1-1 By: Carriker, Shapiro S.B. No. 632
1-2 (In the Senate - Filed March 4, 1993; March 8, 1993, read
1-3 first time and referred to Committee on Economic Development;
1-4 May 5, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0; May 5, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 632 By: Shapiro
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the service areas of certain public utilities.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Article XIII, Public Utility Regulatory Act
1-26 (Article 1446c, Vernon's Texas Civil Statutes), is amended by
1-27 adding Section 93A to read as follows:
1-28 Sec. 93A. (a) To address telephone calling needs between
1-29 nearby telephone exchanges, the commission shall initiate a
1-30 rulemaking proceeding to approve rules to provide for an expedited
1-31 hearing to allow the expanding of toll-free calling areas according
1-32 to the following criteria:
1-33 (1) Toll-free calling boundaries may only be expanded
1-34 under this section after the filing of a petition signed by the
1-35 lesser of five percent of the subscribers or 100 subscribers within
1-36 an exchange. If such a petition is filed with the commission, the
1-37 commission shall order the local exchange company to provide for
1-38 the balloting of its subscribers within the petitioning exchange
1-39 and, if there is an affirmative vote of at least 70 percent of
1-40 those responding, the commission shall consider the request.
1-41 (2) The commission shall provide for the expansion of
1-42 toll-free calling areas for each local exchange customer in the
1-43 petitioning exchange if the petitioning exchange serves not more
1-44 than 10,000 lines and if:
1-45 (A) the petitioning exchange is located within
1-46 22 miles of the exchange requested for toll-free calling service;
1-47 or
1-48 (B) the petitioning exchange shares a community
1-49 of interest with the exchange requested for toll-free calling
1-50 service. For purposes of this paragraph, "community of interest"
1-51 includes areas that have a relationship because of schools,
1-52 hospitals, local governments, business centers, and other
1-53 relationships the unavailability of which would cause a hardship to
1-54 the residents of the area but need not include an area where the
1-55 affected central offices are more than 50 miles apart.
1-56 (3)(A) The local exchange company shall recover all of
1-57 its costs incurred and all loss of revenue from any expansion of
1-58 toll-free calling areas under this section through a request other
1-59 than a revenue requirement showing by:
1-60 (i) a monthly fee for toll-free calling
1-61 service of not more than $3.50 per line for residential customers
1-62 nor more than $7 per line for business customers, to be collected
1-63 from all such residential or business customers in the petitioning
1-64 exchange and only until the local exchange company's next general
1-65 rate case;
1-66 (ii) a monthly fee for toll-free calling
1-67 service for all of the local exchange company's local exchange
1-68 service customers in the state in addition to the company's current
2-1 local exchange rates; or
2-2 (iii) both (i) and (ii).
2-3 (B) A local exchange company may not recover
2-4 regulatory case expenses under this section by surcharging
2-5 petitioning exchange subscribers.
2-6 (b)(1) The commission and a local exchange company are not
2-7 required to comply with this section with regard to a petitioning
2-8 exchange or petitioned exchange if:
2-9 (A) the commission determines that there has
2-10 been a good and sufficient showing of a geographic or technological
2-11 infeasibility to serve the area;
2-12 (B) the local exchange company has less than
2-13 10,000 lines;
2-14 (C) the petitioning or petitioned exchange is
2-15 served by a cooperative;
2-16 (D) extended area service or extended
2-17 metropolitan service is currently available between the petitioning
2-18 and petitioned exchanges; or
2-19 (E) the petitioning or petitioned exchange is a
2-20 metropolitan exchange.
2-21 (2) The commission may expand the toll-free calling
2-22 area into an exchange not within a metropolitan exchange but within
2-23 the local calling area contiguous to a metropolitan exchange that
2-24 the commission determines to have a community of interest
2-25 relationship with the petitioning exchange. For the purposes of
2-26 this section, metropolitan exchange, local calling area of a
2-27 metropolitan exchange, and exchange have the meanings and
2-28 boundaries as defined and approved by the commission on the
2-29 effective date of this section. However, under no circumstances
2-30 shall a petitioning or petitioned exchange be split in the
2-31 provision of a toll-free calling area.
2-32 (c) The commission may, in order to promote the wide
2-33 dispersion of pay telephones, either exempt such telephones from
2-34 the provisions of this section or change the rates to be charged
2-35 from such telephones in an amount sufficient to promote this goal.
2-36 SECTION 2. This Act takes effect September 1, 1993.
2-37 SECTION 3. The importance of this legislation and the
2-38 crowded condition of the calendars in both houses create an
2-39 emergency and an imperative public necessity that the
2-40 constitutional rule requiring bills to be read on three several
2-41 days in each house be suspended, and this rule is hereby suspended.
2-42 * * * * *
2-43 Austin,
2-44 Texas
2-45 May 5, 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 S.B. No. 632, 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 not pass, but that the Committee Substitute adopted in
2-53 lieu thereof do pass and be printed.
2-54 Parker,
2-55 Chairman
2-56 * * * * *
2-57 WITNESSES
2-58 FOR AGAINST ON
2-59 ___________________________________________________________________
2-60 Name: Jim Boyle x
2-61 Representing:
2-62 City: Austin
2-63 -------------------------------------------------------------------
2-64 Name: Rell Rice x
2-65 Representing: Texas Telephone Assoc.
2-66 City:
2-67 -------------------------------------------------------------------
2-68 Name: Walter Fisher x
2-69 Representing: TML
2-70 City: Austin
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