a
    1-9  rulemaking proceeding to approve rules to provide for an expedited
   1-10  hearing to allow the expanding of toll free calling areas according
   1-11  to the following criteria:
   1-12              (1)  Toll free calling boundaries may only be expanded
   1-13  under this section after a petition signed by the lesser of 5 per
   1-14  cent of the subscribers or 100 subscribers within an exchange.  If
   1-15  such a petition is filed with the commission, then the commission
   1-16  shall order the local exchange company to provide for the balloting
   1-17  of its subscribers within the petitioning exchange and, if there is
   1-18  an affirmative vote by 70 percent of those responding, the
   1-19  commission shall consider the request.
   1-20              (2)  The commission shall provide for the expansion of
   1-21  toll free calling areas for each local exchange customer in the
   1-22  petitioning exchange if the petitioning exchange serves not more
   1-23  than 10,000 lines, and if:
   1-24                    (i)  the petitioning exchange is located within
    2-1  22 miles of the exchange requested for toll free calling service,
    2-2  or
    2-3                    (ii)  the petitioning exchange shares a community
    2-4  of interest with the exchange requested for toll free calling
    2-5  service.  For purposes of this section, "community of interest"
    2-6  includes areas that have a relationship because of schools,
    2-7  hospitals, local governments, business centers and other
    2-8  relationships the unavailability of which would cause a hardship to
    2-9  the residents of the area; but need not include an area where the
   2-10  affected central offices are more than 50 miles apart.
   2-11        (3)  The local exchange company shall recover all of its
   2-12  costs incurred and all loss of revenue from any expansion of toll
   2-13  free calling areas under this section through a request other than
   2-14  a revenue requirement showing by:
   2-15                    (i)  a monthly fee for toll free calling service
   2-16  of not more than $3.50 per line for residential customers nor more
   2-17  than $7 per line for business customers, to be collected from all
   2-18  of the customers in the petitioning exchange and only until the
   2-19  local exchange company's next general rate case, and/or
   2-20                    (ii)  a monthly fee for toll free calling service
   2-21  for all of the local exchange company's local exchange service
   2-22  customers in the state in addition to the company's current local
   2-23  exchange rates.
   2-24  A local exchange company may not recover regulatory case expenses
   2-25  under this section by surcharging petitioning exchange subscribers.
   2-26        (b)  The commission and a local exchange company are not
   2-27  required to comply with this section with regard to a petitioning
    3-1  exchange or petitioned exchange if:
    3-2              (1)  the commission determines that there has been a
    3-3  good and sufficient showing of a geographic or technological
    3-4  infeasibility to serve the area, or
    3-5              (2)  the local exchange company has less than 10,000
    3-6  lines, or
    3-7              (3)  the petitioning or petitioned exchange is served
    3-8  by a cooperative, or
    3-9              (4)  extended area service or extended metropolitan
   3-10  service is currently available between the petitioning and
   3-11  petitioned exchange(s), or
   3-12              (5)  the petitioning or petitioned exchange is a
   3-13  metropolitan exchange.  The commission may expand the toll free
   3-14  calling area into an exchange not within a metropolitan exchange
   3-15  but within the local calling area contiguous to a metropolitan
   3-16  exchange that the commission determines to have a community of
   3-17  interest relationship with the petitioning exchange.  For the
   3-18  purposes of this section, metropolitan exchange, local calling area
   3-19  of a metropolitan exchange, and exchange have the same meanings and
   3-20  boundaries as currently defined and approved by the commission.
   3-21  However, under no circumstances shall a petitioning or petitioned
   3-22  exchange be split in the provision of a toll free calling area.
   3-23        (c)  The commission may, in order to promote the wide
   3-24  dispersion of pay telephones, either exempt such telephones from
   3-25  the provisions of this section or may change the rates to be
   3-26  charged from such telephones in an amount sufficient to promote
   3-27  this goal.
    4-1        SECTION 2.  The importance of this legislation and the
    4-2  crowded condition of the calendars in both houses create an
    4-3  emergency and an imperative public necessity that the
    4-4  constitutional rule requiring bills to be read on three several
    4-5  days in each house be suspended, and this rule is hereby suspended,
    4-6  and that this Act take effect and be in force from and after its
    4-7  passage, and it is so enacted.