BILL ANALYSIS



H.B. 823
By: Heflin
March 14, 1995
Committee Report (Amended)


BACKGROUND

Current Texas law under Article 1446c, VTCS caps the amount a hotel
or motel may charge for local telephone calls (or other calls from
a hotel room for which operator assistance is not required) at 50
cents.  While this is the maximum amount that may be billed,
whether to charge a fee is decided by each hotel or motel based on
market forces.

Texas is one of three states, and the largest nationally, that caps
their local/non-assisted dialing charge at 50 cents per call.  The
majority of other states have either no cap, or a cap of $1.00.

PURPOSE

The purpose of HB 823 is to raise the amount hotels and motels can
charge for local telephone calls or other calls made without
operator assistance from 50 cents to a dollar.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 93B of the Public Utility Regulatory Act
(Article 1446c, Vernon's Texas Civil Statues) by changing the
amount a hotel or motel can charge for local telephone calls,
credit card telephone calls, collect telephone calls, or any other
local telephone calls for which assistance from the hotel or motel
operator is not required from 50 cents to $1.00.

SECTION 2.  Emergency clause.  Immediate effect.

EXPLANATION OF AMENDMENTS

Removes the cap on the amount a hotel or motel can charge for
telephone calls and provides for a mandatory disclosure to be
provided to the occupant upon check-in, and to prominently display
the amount charged on or near each telephone.

SUMMARY OF COMMITTEE ACTION

H.B. 823 was considered by the committee in a public hearing on
March 6, 1995.  Testifying in favor of the bill was Don Hansen
representing the Texas Hotel and Motel Association; and Daniel
Prosser, representing the Telman Group, Incorporated.  No one
testified against the bill.  The committee considered a complete
substitute for the bill.  The substitute was left pending in
committee.  H.B. 823 was left pending in committee for further
consideration.  H.B. 823 was reconsidered by the committee in a
public hearing on March 13, 1995.  The committee reconsidered the
complete substitute for the bill.  The substitute was withdrawn
without objection.  The committee considered an amendment to the
bill.  The amendment was adopted by a record of 6 ayes, 1 nay, 0
pnv, 2 absent.  H.B. 823 was reported  favorably as amended, with
the recommendation that it do pass and be printed, by a record vote
of  5 ayes, 2 nays, 0 pnv, 2 absent.