By: Carriker S.B. No. 632
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the service areas of certain public utilities.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Article XIII, Public Utility Regulatory Act
1-4 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
1-5 adding Section 93A to read as follows:
1-6 Sec. 93A. (a) The commission shall require each local
1-7 exchange company to establish local service areas that conform to
1-8 the following provisions:
1-9 (1) each telephone subscriber shall be entitled to
1-10 place toll-free calls to any other subscriber if any part of the
1-11 subscribers' central office territories are adjoining or if either
1-12 territory's central office is located within 22 miles of the other
1-13 central office's territory; and
1-14 (2) each telephone subscriber shall be entitled to
1-15 place toll-free calls to any other subscriber within any area that
1-16 the commission determines to be within one community of interest.
1-17 (b) For the purposes of this section, a community of
1-18 interest includes areas that are related by common schools,
1-19 hospitals, local governments, business centers, and other
1-20 facilities, the inaccessibility to which would create or exacerbate
1-21 a hardship for the residents of the areas. A community of interest
1-22 need not include areas in territories in which the central offices
1-23 are more than 50 miles apart.
2-1 (c) Each local exchange company shall submit its plan to
2-2 establish toll-free calling areas pursuant to this section within
2-3 90 days after the commission adopts rules implementing this
2-4 section. An affected person may complain of a plan submitted, and
2-5 the commission shall proceed as provided by Section 43A of this
2-6 Act.
2-7 (d) The commission shall amend the boundaries of a toll-free
2-8 service area on petition by 100 residents of the area if the
2-9 commission finds, after a hearing on the merits, that a community
2-10 of interest exists. The commission shall require notice by the
2-11 local exchange company to affected parties as it deems reasonable.
2-12 The decision regarding changing a toll-free calling area pursuant
2-13 to this section shall be made within 60 days after the notice
2-14 required by the commission is delivered, and the commission shall
2-15 establish a reasonable time for the implementation of the plan.
2-16 (e) The commission and a local exchange company are not
2-17 required to comply with this section if there is a good and
2-18 sufficient showing that it is geographically or technologically
2-19 infeasibile to serve such an area.
2-20 (f) In order to compensate a local exchange company for
2-21 revenues lost due to the implementation of this section, the
2-22 commission may allow a local exchange company to establish a fixed
2-23 monthly per line fee to be paid by subscribers who obtain a new
2-24 toll-free calling area pursuant to this section. A fee so allowed
2-25 may not exceed $2 per line and shall only be in effect until the
3-1 next general rate case, at which time the costs and revenues
3-2 associated with this section shall be considered as if the
3-3 boundaries of the territories had not changed unless there is
3-4 another boundary change pursuant to this section after the general
3-5 rate case. A fee established pursuant to this section must be
3-6 approved by the commission in a hearing on the merits after
3-7 adequate notice and may not exceed an amount determined to
3-8 compensate the local exchange company for the actual loss of
3-9 revenue due to the implementation of this section. In the event
3-10 that the fee established fails to compensate the local exchange
3-11 company and the local exchange company is able to demonstrate
3-12 hardship, as defined by the commission, then the local exchange
3-13 company is entitled to recover sufficient lost revenues to
3-14 eliminate the hardship from the universal service fund established
3-15 by this Act.
3-16 SECTION 2. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended,
3-21 and that this Act take effect and be in force from and after its
3-22 passage, and it is so enacted.