By Holzheauser                                        H.B. No. 1895
       74R6463 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to expansion of toll-free calling areas.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Sections 93A(a) and (b), Public Utility
    1-5  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), as
    1-6  added by Chapter 271, Acts of the 73rd Legislature, Regular
    1-7  Session, 1993, are amended to read as follows:
    1-8        (a)  To address telephone calling needs between nearby
    1-9  telephone exchanges, the commission shall initiate a rulemaking
   1-10  proceeding to approve rules to provide for an expedited hearing to
   1-11  allow the expanding of toll-free calling areas according to the
   1-12  following criteria:
   1-13              (1)  Toll-free calling boundaries may only be expanded
   1-14  under this section after the filing of a petition signed by the
   1-15  lesser of five percent of the subscribers or 100 subscribers within
   1-16  an exchange or a political subdivision included in an exchange.  If
   1-17  such a petition is filed with the commission, the commission shall
   1-18  order the local exchange company to provide for the balloting of
   1-19  its subscribers within the petitioning exchange or political
   1-20  subdivision and, if there is an affirmative vote of at least 70
   1-21  percent of those responding, the commission shall consider the
   1-22  request.
   1-23              (2)  The commission shall provide for the expansion of
   1-24  toll-free calling areas for each local exchange customer in the
    2-1  petitioning exchange or political subdivision if the petitioning
    2-2  exchange serves not more than 10,000 lines or if there are not more
    2-3  than 10,000 lines served in the political subdivision and if:
    2-4                    (A)  the petitioning exchange or political
    2-5  subdivision is located within 22 miles of the exchange requested
    2-6  for toll-free calling service; or
    2-7                    (B)  the petitioning exchange or political
    2-8  subdivision shares a community of interest with the exchange
    2-9  requested for toll-free calling service.  For purposes of this
   2-10  paragraph, "community of interest" includes areas that have a
   2-11  relationship because of schools, hospitals, local governments,
   2-12  business centers, and other relationships the unavailability of
   2-13  which would cause a hardship to the residents of the area but need
   2-14  not include an area where the affected central offices are more
   2-15  than 50 miles apart.
   2-16              (3)(A)  The local exchange company shall recover all of
   2-17  its costs incurred and all loss of revenue from any expansion of
   2-18  toll-free calling areas under this section through a request other
   2-19  than a revenue requirement showing by:
   2-20                          (i)  a monthly fee for toll-free calling
   2-21  service of not more than $3.50 per line for residential customers
   2-22  nor more than $7 per line for business customers, to be collected
   2-23  from all such residential or business customers in the petitioning
   2-24  exchange or political subdivision and only until the local exchange
   2-25  company's next general rate case;
   2-26                          (ii)  a monthly fee for toll-free calling
   2-27  service for all of the local exchange company's local exchange
    3-1  service customers in the state in addition to the company's current
    3-2  local exchange rates; or
    3-3                          (iii)  both (i) and (ii).
    3-4                    (B)  A local exchange company may not recover
    3-5  regulatory case expenses under this section by surcharging
    3-6  petitioning <exchange> subscribers.
    3-7        (b)(1)  The commission and a local exchange company are not
    3-8  required to comply with this section with regard to a petitioning
    3-9  exchange or political subdivision or petitioned exchange if:
   3-10                    (A)  the commission determines that there has
   3-11  been a good and sufficient showing of a geographic or technological
   3-12  infeasibility to serve the area;
   3-13                    (B)  the local exchange company has less than
   3-14  10,000 lines;
   3-15                    (C)  the petitioning exchange or political
   3-16  subdivision or petitioned exchange is served by a cooperative;
   3-17                    (D)  extended area service or extended
   3-18  metropolitan service is currently available between the petitioning
   3-19  exchange or political subdivision and the petitioned exchange
   3-20  <exchanges>; or
   3-21                    (E)  the petitioning exchange or political
   3-22  subdivision or petitioned exchange is a metropolitan exchange or is
   3-23  included in a metropolitan exchange.
   3-24              (2)  The commission may expand the toll-free calling
   3-25  area into an exchange not within a metropolitan exchange but within
   3-26  the local calling area contiguous to a metropolitan exchange that
   3-27  the commission determines to have a community of interest
    4-1  relationship with the petitioning exchange or political
    4-2  subdivision.  For the purposes of this section, metropolitan
    4-3  exchange, local calling area of a metropolitan exchange, and
    4-4  exchange have the meanings and boundaries as defined and approved
    4-5  by the commission on the effective date of this section.  However,
    4-6  under no circumstances shall a <petitioning or> petitioned exchange
    4-7  be split in the provision of a toll-free calling area.
    4-8        SECTION 2.  This Act takes effect September 1, 1995.
    4-9        SECTION 3.  The importance of this legislation and the
   4-10  crowded condition of the calendars in both houses create an
   4-11  emergency and an imperative public necessity that the
   4-12  constitutional rule requiring bills to be read on three several
   4-13  days in each house be suspended, and this rule is hereby suspended.