By A. Smith of Harris, Cain                           H.B. No. 2522
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the provision of discounted telephone rates to
    1-3  educational institutions.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 3, Public Utility Regulatory Act (Article
    1-6  1446c, Vernon's Texas Civil Statutes) is amended by adding
    1-7  subsection (w), to read as follows:
    1-8        (w)  The term "educational institution," when used in this
    1-9  Act, means and includes state or local governmentally owned or
   1-10  operated schools, colleges, and universities; and the Texas
   1-11  Education Agency, its successors and assigns, and the Texas Higher
   1-12  Education Coordinating Board, its successors and assigns.
   1-13        SECTION 2.  Subsection (e), Section 18, Public Utility
   1-14  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is
   1-15  amended by adding subdivision (4), to read as follows:
   1-16        (4)  In determining just and reasonable telecommunications
   1-17  rates for educational institutions, the commission shall implement
   1-18  the following regulatory treatment:
   1-19              (A)  for purposes of allocating costs and designing
   1-20  rates for each telecommunications utility, educational institutions
   1-21  shall be treated as a separate customer class;
   1-22              (B)  for single line local exchange service, the
   1-23  commission shall establish a flat rate, such rate being no greater
    2-1  than that established for the utility's residential class of
    2-2  customers in each rate group;
    2-3              (C)  for single line local exchange service used to
    2-4  access the Texas Education Network, its successors and assigns, or
    2-5  any other data or voice network that assists in or is related to
    2-6  education, including school/parent communications systems, the
    2-7  commission shall establish a flat rate, such rate being no greater
    2-8  than that established for the utility's residential class of
    2-9  customers in each rate group;
   2-10              (D)  for service using dedicated private lines
   2-11  operating at 56 kilobits per second or greater and used to access
   2-12  the Texas Education Network, its successors and assigns, or any
   2-13  other data or voice network that assists in or is related to
   2-14  education, including school/parent communications systems, the
   2-15  commission shall not establish or maintain rates that are greater
   2-16  than two and one-half (2 1/2) times the rate available to the
   2-17  utility's residential class of customers in each rate group;
   2-18              (E)  for service using dedicated private lines
   2-19  operating at 1.5 megabits per second or greater and used to access
   2-20  the Texas Education Network, its successors and assigns, or any
   2-21  other data or voice network that assists in or is related to
   2-22  education, including school/parent communications systems, the
   2-23  commission shall not establish or maintain rates that are greater
   2-24  than seven and one-half (7 1/2) times the rate available to the
   2-25  utility's residential class of customers in each rate group; and
    3-1              (F)  for multiline business service, PBX service, or
    3-2  central office based PBX-type service, the commission shall not
    3-3  establish a rate greater than fifty percent (50%) of the utility's
    3-4  otherwise applicable rate for each type of service.
    3-5              (G)  In establishing rates under subsections (B)
    3-6  through (F) of this section, the commission shall be guided by
    3-7  sound ratemaking principles, and shall in no event establish rates
    3-8  that are less than a utility's long run incremental costs of
    3-9  providing those services, as enumerated in subsections (B) through
   3-10  (F) above, to educational institution.
   3-11        SECTION 3.  This Act takes effect September 1, 1993.
   3-12        SECTION 4.  The importance of this legislation and the
   3-13  crowded condition of the calendars in both houses create an
   3-14  emergency and an imperative public necessity that the
   3-15  constitutional rule requiring bills to be read on three several
   3-16  days in each house be suspended, and this rule is hereby suspended.