H.B. No. 2128
1-1 AN ACT
1-2 relating to the regulation of telecommunications utilities, to the
1-3 provision of telecommunications and related services, and to the
1-4 continuation of the Public Utility Commission of Texas.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1.002, Public Utility Regulatory Act of
1-7 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
1-8 Session, 1995, is amended to read as follows:
1-9 Sec. 1.002. LEGISLATIVE POLICY AND PURPOSE. This Act is
1-10 enacted to protect the public interest inherent in the rates and
1-11 services of public utilities. The legislature finds that
1-12 traditionally public utilities are by definition monopolies in the
1-13 areas they serve; that therefore the normal forces of competition
1-14 which operate to regulate prices in a free enterprise society do
1-15 not operate; and that therefore utility rates, operations, and
1-16 services are regulated by public agencies with the objective that
1-17 this regulation shall operate as a substitute for competition. The
1-18 purpose of this Act is to establish a comprehensive regulatory
1-19 system which is adequate to the task of regulating public utilities
1-20 as defined by this Act, to assure rates, operations, and services
1-21 which are just and reasonable to the consumers and to the
1-22 utilities.
1-23 SECTION 2. Section 1.003(14), Public Utility Regulatory Act
1-24 of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
2-1 Regular Session, 1995, is amended to read as follows:
2-2 (14) "Rate" means and includes every compensation,
2-3 tariff, charge, fare, toll, rental, and classification, or any of
2-4 them demanded, observed, charged, or collected whether directly or
2-5 indirectly by any public utility for any service, product, or
2-6 commodity described in the definition of "utility" in Section 2.001
2-7 or 3.002 <3.001> of this Act and any rules, regulations, practices,
2-8 or contracts affecting any such compensation, tariff, charge, fare,
2-9 toll, rental, or classification.
2-10 SECTION 3. Section 1.004, Public Utility Regulatory Act of
2-11 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
2-12 Session, 1995, is amended to read as follows:
2-13 Sec. 1.004. DEFINITIONS IN TITLE. In this title, "public
2-14 utility" or "utility" has the meaning assigned by Section 2.001 or
2-15 3.002 <3.001> of this Act.
2-16 SECTION 4. Section 1.022, Public Utility Regulatory Act of
2-17 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
2-18 Session, 1995, is amended to read as follows:
2-19 Sec. 1.022. SUNSET PROVISION. The Public Utility Commission
2-20 of Texas and the Office of Public Utility Counsel are subject to
2-21 Chapter 325, Government Code (Texas Sunset Act). Unless continued
2-22 in existence as provided by that chapter, the commission and the
2-23 office are abolished and this Act expires September 1, 2001 <1995>.
2-24 SECTION 5. Section 1.353, Public Utility Regulatory Act of
2-25 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
2-26 Session, 1995, is amended to read as follows:
2-27 Sec. 1.353. PAYMENT OF ASSESSMENTS. (a) For the
3-1 assessments covered by this section, assessments are due as
3-2 provided by this section notwithstanding Section 1.352 of this Act,
3-3 based on a public utility's estimate of its gross receipts.
3-4 (b) For the assessment due August 15, 1995, 50 percent of
3-5 the assessment must be paid by August 15, 1994, and 50 percent must
3-6 be paid by February 15, 1995.
3-7 (c) For the assessment due August 15, 1996, 50 percent of
3-8 the assessment must be paid by August 15, 1995, and 50 percent must
3-9 be paid by February 15, 1996.
3-10 (d) For the assessment due August 15, 1997, 50 percent of
3-11 the assessment must be paid by August 15, 1996, and 50 percent must
3-12 be paid by February <the remainder must be paid by August> 15,
3-13 1997.
3-14 (e) For the assessment due August 15, 1998, 50 percent of
3-15 the assessment must be paid by August 15, 1997, and the remainder
3-16 must be paid by August 15, 1998.
3-17 (f) Any assessment amounts underpaid on assessments due on
3-18 August 15, 1995, <or> August 15, 1996, or August 15, 1997, must be
3-19 paid by those respective dates. Any assessment amounts overpaid
3-20 shall be credited against following assessments.
3-21 (g) <(f)> This section expires September 1, 1998 <1997>.
3-22 SECTION 6. Subtitle K, Title I, Public Utility Regulatory
3-23 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
3-24 Regular Session, 1995, is amended by adding Section 1.407 to read
3-25 as follows:
3-26 Sec. 1.407. HISTORICALLY UNDERUTILIZED BUSINESSES. (a) The
3-27 commission, upon notice and hearing, has the authority to require
4-1 each utility subject to regulation under the Public Utility
4-2 Regulatory Act to make an effort to overcome the underuse of
4-3 historically underutilized businesses.
4-4 (b) The commission shall require each utility subject to
4-5 regulation under the Public Utility Regulatory Act to prepare and
4-6 submit to the commission a comprehensive annual report detailing
4-7 its use of historically underutilized businesses.
4-8 (c) In this section "historically underutilized business"
4-9 has the same meaning as in Section 481.101, Government Code.
4-10 (d) The rules adopted under this section may not be used to
4-11 discriminate against any citizen on the basis of sex, race, color,
4-12 creed, or national origin.
4-13 (e) This section does not create a new cause of action,
4-14 either public or private.
4-15 SECTION 7. Subtitle A, Title III, Public Utility Regulatory
4-16 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
4-17 Regular Session, 1995, is amended to read as follows:
4-18 SUBTITLE A. GENERAL PROVISIONS
4-19 Sec. 3.001. POLICY. The legislature finds that significant
4-20 changes have occurred in telecommunications since this Act was
4-21 initially adopted. The legislature hereby finds that it is the
4-22 policy of this state to promote diversity of providers and
4-23 interconnectivity and to encourage a fully competitive
4-24 telecommunications marketplace while protecting and maintaining the
4-25 wide availability of high quality, interoperable, standards-based
4-26 telecommunications services at affordable rates. These goals are
4-27 best achieved by legislation that brings telecommunications
5-1 regulation into the modern era by guaranteeing the affordability of
5-2 basic telephone service in a competitively neutral manner, while
5-3 fostering free market competition within the telecommunications
5-4 industry. The legislature further finds that the technological
5-5 advancements, advanced telecommunications infrastructure, and
5-6 increased customer choices for telecommunications services
5-7 generated by a truly competitive market will raise the living
5-8 standards of all Texans by enhancing economic development and
5-9 improving the delivery of education, health, and other public and
5-10 private services and therefore play a critical role in Texas'
5-11 economic future. It is the policy of this state to require the
5-12 commission to do those things necessary to enhance the development
5-13 of competition by adjusting regulation to match the degree of
5-14 competition in the marketplace, thereby reducing the cost and
5-15 burden of regulation and maintaining protection of markets that are
5-16 not competitive. It is further the policy of this state to ensure
5-17 that high quality telecommunications services are available,
5-18 accessible, and usable by individuals with disabilities, unless
5-19 making the services available, accessible, or usable would result
5-20 in an undue burden, including unreasonable cost or technical
5-21 feasibility, or would have an adverse competitive effect. However,
5-22 the legislature recognizes that the strength of competitive forces
5-23 vary widely between markets and products and services. Therefore,
5-24 to foster, encourage, and accelerate the continuing development and
5-25 emergence of a competitive and advanced telecommunications
5-26 environment and infrastructure, the legislature declares that new
5-27 rules, policies, and principles be formulated and applied to
6-1 protect the public interest.
6-2 Sec. 3.002. DEFINITIONS. In this title:
6-3 (1) "Basic local telecommunications service" means:
6-4 (A) flat rate residential and business local
6-5 exchange telephone service, including primary directory listings;
6-6 (B) tone dialing service;
6-7 (C) access to operator services;
6-8 (D) access to directory assistance services;
6-9 (E) access to 911 service where provided by a
6-10 local authority or dual party relay service;
6-11 (F) the ability to report service problems seven
6-12 days a week;
6-13 (G) lifeline and tel-assistance services; and
6-14 (H) any other service the commission, after a
6-15 hearing, determines should be included in basic local
6-16 telecommunications service.
6-17 (2) "Dominant carrier" means:
6-18 (A) a provider of any particular communication
6-19 service which is provided in whole or in part over a telephone
6-20 system who as to such service has sufficient market power in a
6-21 telecommunications market as determined by the commission to enable
6-22 such provider to control prices in a manner adverse to the public
6-23 interest for such service in such market; <and>
6-24 (B) any provider who provided <of> local
6-25 exchange telephone service within a certificated exchange area on
6-26 September 1, 1995, as to such service and as to any other service
6-27 for which a competitive alternative is not available in a
7-1 particular geographic market; and
7-2 (C) any provider of local exchange telephone
7-3 service within a certificated exchange area as to intraLATA long
7-4 distance message telecommunications service originated by dialing
7-5 the access code "1+" so long as the use of that code for the
7-6 origination of "1+" intraLATA calls within its certificated
7-7 exchange area is exclusive to that provider. A telecommunications
7-8 market shall be statewide until January 1, 1985. After this date
7-9 the commission may, if it determines that the public interest will
7-10 be served, establish separate markets within the state. The <Prior
7-11 to January 1, 1985, the> commission shall hold such hearings and
7-12 require such evidence as is necessary to carry out the public
7-13 purpose of this Act and to determine the need and effect of
7-14 establishing separate markets. Any such provider determined to be
7-15 a dominant carrier as to a particular telecommunications service in
7-16 a market may not be presumed to be a dominant carrier of a
7-17 different telecommunications service in that market. The term does
7-18 not include an interexchange carrier that is not a certificated
7-19 local exchange company, with respect to interexchange services.
7-20 (3) "Incumbent local exchange company" means a local
7-21 exchange company that has a certificate of convenience and
7-22 necessity on September 1, 1995.
7-23 (4) "Least cost technology" means the technology, or
7-24 mix of technologies, that would be chosen in the long run as the
7-25 most economically efficient choice, provided that the choice of
7-26 least cost technologies is:
7-27 (A) restricted to technologies that are
8-1 currently available on the market and for which vendor prices can
8-2 be obtained;
8-3 (B) consistent with the level of output
8-4 necessary to satisfy current demand levels for all services using
8-5 the basic network function in question; and
8-6 (C) consistent with overall network design and
8-7 topology requirements.
8-8 (5) <(2)> "Local exchange company" means a
8-9 telecommunications utility that has been granted either a
8-10 certificate of convenience and necessity or a certificate of
8-11 operating authority <certificated> to provide local exchange
8-12 telephone service, basic local telecommunications service, or
8-13 switched access service within the state.
8-14 (6) "Local exchange telephone service" means
8-15 telecommunications service provided within an exchange to establish
8-16 connections between customer premises within the exchange,
8-17 including connections between a customer premises and a long
8-18 distance provider serving the exchange. The term includes tone
8-19 dialing, service connection charges, and directory assistance
8-20 services when offered in connection with basic local
8-21 telecommunications service and interconnection with other service
8-22 providers. The term does not include the following services,
8-23 whether offered on an intraexchange or interexchange basis:
8-24 (A) central office based PBX-type services for
8-25 systems of 75 stations or more;
8-26 (B) billing and collection services;
8-27 (C) high-speed private line services of 1.544
9-1 megabits or greater;
9-2 (D) customized services;
9-3 (E) private line and virtual private line
9-4 services;
9-5 (F) resold or shared local exchange telephone
9-6 services if permitted by tariff;
9-7 (G) dark fiber services;
9-8 (H) non-voice data transmission service when
9-9 offered as a separate service and not as a component of basic local
9-10 telecommunications service;
9-11 (I) dedicated or virtually dedicated access
9-12 services; and
9-13 (J) any other service the commission declares is
9-14 not a "local exchange telephone service."
9-15 (7) "Long run incremental cost" or "LRIC" has the
9-16 meaning assigned by the commission in 16 T.A.C. Section 23.91.
9-17 (8) "Pricing flexibility" includes customer specific
9-18 contracts, volume, term, and discount pricing, zone density
9-19 pricing, packaging of services, and other promotional pricing
9-20 flexibility. Discounts and other forms of pricing flexibility may
9-21 not be preferential, prejudicial, or discriminatory.
9-22 (9) <(3)> "Public utility" or "utility" means any
9-23 person, corporation, river authority, cooperative corporation, or
9-24 any combination thereof, other than a municipal corporation, or
9-25 their lessees, trustees, and receivers, now or hereafter owning or
9-26 operating for compensation in this state equipment or facilities
9-27 for the conveyance, transmission, or reception of communications
10-1 over a telephone system as a dominant carrier (hereinafter
10-2 "telecommunications utility"). A person or corporation not
10-3 otherwise a public utility within the meaning of this Act may not
10-4 be deemed such solely because of the furnishing or furnishing and
10-5 maintenance of a private system or the manufacture, distribution,
10-6 installation, or maintenance of customer premise communications
10-7 equipment and accessories. Except as provided by Sections 3.606
10-8 and 3.608 of this Act, nothing <Nothing> in this Act shall be
10-9 construed to apply to companies whose only form of business is
10-10 being telecommunications managers, companies that administer
10-11 central office based or customer based PBX-type sharing/resale
10-12 arrangements as their only form of business, telegraph services,
10-13 television stations, radio stations, community antenna television
10-14 services, <or> radio-telephone services that may be authorized
10-15 under the Public Mobile Radio Services rules of the Federal
10-16 Communications Commission, or commercial mobile service providers,
10-17 under Sections 153(n) and 332(d), Communications Act of 1934 (47
10-18 U.S.C. Section 151 et seq.), Federal Communications Commission
10-19 rules, and the Omnibus Budget Reconciliation Act of 1993, other
10-20 than such radio-telephone services provided by wire-line telephone
10-21 companies under the Domestic Public Land Mobile Radio Service and
10-22 Rural Radio Service rules of the Federal Communications Commission.
10-23 Interexchange telecommunications carriers (including resellers of
10-24 interexchange telecommunications services), specialized
10-25 communications common carriers, other resellers of communications,
10-26 other communications carriers who convey, transmit, or receive
10-27 communications in whole or in part over a telephone system, <and>
11-1 providers of operator services as defined in Section 3.052(a) of
11-2 this Act (except that subscribers to customer-owned pay telephone
11-3 service may not be deemed to be telecommunications utilities), and
11-4 separated affiliate and electronic publishing joint ventures as
11-5 defined by Subtitle L of this title are also telecommunications
11-6 utilities, but the commission's regulatory authority as to them is
11-7 only as hereinafter defined. The term "public utility" or
11-8 "utility" does not include any person or corporation not otherwise
11-9 a public utility that furnishes the services or commodity described
11-10 in this section only to itself, its employees, or its tenants as an
11-11 incident of such employee service or tenancy, when such service or
11-12 commodity is not resold to or used by others.
11-13 (10) <(4)> "Separation" means the division of plant,
11-14 revenues, expenses, taxes, and reserves, applicable to exchange or
11-15 local service where such items are used in common for providing
11-16 public utility service to both local exchange telephone service and
11-17 other service, such as interstate or intrastate toll service.
11-18 (11) "Telecommunications provider" means a
11-19 certificated telecommunications utility, a shared tenant service
11-20 provider, a nondominant carrier of telecommunications services,
11-21 provider of radio-telephone service authorized under the Commercial
11-22 Mobile Service under Sections 153(n) and 332(d), Communications Act
11-23 of 1934 (47 U.S.C. Section 151 et seq.), Federal Communications
11-24 Commission rules, and the Omnibus Budget Reconciliation Act of
11-25 1993, a telecommunications entity that provides central office
11-26 based PBX-type sharing or resale arrangements, an interexchange
11-27 telecommunications carrier, a specialized common carrier, a
12-1 reseller of communications, a provider of operator services, a
12-2 provider of customer-owned pay telephone service, and other persons
12-3 or entities that the commission may from time to time find provide
12-4 telecommunications services to customers in this state. The term
12-5 does not include a provider of enhanced or information services, or
12-6 another user of telecommunications services, who does not also
12-7 provide telecommunications services or any state agency or state
12-8 institution of higher education, or any service provided by any
12-9 state agency or state institution of higher education.
12-10 (12) "Tier 1 local exchange company" means a Tier 1
12-11 local exchange company as defined by the Federal Communications
12-12 Commission.
12-13 SECTION 8. Section 3.051, Public Utility Regulatory Act of
12-14 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
12-15 Session, 1995, is amended by amending Subsections (a), (c)-(f),
12-16 (j), and (l)-(q) and adding Subsections (r) and (s) to read as
12-17 follows:
12-18 (a) It is the policy of this state to protect the public
12-19 interest in having adequate and efficient telecommunications
12-20 service available to all citizens of the state at just, fair, and
12-21 reasonable rates. The legislature finds that the
12-22 telecommunications industry through technical advancements, federal
12-23 legislative, judicial, and administrative actions, and the
12-24 formulation of new telecommunications enterprises has become and
12-25 will continue to be in many and growing areas a competitive
12-26 industry which does not lend itself to traditional public utility
12-27 regulatory rules, policies, and principles and that, therefore, the
13-1 public interest requires that new rules, policies, and principles
13-2 be formulated and applied to protect the public interest and to
13-3 provide equal opportunity to all telecommunications utilities in a
13-4 competitive marketplace. It is the purpose of this section to
13-5 grant to the commission the authority and the power under this Act
13-6 to carry out the public policy herein stated.
13-7 (c) Except as provided by Subsections (l), <and> (m), and
13-8 (s) of this section and Section 3.052 of this Act, the commission
13-9 shall only have the following jurisdiction over all
13-10 telecommunications utilities who are not dominant carriers:
13-11 (1) to require registration as provided in Subsection
13-12 (d) of this section;
13-13 (2) to conduct such investigations as are necessary to
13-14 determine the existence, impact, and scope of competition in the
13-15 telecommunications industry, including identifying dominant
13-16 carriers in the local telecommunications <exchange> and intralata
13-17 interexchange telecommunications industry and defining the
13-18 telecommunications market or markets, and in connection therewith
13-19 may call and hold hearings, issue subpoenas to compel the
13-20 attendance of witnesses and the production of papers and documents,
13-21 and make findings of fact and decisions with respect to
13-22 administering the provisions of this Act or the rules, orders, and
13-23 other actions of the commission;
13-24 (3) to require the filing of such reports as the
13-25 commission may direct from time to time;
13-26 (4) to require the maintenance of statewide average
13-27 rates or prices of telecommunications service;
14-1 (5) to require that every local exchange area have
14-2 access to local and interexchange telecommunications service,
14-3 except that a <an interexchange> telecommunications utility
14-4 <carrier> must be allowed to discontinue service to a local
14-5 exchange area if comparable service is available in the area and
14-6 the discontinuance is not contrary to the public interest; this
14-7 section does not authorize the commission to require a <an
14-8 interexchange> telecommunications utility <carrier> that has not
14-9 provided services to a local exchange area during the previous 12
14-10 months and that has never provided services to that same local
14-11 exchange area for a cumulative period of one year at any time in
14-12 the past to initiate services to that local exchange area; and
14-13 (6) to require the quality of <interexchange>
14-14 telecommunications service provided in each exchange to be adequate
14-15 to protect the public interest and the interests of customers of
14-16 that exchange if the commission determines that service to a local
14-17 exchange has deteriorated to the point that <long distance> service
14-18 is not reliable.
14-19 (d) All providers of communications service described in
14-20 Subsection (c) of this section who commence such service to the
14-21 public shall register with the commission within 30 days of
14-22 commencing service. Such registration shall be accomplished by
14-23 filing with the commission a description of the location and type
14-24 of service provided, the price <cost> to the public of such
14-25 service, and such other registration information as the commission
14-26 may direct. Notwithstanding any other provision of this Act, an
14-27 interexchange telecommunications utility <carrier> doing business
15-1 in this state shall continue to maintain on file with the
15-2 commission tariffs or lists governing the terms of providing its
15-3 services.
15-4 (e)(1) For the purpose of carrying out the public policy
15-5 stated in Subsection (a) of this section and any other section of
15-6 this Act notwithstanding, the commission is granted all necessary
15-7 power and authority under this Act to promulgate rules and
15-8 establish procedures applicable to incumbent local exchange
15-9 companies for determining the level of competition in specific
15-10 telecommunications markets and submarkets and providing appropriate
15-11 regulatory treatment to allow incumbent local exchange companies to
15-12 respond to significant competitive challenges. Nothing in this
15-13 section is intended to change the burden of proof of the incumbent
15-14 local exchange company under Sections 3.202, 3.203, 3.204, 3.205,
15-15 3.206, 3.207, and 3.208 of this Act.
15-16 (2) In determining the level of competition in a
15-17 specific market or submarket, the commission shall hold an
15-18 evidentiary hearing to consider the following:
15-19 (A) the number and size of telecommunications
15-20 utilities or other persons providing the same, equivalent, or
15-21 substitutable service;
15-22 (B) the extent to which the same, equivalent, or
15-23 substitutable service is available;
15-24 (C) the ability of customers to obtain the same,
15-25 equivalent, or substitutable services at comparable rates, terms,
15-26 and conditions;
15-27 (D) the ability of telecommunications utilities
16-1 or other persons to make the same, equivalent, or substitutable
16-2 service readily available at comparable rates, terms, and
16-3 conditions;
16-4 (E) the existence of any significant barrier to
16-5 the entry or exit of a provider of the service; and
16-6 (F) other relevant information deemed
16-7 appropriate.
16-8 (3) The regulatory treatments which the commission may
16-9 implement include but are not limited to:
16-10 (A) approval of a range of rates for a specific
16-11 service;
16-12 (B) approval of customer-specific contracts for
16-13 a specific service; provided, however, that the commission shall
16-14 approve a contract to provide central office based PBX-type
16-15 services for systems of 200 stations or more, billing and
16-16 collection services, high-speed private line services of 1.544
16-17 megabits or greater, and customized services, provided that the
16-18 contract is filed at least 30 days before initiation of the service
16-19 contracted for; that the contract is accompanied with an affidavit
16-20 from the person or entity contracting for the telecommunications
16-21 service stating that he considered the acquisition of the same,
16-22 equivalent, or substitutable services by bid or quotation from a
16-23 source other than the incumbent local exchange company; that the
16-24 incumbent local exchange company is recovering the appropriate
16-25 costs of providing the services; and that approval of the contract
16-26 is in the public interest; the contract shall be approved or denied
16-27 within 30 days after filing, unless the commission for good cause
17-1 extends the effective date for an additional 35 days; and
17-2 (C) the detariffing of rates.
17-3 (f) Moreover, in order to encourage the rapid introduction
17-4 of new or experimental services or promotional rates, the
17-5 commission shall promulgate rules and establish procedures which
17-6 allow the expedited introduction of, the establishment and
17-7 adjustment of rates for, and the withdrawal of such services,
17-8 including requests for such services made to the commission by the
17-9 governing body of a municipality served by an incumbent <a> local
17-10 exchange company having more than 500,000 access lines throughout
17-11 the state. Rates established or adjusted at the request of a
17-12 municipality may not result in higher rates for ratepayers outside
17-13 the boundaries of the municipality and may not include any rates
17-14 for incumbent local exchange company interexchange services or
17-15 interexchange carrier access service.
17-16 (j) Subsections (e) and (f) of this section are not
17-17 applicable to basic local telecommunications <exchange> service,
17-18 including local measured service. Paragraph (B) of Subdivision (3)
17-19 of Subsection (e) of this section is not applicable to message
17-20 telecommunications services, switched access services for
17-21 interexchange carriers, or wide area telecommunications service.
17-22 An incumbent <A> local exchange company may not price similar
17-23 services provided pursuant to contracts under Paragraph (B) of
17-24 Subdivision (3) of Subsection (e) of this section in an
17-25 unreasonably discriminatory manner. For purposes of this section,
17-26 similar services shall be defined as those services which are
17-27 provided at or near the same point in time, which have the same
18-1 characteristics, and which are provided under the same or similar
18-2 circumstances.
18-3 (l) Notwithstanding any other provision of this Act, the
18-4 commission may enter such orders as may be necessary to protect the
18-5 public interest, including the imposition on any specific service
18-6 or services of its full regulatory authority under this subtitle,
18-7 Subtitles C through F of this title, and Subtitles D through I of
18-8 Title I of this Act, but not Subtitles H and I of this title, if
18-9 the commission upon complaint from another interexchange
18-10 telecommunications utility <carrier> finds by a preponderance of
18-11 the evidence upon notice and hearing that an interexchange
18-12 telecommunications utility <carrier> has engaged in predatory
18-13 pricing or attempted to engage in predatory pricing.
18-14 (m) Notwithstanding any other provision of this Act, the
18-15 commission may enter such orders as may be necessary to protect the
18-16 public interest if the commission finds upon notice and hearing
18-17 that an interexchange telecommunications utility <carrier> has:
18-18 (1) failed to maintain statewide average rates;
18-19 (2) abandoned interexchange message telecommunications
18-20 service to a local exchange area in a manner contrary to the public
18-21 interest; or
18-22 (3) engaged in a pattern of preferential or
18-23 discriminatory activities prohibited by Sections <3.213 and> 3.215
18-24 and 3.217 of this Act, except that nothing in this Act shall
18-25 prohibit volume discounts or other discounts based on reasonable
18-26 business purposes.
18-27 (n) In any proceeding before the commission alleging conduct
19-1 or activities by an interexchange telecommunications utility
19-2 <carrier> against another interexchange telecommunications utility
19-3 <carrier> in contravention of Subsections (l), (m), and (o) of this
19-4 section, the burden of proof shall be upon the complaining
19-5 interexchange telecommunications utility <carrier>; however, in
19-6 such proceedings brought by customers or their representatives who
19-7 are not themselves interexchange telecommunications utilities
19-8 <carriers> or in such proceedings initiated by the commission, the
19-9 burden of proof shall be upon the respondent interexchange
19-10 telecommunications utility <carrier>. However, if the commission
19-11 finds it to be in the public interest, the commission may impose
19-12 the burden of proof in such proceedings on the complaining party.
19-13 (o) The commission shall have the authority to require that
19-14 a service provided by an interexchange telecommunications utility
19-15 <carrier described in Subsection (c) of this section> be made
19-16 available in an exchange served by the utility <carrier> within a
19-17 reasonable time after receipt of a bona fide request for such
19-18 service in that exchange, subject to the ability of the local
19-19 exchange company to provide the required access or other service.
19-20 A utility <carrier> may not be required to extend a service to an
19-21 area if provision of that service would impose, after consideration
19-22 of the public interest to be served, unreasonable costs upon or
19-23 require unreasonable investments by the interexchange
19-24 telecommunications utility <carrier>. The commission may require
19-25 such information from interexchange utilities <carriers> and local
19-26 exchange companies <carriers> as may be necessary to enforce this
19-27 provision.
20-1 (p) The commission may exempt from any requirement of this
20-2 section an interexchange telecommunications utility <carrier> that
20-3 the commission determines does not have a significant effect on the
20-4 public interest, and it may exempt any interexchange
20-5 telecommunications utility <carrier> which solely relies on the
20-6 facilities of others to complete long distance calls if the
20-7 commission deems this action to be in the public interest.
20-8 (q) Requirements imposed by Subsections (c), (d), (k),
20-9 <(l),> (m), (n), (o), and (p) of this section on an interexchange
20-10 telecommunications utility <carrier> shall apply to nondominant
20-11 carriers and shall constitute the minimum requirements to be
20-12 imposed by the commission for any dominant carrier.
20-13 (r) The commission may, only as necessary to enforce its
20-14 limited jurisdiction, prescribe forms of books, accounts, records,
20-15 and memoranda to be kept by a company that has a certificate of
20-16 operating authority or service provider certificate of operating
20-17 authority under Subtitle F of this title that in the judgment of
20-18 the commission may be necessary to carry out the limited
20-19 jurisdiction over those companies that this Act provides to the
20-20 commission.
20-21 (s)(1) Except as otherwise specifically provided by this
20-22 Act, the commission shall have only the following authority over a
20-23 holder of a certificate of operating authority or service provider
20-24 certificate of operating authority:
20-25 (A) to enforce the applicable provisions of this
20-26 Act as provided by Subtitle I, Title I, of this Act;
20-27 (B) to assert jurisdiction over a specific
21-1 service in accordance with Section 3.2572 of this Act;
21-2 (C) to require co-carriage reciprocity; and
21-3 (D) to regulate condemnation and building
21-4 access.
21-5 (2) The commission may not impose on a
21-6 telecommunications utility that has a certificate of operating
21-7 authority or service provider certificate of operating authority a
21-8 rule or regulatory practice under this section that imposes a
21-9 greater regulatory burden on that telecommunications utility than
21-10 is imposed on a certificate of convenience and necessity holder
21-11 serving the same area.
21-12 SECTION 9. Subtitle B, Title III, Public Utility Regulatory
21-13 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
21-14 Regular Session, 1995, is amended by adding Section 3.053 to read
21-15 as follows:
21-16 Sec. 3.053. SALE OF PROPERTY. (a) The commission shall
21-17 complete an investigation under Section 1.251 of this Act that
21-18 relates to a public utility and enter a final order within 180 days
21-19 after the date of notification by the utility. If an order is not
21-20 entered, the utility's action is considered consistent with the
21-21 public interest.
21-22 (b) Section 1.251 of this Act does not apply to an incumbent
21-23 local exchange company electing under Subtitle H of this title or
21-24 to a company that receives a certificate of operating authority or
21-25 a service provider certificate of operating authority under
21-26 Subtitle F of this title.
21-27 SECTION 10. Subtitle C, Title III, Public Utility Regulatory
22-1 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
22-2 Regular Session, 1995, is amended by adding Section 3.1015 to read
22-3 as follows:
22-4 Sec. 3.1015. MUNICIPAL FEES. Nothing in this Act may be
22-5 construed as in any way limiting the right of a public utility to
22-6 pass through municipal fees, including any increase in municipal
22-7 fees. A public utility that traditionally passes through municipal
22-8 fees shall promptly pass through any reductions.
22-9 SECTION 11. Section 3.151(a), Public Utility Regulatory Act
22-10 of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
22-11 Regular Session, 1995, is amended to read as follows:
22-12 (a) The commission shall fix proper and adequate rates and
22-13 methods of depreciation, amortization, or depletion of the several
22-14 classes of property of each public utility and shall require every
22-15 public utility to carry a proper and adequate depreciation account
22-16 in accordance with such rates and methods and with such other rules
22-17 and regulations as the commission prescribes. On application of a
22-18 utility, the commission shall fix depreciation rates that promote
22-19 deployment of new technology and infrastructure. In setting those
22-20 rates, the commission shall consider depreciation practices of
22-21 nonregulated telecommunications providers. Such rates, methods,
22-22 and accounts shall be utilized uniformly and consistently
22-23 throughout the ratesetting and appeal proceedings. A company
22-24 electing under Subtitle H of this title may determine its own
22-25 depreciation rates and amortizations, but shall notify the
22-26 commission of any changes.
22-27 SECTION 12. Subtitle D, Title III, Public Utility Regulatory
23-1 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
23-2 Regular Session, 1995, is amended by adding Section 3.1545 to read
23-3 as follows:
23-4 Sec. 3.1545. RECORDS. Notwithstanding Section 1.204 of this
23-5 Act, books, accounts, records, or memoranda of a public utility may
23-6 be removed from the state so long as those books, accounts,
23-7 records, or memoranda are returned to the state for any inspection
23-8 by the commission that is authorized by this Act.
23-9 SECTION 13. Subtitle D, Title III, Public Utility Regulatory
23-10 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
23-11 Regular Session, 1995, is amended by adding Section 3.1555 to read
23-12 as follows:
23-13 Sec. 3.1555. MINIMUM SERVICES. (a) Except as provided by
23-14 Subsection (d) of this section, the commission shall require each
23-15 holder of a certificate of convenience and necessity or certificate
23-16 of operating authority in this state to provide at the applicable
23-17 tariff rate, if any, to all customers, irrespective of race,
23-18 national origin, income, or residence in an urban or rural area,
23-19 not later than December 31, 2000:
23-20 (1) single party service;
23-21 (2) tone-dialing service;
23-22 (3) basic custom calling features;
23-23 (4) equal access for interLATA interexchange carriers
23-24 on a bona fide request; and
23-25 (5) digital switching capability in all exchanges on
23-26 customer request, provided by a digital switch in the exchange or
23-27 by connection to a digital switch in another exchange.
24-1 (b) Notwithstanding Subsection (a) of this section, an
24-2 electing incumbent local exchange company serving as of January 1,
24-3 1995, more than 175,000 but fewer than 1,500,000 access lines shall
24-4 install digital switches in its central offices serving exchanges
24-5 of less than 20,000 access lines before December 31, 1998.
24-6 (c) The commission may temporarily waive these requirements
24-7 on a showing of good cause. The commission may not consider the
24-8 cost of implementing this section in determining whether an
24-9 electing company is entitled to a rate increase under Subtitle H or
24-10 I of this title or increased universal service funds under Section
24-11 3.608 of this Act.
24-12 (d) This section does not affect the requirement prescribed
24-13 by 16 T.A.C. Section 23.69 that, not later than July 1, 1996, each
24-14 local exchange company shall make ISDN available to all customers
24-15 in exchange areas of the company that have at least 50,000 access
24-16 lines.
24-17 SECTION 14. Subtitle D, Title III, Public Utility Regulatory
24-18 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
24-19 Regular Session, 1995, is amended by adding Section 3.1556 to read
24-20 as follows:
24-21 Sec. 3.1556. RECONNECTION FEE. The commission shall
24-22 establish a reasonable limit on the amount that a local exchange
24-23 company may charge a customer for changing the location at which
24-24 the customer receives service.
24-25 SECTION 15. Sections 3.201 and 3.202, Public Utility
24-26 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
24-27 Legislature, Regular Session, 1995, are amended to read as follows:
25-1 Sec. 3.201. POWER TO INSURE COMPLIANCE; RATE REGULATION.
25-2 Subject to the provisions of this Act, the commission is hereby
25-3 vested with all authority and power of the State of Texas to insure
25-4 compliance with the obligations of public utilities in this Act.
25-5 Except as <To the extent> otherwise provided by this Act, the
25-6 commission is empowered to fix and regulate rates of public
25-7 utilities, including rules and regulations for determining the
25-8 classification of customers and services and for determining the
25-9 applicability of rates. A rule or order of the commission may not
25-10 conflict with the rulings of any federal regulatory body.
25-11 Sec. 3.202. JUST AND REASONABLE RATES. It shall be the duty
25-12 of the commission to insure that every rate made, demanded, or
25-13 received by any public utility or by any two or more utilities
25-14 jointly shall be just and reasonable. Rates may not be
25-15 unreasonably preferential, prejudicial, or discriminatory, but
25-16 shall be sufficient, equitable, and consistent in application to
25-17 each class of consumers. For ratemaking purposes, the commission
25-18 may treat two or more municipalities served by a public utility as
25-19 a single class wherever it deems such treatment to be appropriate.
25-20 Approval by the commission of a reduced rate for service for a
25-21 class of consumers eligible under Section 3.602 <3.352> of this Act
25-22 for tel-assistance service does not constitute a violation of this
25-23 section.
25-24 SECTION 16. Section 3.204, Public Utility Regulatory Act of
25-25 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
25-26 Session, 1995, is amended to read as follows:
25-27 Sec. 3.204. BURDEN OF PROOF. Except as hereafter provided,
26-1 in any proceeding involving any proposed change of rates, the
26-2 burden of proof to show that the proposed change, if proposed by
26-3 the utility, or that the existing rate, if it is proposed to reduce
26-4 the rate, is just and reasonable shall be on the public utility.
26-5 In any proceeding involving an incumbent <a> local exchange company
26-6 in which the incumbent local exchange company's rate or rates are
26-7 in issue, the burden of proof that such rate or rates are just and
26-8 reasonable shall be on the incumbent local exchange company.
26-9 SECTION 17. Section 3.208(b), Public Utility Regulatory Act
26-10 of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
26-11 Regular Session, 1995, is amended to read as follows:
26-12 (b) Transactions with Affiliated Interests. Payment to
26-13 affiliated interests for costs of any services or any property,
26-14 right, or thing or for interest expense may not be allowed either
26-15 as capital cost or as expense except to the extent that the
26-16 commission shall find such payment to be reasonable and necessary
26-17 for each item or class of items as determined by the commission.
26-18 Any such finding shall include specific findings of the
26-19 reasonableness and necessity of each item or class of items allowed
26-20 and a finding that the price to the utility is no higher than
26-21 prices charged by the supplying affiliate to its other affiliates
26-22 or divisions for the same item or class of items, or to
26-23 unaffiliated persons or corporations within the same market areas
26-24 or having the same market conditions. If the supplying affiliate
26-25 has calculated its charges to the utility in a manner consistent
26-26 with the rules of the Federal Communications Commission, no finding
26-27 shall be required as to the price charged by the supplying
27-1 affiliate to its other affiliates or divisions. In any case in
27-2 which the commission finds that the test period affiliate expense
27-3 is unreasonable, the commission shall determine the reasonable
27-4 level of the expense and shall include such expense in determining
27-5 the utility's cost of service.
27-6 SECTION 18. Section 3.210, Public Utility Regulatory Act of
27-7 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
27-8 Session, 1995, is amended by adding Subsection (c) to read as
27-9 follows:
27-10 (c) Except as provided by Subtitles H and I of this title,
27-11 this section does not apply to a company electing into Subtitle H
27-12 or I of this title. However, the commission shall retain
27-13 jurisdiction to hear and resolve complaints regarding an electing
27-14 company's compliance with obligations imposed by this Act.
27-15 SECTION 19. Section 3.211, Public Utility Regulatory Act of
27-16 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
27-17 Session, 1995, is amended by amending Subsections (f) and (h) and
27-18 adding Subsection (j) to read as follows:
27-19 (f) If, after hearing, the commission finds the rates to be
27-20 unreasonable or in any way in violation of any provision of law,
27-21 the commission shall determine the level of rates to be charged or
27-22 applied by the utility for the service in question and shall fix
27-23 the same by order to be served upon the utility; these rates are
27-24 thereafter to be observed until changed, as provided by this Act.
27-25 Except as provided by Subtitles H, I, and J of this title, this
27-26 subsection does not apply to a company electing into Subtitle H or
27-27 I of this title. Rates established under this section after a
28-1 company's election must comply with Subtitle H or I of this title.
28-2 (h) If the commission does not make a final determination
28-3 concerning an incumbent <a> local exchange company's schedule of
28-4 rates prior to the expiration of the 150-day suspension period, the
28-5 schedule of rates finally approved by the commission shall become
28-6 effective and the incumbent local exchange company shall be
28-7 entitled to collect such rates from the date the 150-day suspension
28-8 period expired. Any surcharges or other charges necessary to
28-9 effectuate this subsection may not be recovered over a period of
28-10 less than 90 days from the date of the commission's final order.
28-11 (j) An incumbent local exchange company may file with the
28-12 commission tariffs for switched access service that have been
28-13 approved by the Federal Communications Commission, provided that
28-14 the tariffs include all rate elements in the company's interstate
28-15 access tariff other than end user charges. If on review the filed
28-16 tariffs contain the same rates, terms, and conditions, excluding
28-17 any end user charges, as approved by the Federal Communications
28-18 Commission, the commission shall order the rates to be the
28-19 intrastate switched access rates, terms, and conditions for the
28-20 incumbent local exchange company within 60 days of filing.
28-21 SECTION 20. Sections 3.212(a) and (c), Public Utility
28-22 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
28-23 Legislature, Regular Session, 1995, are amended to read as follows:
28-24 (a) An incumbent <A> local exchange company may make changes
28-25 in its tariffed rules, regulations, or practices that do not affect
28-26 its charges or rates by filing the proposed changes with the
28-27 commission at least 35 days prior to the effective date of the
29-1 changes. The commission may require such notice to ratepayers as
29-2 it considers appropriate.
29-3 (c) The commission shall approve, deny, or modify the
29-4 proposed changes before expiration of the suspension period. In
29-5 any proceeding under this section, the burden of proving that the
29-6 requested relief is in the public interest and complies with this
29-7 Act shall be borne by the incumbent local exchange company.
29-8 SECTION 21. Subtitle E, Title III, Public Utility Regulatory
29-9 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
29-10 Regular Session, 1995, is amended by amending Section 3.213 and
29-11 adding Section 3.2135 to read as follows:
29-12 Sec. 3.213. <COOPERATIVE OR> SMALL INCUMBENT LOCAL EXCHANGE
29-13 COMPANIES<; STATEMENT OF INTENT TO CHANGE RATES; NOTICE OF INTENT;
29-14 SUSPENSION OF RATE SCHEDULE; REVIEW>. (a) The legislature finds
29-15 that regulatory policy should recognize differences between the
29-16 small and large incumbent local exchange companies, that there are
29-17 a large number of customer-owned telephone cooperatives and small,
29-18 locally owned investor companies, and that it is appropriate to
29-19 provide incentives and flexibility to allow incumbent local
29-20 exchange companies that serve the rural areas to provide existing
29-21 services and to introduce new technology and new services in a
29-22 prompt, efficient, and economical manner.
29-23 (b) Except as otherwise provided by this section, an
29-24 incumbent local exchange company that is a cooperative corporation,
29-25 or that, together with all affiliated incumbent local exchange
29-26 companies, has fewer than 31,000 access lines in service in this
29-27 state may offer extended local calling services or new services on
30-1 an optional basis or make minor changes in its rates or tariffs if
30-2 the company:
30-3 (1) files with the commission and the office a
30-4 statement of intent, as prescribed by Subsection (c) of this
30-5 section, not later than the 91st day before the date on which the
30-6 proposed change will take effect;
30-7 (2) provides notice as prescribed by Subsection (d) of
30-8 this section; and
30-9 (3) files with the commission affidavits verifying the
30-10 provision of notice as prescribed by Subsection (d) of this
30-11 section.
30-12 (c) The statement of intent required by Subsection (b)(1) of
30-13 this section must include:
30-14 (1) a copy of a resolution approving the proposed
30-15 change by the incumbent local exchange telephone company's board of
30-16 directors;
30-17 (2) a description of the services affected by the
30-18 proposed change;
30-19 (3) a copy of the proposed tariff for the affected
30-20 service;
30-21 (4) a copy of the customer notice required by
30-22 Subsection (b)(2) of this section;
30-23 (5) the number of access lines the company and each
30-24 affiliate has in service in this state; and
30-25 (6) the amount by which the company's total regulated
30-26 intrastate gross annual revenues will increase or decrease as a
30-27 result of the proposed change.
31-1 (d) The incumbent local exchange company shall provide
31-2 notice to affected customers in the manner prescribed by the
31-3 commission not later than the 61st day before the date on which the
31-4 proposed change will take effect. Each notice prescribed by the
31-5 commission must include:
31-6 (1) a description of the services affected by the
31-7 proposed change;
31-8 (2) the effective date of the proposed change;
31-9 (3) an explanation of the customer's right to petition
31-10 the commission for a review under Subsection (e) of this section,
31-11 including the number of persons required to petition before a
31-12 commission review will occur;
31-13 (4) an explanation of the customer's right to obtain
31-14 information concerning how to obtain a copy of the proposed tariff
31-15 from the company;
31-16 (5) the amount by which the company's total regulated
31-17 intrastate gross annual revenues will increase or decrease as a
31-18 result of the proposed change; and
31-19 (6) a list of rates that are affected by the proposed
31-20 rate change.
31-21 (e) The commission shall review a proposed change filed
31-22 under this section if:
31-23 (1) the commission receives complaints relating to the
31-24 proposed change signed by the lesser of five percent or 1,500 of
31-25 the affected local service customers;
31-26 (2) the commission receives a complaint relating to
31-27 the proposed change from an affected intrastate access customer, or
32-1 a group of affected intrastate access customers, that in the
32-2 preceding 12 months accounted for more than 10 percent of the
32-3 company's total intrastate gross access revenues;
32-4 (3) the proposed change is not a minor change;
32-5 (4) the company does not comply with the procedural
32-6 requirements of this section; or
32-7 (5) the proposed change is inconsistent with the
32-8 commission's substantive policies as expressed in its rules.
32-9 (f) On review, the commission may suspend the proposed
32-10 tariff during the pendency of review.
32-11 (g) This section does not prohibit an incumbent local
32-12 exchange company from filing for a new service or rate change under
32-13 another applicable section of this Act or the commission from
32-14 conducting a review in accordance with Section 3.210 of this Act.
32-15 (h) In this section, "minor change" means a change,
32-16 including the restructuring of rates of existing services, that
32-17 decreases the rates or revenues of the incumbent local exchange
32-18 company or that, together with any other rate or proposed or
32-19 approved tariff changes in the 12 months preceding the date on
32-20 which the proposed change will take effect, results in an increase
32-21 of the company's total regulated intrastate gross annual revenues
32-22 by not more than five percent. Further, with regard to a change to
32-23 a basic local access line rate, a minor change may not, together
32-24 with any other change to that rate that went into effect during the
32-25 12 months preceding the proposed effective date of the requested
32-26 change, result in an increase of more than 10 percent. <Except as
32-27 otherwise provided by this section, a local exchange company that
33-1 is a cooperative corporation or that has fewer than 5,000 access
33-2 lines in service in this state may change rates by publishing
33-3 notice of the change at least 60 days before the date of the change
33-4 in the place and form as prescribed by the commission. The notice
33-5 must include:>
33-6 <(1) the reasons for the rate change;>
33-7 <(2) a description of the affected service;>
33-8 <(3) an explanation of the right of the subscriber to
33-9 petition the commission for a hearing on the rate change; and>
33-10 <(4) a list of rates that are affected by the proposed
33-11 rate change.>
33-12 <(b) At least 60 days before the date of the change, the
33-13 local exchange company shall file with the commission a statement
33-14 of intent to change rates containing:>
33-15 <(1) a copy of the notice required by Subsection (a)
33-16 of this section;>
33-17 <(2) the number of access lines the company has in
33-18 service in this state;>
33-19 <(3) the date of the most recent commission order
33-20 setting rates of the company;>
33-21 <(4) the increase in total gross annual local revenues
33-22 that will be produced by the proposed rates;>
33-23 <(5) the increase in total gross annual local revenues
33-24 that will be produced by the proposed rates together with any local
33-25 rate changes which went into effect during the 12 months preceding
33-26 the proposed effective date of the requested rate change and any
33-27 other proposed local rate changes then pending before the
34-1 commission;>
34-2 <(6) the increase in rates for each service category;
34-3 and>
34-4 <(7) other information the commission by rule
34-5 requires.>
34-6 <(c) The commission shall review a proposed change in the
34-7 rates set by a local exchange company under this section upon the
34-8 receipt of complaints signed by at least five percent of all
34-9 affected subscribers or upon its own motion. The commission may
34-10 require notice to ratepayers as it considers appropriate. If
34-11 sufficient complaints are presented to the commission within 60
34-12 days after the date notice of the rate change was sent to
34-13 subscribers, the commission shall review the proposed change.
34-14 After notice to the local exchange company, the commission may
34-15 suspend the rates during the pendency of the review and reinstate
34-16 the rates previously in effect. Review under this subsection shall
34-17 be as provided by Section 3.211 of this Act. The period for review
34-18 by the commission does not begin until the local exchange company
34-19 files a complete rate-filing package.>
34-20 <(d) If the commission has entered an order setting a rate,
34-21 the affected local exchange company may not change that rate under
34-22 this section before 365 days after the date of the commission's
34-23 order setting the rate.>
34-24 <(e) This section does not prohibit a local exchange company
34-25 from filing for a rate change under any other applicable section of
34-26 this Act.>
34-27 <(f) The commission shall review a proposed change in the
35-1 rates of a local exchange company under this section if the
35-2 proposed rates, together with any local rate changes which went
35-3 into effect during the 12 months preceding the proposed effective
35-4 date of the requested rate change as well as any other proposed
35-5 local rate changes then pending before the commission, will
35-6 increase its total gross annual local revenues by more than 2-1/2
35-7 percent or if the proposed change would increase the rate of any
35-8 service category by more than 25 percent, except for basic local
35-9 service, which shall be limited to a maximum of 2-1/2 percent of
35-10 the total gross annual local revenue. Review under this subsection
35-11 shall be as provided by Section 3.211 of this Act. Each local
35-12 exchange company may receive a change in its local rates or in any
35-13 service category pursuant to this section only one time in any
35-14 12-month period.>
35-15 (i) <(g)> Rates established under this section must be in
35-16 accordance with the rate-setting principles of this subtitle.
35-17 However, companies may provide to their board members, officers,
35-18 employees, and agents free or reduced rates for services.
35-19 (j)(1) The commission shall, within 120 days of the
35-20 effective date of this section, examine its policies, its reporting
35-21 requirements, and its procedural and substantive rules as they
35-22 relate to rural and small incumbent local exchange companies and
35-23 cooperatives to eliminate or revise those that place unnecessary
35-24 burdens and expenses on those companies. Notwithstanding any other
35-25 provisions of this Act, the commission shall consider and may adopt
35-26 policies that include the following:
35-27 (A) policies to allow those companies to provide
36-1 required information by report or otherwise as necessary, including
36-2 a rate filing package when required, in substantially less
36-3 burdensome and complex form than required of larger incumbent local
36-4 exchange companies;
36-5 (B) policies that permit consideration of the
36-6 company's future construction plans and operational changes in
36-7 evaluating the reasonableness of current rates;
36-8 (C) policies that provide for evaluation of the
36-9 overall reasonableness of current rates no more frequently than
36-10 once every three years;
36-11 (D) policies that permit companies to change
36-12 depreciation and amortization rates when customer rates are not
36-13 affected by notice to the commission, subject to review by the
36-14 commission in a proceeding under Section 3.210 or 3.211 of this
36-15 Act;
36-16 (E) policies to allow the incumbent local
36-17 exchange companies to adopt for new services the rates for the same
36-18 or substantially similar services offered by a larger incumbent
36-19 local exchange company, without commission requirement of
36-20 additional cost justification; and
36-21 (F) policies that allow an incumbent local
36-22 exchange company, instead of any management audit that would
36-23 otherwise be required by law, policy, or rule, to submit to the
36-24 commission financial audits of the company regularly performed by
36-25 independent auditors or required and performed as a result of the
36-26 company's participation in federal or state financing or
36-27 revenue-sharing programs.
37-1 (2) Notwithstanding any other relevant provision of
37-2 this Act, the commission may adopt policies under this subsection
37-3 that the commission considers appropriate.
37-4 (k) <(h)> The commission is granted all necessary power and
37-5 authority to prescribe and collect fees and assessments from
37-6 incumbent local exchange companies necessary to recover the
37-7 commission's and the office's costs of activities carried out and
37-8 services provided under this section, Subsection (h) of Section
37-9 3.211, and Sections <Section> 3.212 and 3.2135 of this Act.
37-10 (l) Except as provided in Subsection (j), this section may
37-11 not apply to any incumbent local exchange company that is a
37-12 cooperative corporation partially deregulated under the provisions
37-13 of Section 3.2135 of this Act.
37-14 Sec. 3.2135. COOPERATIVE CORPORATIONS. (a) An incumbent
37-15 local exchange company that is a cooperative corporation may vote
37-16 to partially deregulate the cooperative by sending a ballot to each
37-17 cooperative member. The ballot may be included in a bill or sent
37-18 separately. The ballot shall provide for voting for or against the
37-19 proposition: "Authorizing the partial deregulation of the (name of
37-20 the cooperative)."
37-21 (b) The cooperative is deemed to be partially deregulated if
37-22 a majority of the ballots returned to the cooperative not later
37-23 than the 45th day after the date on which the ballots are mailed
37-24 favor deregulation.
37-25 (c) After the initial balloting, the cooperative may offer
37-26 extended local calling services, offer new services on an optional
37-27 basis, or make changes in its rates or tariffs if the cooperative:
38-1 (1) provides notice of the proposed action under this
38-2 section to all customers and municipalities as prescribed by
38-3 Subsection (e) of this section;
38-4 (2) files with the commission affidavits verifying the
38-5 provision of notice as prescribed by Subsection (f) of this
38-6 section; and
38-7 (3) files a statement of intent under Subsection (d)
38-8 of this section.
38-9 (d) A statement of intent to use this section must be filed
38-10 with the commission and the office not later than the 61st day
38-11 before the date on which a proposed change will take effect and
38-12 must include:
38-13 (1) a copy of a resolution approving the proposed
38-14 action and authorizing the filing of the statement of intent signed
38-15 by a majority of the members of the cooperative's board of
38-16 directors;
38-17 (2) a description of the services affected by the
38-18 proposed action;
38-19 (3) a copy of the proposed tariff for the affected
38-20 service; and
38-21 (4) a copy of the customer notice required by this
38-22 section.
38-23 (e) The cooperative shall provide to all affected customers
38-24 and parties, including municipalities, at least two notices of the
38-25 proposed action by bill insert or by individual notice. The
38-26 cooperative shall provide the first notice not later than the 61st
38-27 day before the date on which the proposed action will take effect.
39-1 The cooperative shall provide the last notice not later than the
39-2 31st day before the date on which the proposed action will take
39-3 effect. Each notice prescribed by this subsection must include:
39-4 (1) a description of the services affected by the
39-5 proposed action;
39-6 (2) the effective date of the proposed action;
39-7 (3) an explanation of the customer's right to petition
39-8 the commission for a review under Subsection (g) of this section;
39-9 (4) an explanation of the customer's right to obtain a
39-10 copy of the proposed tariff from the cooperative;
39-11 (5) the amount by which the cooperative's total gross
39-12 annual revenues will increase or decrease and a statement
39-13 explaining the effect on the cooperative revenues as a result of
39-14 the proposed action; and
39-15 (6) a list of rates that are affected by the proposed
39-16 rate action, showing the effect of the proposed action on each such
39-17 rate.
39-18 (f) Not later than the 15th day before the date on which the
39-19 proposed action will take effect, the cooperative shall file with
39-20 the commission affidavits that verify that the cooperative provided
39-21 each notice prescribed under Subsection (e) of this section.
39-22 (g)(1) The commission shall review a proposed action filed
39-23 under this section if:
39-24 (A) the commission receives, not later than the
39-25 45th day after the first notice is provided under Subsection (e) of
39-26 this section, complaints relating to the proposed action:
39-27 (i) signed by at least five percent of the
40-1 affected local service customers; or
40-2 (ii) from an affected intrastate access
40-3 customer, or group of affected intrastate access customers, that in
40-4 the preceding 12 months accounted for more than 10 percent of the
40-5 cooperative's total intrastate access revenues;
40-6 (B) the cooperative does not comply with the
40-7 procedural requirements of this section; or
40-8 (C) the proposed action is inconsistent with the
40-9 commission's substantive policies as expressed in its rules.
40-10 (2) If the commission conducts a review of the
40-11 proposed action under this subsection before the effective date,
40-12 the commission may suspend the proposed actions of the cooperative
40-13 during the pendency of the review.
40-14 (h) A cooperative that is partially deregulated under this
40-15 section may vote to reverse the deregulation by sending a ballot
40-16 to each cooperative member. Upon its own motion or within 60 days
40-17 upon receipt of a written request of 10 percent of its members, the
40-18 cooperative's board of directors shall reballot. The ballot may be
40-19 included in a bill or sent separately. The ballot shall provide
40-20 for voting for or against the proposition: "Reversing the partial
40-21 deregulation of the (name of the cooperative)." The partial
40-22 deregulation is reversed if a majority of the ballots returned to
40-23 the cooperative not later than the 45th day after the date on which
40-24 the ballots are mailed favor reversal.
40-25 (i) The commission by rule shall prescribe the voting
40-26 procedures a cooperative is required to use under this section.
40-27 (j) This section does not:
41-1 (1) prohibit a cooperative from filing for a new
41-2 service or rate change under another applicable section of this
41-3 Act; or
41-4 (2) affect the application of other provisions of this
41-5 Act not directly related to ratemaking or the authority of the
41-6 commission to require the cooperative to file reports as required
41-7 under this Act, Section 3.213(j) of this Act, or under the rules
41-8 adopted by the commission.
41-9 (k) Notwithstanding any other provision of this section, the
41-10 commission may conduct a review in accordance with Section 3.210 of
41-11 this Act.
41-12 SECTION 22. Subtitle E, Title III, Public Utility Regulatory
41-13 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
41-14 Regular Session, 1995, is amended by adding Section 3.219 to read
41-15 as follows:
41-16 Sec. 3.219. INTRALATA CALLS. (a) Except as provided by
41-17 Subsection (b) of this section, while any local exchange company in
41-18 this state is prohibited by federal law from providing interLATA
41-19 telecommunications services, the local exchange companies in this
41-20 state designated or de facto authorized to receive "0+" and "1+"
41-21 dialed intraLATA calls shall be exclusively designated or
41-22 authorized to receive those calls.
41-23 (b) A telecommunications utility operating under a
41-24 certificate of operating authority or service provider certificate
41-25 of operating authority to the extent not restricted by Section
41-26 3.2532(f) of this Act is de facto authorized to receive "0+" and
41-27 "1+" dialed intraLATA calls on the date on which the utility
42-1 receives its certificate.
42-2 (c) Effective as of the time all local exchange companies
42-3 are allowed by federal law to provide interLATA telecommunications
42-4 services, the commission shall ensure that customers may designate
42-5 a provider of their choice to carry their "0+" and "1+" dialed
42-6 intraLATA calls and that equal access in the public network is
42-7 implemented such that the provider may carry such calls.
42-8 SECTION 23. Section 3.251, Public Utility Regulatory Act of
42-9 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
42-10 Session, 1995, is amended by adding Subsections (c) and (d) to read
42-11 as follows:
42-12 (c) A person may not provide local exchange telephone
42-13 service, basic local telecommunications service, or switched access
42-14 service without a certificate of convenience and necessity, a
42-15 certificate of operating authority, or a service provider
42-16 certificate of operating authority.
42-17 (d) A municipality may not receive a certificate of
42-18 convenience and necessity, certificate of operating authority, or
42-19 service provider certificate of operating authority under this Act.
42-20 In addition, a municipality or municipal electric system may not
42-21 offer for sale to the public, either directly or indirectly through
42-22 a telecommunications provider, a service for which a certificate is
42-23 required or any non-switched telecommunications service to be used
42-24 to provide connections between customers' premises within the
42-25 exchange or between a customer's premises and a long distance
42-26 provider serving the exchange.
42-27 SECTION 24. Section 3.252, Public Utility Regulatory Act of
43-1 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
43-2 Session, 1995, is amended to read as follows:
43-3 Sec. 3.252. EXCEPTIONS <FOR EXTENSION OF SERVICE>. (a) A
43-4 telecommunications <public> utility is not required to secure a
43-5 certificate of public convenience and necessity, certificate of
43-6 operating authority, or service provider certificate of operating
43-7 authority for:
43-8 (1) an extension into territory contiguous to that
43-9 already served by it and not receiving similar service from another
43-10 telecommunications <public> utility and not within the certificated
43-11 area <of public convenience and necessity> of another
43-12 telecommunications utility <of the same kind>;
43-13 (2) an extension within or to territory already served
43-14 by it or to be served by it under a certificate of public
43-15 convenience and necessity, certificate of operating authority, or
43-16 service provider certificate of operating authority; <or>
43-17 (3) operation, extension, or service in progress on
43-18 September 1, 1975; or
43-19 (4) interexchange telecommunications service,
43-20 non-switched private line service, shared tenant service,
43-21 specialized communications common carrier service, commercial
43-22 mobile service, or operator service as defined by Section 3.052(a)
43-23 of this Act.
43-24 (b) Any extensions allowed by Subsection (a) of this section
43-25 shall be limited to devices for interconnection of existing
43-26 facilities or devices used solely for transmitting
43-27 telecommunications <public> utility services from existing
44-1 facilities to customers of retail utility service.
44-2 SECTION 25. Subtitle F, Title III, Public Utility Regulatory
44-3 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
44-4 Regular Session, 1995, is amended by adding Section 3.2531 to read
44-5 as follows:
44-6 Sec. 3.2531. CERTIFICATE OF OPERATING AUTHORITY. (a) In
44-7 lieu of applying for a certificate of convenience and necessity, an
44-8 applicant may apply for a certificate of operating authority.
44-9 (b) An application for a certificate of operating authority
44-10 shall specify whether the applicant is seeking a facilities based
44-11 certificate of operating authority under this section or a service
44-12 provider certificate of operating authority under Section 3.2532.
44-13 When an application for a certificate of operating authority or
44-14 service provider certificate of operating authority is filed, the
44-15 commission shall give notice of the application to interested
44-16 parties and, if requested, shall fix a time and place for a hearing
44-17 and give notice of the hearing. Any person interested in the
44-18 application may intervene at the hearing.
44-19 (c) If seeking a facilities based certificate of operating
44-20 authority, the applicant must include in the application a proposed
44-21 build-out plan demonstrating how the applicant will deploy its
44-22 facilities throughout the geographic area of its certificated
44-23 service area over a six-year period. The commission may issue
44-24 rules for a holder of a certificate of operating authority with
44-25 respect to the time within which the holder must be able to serve
44-26 customers, except that a holder must serve customers within a
44-27 build-out area within 30 days of the date of a customer request for
45-1 service. The commission may not require a holder to place "drop"
45-2 facilities on every customer's premises or to activate fiber optic
45-3 facilities in advance of customer request as part of the build-out
45-4 requirements. The plan required by this subsection must meet the
45-5 following conditions:
45-6 (1) 10 percent of the area to be served must be served
45-7 with facilities other than the facilities of the incumbent local
45-8 exchange company by the end of the first year;
45-9 (2) 50 percent of the area to be served must be served
45-10 with facilities other than the facilities of the incumbent local
45-11 exchange company by the end of the third year; and
45-12 (3) all of the area to be served must be served with
45-13 facilities other than the facilities of the incumbent local
45-14 exchange company by the end of the sixth year.
45-15 (d) The build-out plan may permit not more than 40 percent
45-16 of the applicant's service area to be served by resale of the
45-17 incumbent local exchange company's facilities under the tariff
45-18 required to be approved in Section 3.453 of this Act, except that
45-19 during the six years immediately following the grant, a holder of a
45-20 certificate of operating authority may extend its service by resale
45-21 only within the area it is obligated to serve under the build-out
45-22 plan approved by the commission and to the distant premises of one
45-23 of its multi-premises customers beyond that build-out area but
45-24 within its certificated service area. The 40-percent resale
45-25 limitation applies to incumbent local exchange facilities resold by
45-26 a holder of a certificate of operating authority as part of the
45-27 provision of local exchange telephone service, regardless of
46-1 whether the facilities are purchased directly by the certificate of
46-2 operating authority holder from the incumbent local exchange
46-3 company or purchased by an intermediary carrier from the incumbent
46-4 local exchange company and then provided to the certificate of
46-5 operating authority holder for resale. In no event may an
46-6 applicant use commercial mobile service to meet the build-out
46-7 requirement imposed by this section, but an applicant may use PCS
46-8 or other wireless technology licensed or allocated by the Federal
46-9 Communications Commission after January 1, 1995, to meet the
46-10 build-out requirement.
46-11 (e) A certificate of operating authority shall be granted
46-12 within 60 days after the date of the application on a
46-13 nondiscriminatory basis after consideration by the commission of
46-14 factors such as the technical and financial qualifications of the
46-15 applicant and the applicant's ability to meet the commission's
46-16 quality of service requirements. The commission may extend the
46-17 60-day period on good cause shown. In an exchange of an incumbent
46-18 local exchange company serving fewer than 31,000 access lines, the
46-19 commission shall also consider:
46-20 (1) the effect of granting the certificate on any
46-21 public utility already serving the area and on the utility's
46-22 customers;
46-23 (2) the existing utility's ability to provide adequate
46-24 service at reasonable rates;
46-25 (3) the impact of the existing utility's ability as
46-26 the provider of last resort; and
46-27 (4) the ability of the exchange, not the company, to
47-1 support more than one provider of service.
47-2 (f) In addition to the factors prescribed by Subsection (e)
47-3 of this section, the commission shall consider the adequacy of the
47-4 applicant's build-out plan in determining whether to grant the
47-5 application. The commission may administratively and temporarily
47-6 waive compliance with the six-year build-out plan on a showing of
47-7 good cause. The holder of a certificate shall file periodic
47-8 reports with the commission demonstrating compliance with the plan
47-9 approved by the commission, including the requirement that not more
47-10 than 40 percent of the service area of a new certificate may be
47-11 served by resale of the facilities of the incumbent local exchange
47-12 company.
47-13 (g) An application for a certificate of operating authority
47-14 may be granted only for an area or areas that are contiguous and
47-15 reasonably compact and cover an area of at least 27 square miles,
47-16 except that:
47-17 (1) in an exchange in a county having a population of
47-18 less than 500,000 that is served by an incumbent local exchange
47-19 company having more than 31,000 access lines, an area covering less
47-20 than 27 square miles may be approved if the area is contiguous and
47-21 reasonably compact and has at least 20,000 access lines; and
47-22 (2) in an exchange of a company serving fewer than
47-23 31,000 access lines in this state, an application may be granted
47-24 only for an area that has boundaries similar to the boundaries of
47-25 the serving central office served by the incumbent local exchange
47-26 company holding the certificate of convenience and necessity for
47-27 that area.
48-1 (h) The commission may not, before September 1, 1998, grant
48-2 a certificate of operating authority in an exchange of an incumbent
48-3 local exchange company serving fewer than 31,000 access lines. The
48-4 commission shall require that the applicant meet the other
48-5 appropriate certification provisions of this Act.
48-6 (i) Six years after an application for a certificate of
48-7 operating authority has been granted for a particular area or areas
48-8 or when the new applicant has completed its build-out plan required
48-9 by this section, the commission may waive the build-out
48-10 requirements of this section for additional applicants. In
48-11 addition, in service areas served by an incumbent local exchange
48-12 company having more than one million access lines which, as of
48-13 September 1, 1995, is subject to any prohibition under federal law
48-14 on the provision of interLATA service, the build-out requirements
48-15 of this section shall be eliminated in any service area where all
48-16 prohibitions on that company's provision of interLATA services are
48-17 removed such that the company can offer interLATA service together
48-18 with its local and intraLATA toll service.
48-19 (j)(1) On an application filed after September 1, 1997, the
48-20 commission may conduct a hearing to determine:
48-21 (A) if the build-out requirements of Subsections
48-22 (c), (d), and (g) of this section have created barriers to the
48-23 entry of facilities based local exchange telephone service
48-24 competition in exchanges in counties with a population of more than
48-25 500,000 served by companies having more than 31,000 access lines;
48-26 and
48-27 (B) the effect of the resale provisions on the
49-1 development of competition except in certificated areas of
49-2 companies serving fewer than 31,000 access lines as provided by
49-3 Section 3.2532(d)(1) of this Act.
49-4 (2) In making the determination under Subdivision (1)
49-5 of this subsection, the commission shall consider:
49-6 (A) the policy of this Act to encourage
49-7 construction of local exchange networks;
49-8 (B) the number and type of competitors that have
49-9 sought to provide local exchange competition under the existing
49-10 rules prescribed by this Act; and
49-11 (C) whether, if new build-out and resale rules
49-12 were adopted, innovative and competitive local exchange telephone
49-13 services are more likely to be provided.
49-14 (3) If the commission determines that the existing
49-15 build-out requirements have created barriers to facilities based
49-16 local exchange competition in exchanges described by Subdivision
49-17 (1)(A) of this subsection, the requirements of Subsections (c),
49-18 (d), and (g) of this section and of Section 3.2532 may be changed
49-19 if the changes will encourage additional facilities based
49-20 competition. However, in no event may exchange sizes be reduced
49-21 below 12 square miles, or the permitted resale percentage of
49-22 Subsection (d) of this section be increased to more than 50
49-23 percent. If new rules are adopted, the rules may apply only to
49-24 applicants for certificates filed after the date of adoption of
49-25 those rules.
49-26 (k) If the holder of a certificate of authority fails to
49-27 comply with any requirement imposed by this Act, the commission
50-1 may:
50-2 (1) revoke the certificate; or
50-3 (2) impose administrative penalties or take other
50-4 action under Subtitle I, Title I, of this Act.
50-5 SECTION 26. Subtitle F, Title III, Public Utility Regulatory
50-6 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
50-7 Regular Session, 1995, is amended by adding Section 3.2532 to read
50-8 as follows:
50-9 Sec. 3.2532. SERVICE PROVIDER CERTIFICATE OF OPERATING
50-10 AUTHORITY. (a) To encourage innovative, competitive, and
50-11 entrepreneurial businesses to provide telecommunications services,
50-12 the commission may grant service provider certificates of operating
50-13 authority. An applicant must demonstrate that it has the financial
50-14 and technical ability to provide its services and show that the
50-15 services will meet the requirements of this section.
50-16 (b) A company is eligible to obtain a service provider
50-17 certificate of operating authority under this section unless the
50-18 company, together with affiliates, had in excess of six percent of
50-19 the total intrastate switched access minutes of use as measured by
50-20 the most recent 12-month period preceding the filing of the
50-21 application for which data is available. The commission shall
50-22 obtain from the incumbent local exchange telephone companies and
50-23 from the applicant such information as is necessary to determine
50-24 eligibility and shall certify such eligibility within 10 days of
50-25 the filing of the application. A service provider certificate of
50-26 operating authority shall be granted within 60 days after the date
50-27 of the application on a nondiscriminatory basis after consideration
51-1 by the commission of factors such as the technical and financial
51-2 qualifications of the applicant and the applicant's ability to meet
51-3 the commission's quality of service requirements. The commission
51-4 may extend the 60-day period on good cause shown.
51-5 (c) An applicant for a service provider certificate of
51-6 operating authority shall file with its application a description
51-7 of the services it will provide and show the areas in which it will
51-8 provide those services.
51-9 (d) A service provider certificate of operating authority
51-10 holder:
51-11 (1) may obtain services under the resale tariffs
51-12 ordered by the commission as specified by Section 3.453 of this
51-13 Act, except in certificated areas of companies serving fewer than
51-14 31,000 access lines;
51-15 (2) may obtain for resale the monthly recurring flat
51-16 rate local exchange telephone service and associated nonrecurring
51-17 charges, including any mandatory extended area service, of an
51-18 incumbent local exchange company at a five percent discount to the
51-19 tariffed rate, and:
51-20 (A) the incumbent local exchange company shall
51-21 also sell any feature service that may be provided to customers in
51-22 conjunction with local exchange service, including toll
51-23 restriction, call control options, tone dialing, custom calling
51-24 services, and caller ID at a five percent discount to the tariffed
51-25 rate, including any associated nonrecurring charge for those
51-26 services, provided that the incumbent local exchange company shall
51-27 make available to a holder of a service provider certificate of
52-1 operating authority at an additional five percent discount any
52-2 discounts made available to the customers of the incumbent local
52-3 exchange company who are similarly situated to the customers of the
52-4 holder of the service provider certificate of operating authority;
52-5 (B) service providers and incumbent local
52-6 exchange companies may agree to rates lower than the tariffed rates
52-7 or discounted rates;
52-8 (C) the five percent discounts provided by this
52-9 subdivision do not apply in exchanges of companies having fewer
52-10 than 31,000 access lines in this state;
52-11 (D) if the tariffed rates for the services being
52-12 resold change, the changed rate is applicable to the resold
52-13 service, but the commission may not, for holders of service
52-14 provider certificates of operating authority, create a special
52-15 class for purposes of resold services, and the discount provided to
52-16 holders of service provider certificates of operating authority
52-17 shall remain at five percent of the tariffed rate or discounted
52-18 rate; and
52-19 (E) the holder of a service provider certificate
52-20 of operating authority may purchase for resale optional extended
52-21 area service and expanded local calling service but those services
52-22 may not be discounted;
52-23 (3) may sell the flat rate local exchange telephone
52-24 service only to the same class of customers to which the incumbent
52-25 local exchange company sells that service;
52-26 (4) may not use a resold flat rate local exchange
52-27 telephone service to avoid the rates, terms, and conditions of an
53-1 incumbent local exchange company's tariffs;
53-2 (5) may not terminate both flat rate local exchange
53-3 telephone service and services obtained under the resale tariff
53-4 approved as prescribed by Sections 3.453(a)-(c) of this Act on the
53-5 same end user customer's premises;
53-6 (6) may not use resold flat rate local exchange
53-7 telephone services to provide access services to other
53-8 interexchange carriers, cellular carriers, competitive access
53-9 providers, or other retail telecommunications providers, but may
53-10 permit customers to use resold local exchange telephone services to
53-11 access interexchange carriers, cellular carriers, competitive
53-12 access providers, or other retail telecommunications providers;
53-13 (7) may obtain services offered by or negotiated with
53-14 a holder of a certificate of convenience and necessity or
53-15 certificate of operating authority; and
53-16 (8) may obtain for resale single or multiple line flat
53-17 rate intraLATA calling service when provided by the local exchange
53-18 company at the tariffed rate for online digital communications.
53-19 (e) The holder of a certificate of operating authority or
53-20 certificate of convenience and necessity shall not be granted a
53-21 service provider certificate of operating authority as to the same
53-22 territory. A holder of a service provider certificate of operating
53-23 authority who applies for either a certificate of operating
53-24 authority or a certificate of convenience and necessity as to the
53-25 same territory must include a plan to relinquish its service
53-26 provider certificate of operating authority.
53-27 (f) An incumbent local exchange company that sells flat rate
54-1 local exchange telephone service to a holder of a service provider
54-2 certificate of operating authority may retain all access service
54-3 and "1+" intraLATA toll service originated over the resold flat
54-4 rate local exchange telephone service.
54-5 (g) An incumbent local exchange company may not:
54-6 (1) delay provisioning or maintenance of services
54-7 provided under this section;
54-8 (2) degrade the quality of access provided to another
54-9 provider;
54-10 (3) impair the speed, quality, or efficiency of lines
54-11 used by another provider;
54-12 (4) fail to fully disclose in a timely manner after a
54-13 request for the disclosure all available information necessary for
54-14 the holder of the service provider certificate of operating
54-15 authority to provision resale services; or
54-16 (5) refuse to take any reasonable action to allow
54-17 efficient access by a holder of a service provider certificate of
54-18 operating authority to ordering, billing, or repair management
54-19 systems of the local exchange company.
54-20 (h) In this section:
54-21 (1) "Affiliate" means any entity that, directly or
54-22 indirectly, owns or controls, is owned or controlled by, or is
54-23 under common ownership or control with a company that applies for a
54-24 service provider certificate of operating authority under this
54-25 section.
54-26 (2) "Control" means to exercise substantial influence
54-27 over the policies and actions of another.
55-1 SECTION 27. Sections 3.255(a) and (b), Public Utility
55-2 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
55-3 Legislature, Regular Session, 1995, are amended to read as follows:
55-4 (a) If an area has been or shall be included within the
55-5 boundaries of a city, town, or village as the result of annexation,
55-6 incorporation, or otherwise, all telecommunications <public>
55-7 utilities certified or entitled to certification under this Act to
55-8 provide service or operate facilities in such area prior to the
55-9 inclusion shall have the right to continue and extend service in
55-10 its area of certification <public convenience and necessity> within
55-11 the annexed or incorporated area, pursuant to the rights granted by
55-12 its certificate and this Act.
55-13 (b) Notwithstanding any other provision of law, a
55-14 certificated telecommunications <public> utility shall have the
55-15 right to continue and extend service within its area of
55-16 certification <public convenience and necessity> and to utilize the
55-17 roads, streets, highways, alleys, and public property for the
55-18 purpose of furnishing such retail utility service, subject to the
55-19 authority of the governing body of a municipality to require any
55-20 certificated telecommunications <public> utility, at its own
55-21 expense, to relocate its facilities to permit the widening or
55-22 straightening of streets by giving to the certificated
55-23 telecommunications <public> utility 30 days' notice and specifying
55-24 the new location for the facilities along the right-of-way of the
55-25 street or streets.
55-26 SECTION 28. Sections 3.256 and 3.257, Public Utility
55-27 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
56-1 Legislature, Regular Session, 1995, are amended to read as follows:
56-2 Sec. 3.256. CONTRACTS VALID AND ENFORCEABLE. Contracts
56-3 between telecommunications <public> utilities designating areas to
56-4 be served and customers to be served by those utilities, when
56-5 approved by the commission, shall be valid and enforceable and
56-6 shall be incorporated into the appropriate areas of certification
56-7 <public convenience and necessity>.
56-8 Sec. 3.257. PRELIMINARY ORDER FOR CERTIFICATE. If a
56-9 telecommunications <public> utility desires to exercise a right or
56-10 privilege under a franchise or permit which it contemplates
56-11 securing but which has not as yet been granted to it, such
56-12 telecommunications <public> utility may apply to the commission for
56-13 an order preliminary to the issuance of the certificate. The
56-14 commission may thereupon make an order declaring that it will, on
56-15 application, under such rules as it prescribes, issue the desired
56-16 certificate on such terms and conditions as it designates, after
56-17 the telecommunications <public> utility has obtained the
56-18 contemplated franchise or permit. On presentation to the
56-19 commission of evidence satisfactory to it that the franchise or
56-20 permit has been secured by the telecommunications <public> utility,
56-21 the commission shall issue the certificate.
56-22 SECTION 29. Subtitle F, Title III, Public Utility Regulatory
56-23 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
56-24 Regular Session, 1995, is amended by adding Section 3.2555 to read
56-25 as follows:
56-26 Sec. 3.2555. DISCRIMINATION. (a) An applicant for a
56-27 certificate of operating authority or service provider certificate
57-1 of operating authority shall file with its application a sworn
57-2 statement that it has applied for any necessary municipal consent,
57-3 franchise, or permit required for the type of services and
57-4 facilities for which it has applied. Notwithstanding Section 1.103
57-5 of this Act, a municipality may not discriminate against a
57-6 telecommunications utility in relation to:
57-7 (1) the authorization or placement of
57-8 telecommunications facilities within public right-of-way;
57-9 (2) access to buildings; or
57-10 (3) municipal utility pole attachment rates, terms,
57-11 and conditions, to the extent not addressed by federal law.
57-12 (b) In the granting of consent, franchises, and permits for
57-13 the use of public streets, alleys, or rights-of-way within its
57-14 corporate municipal limits, a municipality may not discriminate in
57-15 favor of or against a telecommunications utility that holds or has
57-16 applied for a certificate of convenience and necessity, certificate
57-17 of operating authority, or service provider certificate of
57-18 operating authority all in relation to:
57-19 (1) the authorizing, placement, replacement, or
57-20 removal of telecommunications facilities within public
57-21 rights-of-way and the reasonable compensation therefor of whatever
57-22 kind, whether money, services, use of facilities, or any other
57-23 consideration; or
57-24 (2) municipal utility pole attachment or underground
57-25 conduit rates, terms, and conditions, to the extent not addressed
57-26 by federal law, provided that a municipal utility may not charge
57-27 pole attachment rates or underground conduit rates that exceed the
58-1 fee the utility would be permitted to charge if its rates were
58-2 regulated under federal law and the rules of the Federal
58-3 Communications Commission.
58-4 (c) Whenever a telecommunications utility holds a consent,
58-5 franchise, or permit as determined to be the appropriate grants of
58-6 authority by the municipality, and where required by this Act, a
58-7 certificate, a public or private property owner may not:
58-8 (1) interfere with or prevent such a
58-9 telecommunications utility from installing on the owner's property
58-10 telecommunications service facilities requested by a tenant;
58-11 (2) discriminate against one or more such
58-12 telecommunications utilities in relation to the installation,
58-13 terms, conditions, and compensation of telecommunications services
58-14 facilities to a tenant on the owner's property;
58-15 (3) demand or accept an unreasonable payment in any
58-16 form from a tenant or such a telecommunications utility for
58-17 allowing the utility on or within the owner's property; or
58-18 (4) discriminate in favor or against a tenant in any
58-19 manner, including rental charges, because of the telecommunications
58-20 utility from which the tenant receives telecommunications services.
58-21 (d) Notwithstanding Subsection (c) of this section, whenever
58-22 a telecommunications utility holds a municipal consent, franchise,
58-23 or permit as determined to be the appropriate grant of authority by
58-24 the municipality, and where required by this Act, a certificate, a
58-25 public or private property owner may:
58-26 (1) impose conditions on such telecommunications
58-27 utility that are reasonably necessary to protect the safety,
59-1 security, appearance, and condition of the property and the safety
59-2 and convenience of other persons;
59-3 (2) impose reasonable limitations on the times at
59-4 which such telecommunications utility may have access to the
59-5 property for the installation of telecommunications services
59-6 facilities;
59-7 (3) require such telecommunications utility to agree
59-8 to indemnify the owner of any damage caused by the installation,
59-9 operation, or removal of the facilities;
59-10 (4) require the tenant or the telecommunications
59-11 utility to bear the entire cost of the installation, operation, or
59-12 removal of the facilities;
59-13 (5) impose reasonable limitations on the number of
59-14 such telecommunications utilities having access to the owner's
59-15 property if the owner can demonstrate space constraints that
59-16 require such limitations; and
59-17 (6) require such telecommunications utility to pay
59-18 compensation that is reasonable and nondiscriminatory among such
59-19 telecommunications utilities.
59-20 (e) Notwithstanding any other provision of law, the
59-21 commission has the jurisdiction necessary to enforce this section.
59-22 (f) Nothing in this Act shall restrict or limit a
59-23 municipality's historical right to control and receive reasonable
59-24 compensation for access to its public streets, alleys, or
59-25 rights-of-way or other public property.
59-26 (g) Subsection (c) of this section does not apply to an
59-27 institution of higher education. In this subsection, "institution
60-1 of higher education" has the meaning assigned by Section 61.003,
60-2 Education Code, and also includes a "private or independent
60-3 institution of higher education" as that term is defined by Section
60-4 61.003, Education Code.
60-5 (h) The holder of a certificate of convenience and
60-6 necessity, certificate of operating authority, or service provider
60-7 certificate of operating authority shall have the right to collect
60-8 the fee imposed by a municipality under this section through a pro
60-9 rata charge to customers within the boundaries of the municipality
60-10 imposing the fee, which may be shown as a separate line item on the
60-11 customer bill.
60-12 (i) This section does not require a public or private
60-13 property owner to enter into a contract with one or more
60-14 telecommunications utilities for the provision of shared tenant
60-15 services on a property.
60-16 SECTION 30. Subtitle F, Title III, Public Utility Regulatory
60-17 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
60-18 Regular Session, 1995, is amended by adding Section 3.2571 to read
60-19 as follows:
60-20 Sec. 3.2571. FLEXIBILITY PLAN. After an application for a
60-21 certificate of convenience and necessity, certificate of operating
60-22 authority, or service provider certificate of operating authority
60-23 is granted or the commission determines that a certificate is not
60-24 needed for the services to be provided by the applicant, the
60-25 commission shall conduct proceedings it determines appropriate to
60-26 establish a transitional flexibility plan for the incumbent local
60-27 exchange company in the same area or areas as the new certificate
61-1 holder. However, a basic local telecommunications service price of
61-2 the incumbent local exchange company may not be increased until
61-3 four years following the grant of the certificate to the applicant,
61-4 except:
61-5 (1) as provided by this Act; or
61-6 (2) when the new applicant has completed its build-out
61-7 plan required by Section 3.2531 or when a competitor for basic
61-8 local telecommunications service provides such service in an area
61-9 where the build-out requirements have been eliminated.
61-10 SECTION 31. Subtitle F, Title III, Public Utility Regulatory
61-11 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
61-12 Regular Session, 1995, is amended by adding Section 3.2572 to read
61-13 as follows:
61-14 Sec. 3.2572. MARKET POWER TEST. (a) Notwithstanding any
61-15 other provision of this Act, on notice and hearing, the commission
61-16 may grant price deregulation of a specific service in a particular
61-17 geographic market if the commission determines that the incumbent
61-18 local exchange company or certificate of operating authority holder
61-19 that is a dominant provider is no longer dominant as to that
61-20 specific service in that particular geographic market. For
61-21 purposes of this section only, in determining a particular
61-22 geographic market, the commission shall consider economic and
61-23 technical conditions of the market. Once a service in a particular
61-24 market is price-deregulated under this section, the incumbent local
61-25 exchange company or certificate of operating authority holder that
61-26 is a dominant provider may set the rate for the deregulated service
61-27 at any level above the service's LRIC.
62-1 (b) To determine that an incumbent local exchange company or
62-2 certificate of operating authority holder that is a dominant
62-3 provider is no longer dominant as to a specific service in a
62-4 particular geographic market, the commission must find that an
62-5 effective competitive alternative exists and that the incumbent
62-6 local exchange company or certificate of operating authority holder
62-7 that is a dominant provider does not have sufficient market power
62-8 to control the price of the service within a specified geographic
62-9 area in a manner that is adverse to the public interest.
62-10 (c) The commission shall consider the following factors in
62-11 determining whether the incumbent local exchange company or
62-12 certificate of operating authority holder that is a dominant
62-13 provider is dominant as to a specific service in a particular
62-14 geographic area:
62-15 (1) number and size of telecommunications utilities or
62-16 other persons providing the same, equivalent, or substitutable
62-17 service in the relevant market and the extent to which the service
62-18 is available in the relevant market;
62-19 (2) ability of customers in the relevant market to
62-20 obtain the same, equivalent, or substitutable service at comparable
62-21 rates, terms, and conditions;
62-22 (3) ability of telecommunications utilities or other
62-23 persons to make the same, equivalent, or substitutable service
62-24 readily available in the relevant market at comparable rates,
62-25 terms, and conditions;
62-26 (4) proportion of the relevant market that is
62-27 currently being provided the service by a telecommunications
63-1 utility other than the incumbent local exchange company or
63-2 certificate of operating authority holder that is a dominant
63-3 carrier; and
63-4 (5) other relevant information deemed necessary by the
63-5 commission.
63-6 (d) The commission, on its own motion, or on a complaint
63-7 that the commission deems has merit, is granted all necessary power
63-8 and authority to assert or reassert regulation over a specific
63-9 service in a particular geographic market if the incumbent local
63-10 exchange company or certificate of operating authority holder that
63-11 is a dominant carrier is found to again be dominant or the provider
63-12 of services under a certificate of operating authority or service
63-13 provider certificate of operating authority is found to be dominant
63-14 as to that specific service in that particular geographic market.
63-15 (e) On request of an incumbent local exchange company or
63-16 certificate of operating authority holder that is a dominant
63-17 carrier in conjunction with an application under this section, the
63-18 commission shall conduct investigations to determine the existence,
63-19 impact, and scope of competition in the particular geographic and
63-20 service markets at issue and in connection therewith may call and
63-21 hold hearings, may issue subpoenas to compel the attendance of
63-22 witnesses and the production of papers and documents, has any other
63-23 powers, whether specifically designated or implied, necessary and
63-24 convenient to the investigation, and may make findings of fact and
63-25 decisions with respect to those markets.
63-26 (f) The parties to the proceeding shall be entitled to use
63-27 the results of the investigation required to be conducted under
64-1 Subsection (e) of this section in an application for pricing
64-2 flexibility.
64-3 (g) In conjunction with its authority to collect and compile
64-4 information, the commission may collect reports from a holder of a
64-5 certificate of operating authority or service provider certificate
64-6 of operating authority. Any information contained in the reports
64-7 claimed to be confidential for competitive purposes shall be
64-8 maintained as confidential by the commission, and the information
64-9 is exempt from disclosure under Chapter 552, Government Code. The
64-10 commission shall aggregate the information to the maximum extent
64-11 possible considering the purpose of the proceeding to protect the
64-12 confidential nature of the information.
64-13 SECTION 32. Section 3.258(a), Public Utility Regulatory Act
64-14 of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
64-15 Regular Session, 1995, is amended to read as follows:
64-16 (a) Except as provided by this section, <or> Section 3.259,
64-17 or Section 3.2595 of this Act, a telecommunications utility that is
64-18 granted a certificate of convenience and necessity or certificate
64-19 of operating authority shall be required to offer to any customer
64-20 in its certificated area all basic local telecommunications
64-21 services <the holder of any certificate of public convenience and
64-22 necessity shall serve every consumer within its certified area> and
64-23 shall render continuous and adequate service within the area or
64-24 areas. In any event, as between a holder of a certificate of
64-25 convenience and necessity and a holder of a certificate of
64-26 operating authority, the holder of the certificate of convenience
64-27 and necessity has provider of last resort obligations.
65-1 SECTION 33. Section 3.259, Public Utility Regulatory Act of
65-2 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
65-3 Session, 1995, is amended to read as follows:
65-4 Sec. 3.259. CONDITIONS REQUIRING REFUSAL OF SERVICE. The
65-5 holder of a certificate of public convenience and necessity,
65-6 certificate of operating authority, or service provider certificate
65-7 of operating authority shall refuse to serve a customer within its
65-8 certified area if the holder of the certificate is prohibited from
65-9 providing the service under Section 212.012 or 232.0047, Local
65-10 Government Code.
65-11 SECTION 34. Subtitle F, Title III, Public Utility Regulatory
65-12 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
65-13 Regular Session, 1995, is amended by adding Section 3.2595 to read
65-14 as follows:
65-15 Sec. 3.2595. DISCONTINUATION OF SERVICE. (a)
65-16 Notwithstanding Section 3.258 of this Act, a telecommunications
65-17 utility that holds a certificate of operating authority or service
65-18 provider certificate of operating authority may:
65-19 (1) discontinue an optional service that is not
65-20 essential to the provision of basic local telecommunications
65-21 service; or
65-22 (2) cease operations within its certificated area.
65-23 (b) Before such telecommunications utility discontinues an
65-24 optional service or ceases operations, the utility must provide
65-25 notice of the intended action to the commission and each affected
65-26 customer in the manner required by the commission.
65-27 (c) Such telecommunications utility is entitled to
66-1 discontinue an optional service on or after the 61st day after the
66-2 date on which the utility provides the notice required by
66-3 Subsection (b) of this section.
66-4 (d) Such telecommunications utility may not cease operations
66-5 within its certificated area unless:
66-6 (1) another provider of basic local telecommunications
66-7 services has adequate facilities and capacity to serve the
66-8 customers in the certificated area; and
66-9 (2) the commission authorizes the utility to cease
66-10 operations.
66-11 (e) The commission may not authorize such telecommunications
66-12 utility to cease operations under Subsection (d) of this section
66-13 before the 61st day after the date on which the utility provides
66-14 the notice required by Subsection (b) of this section. The
66-15 commission may enter an order under this subsection
66-16 administratively unless the commission receives a complaint from an
66-17 affected person.
66-18 SECTION 35. Section 3.260, Public Utility Regulatory Act of
66-19 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
66-20 Session, 1995, is amended to read as follows:
66-21 Sec. 3.260. SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE. If
66-22 the commission determines that a purchaser, assignee, or lessee is
66-23 capable of rendering adequate service, a telecommunications
66-24 <public> utility may sell, assign, or lease a certificate of public
66-25 convenience and necessity or certificate of operating authority or
66-26 any rights obtained under the certificate. The sale, assignment,
66-27 or lease shall be on the conditions prescribed by the commission.
67-1 SECTION 36. Section 3.261, Public Utility Regulatory Act of
67-2 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
67-3 Session, 1995, is amended to read as follows:
67-4 Sec. 3.261. INTERFERENCE WITH OTHER TELECOMMUNICATIONS
67-5 <PUBLIC> UTILITY. If a telecommunications <public> utility in
67-6 constructing or extending its lines, plant, or system interferes or
67-7 attempts to interfere with the operation of a line, plant, or
67-8 system of any other utility, the commission may issue an order
67-9 prohibiting the construction or extension or prescribing terms and
67-10 conditions for locating the lines, plants, or systems affected.
67-11 SECTION 37. Subtitle F, Title III, Public Utility Regulatory
67-12 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
67-13 Regular Session, 1995, is amended by adding Section 3.2615 to read
67-14 as follows:
67-15 Sec. 3.2615. DIRECTORY LISTINGS AND ASSISTANCE. (a)
67-16 Companies providing local exchange telephone service shall
67-17 negotiate the terms and conditions of printed directory listings
67-18 and directory assistance within overlapping certificated areas.
67-19 (b) On complaint by the incumbent local exchange company or
67-20 the holder of the certificate of convenience and necessity,
67-21 certificate of operating authority, or service provider certificate
67-22 of operating authority, the commission may resolve disputes between
67-23 the parties and, if necessary, issue an order setting the terms and
67-24 conditions of the directory listings or directory assistance.
67-25 (c) This section does not affect the authority of an
67-26 incumbent local exchange company to voluntarily conduct
67-27 negotiations with an applicant for a certificate of convenience and
68-1 necessity, certificate of operating authority, or service provider
68-2 certificate of operating authority.
68-3 SECTION 38. Section 3.262, Public Utility Regulatory Act of
68-4 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
68-5 Session, 1995, is amended to read as follows:
68-6 Sec. 3.262. IMPROVEMENTS IN SERVICE; INTERCONNECTING
68-7 SERVICE; EXTENDED AREA TOLL-FREE TELEPHONE SERVICE. (a) After
68-8 notice and hearing, the commission may:
68-9 (1) order a public utility to provide specified
68-10 improvements in its service in a defined area, if service in such
68-11 area is inadequate or is substantially inferior to service in a
68-12 comparable area and it is reasonable to require the company to
68-13 provide such improved service;
68-14 (2) order two or more utilities to establish specified
68-15 facilities for the interconnecting service; <and>
68-16 (3) order a telephone company or telephone companies
68-17 to provide extended area toll-free service within a specified
68-18 metropolitan area where there is a sufficient community of interest
68-19 within the area and such service can reasonably be provided; and
68-20 (4) order one or more telephone companies to provide
68-21 optional extended area service within a specified calling area if
68-22 provision of the service is jointly agreed to by the
68-23 representatives of each affected telephone company and the
68-24 representatives of a political subdivision or subdivisions within
68-25 the proposed common calling area, provided that the proposed common
68-26 calling area has a single, continuous boundary.
68-27 (b) If more than one political subdivision is affected by a
69-1 proposed optional calling plan under Subsection (a)(4) of this
69-2 section, the agreement of each political subdivision is not
69-3 required. The commission may not adopt rules that diminish in any
69-4 manner the ability of a political subdivision or affected telephone
69-5 company to enter into joint agreements for optional extended area
69-6 calling service. In this subsection and in Subsection (a)(4) of
69-7 this section, "political subdivision" means a county or
69-8 municipality or an unincorporated town or village that has 275 or
69-9 more access lines.
69-10 SECTION 39. Subtitle F, Title III, Public Utility Regulatory
69-11 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
69-12 Regular Session, 1995, is amended by adding Section 3.2625 to read
69-13 as follows:
69-14 Sec. 3.2625. PAY TELEPHONES. (a) The right of a provider
69-15 of pay telephone service to set the provider's rates and charges
69-16 and the commission's authority over the pay telephone service rates
69-17 of incumbent local exchange companies is expressly limited by this
69-18 section.
69-19 (b) A provider of pay telephone service may not impose on
69-20 pay phone end users any charge for local directory assistance or
69-21 calls made under Chapter 771 or 772, Health and Safety Code.
69-22 (c) The commission shall establish a limit on the charge
69-23 that may be imposed for a pay telephone coin sent-paid call within
69-24 the local exchange company's toll-free calling area. The
69-25 commission may also establish a statewide ceiling on the charge
69-26 that may be imposed by a provider of pay telephone service for
69-27 local calls which are collect or operator-assisted or paid by
70-1 credit card or calling card, provided that the commission shall not
70-2 establish the ceiling at less than the applicable local rates for
70-3 such calls of any of the four largest interexchange carriers
70-4 operating in Texas.
70-5 (d) A provider of pay telephone service may impose a set use
70-6 fee not exceeding 25 cents at the point at which the call is
70-7 initiated for each "1-800" type call made from a pay telephone,
70-8 provided that:
70-9 (1) except for pay telephones of local exchange
70-10 companies, the pay telephone is registered with the commission and
70-11 the provider certifies that the pay telephone is in compliance with
70-12 commission rules regarding the provision of pay telephone service;
70-13 (2) the imposition of the set use fee is not
70-14 inconsistent with federal law;
70-15 (3) the fee is not imposed for any local call, 9-1-1
70-16 call, or local directory assistance call;
70-17 (4) the fee is not imposed for a call that is covered
70-18 by the Telephone Operator Consumer Services Improvement Act of 1990
70-19 (47 U.S.C. Section 226);
70-20 (5) the pay telephone service provider causes to be
70-21 posted on each pay telephone instrument, in plain sight of the user
70-22 and in a manner consistent with existing commission requirements
70-23 for posting information, the fact that the surcharge will apply to
70-24 those calls; and
70-25 (6) the commission may not impose on a local exchange
70-26 company the duty or obligation to record the use of pay telephone
70-27 service, bill or collect for the use, or remit the fee provided by
71-1 this subsection to the provider of the service.
71-2 (e) A provider of pay telephone service, other than an
71-3 incumbent local exchange company, may not charge for credit card,
71-4 calling card, or live or automated operator-handled calls a rate or
71-5 charge that is an amount greater than the authorized rates and
71-6 charges published, in the eight newspapers having the largest
71-7 circulation in this state, on March 18, 1995, provided that the pay
71-8 phone rates of an incumbent local exchange company subject to
71-9 Subtitle H of this title are governed by that subtitle. The
71-10 published rates remain in effect until changed by the legislature.
71-11 (f) The commission shall adopt rules within 180 days from
71-12 the effective date of this section that require every provider of
71-13 pay telephone service not holding a certificate of convenience and
71-14 necessity to register with the commission. A provider of pay
71-15 telephone service must be registered with the commission in order
71-16 to do business in this state.
71-17 (g) The commission may order disconnection of service for up
71-18 to one year for repeat violations of commission rules.
71-19 (h) The commission may adopt rules regarding information to
71-20 be posted on pay telephone instruments, but those rules may not
71-21 require a provider of pay telephone service or an affiliate of a
71-22 provider to police the compliance with those rules by another
71-23 provider of pay telephone service.
71-24 (i) In this section, "provider of pay telephone service"
71-25 means a subscriber to customer-owned pay telephone service, an
71-26 incumbent local exchange company providing pay telephone service,
71-27 and any other entity providing pay telephone service.
72-1 SECTION 40. Section 3.263(a), Public Utility Regulatory Act
72-2 of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
72-3 Regular Session, 1995, is amended to read as follows:
72-4 (a) The commission at any time after notice and hearing may
72-5 revoke or amend any certificate of convenience and necessity,
72-6 certificate of operating authority, or service provider certificate
72-7 of operating authority if it finds that the certificate holder has
72-8 never provided or is no longer providing service in the area or
72-9 part of the area covered by the certificate.
72-10 SECTION 41. Section 3.302, Public Utility Regulatory Act of
72-11 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
72-12 Session, 1995, is amended by adding Subsection (i) to read as
72-13 follows:
72-14 (i) A commercial mobile service provider may offer caller
72-15 identification services under the same terms and conditions
72-16 provided by Subsections (c)-(f) of this section.
72-17 SECTION 42. Subtitle G, Title III, Public Utility Regulatory
72-18 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
72-19 Regular Session, 1995, is amended by adding Section 3.3025 to read
72-20 as follows:
72-21 Sec. 3.3025. CALLER ID SERVICES: CONSUMER INFORMATION. (a)
72-22 When a customer requests per-line blocking through the commission,
72-23 the telecommunications provider shall notify the customer by mail
72-24 of the effective date that per-line blocking will be instituted.
72-25 When a telecommunications provider providing Caller ID service to a
72-26 customer originating a call becomes aware of a failure to block the
72-27 delivery of the calling party's identification information from a
73-1 line equipped with per-call blocking or per-line blocking of Caller
73-2 ID information, it shall report such failure to the panel, the
73-3 commission, and the affected customer if that customer did not
73-4 report the failure. A reasonable effort shall be made to notify
73-5 the affected customer within 24 hours after the provider becomes
73-6 aware of such failure.
73-7 (b) The commission shall form the Caller ID Consumer
73-8 Education Panel. The panel shall consist of one person appointed
73-9 by the governor, one person appointed by the chair of the
73-10 commission, after consultation with the Texas Council on Family
73-11 Violence, and one person appointed by the public counsel of the
73-12 Office of Public Utility Counsel. The panel shall meet at least
73-13 quarterly and shall file an annual report with the commission
73-14 regarding the level of effort and effectiveness of consumer
73-15 education materials and its recommendations for increasing the safe
73-16 use and privacy of the calling customer and decreasing the
73-17 likelihood of harm resulting from Caller ID services. The
73-18 commission may implement the recommendations of the panel and
73-19 interested parties to the extent consistent with the public
73-20 interest. The panel shall disband on September 1, 1999, unless
73-21 reauthorized by statute.
73-22 (c) All providers offering Caller ID services shall file
73-23 with the Caller ID Consumer Educational Panel, no later than the
73-24 effective date of this Act, all existing Caller ID materials used
73-25 on or before September 1, 1995. All future materials shall be
73-26 provided when they become available. The panel shall also
73-27 investigate whether educational materials are distributed in as
74-1 effective a manner as marketing materials.
74-2 (d) For purposes of this section, "Caller ID services"
74-3 include Caller ID and any other service which permits the called
74-4 party to determine the identity, telephone number, or address of
74-5 the calling party, except Caller ID services do not include 911
74-6 services.
74-7 (e) For purposes of this section, "Caller ID materials"
74-8 shall include any advertisements, educational material, training
74-9 materials, audio and video marketing devices, and any information
74-10 disseminated about Caller ID services.
74-11 SECTION 43. Section 3.303, Public Utility Regulatory Act of
74-12 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
74-13 Session, 1995, is amended to read as follows:
74-14 Sec. 3.303. INTEREXCHANGE SERVICES; INCUMBENT LOCAL EXCHANGE
74-15 COMPANIES' RATES. Incumbent local <Local> exchange companies'
74-16 rates for interexchange telecommunications services must be
74-17 statewide average rates unless the commission on application and
74-18 hearing orders otherwise. Nothing in this section limits an
74-19 incumbent <a> local exchange company's ability to enter into
74-20 contracts for high speed private line services of 1.544 megabits or
74-21 greater under the provisions of Section 3.051 of this Act.
74-22 SECTION 44. Sections 3.304(a) and (b), Public Utility
74-23 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
74-24 Legislature, Regular Session, 1995, are amended to read as follows:
74-25 (a) To address telephone calling needs between nearby
74-26 telephone exchanges, the commission shall initiate a rulemaking
74-27 proceeding to approve rules to provide for an expedited hearing to
75-1 allow the expanding of toll-free calling areas according to the
75-2 following criteria:
75-3 (1) Toll-free calling boundaries may only be expanded
75-4 under this section after the filing of a petition signed by the
75-5 lesser of five percent of the subscribers or 100 subscribers within
75-6 an exchange. If such a petition is filed with the commission, the
75-7 commission shall order the incumbent local exchange company to
75-8 provide for the balloting of its subscribers within the petitioning
75-9 exchange and, if there is an affirmative vote of at least 70
75-10 percent of those responding, the commission shall consider the
75-11 request.
75-12 (2) The commission shall provide for the expansion of
75-13 toll-free calling areas for each incumbent local exchange customer
75-14 in the petitioning exchange if the petitioning exchange serves not
75-15 more than 10,000 lines and if:
75-16 (A) the central switching office of the
75-17 petitioning exchange is located within 22 miles utilizing vertical
75-18 and horizontal geographic coordinates of the central switching
75-19 office of the exchange requested for toll-free calling service; or
75-20 (B) the petitioning exchange shall demonstrate
75-21 in its petition that it shares a community of interest with the
75-22 exchange requested for toll-free calling service. For purposes of
75-23 this paragraph, "community of interest" includes areas that have a
75-24 relationship because of schools, hospitals, local governments,
75-25 business centers, and other relationships the unavailability of
75-26 which would cause a hardship to the residents of the area but shall
75-27 <need> not include an area where the affected central offices are
76-1 more than 50 miles apart.
76-2 (3)(A) The incumbent local exchange company shall
76-3 recover all of its costs incurred and all loss of revenue from any
76-4 expansion of toll-free calling areas under this section through a
76-5 request other than a revenue requirement showing by:
76-6 (i) a monthly fee for toll-free calling
76-7 service of not more than $3.50 per line for residential customers
76-8 nor more than $7 per line for business customers for up to five
76-9 exchanges, together with an additional monthly fee of $1.50 per
76-10 line for each exchange in excess of five, whether obtained in one
76-11 or more petitions, to be collected from all such residential or
76-12 business customers in the petitioning exchange and only until the
76-13 incumbent local exchange company's next general rate case;
76-14 (ii) a monthly fee for toll-free calling
76-15 service for all of the incumbent local exchange company's local
76-16 exchange service customers in the state in addition to the
76-17 company's current local exchange rates; or
76-18 (iii) both (i) and (ii).
76-19 (B) An incumbent <A> local exchange company may
76-20 not recover regulatory case expenses under this section by
76-21 surcharging petitioning exchange subscribers.
76-22 (b)(1) The commission and an incumbent <a> local exchange
76-23 company are not required to comply with this section with regard to
76-24 a petitioning exchange or petitioned exchange if:
76-25 (A) the commission determines that there has
76-26 been a good and sufficient showing of a geographic or technological
76-27 infeasibility to serve the area;
77-1 (B) the incumbent local exchange company has
77-2 less than 10,000 lines;
77-3 (C) the petitioning or petitioned exchange is
77-4 served by a cooperative;
77-5 (D) extended area service or extended
77-6 metropolitan service is currently available between the petitioning
77-7 and petitioned exchanges; or
77-8 (E) the petitioning or petitioned exchange is a
77-9 metropolitan exchange.
77-10 (2) The commission may expand the toll-free calling
77-11 area into an exchange not within a metropolitan exchange but within
77-12 the local calling area contiguous to a metropolitan exchange that
77-13 the commission determines to have a community of interest
77-14 relationship with the petitioning exchange. For the purposes of
77-15 this section, metropolitan exchange, local calling area of a
77-16 metropolitan exchange, and exchange have the meanings and
77-17 boundaries as defined and approved by the commission on September
77-18 1, 1993. However, under no circumstances shall a petitioning or
77-19 petitioned exchange be split in the provision of a toll-free
77-20 calling area.
77-21 SECTION 45. Subtitle G, Title III, Public Utility Regulatory
77-22 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
77-23 Regular Session, 1995, is amended by adding Section 3.308 to read
77-24 as follows:
77-25 Sec. 3.308. CHARGE FOR EXTENDED AREA SERVICE. (a) An
77-26 incumbent local exchange company serving more than one million
77-27 access lines in this state that provides mandatory two-way extended
78-1 area service to customers for a separately stated monthly charge of
78-2 more than $3.50 per line for residential customers and $7 per line
78-3 for business customers shall file with the commission to reduce its
78-4 monthly rates for that extended area service to $3.50 per line for
78-5 residential customers and $7 per line for business customers. The
78-6 incumbent local exchange company shall recover all of its costs
78-7 incurred and all loss of revenue that results from implementation
78-8 of those rates in the manner prescribed by Section
78-9 3.304(a)(3)(A)(ii) of this Act.
78-10 (b) The commission and an incumbent local exchange company
78-11 are not required to comply with this section with regard to the
78-12 separately stated monthly charges for the provision of mandatory
78-13 two-way extended area service if the charge is for extended area
78-14 service in or into a metropolitan exchange or the charge is for
78-15 extended metropolitan service.
78-16 SECTION 46. (a) Subtitle G, Title III, Public Utility
78-17 Regulatory Act of 1995, as enacted by S.B. 319, Acts of the 74th
78-18 Legislature, Regular Session, 1995, is amended by adding Section
78-19 3.309 to read as follows:
78-20 Sec. 3.309. (a) A private for-profit publisher of a
78-21 residential telephone directory that is distributed to the public
78-22 at minimal or no cost shall include in the directory a listing of
78-23 any toll-free and local telephone numbers of state agencies and
78-24 state public services and of each state elected official who
78-25 represents all or part of the geographical area for which the
78-26 directory contains listings.
78-27 (b) The listing required by this section must be clearly
79-1 identified and must be located or clearly referenced at the front
79-2 of the directory before the main listing of residential and
79-3 business telephone numbers. The listing is not required to exceed
79-4 a length equivalent to two 8-1/2-inch by 11-inch pages,
79-5 single-spaced in eight-point type.
79-6 (c) The commission may adopt rules to implement this
79-7 section, including rules specifying the format of the listing and
79-8 criteria for inclusion of agencies, services, and officials. The
79-9 commission, with the cooperation of other state agencies, shall
79-10 compile relevant information to ensure accuracy of information in
79-11 the listing and shall provide the information to a
79-12 telecommunications utility or telephone directory publisher within
79-13 a reasonable time after a request by the utility or publisher.
79-14 (b) This section takes effect September 1, 1995, and applies
79-15 only to a telephone directory published on or after September 1,
79-16 1996.
79-17 SECTION 47. Subtitle G, Title III, Public Utility Regulatory
79-18 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
79-19 Regular Session, 1995, is amended by adding Section 3.310 to read
79-20 as follows:
79-21 Sec. 3.310. A telecommunications utility or an affiliate of
79-22 that utility that publishes a residential or business telephone
79-23 directory that is distributed to the public shall publish the name
79-24 of each state senator or representative who represents all or part
79-25 of the geographical area for which the directory contains listings.
79-26 SECTION 48. Subtitle G, Title III, Public Utility Regulatory
79-27 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
80-1 Regular Session, 1995, is amended by adding Section 3.311 to read
80-2 as follows:
80-3 Sec. 3.311. HUNTING SERVICE. Local exchange companies shall
80-4 make available, at a reasonable tariffed rate, hunting service from
80-5 local exchange lines to extended metropolitan service lines. The
80-6 customer may not be required to purchase additional extended
80-7 metropolitan service in order to purchase hunting service from
80-8 local exchange service to extended metropolitan service.
80-9 SECTION 49. The Public Utility Regulatory Act of 1995, as
80-10 enacted by S.B. 319, Acts of the 74th Legislature, Regular Session,
80-11 1995, is amended by amending Subtitles H and I and adding Subtitles
80-12 J-O to read as follows:
80-13 SUBTITLE H. INCENTIVE REGULATION OF TELECOMMUNICATIONS
80-14 Sec. 3.351. POLICY. Given the current status of competition
80-15 in the telecommunications industry, it is the policy of the
80-16 legislature to:
80-17 (1) provide a framework for an orderly transition from
80-18 traditional return on invested capital regulation to a fully
80-19 competitive telecommunications marketplace where all
80-20 telecommunications providers compete on fair terms;
80-21 (2) preserve and enhance universal telecommunications
80-22 service at affordable rates;
80-23 (3) upgrade the telecommunications infrastructure of
80-24 this state;
80-25 (4) promote network interconnectivity; and
80-26 (5) promote diversity in the supply of
80-27 telecommunications services and innovative products and services
81-1 throughout the entire state, both urban and rural.
81-2 Sec. 3.352. ELECTION AND BASKETS OF SERVICES. (a) After
81-3 the enactment of this subtitle, an incumbent local exchange company
81-4 may notify the commission in writing of the company's election to
81-5 be regulated under this subtitle. The notice must state the
81-6 company's commitment to limit any increase in the rates charged for
81-7 a four-year period for the services included in Section 3.353 of
81-8 this Act and its infrastructure commitment as described by Section
81-9 3.358 of this Act.
81-10 (b)(1) The services provided by an incumbent local exchange
81-11 company electing incentive regulation under this subtitle
81-12 ("electing company") shall be initially classified into three
81-13 categories or "baskets":
81-14 (A) "Basket I: basic network services";
81-15 (B) "Basket II: discretionary services"; and
81-16 (C) "Basket III: competitive services."
81-17 (2) The commission shall have the authority to
81-18 reclassify a service from Basket I to Basket II or Basket III, or
81-19 from Basket II to Basket III, consistent with the criteria
81-20 prescribed by Section 3.357 of this Act.
81-21 (c) An electing company's telecommunications services shall
81-22 be regulated under this subtitle regardless of whether that company
81-23 is a "dominant carrier" as that term is defined by Section 3.002 of
81-24 this Act.
81-25 (d) If, subsequent to the enactment of this subtitle, an
81-26 incumbent local exchange company notifies the commission in writing
81-27 of its election to incentive regulation under this subtitle, the
82-1 company may not under any circumstances be subject to any
82-2 complaint, hearing, or determination as to the reasonableness of
82-3 its rates, its overall revenues, its return on invested capital, or
82-4 its net income. However, the company's implementation and
82-5 enforcement of the competitive safeguards required by Subtitle J of
82-6 this title are not excluded from a complaint, hearing, or
82-7 determination. Nothing herein restricts any consumer's right to
82-8 complain to the commission regarding quality of service, the
82-9 commission's right to enforce quality of service standards, or the
82-10 consumer's right to complain regarding the application of an
82-11 ambiguous tariff, and if the commission finds an ambiguity, the
82-12 commission's right to determine the proper application of the
82-13 tariff or to determine the proper rate if the tariff is found to
82-14 not apply, but this does not permit the commission to lower a
82-15 tariff rate except as specifically provided by this Act, to change
82-16 its interpretation of a tariff, or to change a tariff so as to
82-17 extend its application to new classes of customers.
82-18 Notwithstanding any other provision of this Act, the commission may
82-19 not reduce the rates for switched access services for any company
82-20 electing under this subtitle before the expiration of the cap on
82-21 basic network services.
82-22 Sec. 3.353. BASKET I: BASIC NETWORK SERVICES. (a) The
82-23 following services shall initially be classified as basic network
82-24 services in Basket I as of September 1, 1995:
82-25 (1) flat rate residential and business local exchange
82-26 telephone service, including primary directory listings and the
82-27 receipt of a directory and any applicable mileage or zone charges;
83-1 (2) tone dialing service;
83-2 (3) lifeline and tel-assistance services;
83-3 (4) service connection charges for basic services;
83-4 (5) direct inward dialing service for basic services;
83-5 (6) private pay telephone access service;
83-6 (7) call trap and trace service;
83-7 (8) access to 911 service where provided by a local
83-8 authority and access to dual party relay service;
83-9 (9) switched access service;
83-10 (10) interconnection to competitive providers;
83-11 (11) mandatory extended area service arrangements;
83-12 (12) mandatory extended metropolitan service or other
83-13 mandatory toll-free calling arrangements;
83-14 (13) interconnection for commercial mobile service
83-15 providers;
83-16 (14) directory assistance; and
83-17 (15) 1+ intraLATA message toll service.
83-18 (b) On an incumbent local exchange company's election under
83-19 Section 3.352 of this Act, increases in rates for basic network
83-20 services are permitted only with commission approval and only
83-21 within the parameters specified by Subsection (c) of this section
83-22 for four years following the election. Notwithstanding the
83-23 requirements prescribed by Section 3.457 of this Act, rates for
83-24 basic network services may be decreased at any time on the
83-25 initiative of the electing company to a floor above long run
83-26 incremental cost for switched access service or the appropriate
83-27 cost for any basic local telecommunications service, which shall be
84-1 long run incremental cost as to any incumbent local exchange
84-2 company that is required by the commission to perform long run
84-3 incremental cost studies or elects to perform those studies. This
84-4 section does not affect the charges permitted under Section 3.304,
84-5 3.308, or 3.608 of this Act. The commission may not increase
84-6 service standards applicable to the provision of local exchange
84-7 telephone service by an electing company if the increased
84-8 investment required to comply with the increased standard exceeds
84-9 in any one year 10 percent of the incumbent local exchange
84-10 company's average annual intrastate additions in capital investment
84-11 for the most recent five-year period. In calculating the average,
84-12 the incumbent local exchange company shall exclude extraordinary
84-13 investments made during that five-year period.
84-14 (c)(1) Rates for basic network services may be changed in
84-15 the following circumstances and only with commission approval that
84-16 the proposed change is included in this subsection.
84-17 (2) On motion of an electing incumbent local exchange
84-18 company or on its own motion, the commission shall proportionally
84-19 adjust prices for services to reflect changes in Federal
84-20 Communications Commission separations affecting intrastate net
84-21 income by 10 percent or more.
84-22 (3) If, after 42 months after the date of the
84-23 incumbent local exchange company's election, an electing company in
84-24 this state with less than five million access lines is in
84-25 compliance with its infrastructure commitment, all quality of
84-26 services requirements, and all commission rules enacted under
84-27 Subtitle J of this title, on application of the incumbent local
85-1 exchange company, the commission may undertake a proceeding to
85-2 review the need for changes in the rates of services. The
85-3 application may request that the commission adjust rates, implement
85-4 new pricing plans, restructure rates, or rebalance revenues between
85-5 services to recognize changed market conditions and the effects of
85-6 competitive entry. The commission may use an index and a
85-7 productivity offset in determining these changes. The commission
85-8 may not order an increase in residential local exchange telephone
85-9 service that would cause those rates to increase by more than the
85-10 United States Consumer Price Index in any 12-month period. In no
85-11 case may the new monthly rate exceed the nationwide average of
85-12 local exchange telephone service rates for like services.
85-13 (4) Notwithstanding the commitments made under Section
85-14 3.352 of this Act, a rate group reclassification occurring as a
85-15 result of access lines growth shall be allowed by the commission on
85-16 request of the electing company.
85-17 (d)(1) Except as provided by Section 3.2572 of this Act, the
85-18 regulation of basic network services of an electing company shall,
85-19 to the extent not inconsistent with this subtitle, be governed by:
85-20 (A) Title I of this Act;
85-21 (B) this subtitle;
85-22 (C) Subtitles A, B, C, F, G, J, K, and L of this
85-23 title;
85-24 (D) Sections 3.201, 3.202, 3.204, 3.210, 3.211,
85-25 3.215, 3.216, 3.217, 3.218, and 3.219 of this Act; and
85-26 (E) all commission procedures and rules not
85-27 inconsistent with this subtitle.
86-1 (2) Changes to the terms and conditions of the tariff
86-2 offering of a basic network service continue to require commission
86-3 approval.
86-4 (e) The rates capped in Subsection (b) of this section as a
86-5 result of a company's election shall be the rates charged by the
86-6 company on June 1, 1995, without regard to proceedings pending
86-7 under Section 1.301 or 3.210 of this Act or under Subchapter G,
86-8 Chapter 2001, Government Code. Following the four-year cap, rate
86-9 increases to basic network services may only be made with
86-10 commission approval subject to the provisions of this Act, and to
86-11 the extent consistent with achieving universal affordable service.
86-12 Sec. 3.354. RATE ADJUSTMENT PROCEDURES. (a) An electing
86-13 company may adjust its rates for basic network services under
86-14 Section 3.353(c) of this Act on notice to the commission. The
86-15 notice to the commission of a rate adjustment must be accompanied
86-16 with sufficient documentary support to demonstrate that the rate
86-17 adjustment meets the criteria prescribed by Section 3.353(c) of
86-18 this Act. The commission shall establish by rule or order the
86-19 documentation to be required under this subsection.
86-20 (b) Notice to customers shall be published once in a
86-21 newspaper of general circulation in the service area to be affected
86-22 within a reasonable time period after the notice for a rate
86-23 adjustment is provided to the commission, and shall be included in
86-24 or on the bill of each affected consumer in the next billing
86-25 subsequent to the filing with the commission. The notice shall
86-26 contain a title that includes the name of the company and the words
86-27 "NOTICE OF POSSIBLE RATE CHANGE." The notice shall contain the
87-1 following information:
87-2 (1) a statement that the consumer's rate may change;
87-3 (2) an estimate of the amount of the annual change for
87-4 the typical residential, business, or access consumers that would
87-5 result if the rate adjustment is approved by the commission, which
87-6 estimate shall be printed in a type style and size that are
87-7 distinct from and larger than the type style and size of the body
87-8 of the notice; and
87-9 (3) a statement that a consumer who wants to comment
87-10 on the rate adjustment or who wants additional details regarding
87-11 the rate adjustment may call or write the commission, which
87-12 statement must include the telephone number and address of the
87-13 commission and a statement that additional details will be provided
87-14 free of charge to the consumer at the expense of the company.
87-15 (c) The commission shall review the adjusted rates to ensure
87-16 that the proposed adjustment conforms to the requirements of
87-17 Section 3.353(c) of this Act. A rate adjustment under Section
87-18 3.353(c)(2), (3), (4), or (5) of this Act takes effect 90 days
87-19 after the date of completion of notice.
87-20 (d) An incumbent local exchange company that has five
87-21 percent or fewer of the total access lines in this state may adopt
87-22 the cost, if determined based on a long run incremental cost study,
87-23 for the same or substantially similar services offered by a larger
87-24 incumbent local exchange company without the requirement of
87-25 presenting long run incremental cost studies of its own.
87-26 (e) Either by complaint filed by an affected party or on the
87-27 commission's own motion at any time before the rate adjustment
88-1 takes effect, the commission may suspend the effective date of the
88-2 rate adjustment and hold a hearing to review a rate set under
88-3 Section 3.353(c)(2), (3), (4), or (5) of this Act and after the
88-4 review issue an order approving, modifying, or rejecting the rate
88-5 adjustment if it is not in compliance with the applicable
88-6 provisions. Any order modifying or rejecting the proposed rate
88-7 adjustment shall specify each reason why the proposed adjustment is
88-8 not in compliance with the applicable provisions of Section
88-9 3.353(c)(2), (3), (4), or (5) of this Act and the means by which
88-10 the proposed adjustment may be brought into compliance.
88-11 (f) Any rate restructure under Section 3.353(c) of this Act
88-12 shall follow the notice and hearing procedures prescribed by
88-13 Sections 3.211(a)-(c) of this Act, except as otherwise provided in
88-14 this section.
88-15 Sec. 3.355. BASKET II: DISCRETIONARY SERVICES. (a) Basket
88-16 II services include all services or functions provided by the
88-17 electing company that have not been granted pricing flexibility in
88-18 a particular geographic market and that have not been listed under
88-19 Basket I or III.
88-20 (b) The following services are initially classified as
88-21 discretionary services in Basket II as of September 1, 1995:
88-22 (1) 1+ intraLATA message toll services, where
88-23 intraLATA equal access is available;
88-24 (2) 0+, 0- operator services;
88-25 (3) call waiting, call forwarding, and custom calling
88-26 features not listed in Basket III;
88-27 (4) call return, caller ID, and call control options
89-1 not listed in Basket III;
89-2 (5) central office based PBX-type services;
89-3 (6) billing and collection services;
89-4 (7) integrated services digital network (ISDN)
89-5 services; and
89-6 (8) new services.
89-7 (c) The commission may reclassify a service from Basket I to
89-8 Basket II or Basket III, or from Basket II to Basket III,
89-9 consistent with the criteria prescribed by Section 3.357 of this
89-10 Act.
89-11 (d) The prices for each Basket II service or function
89-12 provided by the electing company shall be set above the LRIC cost.
89-13 The commission shall set the reasonable price ceiling over and
89-14 above LRIC cost, but the ceiling may not be set below or above the
89-15 rate in effect on September 1, 1995, without regard to proceedings
89-16 pending under Section 1.301 or 3.210 of this Act or under
89-17 Subchapter G, Chapter 2001, Government Code. The ceiling may be
89-18 raised only after the proceedings required under Subtitle J of this
89-19 title. Thereafter, on application by the electing company or on
89-20 the commission's own motion, the commission may change the price
89-21 ceiling but may not increase the ceiling more than 10 percent
89-22 annually. Within the range of the LRIC floor and the price
89-23 ceiling, the incumbent local exchange company may change the price
89-24 of each service, including using volume and term discounts, zone
89-25 density pricing, packaging of services, customer specific pricing,
89-26 and other promotional pricing flexibility, but shall notify the
89-27 commission of each change. The placement of a service in Basket II
90-1 does not preclude an incumbent local exchange company from using
90-2 any of the regulatory treatments authorized by or under Section
90-3 3.051 of this Act. Discounts and other forms of pricing
90-4 flexibility may not be preferential, prejudicial, or
90-5 discriminatory.
90-6 Sec. 3.356. BASKET III: COMPETITIVE SERVICES. (a) The
90-7 following services are Basket III competitive services and shall be
90-8 subject to pricing flexibility as of September 1, 1995:
90-9 (1) services described in the WATS tariff as of
90-10 January 1, 1995;
90-11 (2) 800 and foreign exchange services;
90-12 (3) private line service;
90-13 (4) special access service;
90-14 (5) services from public pay telephones;
90-15 (6) paging services and mobile services (IMTS);
90-16 (7) 911 premises equipment;
90-17 (8) speed dialing; and
90-18 (9) three-way calling.
90-19 (b) The commission may reclassify a service from Basket I to
90-20 Basket II or Basket III or from Basket II to Basket III, consistent
90-21 with the criteria prescribed by Section 3.357 of this Act.
90-22 (c) The electing company may set the price for the service
90-23 at any level above the service's LRIC, in compliance with the
90-24 imputation rules established under Subtitle J of this title.
90-25 Permissible pricing flexibility includes volume and term discounts,
90-26 zone density pricing, packaging of services, customer specific
90-27 contracts, and other promotional pricing flexibility, subject to
91-1 the requirements of Section 3.451 of this Act. Discounts and other
91-2 forms of pricing flexibility may not be preferential, prejudicial,
91-3 or discriminatory. However, an electing incumbent local exchange
91-4 company may not increase the price of a service in a geographic
91-5 area in which that service or a functionally equivalent service is
91-6 not readily available from another provider.
91-7 (d) Not later than January 1, 2000, the commission shall
91-8 initiate a review and evaluation of any incumbent local exchange
91-9 company electing treatment under this subtitle or Subtitle I of
91-10 this title to review and evaluate the effects of the election,
91-11 including consumer benefits, impact of competition, infrastructure
91-12 investments, and quality of service. The commission shall file a
91-13 report and its recommendations to the legislature by January 1,
91-14 2001, as to whether the incentive regulation plan should be
91-15 extended, modified, eliminated, or replaced with some other form of
91-16 regulation. The legislature, based on the commission's report, may
91-17 authorize the commission to take action to extend, modify,
91-18 eliminate, or replace the incentive plan provided by this subtitle
91-19 and Subtitle I of this title.
91-20 Sec. 3.357. TRANSFERRING SERVICES. (a) In determining
91-21 whether to transfer services from Basket I to Basket II or Basket
91-22 III, or from Basket II to Basket III, the commission shall
91-23 establish standards that consider factors including:
91-24 (1) availability of the service from other providers;
91-25 (2) the proportion of the market that currently
91-26 receives the service;
91-27 (3) the effect of the transfer on subscribers of the
92-1 service; and
92-2 (4) the nature of the service.
92-3 (b) The commission may not transfer a service from one
92-4 basket to another until full implementation of all competitive
92-5 safeguards required by Sections 3.452, 3.453, 3.454, 3.455, 3.456,
92-6 3.457, and 3.458 of this Act.
92-7 Sec. 3.358. INFRASTRUCTURE. (a) It is the goal of this
92-8 State to facilitate and promote the deployment of an advanced
92-9 telecommunications infrastructure in order to spur economic
92-10 development throughout Texas. Texas should be among the leaders in
92-11 achieving this objective. The primary means of achieving this goal
92-12 shall be through encouraging private investment in the state's
92-13 telecommunications infrastructure by creating incentives for such
92-14 investment and promoting the development of competition. The best
92-15 way to bring the benefits of an advanced telecommunications network
92-16 infrastructure to Texas communities is through innovation and
92-17 competition among all the state's communications providers.
92-18 Competition will provide Texans a choice of telecommunications
92-19 providers and will drive technology deployment, innovation, service
92-20 quality, and cost-based prices as competing firms seek to satisfy
92-21 customer needs.
92-22 (b) In implementing this section, the commission shall
92-23 consider the following policy goals of this State:
92-24 (1) ensure the availability of the widest possible
92-25 range of competitive choices in the provision of telecommunications
92-26 services and facilities;
92-27 (2) foster competition and rely on market forces where
93-1 competition exists to determine the price, terms, availability, and
93-2 conditions of service in markets in which competition exists;
93-3 (3) ensure the universal availability of basic local
93-4 telecommunications services at reasonable rates;
93-5 (4) encourage the continued development and deployment
93-6 of advanced, reliable capabilities and services in
93-7 telecommunications networks;
93-8 (5) assure interconnection and interoperability, based
93-9 on uniform technical standards, among telecommunications carriers;
93-10 (6) eliminate existing unnecessary administrative
93-11 procedures which impose regulatory barriers to competition and
93-12 assure that competitive entry is fostered on an economically
93-13 rational basis;
93-14 (7) assure consumer protection and protection against
93-15 anticompetitive conduct;
93-16 (8) regulate providers of services only to the extent
93-17 they have market power to control the price of services to
93-18 customers;
93-19 (9) encourage cost-based pricing of telecommunications
93-20 services so that consumers pay a fair price for services that they
93-21 use; and
93-22 (10) subject to Section 3.353 of this Act, develop
93-23 quality of service standards for local exchange companies as it
93-24 deems appropriate to place Texas among the leaders in deployment of
93-25 an advanced telecommunications infrastructure except that the 10
93-26 percent limitation specified in Section 3.353 of this Act shall not
93-27 include the requirements of Subsections (c)(1)-(4) of this section.
94-1 (c) Recognizing that it will take time for competition to
94-2 develop in the local exchange market, the commission shall act, in
94-3 the absence of competition, to ensure that the following
94-4 infrastructure goals are achieved by electing companies:
94-5 (1) Electing incumbent local exchange companies shall
94-6 make access to end-to-end digital connectivity available to all
94-7 customers in their territories by December 31, 1996.
94-8 (2) Fifty percent of the local exchange access lines
94-9 in each electing local exchange company's territory must be served
94-10 by a digital central office switch by January 1, 2000.
94-11 (3) All electing company new central office switches
94-12 installed in Texas must be digital, or technologically equal to or
94-13 superior to digital, after September 1, 1995. At a minimum, each
94-14 new central office switch installed after September 1, 1997, must
94-15 be capable of providing Integrated Services Digital Network (ISDN)
94-16 services in a manner consistent with generally accepted national
94-17 standards.
94-18 (4) Electing incumbent local exchange companies'
94-19 public switched network backbone inter-office facilities must
94-20 employ broadband facilities capable of at least 45 megabits per
94-21 second, or at lower bandwidths if evolving technology permits the
94-22 delivery of video signal at quality levels comparable to a
94-23 television broadcast signal, by January 1, 2000. This requirement
94-24 shall not extend to local loop facilities.
94-25 (d)(1) An electing company of greater than five million
94-26 access lines shall also install Common Channel Signaling 7
94-27 capability in all central offices by January 1, 2000.
95-1 (2) An electing company of greater than five million
95-2 access lines shall connect all of its serving central offices to
95-3 their respective LATA tandem central offices with optical fiber or
95-4 equivalent facilities by January 1, 2000.
95-5 (3) An electing company serving more than one million
95-6 access lines and fewer than five million access lines shall provide
95-7 digital switching central offices in all exchanges by December 31,
95-8 1998.
95-9 (e) The commission may consider waivers of Subsections
95-10 (c)(1)-(4) of this section for electing local exchange companies
95-11 serving fewer than one million lines, if the local exchange company
95-12 demonstrates that such investment is not viable economically, after
95-13 due consideration is given to the public benefits which would
95-14 result from compliance with such requirements; and, in addition,
95-15 may consider a temporary extension of any period with respect to
95-16 Subsections (c)(1)-(4) of this section for electing local exchange
95-17 companies serving fewer than two million but more than one million
95-18 lines, if the local exchange company demonstrates that such
95-19 extension is in the public interest.
95-20 (f) The commission may not consider the cost of implementing
95-21 Subsection (c) or (d) of this section in determining whether an
95-22 electing company is entitled to a rate increase under this subtitle
95-23 or increased universal service funds under Section 3.608 of this
95-24 Act.
95-25 Sec. 3.359. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES.
95-26 (a)(1) It is the intent of this section to establish a
95-27 telecommunications infrastructure that interconnects public
96-1 entities described in this section. The interconnection of these
96-2 entities requires ubiquitous, broadband, digital services for
96-3 voice, video, and data within the local serving area. The
96-4 ubiquitous nature of these connections must also allow individual
96-5 networks of these entities to interconnect and interoperate across
96-6 the broadband digital service infrastructure. The delivery of
96-7 these advanced telecommunications services also will require
96-8 collaborations and partnerships of public, private, and commercial
96-9 telecommunications service network providers.
96-10 (2) The goal of this section is to interconnect and
96-11 aggregate the connections to every entity described in this
96-12 section, within the local serving area. It is further intended
96-13 that the implementation of the infrastructure as defined within
96-14 this section connect all the entities requesting the services
96-15 offered under this section.
96-16 (b)(1)(A) On customer request, the electing company shall
96-17 provide broadband digital service that is capable of providing
96-18 transmission speeds of up to 45 megabits per second or better for
96-19 customer applications and other customized or packaged network
96-20 services (private network services) to an entity described in this
96-21 section for their private and sole use except as provided in
96-22 Subsection (d) of this section:
96-23 (i) educational institutions, as that term
96-24 is defined in Section 3.605 of this Act;
96-25 (ii) libraries, as that term is defined in
96-26 Section 3.606 of this Act;
96-27 (iii) nonprofit telemedicine centers of
97-1 academic health centers, public or not-for-profit hospitals, or
97-2 state-licensed health care practitioners;
97-3 (iv) public or not-for-profit hospitals;
97-4 (v) projects funded by the
97-5 Telecommunications Infrastructure Fund described in this Act; or
97-6 (vi) any legally constituted consortium or
97-7 group of entities listed in Subparagraphs (i)-(v) of this
97-8 paragraph.
97-9 (B) Such private network services shall be
97-10 provided pursuant to customer specific contracts at a rate that is
97-11 105 percent of the long run incremental cost, including
97-12 installation, of the services.
97-13 (C) Each such contract shall be filed with the
97-14 commission but not require the approval of the commission.
97-15 (D) An electing company shall file a flat
97-16 monthly tariff rate for point-to-point intraLATA 1.544 megabits per
97-17 second service for the entities specified in Subsection (b)(1)(A)
97-18 of this section which shall be distance insensitive and be no
97-19 higher than 105 percent of the statewide average long run
97-20 incremental costs, including installation, of the service.
97-21 (E) An electing company shall provide
97-22 point-to-point 45 megabits per second intraLATA services when
97-23 requested by an entity specified in Subsection (b)(1)(A) of this
97-24 section pursuant to customer specific contracts except that the
97-25 interoffice portion of the service, if any, will be recovered on a
97-26 statewide average distance insensitive basis. The rate for this
97-27 service shall be no higher than 105 percent of long run incremental
98-1 cost, including installation, of the service.
98-2 (F) An electing local exchange company shall
98-3 provide an entity described in this section with broadband digital
98-4 special access service to interexchange carriers at no higher than
98-5 105 percent of the long run incremental cost, including
98-6 installation, of such service.
98-7 (G) On customer request, the electing company
98-8 shall provide expanded interconnection (virtual colocation)
98-9 consistent with the rules adopted by the commission pursuant to
98-10 Section 3.456 of this Act to an entity specified in Subsection
98-11 (b)(1)(A) of this section at 105 percent of long run incremental
98-12 cost, including installation. Such entities shall not have to
98-13 qualify for such expanded interconnection if it is ordered by the
98-14 commission.
98-15 (H) The legislature finds that an entity
98-16 described in this section warrants preferred rate treatment
98-17 provided that any such rates cover the long run incremental cost of
98-18 the services provided.
98-19 (I) Notwithstanding any other provision of this
98-20 Act, an electing local exchange company shall not be subject to a
98-21 complaint under this section except by an entity specified in this
98-22 section complaining that the provision of private network services
98-23 under this section was provided preferentially to a similarly
98-24 situated customer.
98-25 (2) An entity receiving the services provided under
98-26 this section may not be assessed special construction or
98-27 installation charges.
99-1 (3) An educational institution or a library may elect
99-2 the rate treatment provided in this section or the discount
99-3 provided by Section 3.605 of this Act.
99-4 (4) Notwithstanding the pricing flexibility authorized
99-5 by this Act, an electing company's rates for the services provided
99-6 under this section may not be increased for six years from the date
99-7 of election except as otherwise provided in customer specific
99-8 contracts.
99-9 (5) On customer request by an educational institution
99-10 or library in exchanges of an electing company serving more than
99-11 five million access lines in which toll-free access to the Internet
99-12 is not available, the local exchange company shall make available a
99-13 toll-free connection or toll-free dialing arrangement for use by
99-14 educational institutions or libraries in accessing the Internet in
99-15 an exchange in which Internet access is available on a toll-free
99-16 basis. The connection or dialing arrangement shall be provided at
99-17 no charge to the educational institution or library until Internet
99-18 access becomes available in the exchange of the requesting
99-19 educational institution or library. The local exchange company is
99-20 not required to arrange for Internet access or to pay Internet
99-21 charges for the requesting educational institution or library.
99-22 (6) An electing company shall give priority to serving
99-23 rural areas, areas designated as critically underserved, medically
99-24 or educationally, and educational institutions with high
99-25 percentages of economically disadvantaged students.
99-26 (c) The private network services provided pursuant to this
99-27 section may be interconnected with other similar networks for
100-1 distance learning, telemedicine, and information sharing purposes.
100-2 (d) The private network services provided pursuant to this
100-3 section may not be shared or resold to other customers except that
100-4 such services may be used by and shared among the entities
100-5 described in Subsection (b)(1)(A) of this section. The services
100-6 provided pursuant to this section may not be required to be resold
100-7 to other customers at the rates provided in this section; however,
100-8 the prohibition contained in this subsection is not intended to
100-9 preclude the otherwise permitted resale of other services which may
100-10 be offered by an electing company using the same facilities or a
100-11 portion thereof, which are used to provide the private network
100-12 services offered under this section.
100-13 (e) For purposes of this section, the term "telemedicine
100-14 center" means a facility equipped to transmit by video, data, or
100-15 voice service medical information for the purpose of diagnosis or
100-16 treatment of illness or disease, owned or operated by a public or
100-17 not-for-profit hospital including an academic health center or such
100-18 a facility owned by any state-licensed health care practitioner or
100-19 group of practitioners and operated on a nonprofit basis.
100-20 (f) The State Purchasing and General Services Act (Article
100-21 601b, Vernon's Texas Civil Statutes) does not apply to contracts
100-22 entered into under this section.
100-23 (g) The commission may not consider the cost of implementing
100-24 Subsection (b), (c), or (d) of this section in determining whether
100-25 an electing company is entitled to a rate increase under this
100-26 subtitle or increased universal service funds under Section 3.608
100-27 of this Act.
101-1 SUBTITLE I. INFRASTRUCTURE PLAN FOR RATE OF RETURN COMPANIES
101-2 Sec. 3.401. POLICY. It is the policy of the legislature
101-3 that those incumbent local exchange companies that do not elect to
101-4 be regulated under Subtitle H of this title should nevertheless
101-5 have incentives to deploy infrastructure that will benefit the
101-6 citizens of this state, while maintaining reasonable local rates
101-7 and universal service.
101-8 Sec. 3.402. ELECTION. (a) An incumbent local exchange
101-9 company serving less than five percent of the access lines in this
101-10 state that has not elected incentive regulation under Subtitle H of
101-11 this title may elect for an infrastructure plan under this subtitle
101-12 by notifying the commission in writing of its election under this
101-13 section.
101-14 (b)(1) For a period of six years after the election date, an
101-15 electing incumbent local exchange company may not seek an increase
101-16 in any rate previously established for that company under this Act,
101-17 except for the charges permitted under Sections 3.304, 3.308, and
101-18 3.608 of this Act, and in the following circumstances and only with
101-19 commission approval that the proposed change is included in this
101-20 subsection.
101-21 (2) On motion of an electing incumbent local exchange
101-22 company or on its own motion, the commission shall adjust prices
101-23 for services to reflect changes in Federal Communications
101-24 Commission separations affecting intrastate net income by 10
101-25 percent or more.
101-26 (3) A rate group classification occurring as a result
101-27 of access lines growth shall be allowed by the commission on
102-1 request of the electing company.
102-2 (c) Section 3.354 of this Act applies to a rate change under
102-3 Subsection (b) of this section.
102-4 (d) If, subsequent to the enactment of this subtitle, an
102-5 incumbent local exchange company notifies the commission in writing
102-6 of its election to the alternative infrastructure plan under this
102-7 subtitle, the electing company may not for a period of six years
102-8 after the election date under any circumstances be subject to any
102-9 complaint or hearing as to the reasonableness of its rates, its
102-10 overall revenues, its return on invested capital, or its net income
102-11 if the electing incumbent local exchange company is complying with
102-12 its infrastructure commitment under Section 3.403 of this Act, nor
102-13 may an electing company be subject to a complaint that any
102-14 particular rate is excessive. However, the company's
102-15 implementation of the competitive safeguards required by Subtitle J
102-16 of this title are not excluded from a complaint, hearing, or
102-17 determination. Nothing herein restricts any consumer's right to
102-18 complain to the commission regarding quality of service, the
102-19 commission's right to enforce quality of service standards, or the
102-20 consumer's right to complain regarding the application of an
102-21 ambiguous tariff, and if the commission finds an ambiguity, the
102-22 commission's right to determine the proper application of the
102-23 tariff or to determine the proper rate if the tariff is found to
102-24 not apply, but this does not permit the commission to lower a
102-25 tariff rate except as specifically provided by this Act, to change
102-26 its interpretation of a tariff, or to change a tariff so as to
102-27 extend its application to new classes of customers. The commission
103-1 may not increase service standards applicable to the provision of
103-2 local exchange telephone service by an electing company if the
103-3 increased investment required to comply with the increased standard
103-4 exceeds in any one year 10 percent of the incumbent local exchange
103-5 company's average annual intrastate additions in capital investment
103-6 for the most recent five-year period. In calculating the average,
103-7 the incumbent local exchange company shall exclude extraordinary
103-8 investments made during the five-year period.
103-9 (e) On application by an electing incumbent local exchange
103-10 company, the commission may allow a company to withdraw its
103-11 election under this section but only for good cause. For the
103-12 purpose of this section, good cause includes only matters that were
103-13 beyond the control of the incumbent local exchange company.
103-14 (f) This section does not prohibit an incumbent local
103-15 exchange company from making an election under Section 3.352 of
103-16 this Act at any time, and if the company so elects, the
103-17 infrastructure commitment made under Section 3.403 of this Act
103-18 offsets any infrastructure commitment required in connection with
103-19 the Section 3.352 election.
103-20 (g) The rates capped by Subsection (b) of this section as a
103-21 result of a company's election shall be the rates charged by the
103-22 company at the date of its election without regard to proceedings
103-23 pending under Section 1.301 or 3.210 of this Act or under
103-24 Subchapter G, Chapter 2001, Government Code. Notwithstanding any
103-25 other provision of this Act, the commission may not reduce the
103-26 rates for switched access services for any company electing under
103-27 this subtitle before the expiration of the cap under Subsection (b)
104-1 of this section.
104-2 (h) In this section, "election date" means the date on which
104-3 the commission receives notice of election under this section.
104-4 Sec. 3.403. INFRASTRUCTURE COMMITMENT. (a) A company
104-5 electing under Section 3.402 of this Act shall make an
104-6 infrastructure commitment in writing to the governor and
104-7 commission, committing to make the following telecommunications
104-8 infrastructure investment in this state over a six-year period
104-9 following the company's election.
104-10 (b) The commission shall act to ensure that the following
104-11 infrastructure goals are achieved by electing companies:
104-12 (1) Electing incumbent local exchange companies shall
104-13 make access to end-to-end digital connectivity available to all
104-14 customers in their territories by January 1, 2000. "Make
104-15 available" as used in this subsection shall have the definition
104-16 contained in 16 T.A.C. Section 23.69.
104-17 (2) Fifty percent of the local exchange access lines
104-18 in each electing local exchange company's territory must be served
104-19 by a digital central office switch by January 1, 2000.
104-20 (3) All electing company new central office switches
104-21 installed in Texas after September 1, 1995, must be digital.
104-22 (4) Electing incumbent local exchange companies'
104-23 public switched network back-bone inter-office facilities must
104-24 employ broadband facilities capable of at least 45 megabits per
104-25 second, or at lower bandwidths if evolving technology permits the
104-26 delivery of video signal at quality levels comparable to a
104-27 television broadcast signal, that serve at least 50 percent of the
105-1 local exchange access lines by January 1, 2000. This requirement
105-2 shall not extend to local loop facilities.
105-3 (5) Electing incumbent local exchange companies shall
105-4 install Common Channel Signaling 7 capability in all access tandem
105-5 offices by January 1, 2000.
105-6 (6) The 10 percent limitation specified in Section
105-7 3.402 shall not include requirements of Subdivisions (1)-(5) of
105-8 this subsection.
105-9 (c)(1) On customer request, the electing company shall
105-10 provide private broadband services and other customized or packaged
105-11 network services (private network services) for the private and
105-12 sole use of the following entities:
105-13 (A) educational institutions, as that term is
105-14 defined in Section 3.605 of this Act;
105-15 (B) libraries, as that term is defined in
105-16 Section 3.606 of this Act;
105-17 (C) telemedicine centers of public or
105-18 not-for-profit hospitals;
105-19 (D) nonprofit telemedicine centers of state
105-20 licensed health care practitioners; or
105-21 (E) any legally constituted consortium or group
105-22 of entities listed in Paragraphs (A)-(D) of this subdivision.
105-23 (2) An electing company shall give investment priority
105-24 to serving rural areas, areas designated as critically underserved,
105-25 medically or educationally, and educational institutions with high
105-26 percentages of economically disadvantaged students.
105-27 (3) Such private network services shall be provided
106-1 pursuant to customer specific contracts.
106-2 (4) Such contracts shall be offered at 110 percent of
106-3 the long run incremental cost including installation costs of
106-4 providing the private network service.
106-5 (5) Each such contract shall be filed with the
106-6 commission but not require the approval of the commission.
106-7 (6) The legislature finds that the classes of
106-8 customers listed in Subdivisions (1)(A)-(D) of this subsection
106-9 warrant preferred rate treatment provided that any such rates cover
106-10 the long run incremental cost of the services provided.
106-11 (7) Notwithstanding any other provision of this Act,
106-12 an electing local exchange company shall not be subject to a
106-13 complaint under this section except by:
106-14 (A) educational institutions, as that term is
106-15 defined in Section 3.605 of this Act;
106-16 (B) libraries, as that term is defined in
106-17 Section 3.606 of this Act;
106-18 (C) telemedicine centers of public or
106-19 not-for-profit hospitals;
106-20 (D) nonprofit telemedicine centers of
106-21 state-licensed health care practioners; or
106-22 (E) any legally constituted consortium or group
106-23 of entities listed in Paragraphs (A)-(D) of this subdivision.
106-24 (8) Educational institutions, libraries, telemedicine
106-25 centers of public or not-for-profit hospitals, and nonprofit
106-26 telemedicine centers of state-licensed health care practitioners
106-27 receiving the services provided under this section may not be
107-1 assessed tariffed special construction or installation charges
107-2 unless agreed upon by the local exchange company and entities
107-3 specified in Subdivision (1) of this subsection.
107-4 (9) An educational institution or a library may elect
107-5 this rate treatment or the discount provided by Section 3.605 of
107-6 this Act.
107-7 (10) Notwithstanding the pricing flexibility
107-8 authorized by this Act, the electing company's rates for this
107-9 service may not be increased for six years from the date of
107-10 election.
107-11 (11) On request, for 1.544 megabits per second private
107-12 line or special access service by educational institutions and
107-13 libraries, that service shall be offered at 110 percent of the long
107-14 run incremental cost including installation costs. This rate is in
107-15 lieu of the discount provided by Section 3.605 of this Act.
107-16 (12) The customers specified in this section
107-17 constitute a special class of customer for purposes of the private
107-18 network for distance learning, telemedicine, and information
107-19 sharing purposes.
107-20 (13) The private network services provided pursuant to
107-21 this section may be interconnected with other similar networks for
107-22 distance learning, telemedicine, and information sharing purposes.
107-23 (14) The private network services provided pursuant to
107-24 this section may not be shared or resold to other customers except
107-25 that they may be used and shared among the entities specified in
107-26 Subdivision (1) of this subsection. The services provided pursuant
107-27 to this section may not be required to be resold to other customers
108-1 at the rates provided in this section; provided, however, the
108-2 prohibition contained in this subsection is not intended to
108-3 preclude the otherwise permitted resale of other services which may
108-4 be offered by an electing company using the same facilities or a
108-5 portion thereof, which are used to provide the private network
108-6 services offered under this section.
108-7 (d) The commission may consider waivers of requirements
108-8 listed in Subsections (b)(1)-(5) of this section for electing local
108-9 exchange companies serving fewer than one million lines if the
108-10 local exchange company demonstrates that such investment is not
108-11 viable economically, after due consideration is given to the public
108-12 benefits which would result from compliance with such requirements.
108-13 (e) The commission may not consider the cost of implementing
108-14 Subsection (b) or (c) of this section in determining whether an
108-15 electing company is entitled to a rate increase under this subtitle
108-16 or increased universal service funds under Section 3.608 of this
108-17 Act.
108-18 (f) For purposes of this section:
108-19 (1) "Private network services" means the
108-20 telecommunications services provided to an entity described in
108-21 Subsection (c)(1)(A) of this section and includes broadband
108-22 services, customized, and packaged network services and does not
108-23 limit the local exchange company from providing these services with
108-24 facilities which are also used to provide other services to other
108-25 customers.
108-26 (2) "Telemedicine center" means a facility equipped to
108-27 transmit, by video or data service, medical information for the
109-1 purpose of diagnosis or treatment of illness or disease, owned or
109-2 operated by a public or not-for-profit hospital, or such a facility
109-3 owned by any state-licensed health care practioner and operated on
109-4 a nonprofit basis.
109-5 (g) Each electing company shall file a report with the
109-6 commission each year on the anniversary date of its election that
109-7 sets forth its progress on its infrastructure commitment. The
109-8 report shall include:
109-9 (1) the institutions requesting service under this
109-10 section;
109-11 (2) the institutions served under this section;
109-12 (3) investment and expense in the previous period and
109-13 cumulative for all periods; and
109-14 (4) any other information the commission considers
109-15 necessary.
109-16 SUBTITLE J. COMPETITIVE SAFEGUARDS
109-17 Sec. 3.451. COMPETITIVE SAFEGUARDS. (a) To the extent
109-18 necessary to ensure that competition in telecommunications is fair
109-19 to all participants and to accelerate the improvement of
109-20 telecommunications in the state, the commission shall ensure that
109-21 the rates and regulations of an incumbent local exchange company
109-22 are not unreasonably preferential, prejudicial, or discriminatory
109-23 but are equitable and consistent in application.
109-24 (b) Section 3.352(d) of this Act does not prevent the
109-25 commission from enforcing this subtitle.
109-26 (c) The commission has exclusive jurisdiction to implement
109-27 competitive safeguards.
110-1 Sec. 3.452. UNBUNDLING. (a) An incumbent local exchange
110-2 company shall, at a minimum, unbundle its network to the extent
110-3 ordered by the Federal Communications Commission.
110-4 (b) Before the adoption of the pricing rules required by
110-5 Section 3.457 of this Act, the commission shall hold a hearing and
110-6 adopt an order on the issue of requiring further unbundling of
110-7 local exchange company services.
110-8 (c) The commission may order further unbundling only after
110-9 considering the public interest and competitive merits of further
110-10 unbundling. The commission may proceed by rulemaking or, if
110-11 requested by a party, shall proceed by evidentiary hearing.
110-12 (d) Following unbundling, the commission may assign the
110-13 unbundled components to the appropriate Basket according to the
110-14 purposes and intents of those Baskets.
110-15 Sec. 3.453. RESALE. (a) An incumbent local exchange
110-16 company serving one million or more access lines or electing the
110-17 incentive regulation plan under Subtitle H of this title shall file
110-18 a usage sensitive loop resale tariff by September 1, 1995. An
110-19 incumbent local exchange company serving fewer than one million
110-20 access lines or not electing under Subtitle H of this title shall
110-21 file a resale tariff within 60 days of the date on which a
110-22 certificate of operating authority or service provider certificate
110-23 of operating authority is granted under Subtitle F of this title.
110-24 (b) "Loop" resale as used in this section means the purchase
110-25 of the local distribution channel or "loop" facility from the
110-26 incumbent local exchange company for the purpose of resale to end
110-27 user customers.
111-1 (c) The commission shall conduct any proceeding it
111-2 determines appropriate to determine the rates, terms, and
111-3 conditions for this tariff within 180 days of filing. The
111-4 commission may:
111-5 (1) only approve a usage sensitive rate that recovers
111-6 the total long run incremental cost of the loop on an unseparated
111-7 basis, plus an appropriate contribution to joint and common costs;
111-8 and
111-9 (2) only permit a holder of a certificate of
111-10 convenience or necessity, certificate of operating authority, or
111-11 service provider certificate of operating authority to purchase
111-12 from the resale tariff, except as provided by Subsection (f)(1) or
111-13 (f)(2) of this section.
111-14 (d) On September 1, 1995, a provider of telecommunications
111-15 service may not impose any restriction on the resale or sharing of
111-16 any service for which it is not a dominant provider nor, as to any
111-17 incumbent local exchange company electing alternative regulation
111-18 under Subtitle H of this title, for any service entitled to
111-19 regulatory treatment under Basket III as described by Section 3.356
111-20 of this Act.
111-21 (e) A holder of a certificate of operating authority or
111-22 service provider certificate of operating authority has the
111-23 reciprocal obligation to permit local exchange companies to resell
111-24 its existing loop facilities at its regularly published rates if
111-25 the local exchange company has no loop facilities and has a request
111-26 for service.
111-27 (f)(1) The commission shall eliminate all resale
112-1 prohibitions in an electing incumbent local exchange company's
112-2 tariffs on:
112-3 (A) completion of the commission's costing and
112-4 pricing rulemaking;
112-5 (B) completion of rate rebalancing of the
112-6 incumbent local exchange company rates required by Section 3.457 of
112-7 this Act; and
112-8 (C) removal of all prohibitions on incumbent
112-9 local exchange companies providing interLATA service.
112-10 (2) The commission shall eliminate all resale
112-11 prohibitions in the tariffs of an electing company of one million
112-12 access lines or more on removal of all prohibitions on such
112-13 company's provision of interLATA service.
112-14 (3) When the commission eliminates the resale
112-15 prohibitions under this subsection, it shall continue to prohibit
112-16 the resale of local exchange or directory assistance flat rate
112-17 services as a substitute for usage sensitive services. If the
112-18 commission finds that the rate for a particular service or function
112-19 will, as a result of the costing and pricing proceeding, be less
112-20 than the cost of providing the service or function and that the
112-21 difference in rate and cost will not be recovered from the
112-22 universal service fund, the service may be offered for resale only
112-23 to the same class of customer as sold to by the incumbent local
112-24 exchange company. In any event, after resale prohibitions are
112-25 removed, residence service may not be resold to business customers.
112-26 (g) Nothing herein alters resale or sharing arrangements
112-27 presently permitted in incumbent local exchange company tariffs
113-1 existing on September 1, 1995, or tariffs proposed by an incumbent
113-2 local exchange company serving more than five million access lines
113-3 in this state that are filed on or before May 1, 1995.
113-4 Sec. 3.454. IMPUTATION. (a) Not later than December 1,
113-5 1996, the commission shall adopt rules governing imputation of the
113-6 price of a service.
113-7 (b) Imputation is a regulatory policy the commission shall
113-8 apply to prevent an incumbent local exchange company from selling a
113-9 service or function to another telecommunications utility at a
113-10 price that is higher than the rate the incumbent local exchange
113-11 company implicitly includes in services it provides to its retail
113-12 customers.
113-13 (c) The commission may require imputation only of the price
113-14 of a service that is:
113-15 (1) not generally available from a source other than
113-16 the incumbent local exchange company; and
113-17 (2) necessary for the competitor to provide its
113-18 competing services.
113-19 (d) The commission may not require imputation of the price
113-20 to a local exchange telephone service while the price is capped
113-21 under Subtitle H or I of this title.
113-22 (e) The price of switched access service shall be imputed to
113-23 the price of each service for which switched access service is a
113-24 component until switched access service is competitively available.
113-25 (f) The commission may not require imputation on a
113-26 rate-element-by-element basis but only on a service-by-service
113-27 basis.
114-1 (g) For a service provided under a customer specific
114-2 contract for which imputation may be required under Subsection (c)
114-3 of this section, the commission may not require imputation on a
114-4 rate-element-by-element basis but only on a service-by-service
114-5 basis within the contract.
114-6 (h) The incumbent local exchange company shall demonstrate
114-7 that the price it charges for its retail service recovers the costs
114-8 of providing the service. For purposes of this subsection, the
114-9 costs of providing the service is defined as the sum of:
114-10 (1) specifically tariffed premium rates for the
114-11 noncompetitive services or service functions, or elements of these
114-12 noncompetitive services or service functions (or their functional
114-13 equivalent) that are used to provide the service;
114-14 (2) the total service long run incremental costs of
114-15 the competitive services or service functions that are used;
114-16 (3) any costs, not otherwise reflected in Subdivision
114-17 (1) or (2) of this subsection, that are specifically associated
114-18 with the provision of the service or group of services; and
114-19 (4) any cost or surcharge associated with an explicit
114-20 subsidy that is applied to all providers of the service for the
114-21 purpose of promoting universal service.
114-22 (i) The commission may waive an imputation requirement for
114-23 any public interest service such as 9-1-1 service and dual party
114-24 relay service if the commission determines that the waiver is in
114-25 the public interest.
114-26 Sec. 3.455. Telecommunications Number Portability. (a)
114-27 Because a uniform national number plan is valuable and necessary to
115-1 the state, the commission by rule shall adopt guidelines governing
115-2 telecommunications number portability and the assignment of
115-3 telephone numbers in a competitively neutral manner. The
115-4 commission rules may not be inconsistent with the rules and
115-5 regulations of the Federal Communications Commission regarding
115-6 telecommunications number portability.
115-7 (b) In this Act, "telecommunications number portability"
115-8 means the ability of a user of telecommunications services, to the
115-9 extent technically feasible, to retain an existing telephone number
115-10 without impairing the quality, reliability, or convenience of
115-11 service when changing from one provider of telecommunications
115-12 service to another provider.
115-13 (c) As an interim measure, the commission shall adopt
115-14 reasonable mechanisms to allow consumers to retain their telephone
115-15 numbers. At a minimum, these mechanisms shall include the use of
115-16 call forwarding functions and direct inward dialing for those
115-17 purposes. An incumbent local exchange company with one million
115-18 access lines or more shall file tariffs before November 1, 1995,
115-19 and the commission, before March 1, 1996, shall determine
115-20 reasonable rates to be charged for call forwarding functions,
115-21 direct inward dialing, and any other mechanism the commission
115-22 determines should be used as an interim number portability measure
115-23 by a new entrant. An incumbent local exchange company with fewer
115-24 than one million access lines where a certificate of operating
115-25 authority or a service provider certificate of operating authority
115-26 has been granted shall file tariffs within 60 days after the date
115-27 of a bona fide request, and the commission, within 60 days after
116-1 the date the tariffs are filed, shall determine reasonable rates to
116-2 be charged for call forwarding functions, direct inward dialing,
116-3 and any other mechanism the commission determines should be used as
116-4 an interim number portability measure by a new entrant.
116-5 Sec. 3.456. Expanded Interconnection. (a) Not later than
116-6 September 1, 1996, the commission shall adopt rules for expanded
116-7 interconnection that:
116-8 (1) are consistent with the rules and regulations of
116-9 the Federal Communications Commission relating to expanded
116-10 interconnection;
116-11 (2) treat intrastate private line services as special
116-12 access service; and
116-13 (3) provide that if an incumbent local exchange
116-14 company is required to provide expanded interconnection to another
116-15 local exchange company, the second local exchange company shall, in
116-16 a like manner, provide expanded interconnection to the first
116-17 company.
116-18 (b) This section does not prohibit the commission from
116-19 completing a proceeding pending on April 1, 1995, that addresses
116-20 expanded interconnection.
116-21 Sec. 3.457. COSTING AND PRICING. (a)(1) The commission
116-22 shall complete a pricing rulemaking and adopt a pricing rule by
116-23 April 1, 1997. Companies subject to that rule shall file cost
116-24 studies and necessary supporting data not later than November 1,
116-25 1996, unless specific waivers are authorized.
116-26 (2) The commission has 85 days after the date a cost
116-27 study is submitted to administratively approve it or to order that
117-1 changes be made, except that the review process may be suspended
117-2 for 30 days upon motion of the presiding examiner or for good cause
117-3 shown by any party that demonstrates a justiciable interest. Such
117-4 request must be made within the first 45 days of the review
117-5 process. If the commission delegates approval of the cost study to
117-6 an administrative law judge or hearings examiner, the judge or
117-7 examiner has 85 days, or 115 days if suspended, to administratively
117-8 approve it or to order that changes be made. The commission may
117-9 not conduct a contested case to approve a cost study submitted
117-10 under this section.
117-11 (3) Any party may appeal to the commission an
117-12 administrative determination by an administrative law judge or
117-13 hearings examiner under Subdivision (2) of this subsection within
117-14 five days after the date of notification of the determination. The
117-15 commission shall rule on the appeal within 30 days after the date
117-16 it receives the appeal.
117-17 (4) If the commission or an administrative law judge
117-18 or hearings examiner orders a cost study to be changed, the judge
117-19 or examiner shall order the company to make those changes within a
117-20 period that is commensurate with the complexity of the study and
117-21 the need to complete the cost studies in a timely manner.
117-22 (5) The parties shall be permitted expedited discovery
117-23 after a cost study is submitted. The commission shall fairly
117-24 evaluate the comments or pleadings filed by any party regarding the
117-25 cost study.
117-26 (b) In adopting the pricing rule, the commission shall:
117-27 (1) ensure that prices for monopoly services remain
118-1 affordable;
118-2 (2) ensure that prices for competitive services may
118-3 not be:
118-4 (A) unreasonably preferential, prejudicial, or
118-5 discriminatory;
118-6 (B) subsidized either directly or indirectly by
118-7 noncompetitive services; or
118-8 (C) predatory or anticompetitive; and
118-9 (3) require that each service recover the appropriate
118-10 cost, including appropriate joint and common costs, of any and all
118-11 facilities and functions used to provide that service.
118-12 (c) The commission shall allow an incumbent local exchange
118-13 company that is not a Tier 1 local exchange company as of September
118-14 1, 1995, at that company's option, to adopt the cost studies
118-15 approved by the commission for a Tier 1 local exchange company.
118-16 Sec. 3.458. INTERCONNECTION. (a) "Interconnection" for the
118-17 purposes of this section means the termination of local
118-18 intraexchange traffic of another local exchange company or holder
118-19 of a service provider certificate of operating authority within the
118-20 local calling area of the terminating local exchange company or
118-21 certificate holder for calls that originate and terminate in this
118-22 state. The provisions of this section do not govern rates for the
118-23 existing termination of cellular or interexchange traffic.
118-24 (b) The commission shall require all providers of
118-25 telecommunications services to maintain interoperable networks.
118-26 Telecommunications providers shall negotiate network
118-27 interconnectivity, charges, terms, and conditions, and in that
119-1 event the commission shall approve the interconnection rates. The
119-2 commission may resolve disputes filed by a party to those
119-3 negotiations.
119-4 (c) In the absence of a mutually agreed compensation rate
119-5 negotiated under Subsection (b) of this section, each carrier shall
119-6 reciprocally terminate the other carrier's traffic at no charge for
119-7 the first nine months after the date on which the first call is
119-8 terminated between the carriers.
119-9 (d) The commission shall, within the nine-month period
119-10 prescribed by Subsection (c) of this section, complete a proceeding
119-11 to establish reciprocal interconnection rates, terms, and
119-12 conditions. The commission shall establish reciprocal
119-13 interconnection rates, terms, and conditions based solely on the
119-14 commission proceeding. In establishing the initial interconnection
119-15 rate, the commission may not require cost studies from the new
119-16 entrant. Not earlier than three years after the date on which the
119-17 first call is terminated between the carriers, the commission may,
119-18 if the commission receives a complaint, require cost studies by a
119-19 new entrant for the purpose of establishing interconnection rates.
119-20 (e) The incumbent local exchange company may adopt the
119-21 interconnection rates approved for a larger incumbent local
119-22 exchange company without the commission requirement of additional
119-23 cost justification. If an incumbent local exchange company does
119-24 not adopt the interconnection rates of a larger company, or
119-25 negotiates under Subsection (b) of this section, the company is
119-26 governed by Subsections (c) and (d) of this section. If the
119-27 incumbent local exchange company adopts the interconnection rates
120-1 of another incumbent local exchange company, the new entrant may
120-2 adopt those rates as the new entrant's interconnection rates. If
120-3 the incumbent local exchange company elects to file its own tariff,
120-4 the new entrant must also file its own interconnection tariff.
120-5 (f) The commission may make generic rules and set policies
120-6 governing interconnection arrangements. The commission may
120-7 establish rules that are responsive to changes in federal law or
120-8 developments in the local exchange market.
120-9 (g) The commission may not use interconnection rates under
120-10 this section as a basis to alter interconnection rates for other
120-11 services.
120-12 (h) The commission has exclusive jurisdiction over any
120-13 holder of a certificate of convenience and necessity, certificate
120-14 of operating authority, or service provider certificate of
120-15 operating authority for the determination of rates, terms, and
120-16 conditions for interconnection.
120-17 Sec. 3.459. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
120-18 (a) An incumbent local exchange company may not unreasonably:
120-19 (1) discriminate against another provider by refusing
120-20 access to the local exchange;
120-21 (2) refuse or delay interconnections to another
120-22 provider;
120-23 (3) degrade the quality of access provided to another
120-24 provider;
120-25 (4) impair the speed, quality, or efficiency of lines
120-26 used by another provider;
120-27 (5) fail to fully disclose in a timely manner on
121-1 request all available information necessary for the design of
121-2 equipment that will meet the specifications of the local exchange
121-3 network; or
121-4 (6) refuse or delay access by any person to another
121-5 provider.
121-6 (b) This section may not be construed to require an
121-7 incumbent local exchange company to provide expanded
121-8 interconnection as that term is defined by the Federal
121-9 Communications Commission.
121-10 (c) Nothing in this Act shall require the commission to
121-11 change the rate treatment for Bulletin Board Systems in residences
121-12 established by the commission in Docket No. 8387 nor is anything in
121-13 this Act intended to regulate or tax Bulletin Board Systems or
121-14 Internet Service Providers or to require any changes in the rates
121-15 charged to these entities under existing tariffs, provided they
121-16 only provide enhanced or information services and not
121-17 telecommunications services.
121-18 Sec. 3.460. COMMISSION AUTHORITY. (a) The commission has
121-19 all authority necessary to establish procedures with respect to the
121-20 policies stated in Sections 3.451, 3.452, 3.453, 3.454, 3.455,
121-21 3.456, 3.457, and 3.458 of this Act and to resolve any disputes
121-22 arising under those policies.
121-23 (b) The commission has the authority to and shall adopt
121-24 procedures for the processing of proceedings under Sections 3.452
121-25 and 3.453 of this Act, including the authority to limit discovery
121-26 and, except for the office, align parties having similar positions
121-27 for purposes of cross-examination. In adopting procedures under
122-1 this section and in resolving disputes, the commission shall
122-2 consider the impact on consumers, competitors, and the incumbent
122-3 local exchange company. The commission may not implement, by order
122-4 or rule, any requirement that is contrary to any applicable federal
122-5 rule or law.
122-6 Sec. 3.461. APPLICATIONS AND RULES. The obligations
122-7 prescribed by Sections 3.452, 3.453, 3.455, 3.456, and 3.458 of
122-8 this Act may not, until September 1, 1998, be applied to incumbent
122-9 local exchange companies serving fewer than 31,000 access lines.
122-10 After September 1, 1998, the obligations prescribed by Sections
122-11 3.452, 3.453, and 3.456 of this Act may be applied only on a bona
122-12 fide request from a certified telecommunications utility. In
122-13 applying these rules to these incumbent local exchange companies,
122-14 the commission may modify the rules as it finds in the public
122-15 interest.
122-16 Sec. 3.462. REVIEW OF IMPLEMENTATION. The provisions of
122-17 Sections 3.452, 3.454, and 3.457 of this Act do not initially apply
122-18 to incumbent local exchange companies that as of September 1, 1995,
122-19 have 31,000 or more access lines in this state but fewer than one
122-20 million access lines in this state. The obligations prescribed by
122-21 those sections may be applied to such companies only on a bona fide
122-22 request from a holder of a certificate of operating authority or
122-23 service provider certificate of operating authority. In applying
122-24 these rules to these incumbent local exchange companies, the
122-25 commission may modify the rules as it finds in the public interest.
122-26 Sec. 3.463. INFRASTRUCTURE SHARING. (a) The commission
122-27 shall prescribe rules that require a local exchange company to
123-1 share public switched network infrastructure and technology with a
123-2 requesting local exchange company that lacks economies of scale or
123-3 scope, for the purpose of enabling that requesting company to
123-4 provide telecommunications services in the geographic areas to
123-5 which the requesting company is designated as the sole carrier of
123-6 last resort.
123-7 (b) The rules governing the sharing:
123-8 (1) may not require a local exchange company to make a
123-9 decision that is uneconomic or adverse to the public;
123-10 (2) shall permit, but not require, joint ownership and
123-11 operation of public switched network infrastructure and services by
123-12 or among the local exchange companies sharing infrastructure; and
123-13 (3) shall establish conditions that promote
123-14 cooperation between local exchange companies.
123-15 SUBTITLE K. BROADCASTER SAFEGUARDS
123-16 Sec. 3.501. CUSTOMER PROPRIETARY NETWORK INFORMATION (CPNI).
123-17 (a) In this section:
123-18 (1) "Specific customer proprietary network
123-19 information" (specific CPNI) means:
123-20 (A) information that relates to the quantity,
123-21 technical configuration, type, destination, or amount of use of
123-22 voice or data telecommunications services subscribed to by any
123-23 customer of a telecommunications utility, but excluding wireless
123-24 telecommunications providers, and is made available to the utility
123-25 by the customer solely by virtue of the utility-customer
123-26 relationship;
123-27 (B) information contained in the bills relating
124-1 to telecommunications services received by a customer of a
124-2 telecommunications utility; and
124-3 (C) any other information concerning the
124-4 customer as is available to the telecommunications utility by
124-5 virtue of the customer's use of the telecommunications utility
124-6 service. The term does not include subscriber list information.
124-7 (2) "Subscriber list information" means any
124-8 information that:
124-9 (A) identifies the listed names of subscribers
124-10 of a telecommunications utility or those subscribers' telephone
124-11 numbers, addresses, or primary advertising classifications, or any
124-12 combination of those listed names, numbers, addresses, or
124-13 classifications; and
124-14 (B) the telecommunications utility or an
124-15 affiliate has published or accepted for future publication.
124-16 (b) Except as preempted by the Federal Communications
124-17 Commission, a telecommunications utility may not use specific CPNI
124-18 for commercial purposes other than the sale, provision, or billing
124-19 and collection of telecommunications or enhanced services. Nothing
124-20 herein prohibits the use of specific CPNI with the customer's
124-21 consent or the provision of specific CPNI to an affiliate
124-22 telecommunications provider.
124-23 (c) Not later than September 1, 1996, the commission shall
124-24 adopt rules that are consistent with rules on this subject adopted
124-25 by the Federal Communications Commission. Rules adopted under this
124-26 section shall:
124-27 (1) require each telecommunications utility to notify
125-1 each subscriber annually, through means approved by the commission,
125-2 of the subscriber's right to reject the utility's use of specific
125-3 CPNI for purposes of marketing other services;
125-4 (2) in the event the Federal Communications Commission
125-5 adopts new CPNI rules that no longer preempt a state's authority to
125-6 adopt inconsistent rules, the commission shall institute a
125-7 proceeding regarding the appropriate use of CPNI by all
125-8 telecommunications utilities, provided that any rule, policy, or
125-9 order adopted by the commission may not be discriminatory in its
125-10 application to telecommunications utilities; and
125-11 (3) require each telecommunications utility, if the
125-12 utility makes nonproprietary aggregate CPNI available to its
125-13 affiliates, to make that information available on the same terms
125-14 and conditions to unaffiliated entities.
125-15 (d) The commission may not implement any rules regarding
125-16 CPNI applicable to an incumbent local exchange company having
125-17 100,000 or fewer access lines in service in this state that are
125-18 more burdensome to the company than the CPNI rules of the Federal
125-19 Communications Commission, except that this prohibition does not
125-20 apply to uses of CPNI that are unrelated to telecommunications
125-21 services or products.
125-22 Sec. 3.502. AUDIO VIDEO. (a) In this Act:
125-23 (1) "Video programming" means programming provided by
125-24 or generally considered comparable to programming provided by a
125-25 television broadcast station as defined by the Federal
125-26 Communications Commission under Section 602, Communications Act of
125-27 1934 (47 U.S.C. Section 522).
126-1 (2) "Audio programming" means programming provided by
126-2 or generally considered comparable to programming provided by an AM
126-3 or FM broadcast station. However, the term does not include any
126-4 audio-related services of the type offered by the incumbent local
126-5 exchange company as of September 1, 1995.
126-6 (b) An incumbent local exchange company may not provide
126-7 audio or video programming in this state. However, nothing herein
126-8 prohibits a separate corporate affiliate of an incumbent local
126-9 exchange company from providing audio or video programming.
126-10 (c) A separate corporate affiliate of an incumbent local
126-11 exchange company providing audio or video programming:
126-12 (1) shall obtain telecommunications services from its
126-13 affiliate incumbent local exchange company at tariffed rates, or if
126-14 those services are not provided under a tariff, at the fair market
126-15 value or, in the event there is no fair market value or that value
126-16 is less than long run incremental cost (LRIC), then the rate is
126-17 equal to the service's LRIC;
126-18 (2) shall purchase, use, rent, or access information,
126-19 services, space, or devices that are not telecommunications
126-20 services from its affiliate incumbent local exchange company
126-21 consistent with the affiliate transaction rules promulgated by the
126-22 Federal Communications Commission then in effect, provided that in
126-23 no case shall those transactions be valued at less than the greater
126-24 of net book value or fair market value, whichever is applicable;
126-25 (3) shall maintain books, records, and accounts that
126-26 are separate from those of an incumbent local exchange company,
126-27 which books, records, and accounts shall be kept in accordance with
127-1 generally accepted accounting principles;
127-2 (4) shall prepare financial statements that are not
127-3 consolidated with those of an incumbent local exchange company,
127-4 provided, however, that financial statements and consolidated tax
127-5 returns may be prepared that consolidate the operation of the
127-6 separate corporate affiliate with a parent company and its other
127-7 subsidiaries;
127-8 (5) may not incur debt in a manner that would permit a
127-9 creditor on default to have recourse to the assets of the incumbent
127-10 local exchange company;
127-11 (6) may not use the names, trademarks, or service
127-12 marks of the incumbent local exchange company, but this does not
127-13 prohibit the use of those names or marks if they are used in common
127-14 with the parent, affiliate, or owner of the incumbent local
127-15 exchange company;
127-16 (7) shall perform its marketing and sales functions
127-17 and operation in compliance with Open Network Architecture and the
127-18 affiliate transaction rules promulgated by the Federal
127-19 Communications Commission then in effect;
127-20 (8) may not have any directors, officers, or employees
127-21 in common with the incumbent local exchange company; and
127-22 (9) shall maintain a separate corporate entity from
127-23 the incumbent local exchange company.
127-24 (d) As to its separate affiliate providing video or audio
127-25 programming, an incumbent local exchange company:
127-26 (1) may not develop a rate for a telecommunications
127-27 service or deploy a telecommunications service to primarily benefit
128-1 its separate affiliate for the affiliate's video or audio
128-2 programming unless that rate or service is available on a
128-3 nondiscriminatory basis to all purchasers;
128-4 (2) may not be unreasonably preferential in the
128-5 deployment of telecommunications services for its separate
128-6 affiliates' audio or video programming;
128-7 (3) may not enter into customer specific contracts for
128-8 the provision of tariffed telecommunications services with its
128-9 separate affiliate unless substantially the same terms and
128-10 conditions of the contract are generally available to nonaffiliated
128-11 interests;
128-12 (4) shall maintain and file with the commission copies
128-13 of all contracts or arrangements between the incumbent local
128-14 exchange company and the separate affiliate and report the contract
128-15 amount for each cash and noncash transaction with the separate
128-16 affiliate, including payments for costs of any goods and services
128-17 or any property right or thing or for interest expense;
128-18 (5) may not transfer assets to the separate affiliate
128-19 unless those assets are priced no lower than assets that are
128-20 available in an arm's-length transaction to third parties;
128-21 (6) shall value any assets that are transferred to a
128-22 separate affiliate at the greater of net book or fair market value;
128-23 (7) shall value any assets that are transferred to it
128-24 by its separate affiliate at the lesser of net book value or fair
128-25 market value except instances where Federal Communications
128-26 Commission or commission rules or regulations permit in-arrears
128-27 payment for tariffed telecommunications services or the investment
129-1 by an affiliate of dividends or profits derived from the incumbent
129-2 local exchange company;
129-3 (8) shall comply with all applicable Federal
129-4 Communications Commission cost and other accounting rules;
129-5 (9) may not have any directors, officers, or employees
129-6 in common with the separate affiliate;
129-7 (10) may not own any property in common with the
129-8 separate affiliate; and
129-9 (11) shall provide, if it offers telecommunications
129-10 equipment or services to audio and video programming providers,
129-11 those services:
129-12 (A) at just and reasonable rates that are
129-13 tariffed, so long as the commission rules require those tariffs,
129-14 under nondiscriminatory terms and conditions; and
129-15 (B) if the equipment and services are not
129-16 subject to regulation, on similar terms and conditions to all video
129-17 or audio programming providers.
129-18 (e) In addition to the requirements and prohibitions
129-19 prescribed by Subsection (d) of this section, an incumbent local
129-20 exchange company shall, if it offers billing and collection
129-21 services to nonaffiliated audio and video programming providers,
129-22 provide those services under nondiscriminatory terms and
129-23 conditions. Nothing herein requires an incumbent local exchange
129-24 company to offer billing and collection service to nonaffiliated
129-25 programmers, and an incumbent local exchange company may exclude
129-26 certain classes of programmers from its billing and collection
129-27 services.
130-1 (f) An incumbent local exchange company shall have a
130-2 compliance audit performed every three years by an independent
130-3 accounting firm. The audit shall be conducted for the purpose of
130-4 determining whether the incumbent local exchange company, during
130-5 the preceding three years, is in compliance with all of the
130-6 requirements imposed by this section regarding the incumbent local
130-7 exchange company. The independent accounting firm shall file the
130-8 report with the commission. If the report concludes that the
130-9 incumbent local exchange company is not in compliance with any
130-10 portion of this section, the commission shall institute appropriate
130-11 action against the incumbent local exchange company. The report
130-12 shall be considered commercial or financial information that is
130-13 confidential by statute under Chapter 552, Government Code.
130-14 (g) Except as otherwise specifically provided by this Act,
130-15 the commission's jurisdiction over affiliates of incumbent local
130-16 exchange companies that are audio and video programmers is limited
130-17 to the requirements of this section and does not extend to subjects
130-18 not specifically provided herein.
130-19 (h) This section does not apply to an incumbent local
130-20 exchange company having 100,000 or fewer total access lines in
130-21 service in this state.
130-22 (i) A company to which this section applies may petition the
130-23 commission for a waiver from any of the requirements imposed
130-24 herein. The commission shall grant the waiver if it is in the
130-25 public interest to do so, taking into account whether the need for
130-26 the restriction still exists in the market involved. The
130-27 commission may revoke any waiver granted if it is shown that
131-1 conditions under which the waiver was granted have materially
131-2 changed and it is in the public interest to do so.
131-3 Sec. 3.503. ADVERTISING. (a) Advertising agency services
131-4 include the functions generally performed by a general advertising
131-5 agency, including advertising development, advertising purchase,
131-6 advertising consultation, advertising copywriting, and advertising
131-7 research.
131-8 (b) An incumbent local exchange company may not sell
131-9 advertising agency services to nonaffiliates in this state.
131-10 Nothing herein prohibits a local exchange company from:
131-11 (1) any activities to promote or sell
131-12 telecommunications services and equipment, including voice, data,
131-13 video dial tone, video programming, audio programming, cellular,
131-14 interactive media, software, and other related services and
131-15 equipment; or
131-16 (2) any activities that seek to enhance or promote the
131-17 use of the telecommunications network.
131-18 (c) A separate corporate affiliate of an incumbent local
131-19 exchange company may engage in advertising agency activities, but
131-20 in the conduct of that business a separate corporate affiliate:
131-21 (1) shall maintain books, records, and accounts that
131-22 are separate from those of an incumbent local exchange company,
131-23 which books, records, and accounts shall be kept in accordance with
131-24 generally accepted accounting principles;
131-25 (2) shall prepare financial statements that are not
131-26 consolidated with those of an incumbent local exchange company
131-27 provided, however, that financial statements and consolidated tax
132-1 returns may be prepared that consolidate the operation of the
132-2 separate corporate affiliate with a parent company and its other
132-3 subsidiaries;
132-4 (3) may not incur debt in a manner that would permit a
132-5 creditor on default to have recourse to the assets of the incumbent
132-6 local exchange company;
132-7 (4) may not have any directors, officers, or employees
132-8 in common with the incumbent local exchange company;
132-9 (5) shall maintain a separate corporate entity from
132-10 the incumbent local exchange company; and
132-11 (6) may not use the names, trademarks, or service
132-12 marks of the incumbent local exchange company, but this does not
132-13 prohibit the use of those names or marks where they are used in
132-14 common with the parent, affiliate, or owner of the incumbent local
132-15 exchange company.
132-16 (d) Except as provided by Subsection (b) of this section,
132-17 an incumbent local exchange company that has an affiliate that
132-18 provides advertising agency services on behalf of nonaffiliates in
132-19 this state may not jointly market that affiliate's advertising
132-20 agency services in connection with telecommunications services and
132-21 equipment provided by the incumbent local exchange company. This
132-22 prohibition does not apply to advertising in telephone directories
132-23 in whatever form disseminated.
132-24 (e) Nothing herein prevents the incumbent local exchange
132-25 company from providing telephone solicitation services for
132-26 charitable organizations.
132-27 (f) This section does not apply to an incumbent local
133-1 exchange company having 100,000 or fewer total access lines in
133-2 service in this state.
133-3 (g) A company to which this section applies may petition the
133-4 commission for a waiver from any of the requirements imposed
133-5 herein. The commission shall grant the waiver if it is in the
133-6 public interest to do so, taking into account whether the need for
133-7 the restriction still exists in the market involved. The
133-8 commission may revoke any waiver granted if it is shown that
133-9 conditions under which the waiver was granted have materially
133-10 changed and it is in the public interest to do so.
133-11 Sec. 3.504. VIDEO CARRIAGE. (a) Subject to a programmer
133-12 operating as a common channel manager under the provisions of
133-13 Subsection (c) of this section, each incumbent local exchange
133-14 company that provides telecommunications services that are used in
133-15 the transmission of video programming directly to subscribers or
133-16 that enables customers to access video programming shall permit
133-17 local full-power, FCC-licensed broadcast stations, to the extent
133-18 capacity permits, access to these telecommunications services at
133-19 tariffed rates or, if those services are not provided under a
133-20 tariff, on similar terms and conditions as other video programmers
133-21 that provide similar programming. The incumbent local exchange
133-22 company shall transmit the signals delivered to it by the local
133-23 broadcast station without material degradation, and the quality
133-24 offered may not be less than that made available to other video
133-25 programmers.
133-26 (b) Each incumbent local exchange company that provides
133-27 telecommunications services that are used in the transmission of
134-1 video programming directly to subscribers or to enable customers to
134-2 access video programming:
134-3 (1) may not unreasonably discriminate among
134-4 programming providers with respect to transmission of their
134-5 signals;
134-6 (2) may not delete, change, or alter any copyright
134-7 identification transmitted as part of the programming signal; and
134-8 (3) shall, if it provides a "video dial tone service"
134-9 with a level one gateway, as that term is defined by the Federal
134-10 Communications Commission, make available to programmers a menu or
134-11 programming guide on which programmers may display a listing of the
134-12 stations required to be carried by the programmer under Subsection
134-13 (c) of this section.
134-14 (c) To the extent that federal law and Federal
134-15 Communications Commission rules and orders permit, a programmer
134-16 operating as a common channel manager that purchases for commercial
134-17 purposes 50 or more analog channels on a local exchange video dial
134-18 tone level one platform over which video programming is made
134-19 available to subscribers, shall make available to subscribers local
134-20 full-power, Federal Communications Commission-licensed television
134-21 stations, provided that retransmission is granted under Subsection
134-22 (d) of this section. A programmer subject to this section shall be
134-23 required to make available up to six television stations, except
134-24 that in markets that contain a county having a population of more
134-25 than one million, the programmer shall be required to make
134-26 available up to nine full-power, Federal Communications
134-27 Commission-licensed local broadcast stations. The programmer shall
135-1 make the selection of the broadcast channels to be carried under
135-2 this section.
135-3 (d) A Federal Communications Commission-licensed television
135-4 station seeking carriage under Subsection (c) of this section shall
135-5 grant retransmission consent to the programmer and to the incumbent
135-6 local exchange company. However, nothing in this Act requires a
135-7 programmer or incumbent local exchange company to provide monetary
135-8 payment or other valuable consideration in exchange for that
135-9 carriage.
135-10 (e) This section does not apply to an incumbent local
135-11 exchange company having 100,000 or fewer total access lines in
135-12 service in this state or to a programmer on the video dial tone
135-13 platform of that incumbent local exchange company.
135-14 (f) A company to which this section applies may petition the
135-15 commission for a waiver from any of the requirements imposed
135-16 herein. The commission shall grant the waiver if it is in the
135-17 public interest to do so, taking into account whether the need for
135-18 the restriction still exists in the market involved. The
135-19 commission may revoke any waiver granted if it is shown that
135-20 conditions under which the waiver was granted have materially
135-21 changed and it is in the public interest to do so.
135-22 (g) Except as otherwise specifically provided by this Act,
135-23 the commission's jurisdiction over affiliates of incumbent local
135-24 exchange companies that are video programmers is limited to the
135-25 requirements of this section and does not extend to subjects not
135-26 specifically provided herein.
135-27 (h) This section expires August 31, 1999.
136-1 Sec. 3.505. AUDIO CARRIAGE. (a) To the extent that federal
136-2 law and Federal Communications Commission rules and orders permit,
136-3 and consistent with technical specifications, a programmer
136-4 operating as a common channel manager that makes available for
136-5 commercial purposes to subscribers 12 or more channels of audio
136-6 programming similar to broadcasts of Federal Communications
136-7 Commission-licensed radio stations on an incumbent local exchange
136-8 company's level one video dial tone platform shall make available
136-9 to subscribers local Federal Communications Commission-licensed
136-10 radio stations, provided that retransmission is granted under
136-11 Subsection (b) of this section. A programmer subject to this
136-12 subsection may not be required to make available more than
136-13 one-third of its analog audio channels to radio stations. The
136-14 programmer shall make the selection of the radio stations to be
136-15 carried under this section.
136-16 (b) A local Federal Communications Commission-licensed radio
136-17 station seeking carriage under Subsection (a) of this section shall
136-18 grant retransmission consent to the programmer and the incumbent
136-19 local exchange company. However, nothing in this Act requires a
136-20 programmer or incumbent local exchange company to provide monetary
136-21 payment or other valuable consideration in exchange for that
136-22 carriage.
136-23 (c) This section does not apply to an incumbent local
136-24 exchange company having 100,000 or fewer total access lines in
136-25 service in this state or to a programmer on the video dial tone
136-26 platform of that incumbent local exchange company.
136-27 (d) A company to which this section applies may petition the
137-1 commission for a waiver from any of the requirements imposed
137-2 herein. The commission shall grant the waiver if it is in the
137-3 public interest to do so, taking into account whether the need for
137-4 the restriction still exists in the market involved. The
137-5 commission may revoke any waiver granted if it is shown that
137-6 conditions under which the waiver was granted have materially
137-7 changed and it is in the public interest to do so.
137-8 (e) Except as otherwise specifically provided by this Act,
137-9 the commission's jurisdiction over affiliates of incumbent local
137-10 exchange companies that are video programmers is limited to the
137-11 requirements of this section and does not extend to subjects not
137-12 specifically provided herein.
137-13 (f) This section expires August 31, 1999.
137-14 Sec. 3.506. APPLICATION OF SUBTITLE. This subtitle does not
137-15 apply to a cable company.
137-16 SUBTITLE L. ELECTRONIC PUBLISHING
137-17 Sec. 3.551. DEFINITIONS. In this subtitle:
137-18 (1) "Affiliate" means any entity that, directly or
137-19 indirectly, owns or controls, is owned or controlled by, or is
137-20 under common ownership or control with an incumbent local exchange
137-21 company. The term does not include a separated affiliate.
137-22 (2) "Basic telephone service" means any wireline
137-23 telephone exchange service, or wireline telephone exchange
137-24 facility, provided by an incumbent local exchange company in a
137-25 telephone exchange area, other than a competitive wireline
137-26 telephone exchange service provided in a telephone exchange area
137-27 where another entity provides a wireline telephone exchange service
138-1 that was provided on January 1, 1984, and a commercial mobile
138-2 service provided by an affiliate that is required by the Federal
138-3 Communications Commission to be a corporate entity separate from
138-4 the local exchange company.
138-5 (3) "Basic telephone service information" means
138-6 network and customer information of an incumbent local exchange
138-7 company and other information acquired by an incumbent local
138-8 exchange company as a result of its engaging in the provision of
138-9 basic telephone service.
138-10 (4) "Control" has the meaning provided by 17 C.F.R.
138-11 Section 240.12b--2, the regulations promulgated by the Securities
138-12 and Exchange Commission under the Securities Exchange Act of 1934
138-13 (15 U.S.C. Section 78a et seq.) or any successor provision to that
138-14 section.
138-15 (5)(A) "Electronic publishing" means the
138-16 dissemination, provision, publication, or sale to an unaffiliated
138-17 entity or person, using an incumbent local exchange company's basic
138-18 telephone service, of:
138-19 (i) news;
138-20 (ii) entertainment (other than interactive
138-21 games);
138-22 (iii) business, financial, legal,
138-23 consumer, or credit material;
138-24 (iv) editorials;
138-25 (v) columns;
138-26 (vi) sports reporting;
138-27 (vii) features;
139-1 (viii) advertising;
139-2 (ix) photos or images;
139-3 (x) archival or research material;
139-4 (xi) legal notices or public records;
139-5 (xii) scientific, educational,
139-6 instructional, technical, professional, trade, or other literary
139-7 materials; or
139-8 (xiii) other like or similar information.
139-9 (B) "Electronic publishing" does not include the
139-10 following network services:
139-11 (i) information access, as that term is
139-12 defined by the modification of final judgment;
139-13 (ii) the transmission of information as a
139-14 common carrier;
139-15 (iii) the transmission of information as
139-16 part of a gateway to an information service that does not involve
139-17 the generation or alteration of the content of information,
139-18 including data transmission, address translation, protocol
139-19 conversion, billing management, introductory information content,
139-20 and navigational systems that enable users to access electronic
139-21 publishing services, that do not affect the presentation of those
139-22 electronic publishing services to users;
139-23 (iv) voice storage and retrieval services,
139-24 including voice messaging and electronic mail services;
139-25 (v) level 2 gateway services as those
139-26 services are defined by the Federal Communications Commission's
139-27 Second Report and Order, Recommendation to Congress and Second
140-1 Further Notice of Proposed Rulemaking in CC Docket No. 87-266
140-2 dated August 14, 1992;
140-3 (vi) data processing services that do not
140-4 involve the generation or alteration of the content of information;
140-5 (vii) transaction processing systems that
140-6 do not involve the generation or alteration of the content of
140-7 information;
140-8 (viii) electronic billing or advertising
140-9 of an incumbent local exchange company's regulated
140-10 telecommunications services;
140-11 (ix) language translation;
140-12 (x) conversion of data from one format to
140-13 another;
140-14 (xi) the provision of information
140-15 necessary for the management, control, or operation of a telephone
140-16 company telecommunications system;
140-17 (xii) the provision of directory
140-18 assistance that provides names, addresses, and telephone numbers
140-19 and does not include advertising;
140-20 (xiii) caller identification services;
140-21 (xiv) repair and provisioning databases
140-22 for telephone company operations;
140-23 (xv) credit card and billing validation
140-24 for telephone company operations;
140-25 (xvi) 911-E and other emergency assistance
140-26 databases;
140-27 (xvii) any other network service of a type
141-1 that is like or similar to these network services and that does not
141-2 involve the generation or alteration of the content of information;
141-3 (xviii) any upgrades to these network
141-4 services that do not involve the generation or alteration of the
141-5 content of information;
141-6 (xix) full motion video entertainment on
141-7 demand; and
141-8 (xx) video programming as defined by
141-9 Section 602, Communications Act of 1934 (47 U.S.C. Section 522).
141-10 (6) "Electronic publishing joint venture" means a
141-11 joint venture owned by an incumbent local exchange company or
141-12 affiliate that engages in the provision of electronic publishing
141-13 that is disseminated by means of that incumbent local exchange
141-14 company's or any of its affiliates' basic telephone service.
141-15 (7) "Entity" means any organization, and includes a
141-16 corporation, partnership, sole proprietorship, association, and
141-17 joint venture.
141-18 (8) "Inbound telemarketing" means the marketing of
141-19 property, goods, or services by telephone to a customer or
141-20 potential customer who initiated the call.
141-21 (9) "Own," with respect to an entity, means to have a
141-22 direct or indirect equity interest, or the equivalent, of more than
141-23 10 percent of an entity, or the right to more than 10 percent of
141-24 the gross revenues of an entity under a revenue sharing or royalty
141-25 agreement.
141-26 (10) "Separated affiliate" means a corporation under
141-27 common ownership or control with an incumbent local exchange
142-1 company that does not own or control an incumbent local exchange
142-2 company and is not owned or controlled by an incumbent local
142-3 exchange company and that engages in the provision of electronic
142-4 publishing that is disseminated by means of the incumbent local
142-5 exchange company's or any of its affiliates' basic telephone
142-6 service.
142-7 (11) "Incumbent local exchange company" means, for
142-8 purposes of this subtitle only, a company serving more than five
142-9 million access lines in this state and subject to the modification
142-10 of final judgment or any entity owned or controlled by that
142-11 corporation, or any successor or assign of that corporation. The
142-12 term does not include an electronic publishing joint venture owned
142-13 by that corporation or entity and permitted by Section 3.559.
142-14 Sec. 3.552. Electronic Publishing. (a) An incumbent local
142-15 exchange company or an affiliate may not engage in the provision of
142-16 electronic publishing that is disseminated by means of the
142-17 incumbent local exchange company's or any of its affiliates' basic
142-18 telephone service.
142-19 (b) Nothing in this subtitle prohibits a separated affiliate
142-20 or electronic publishing joint venture from engaging in the
142-21 provision of electronic publishing or any other lawful service in
142-22 any area.
142-23 (c) Nothing in this subtitle prohibits an incumbent local
142-24 exchange company or affiliate from engaging in the provision of any
142-25 lawful service other than electronic publishing in any area or from
142-26 engaging in the provision of electronic publishing that is not
142-27 disseminated by means of the incumbent local exchange company's or
143-1 any of its affiliates' basic telephone service.
143-2 Sec. 3.553. SEPARATED AFFILIATE OR ELECTRONIC PUBLISHING
143-3 JOINT VENTURE REQUIREMENTS. A separated affiliate or electronic
143-4 publishing joint venture:
143-5 (1) shall maintain books, records, and accounts that
143-6 are separate from those of the incumbent local exchange company and
143-7 from any affiliate and that record in accordance with generally
143-8 accepted accounting principles all transactions, whether direct or
143-9 indirect, with the incumbent local exchange company;
143-10 (2) may not incur debt in a manner that would permit a
143-11 creditor on default to have recourse to the assets of the incumbent
143-12 local exchange company;
143-13 (3) shall prepare financial statements that are not
143-14 consolidated with those of the incumbent local exchange company or
143-15 an affiliate, provided that consolidated statements may also be
143-16 prepared;
143-17 (4) shall file with the commission annual reports in a
143-18 form substantially equivalent to the Form 10-K required by
143-19 regulations of the Securities and Exchange Commission;
143-20 (5) after September 1, 1996, may not hire:
143-21 (A) as corporate officers, sales and marketing
143-22 management personnel whose responsibilities at the separated
143-23 affiliate or electronic publishing joint venture will include the
143-24 geographic areas where the incumbent local exchange company
143-25 provides basic telephone service;
143-26 (B) network operations personnel whose
143-27 responsibilities at the separated affiliate or electronic
144-1 publishing joint venture would require dealing directly with the
144-2 incumbent local exchange company; or
144-3 (C) any person who was employed by the incumbent
144-4 local exchange company during the year preceding the date of hire,
144-5 except that the requirements of this paragraph do not apply to
144-6 persons subject to a collective bargaining agreement that gives
144-7 those persons rights to be employed by a separated affiliate or
144-8 electronic publishing joint venture of the local exchange company;
144-9 (6) may not provide any wireline telephone exchange
144-10 service in any telephone exchange area in which an incumbent local
144-11 exchange company with which it is under common ownership or control
144-12 provides basic telephone exchange service except on a resale basis;
144-13 (7) may not use the name, trademarks, or service marks
144-14 of an existing incumbent local exchange company except for names,
144-15 trademarks, or service marks that were used in common with the
144-16 entity that owns or controls the incumbent local exchange company;
144-17 (8) shall have performed annually by March 31, or any
144-18 other date prescribed by the commission, a compliance review:
144-19 (A) that is conducted by an independent entity
144-20 that is subject to professional, legal, and ethical obligations for
144-21 the purpose of determining compliance during the preceding calendar
144-22 year with any provision of this subtitle that imposes a requirement
144-23 on the separated affiliate or electronic publishing joint venture;
144-24 and
144-25 (B) the results of which are maintained by the
144-26 separated affiliate for a period of five years subject to review by
144-27 any lawful authority; and
145-1 (9) shall within 90 days after the date of receiving a
145-2 review described by Subdivision (8) of this subsection, file a
145-3 report of any exceptions and corrective action with the commission
145-4 and allow any person to inspect and copy the report subject to
145-5 reasonable safeguards to protect any proprietary information
145-6 contained in the report from being used for purposes other than to
145-7 enforce or pursue remedies under this subtitle.
145-8 Sec. 3.554. INCUMBENT LOCAL EXCHANGE COMPANY REQUIREMENTS.
145-9 (a) An incumbent local exchange company under common ownership or
145-10 control with a separated affiliate or electronic publishing joint
145-11 venture:
145-12 (1) may not provide a separated affiliate any
145-13 facilities, services, or basic telephone service information unless
145-14 it makes those facilities, services, or information available to
145-15 unaffiliated entities on request and on the same terms and
145-16 conditions;
145-17 (2) shall carry out transactions with a separated
145-18 affiliate in a manner equivalent to the manner that unrelated
145-19 parties would carry out independent transactions and not based on
145-20 the affiliation;
145-21 (3) shall carry out transactions with a separated
145-22 affiliate, that involve the transfer of personnel, assets, or
145-23 anything of value, in accordance with written contracts or tariffs
145-24 that are filed with the commission and made publicly available;
145-25 (4) shall carry out transactions with a separated
145-26 affiliate in a manner that is auditable in accordance with
145-27 generally accepted auditing standards;
146-1 (5) shall value any assets that are transferred to a
146-2 separated affiliate at the greater of net book cost or fair market
146-3 value;
146-4 (6) shall value any assets that are transferred to the
146-5 incumbent local exchange company by its separated affiliate at the
146-6 lesser of net book cost or fair market value;
146-7 (7) may not, except for instances where Federal
146-8 Communications Commission or commission rules or regulations permit
146-9 in-arrears payment for tariffed telecommunications services or the
146-10 investment by an affiliate of dividends or profits derived from an
146-11 incumbent local exchange company, provide debt or equity financing
146-12 directly or indirectly to a separated affiliate;
146-13 (8) shall comply fully with all applicable Federal
146-14 Communications Commission and commission cost allocation and other
146-15 accounting rules;
146-16 (9) shall have performed annually by March 31, or any
146-17 other date prescribed by the commission, a compliance review:
146-18 (A) that is conducted by an independent entity
146-19 that is subject to professional, legal, and ethical obligations for
146-20 the purpose of determining compliance during the preceding calendar
146-21 year with any provision of this subtitle that imposes a requirement
146-22 on the incumbent local exchange company; and
146-23 (B) the results of which are maintained by the
146-24 incumbent local exchange company for a period of five years subject
146-25 to review by any lawful authority; and
146-26 (10) shall within 90 days after the date of receiving
146-27 a review described by Subdivision (9) of this subsection, file a
147-1 report of any exceptions and corrective action with the commission
147-2 and allow any person to inspect and copy the report subject to
147-3 reasonable safeguards to protect any proprietary information
147-4 contained in the report from being used for purposes other than to
147-5 enforce or pursue remedies under this subtitle.
147-6 (b) If the incumbent local exchange company provides
147-7 facilities or services for telecommunication, transmission, billing
147-8 and collection, or expanded interconnection to any electronic
147-9 publisher, including a separated affiliate, for use with or in
147-10 connection with the provision of electronic publishing that is
147-11 disseminated by means of the incumbent local exchange company's or
147-12 any of its affiliates' basic telephone service, the incumbent local
147-13 exchange company shall provide to all other electronic publishers
147-14 the same type of facilities and services on request, on the same
147-15 terms and conditions or as required by the Federal Communications
147-16 Commission or the commission, and unbundled and individually
147-17 tariffed to the smallest extent that is technically feasible and
147-18 economically reasonable to provide.
147-19 (c) The incumbent local exchange company shall provide
147-20 network access and interconnections for basic telephone service to
147-21 electronic publishers at any technically feasible and economically
147-22 reasonable point within the incumbent local exchange company's
147-23 network and at just and reasonable rates that are tariffed, so long
147-24 as rates for those services are subject to regulation, and that are
147-25 not higher on a per unit basis than those charged for those
147-26 services to any other electronic publisher or any separated
147-27 affiliate engaged in electronic publishing.
148-1 (d) If prices for network access and interconnection for
148-2 basic telephone service are no longer subject to regulation, the
148-3 incumbent local exchange company shall provide electronic
148-4 publishers those services on the same terms and conditions as a
148-5 separated affiliate receives those services.
148-6 (e) If any basic telephone service used by electronic
148-7 publishers ceases to require a tariff, the incumbent local exchange
148-8 company shall provide electronic publishers with that service on
148-9 the same terms and conditions as a separated affiliate receives
148-10 that service.
148-11 (f) The incumbent local exchange company shall provide
148-12 reasonable advance notification at the same time and on the same
148-13 terms to all affected electronic publishers of information if the
148-14 information is within any one or more of the following categories:
148-15 (1) information necessary for the transmission or
148-16 routing of information by an interconnected electronic publisher;
148-17 (2) information necessary to ensure the
148-18 interoperability of an electronic publisher's and the incumbent
148-19 local exchange company's networks; or
148-20 (3) information that relates to changes in basic
148-21 telephone service network design and technical standards that may
148-22 affect the provision of electronic publishing.
148-23 (g) The incumbent local exchange company may not directly or
148-24 indirectly provide anything of monetary value to a separated
148-25 affiliate unless in exchange for consideration at least equal to
148-26 the greater of its net book cost or fair market value, except the
148-27 investment by an affiliate of dividends or profits derived from an
149-1 incumbent local exchange company.
149-2 (h) The incumbent local exchange company may not:
149-3 (1) discriminate in the presentation or provision of
149-4 any gateway for electronic publishing services or any electronic
149-5 directory of information services that is provided over the
149-6 incumbent local exchange company's basic telephone service;
149-7 (2) have any directors, officers, or employees in
149-8 common with a separated affiliate;
149-9 (3) own any property in common with a separated
149-10 affiliate;
149-11 (4) perform hiring or training of personnel on behalf
149-12 of a separated affiliate;
149-13 (5) perform the purchasing, installation, or
149-14 maintenance of equipment on behalf of a separated affiliate, except
149-15 for telephone service that the company provides under tariff or
149-16 contract subject to the provisions of this subtitle; or
149-17 (6) perform research and development on behalf of a
149-18 separated affiliate.
149-19 Sec. 3.555. CUSTOMER PROPRIETARY NETWORK INFORMATION.
149-20 Consistent with Section 232, Communications Act of 1934, as
149-21 amended, and Section 3.501 of this Act, an incumbent local exchange
149-22 company or an affiliate may not provide to an electronic publisher,
149-23 including a separated affiliate or electronic publishing joint
149-24 venture, customer proprietary network information for use with or
149-25 in connection with the provision of electronic publishing that is
149-26 disseminated by means of the incumbent local exchange company's or
149-27 any of its affiliates' basic telephone service that is not made
150-1 available by the incumbent local exchange company or affiliate to
150-2 all electronic publishers on the same terms and conditions.
150-3 Sec. 3.556. COMPLIANCE WITH SAFEGUARDS. An incumbent local
150-4 exchange company or affiliate, including a separated affiliate, may
150-5 not act in concert with another incumbent local exchange company or
150-6 any other entity to knowingly and wilfully violate or evade the
150-7 requirements of this subtitle.
150-8 Sec. 3.557. INCUMBENT LOCAL EXCHANGE COMPANY DIVIDENDS.
150-9 Nothing in this subtitle prohibits an affiliate from investing
150-10 dividends derived from an incumbent local exchange company in its
150-11 separated affiliate, and Sections 3.560 and 3.561 of this Act do
150-12 not apply to that investment.
150-13 Sec. 3.558. JOINT MARKETING. Except as provided by Section
150-14 3.559 of this Act, an incumbent local exchange company may not
150-15 carry out:
150-16 (1) any promotion, marketing, sales, or advertising
150-17 for or in conjunction with a separated affiliate; or
150-18 (2) any promotion, marketing, sales, or advertising
150-19 for or in conjunction with an affiliate that is related to the
150-20 provision of electronic publishing.
150-21 Sec. 3.559. PERMISSIBLE JOINT ACTIVITIES. (a) An incumbent
150-22 local exchange company may provide inbound telemarketing or
150-23 referral services related to the provision of electronic publishing
150-24 for a separated affiliate, electronic publishing joint venture,
150-25 affiliate, or unaffiliated electronic publisher, provided that if
150-26 those services are provided to a separated affiliate, electronic
150-27 publishing joint venture, or affiliate, those services shall be
151-1 made available to all electronic publishers on request, on
151-2 nondiscriminatory terms, at compensatory prices, and subject to
151-3 regulations of the commission to ensure that the incumbent local
151-4 exchange company's method of providing telemarketing or referral
151-5 and its price structure do not competitively disadvantage any
151-6 electronic publishers regardless of size, including those that do
151-7 not use the incumbent local exchange company's telemarketing
151-8 services.
151-9 (b) An incumbent local exchange company may engage in
151-10 nondiscriminatory teaming or business arrangements to engage in
151-11 electronic publishing with any separated affiliate or with any
151-12 other electronic publisher, provided that the incumbent local
151-13 exchange company provides only facilities, services, and basic
151-14 telephone service information as authorized by this subtitle, and
151-15 provided that the incumbent local exchange company does not own
151-16 that teaming or business arrangement.
151-17 (c) An incumbent local exchange company or affiliate may
151-18 participate on a nonexclusive basis in electronic publishing joint
151-19 ventures with an entity that is not an incumbent local exchange
151-20 company, affiliate, or separated affiliate to provide electronic
151-21 publishing services, provided that the incumbent local exchange
151-22 company or affiliate has not more than a 50 percent direct or
151-23 indirect equity interest, or the equivalent, or the right to more
151-24 than 50 percent of the gross revenues under a revenue sharing or
151-25 royalty agreement in any electronic publishing joint venture.
151-26 Officers and employees of an incumbent local exchange company or
151-27 affiliate participating in an electronic publishing joint venture
152-1 may not have more than 50 percent of the voting control over the
152-2 electronic publishing joint venture. In the case of joint ventures
152-3 with a small, local electronic publisher, the commission for good
152-4 cause shown may authorize the incumbent local exchange company or
152-5 affiliate to have a larger equity interest, revenue share, or
152-6 voting control, but not to exceed 80 percent. An incumbent local
152-7 exchange company participating in an electronic publishing joint
152-8 venture may provide promotion, marketing, sales, or advertising
152-9 personnel and services to the joint venture.
152-10 Sec. 3.560. TRANSACTIONS RELATED TO THE PROVISION OF
152-11 ELECTRONIC PUBLISHING BETWEEN AN INCUMBENT LOCAL EXCHANGE COMPANY
152-12 AND ANY AFFILIATE. (a) Any provision of facilities, services, or
152-13 basic telephone service information, or any transfer of assets,
152-14 personnel, or anything of commercial or competitive value, from an
152-15 incumbent local exchange company to an affiliate related to the
152-16 provision of electronic publishing shall be:
152-17 (1) recorded in the books and records of each entity;
152-18 (2) auditable in accordance with generally accepted
152-19 auditing standards; and
152-20 (3) done in accordance with written contracts or
152-21 tariffs filed with the commission.
152-22 (b) A transfer of assets directly related to the provision
152-23 of electronic publishing from an incumbent local exchange company
152-24 to an affiliate shall be valued at the greater of net book cost or
152-25 fair market value. A transfer of assets related to the provision
152-26 of electronic publishing from an affiliate to the incumbent local
152-27 exchange company shall be valued at the lesser of net book cost or
153-1 fair market value.
153-2 (c) An incumbent local exchange company may not provide
153-3 directly or indirectly to a separated affiliate any facilities,
153-4 services, or basic telephone service information related to the
153-5 provision of electronic publishing that are not made available to
153-6 unaffiliated companies on the same terms and conditions.
153-7 Sec. 3.561. TRANSACTIONS RELATED TO THE PROVISION OF
153-8 ELECTRONIC PUBLISHING BETWEEN AN AFFILIATE AND A SEPARATED
153-9 AFFILIATE. (a) Any facilities, services, or basic telephone
153-10 service information provided, or any assets, personnel, or anything
153-11 of commercial or competitive value transferred, from an incumbent
153-12 local exchange company to an affiliate as described by Section
153-13 3.560 of this Act and then provided or transferred to a separated
153-14 affiliate shall be:
153-15 (1) recorded in the books and records of each entity;
153-16 (2) auditable in accordance with generally accepted
153-17 auditing standards; and
153-18 (3) done in accordance with written contracts or
153-19 tariffs filed with the commission.
153-20 (b) A transfer of assets directly related to the provision
153-21 of electronic publishing from an incumbent local exchange company
153-22 to an affiliate as described by Section 3.560 of this Act and then
153-23 transferred to a separated affiliate shall be valued at the greater
153-24 of net book cost or fair market value. A transfer of assets
153-25 related to the provision of electronic publishing from a separated
153-26 affiliate to an affiliate and then transferred to the incumbent
153-27 local exchange company as described by Section 3.560 of this Act
154-1 shall be valued at the lesser of net book cost or fair market
154-2 value.
154-3 (c) An affiliate may not provide directly or indirectly to a
154-4 separated affiliate any facilities, services, or basic telephone
154-5 service information related to the provision of electronic
154-6 publishing that are not made available to unaffiliated companies on
154-7 the same terms and conditions.
154-8 Sec. 3.562. OTHER ELECTRONIC PUBLISHERS. (a) Except as
154-9 provided by Section 3.559(c) of this Act:
154-10 (1) an incumbent local exchange company may not have
154-11 any officers, employees, property, or facilities in common with an
154-12 entity whose principal business is publishing of which a part is
154-13 electronic publishing; and
154-14 (2) an officer or employee of an incumbent local
154-15 exchange company may not serve as a director of an entity whose
154-16 principal business is publishing of which a part is electronic
154-17 publishing.
154-18 (b) For the purposes of Subsection (a) of this section, an
154-19 incumbent local exchange company or an affiliate that owns an
154-20 electronic publishing joint venture may not be deemed to be engaged
154-21 in the electronic publishing business solely because of that
154-22 ownership.
154-23 (c) Except as provided by Section 3.559(c) of this Act, an
154-24 incumbent local exchange company may not carry out:
154-25 (1) any marketing or sales for an entity that engages
154-26 in electronic publishing; or
154-27 (2) any hiring of personnel, purchasing, or
155-1 production, for an entity that engages in electronic publishing.
155-2 (d) Except as provided by Section 3.559(c) of this Act, the
155-3 incumbent local exchange company may not provide any facilities,
155-4 services, or basic telephone service information to an entity that
155-5 engages in electronic publishing, for use with or in connection
155-6 with the provision of electronic publishing that is disseminated by
155-7 means of the incumbent local exchange company's or any of its
155-8 affiliates' basic telephone service, unless equivalent facilities,
155-9 services, or information are made available on equivalent terms and
155-10 conditions to all.
155-11 Sec. 3.563. PRIVATE RIGHT OF ACTION. (a) A person claiming
155-12 that an act or practice of an incumbent local exchange company,
155-13 affiliate, or separated affiliate constitutes a violation of this
155-14 subtitle may file a complaint with the commission or bring suit for
155-15 the recovery of damages, and the incumbent local exchange company,
155-16 affiliate, or separated affiliate shall be liable if the incumbent
155-17 local exchange company does, or causes to be done, any act, matter,
155-18 or thing in violation of this subtitle. The incumbent local
155-19 exchange company shall be liable to the person or persons injured
155-20 thereby for the full amount of damages sustained in consequence of
155-21 any violation of the provisions of this subtitle, together with a
155-22 reasonable counsel or attorney's fees to be fixed by the court in
155-23 every case of recovery, which attorney's fees shall be taxed and
155-24 collected as part of the costs of the case. Damages may not be
155-25 awarded for a violation that is discovered by a compliance review
155-26 as required by Section 3.553(8) or 3.554(a)(9) of this Act and
155-27 corrected within 90 days.
156-1 (b) In addition to the provisions of Subsection (a) of this
156-2 section, a person claiming that any act or practice of an incumbent
156-3 local exchange company, affiliate, or separated affiliate
156-4 constitutes a violation of this subtitle may make application to
156-5 the commission for an order to cease and desist that violation or
156-6 may make application in any state district court for an order
156-7 enjoining those acts or practices or for an order compelling
156-8 compliance with that requirement.
156-9 Sec. 3.564. ANTITRUST LAWS. Nothing in this subtitle may be
156-10 construed to modify, impair, or supersede the applicability of any
156-11 of the antitrust laws.
156-12 Sec. 3.565. TRANSITION. An electronic publishing service
156-13 being offered to the public by an incumbent local exchange company
156-14 or affiliate on the date of enactment of this subtitle shall have
156-15 one year from that date of enactment to comply with the
156-16 requirements of this subtitle.
156-17 Sec. 3.566. SUNSET. The provisions of this subtitle do not
156-18 apply to conduct occurring after June 30, 2001.
156-19 SUBTITLE M. INFORMATION TECHNOLOGY SERVICES
156-20 Sec. 3.581. DEFINITIONS. In this subtitle:
156-21 (1) "Management consulting" means the development,
156-22 refinement, and coordination of strategies to support a client's
156-23 business direction, positively impact business performance, and
156-24 improve operating results, in areas such as business planning,
156-25 operations, information technology, marketing, finance, and human
156-26 resources.
156-27 (2) "Systems development" means the creation,
157-1 migration, or improvement of computer systems, including hardware
157-2 and software, to meet specific business needs or to take advantage
157-3 of changes in information technology.
157-4 (3) "Systems integration" means the acquisition,
157-5 installation, and integration of hardware, software,
157-6 communications, and related support components and services.
157-7 (4) "Systems management" means the ongoing management
157-8 and operation of information technology components and may range
157-9 from specialized systems applications to an enterprise's entire
157-10 information technology function, including facilities and
157-11 personnel.
157-12 (5) "Process management" means the ongoing
157-13 responsibility for direction and operation of one or more business
157-14 processes within an enterprise in areas such as administration,
157-15 finance, human resources, operations, and sales and marketing.
157-16 Sec. 3.582. PROVISION OF INFORMATION TECHNOLOGY SERVICES
157-17 THROUGH SEPARATE AFFILIATE. (a) Except for services and products
157-18 provided on September 1, 1995, a local exchange company serving
157-19 more than five million access lines in this state may not provide
157-20 the following customized business products or services to customers
157-21 with 50 or more access lines in this state:
157-22 (1) management consulting, except for consulting
157-23 relating exclusively to telecommunications;
157-24 (2) information technology process or systems
157-25 development;
157-26 (3) information technology process or systems
157-27 integration; or
158-1 (4) information technology process or systems
158-2 management.
158-3 (b) This section does not prohibit an affiliate of the local
158-4 exchange company from providing any of the products or services
158-5 described by Subsection (a) of this section in accordance with
158-6 Sections 3.583 and 3.584 of this Act or prohibit a local exchange
158-7 company from providing those products or services to itself. The
158-8 local exchange company may also provide those services to an
158-9 affiliate if neither the local exchange company nor any of its
158-10 affiliates are engaged in providing those products or services to
158-11 unaffiliated third parties.
158-12 (c) The prohibitions prescribed by Subsection (b) of this
158-13 section do not prohibit a local exchange company from:
158-14 (1) providing mass market and consumer market products
158-15 and services directly to customers with fewer than 50 access lines
158-16 in this state that use or rely on the use of information services,
158-17 information systems, or information technology or processes; or
158-18 (2) selling or leasing billing and collection
158-19 services, local area networks, wide area networks, or any other
158-20 telecommunications service.
158-21 Sec. 3.583. SEPARATE AFFILIATE REQUIREMENTS. (a) An
158-22 affiliate of the local exchange company providing a service
158-23 described by Section 3.582(a) of this Act shall:
158-24 (1) operate independently from the local exchange
158-25 company in the provision of its services;
158-26 (2) maintain its own books of accounts; and
158-27 (3) have separate officers, directors, and employees
159-1 who may not also serve as officers, directors, or employees of the
159-2 local exchange company, except that an officer of a corporate
159-3 parent or holding company may serve as a director of the local
159-4 exchange company and as a director of any other of the parent's
159-5 subsidiaries that are in existence on September 1, 1995, or of any
159-6 new subsidiary or affiliate established after September 1, 1995,
159-7 that does not engage in the provision of a service described by
159-8 Section 3.582(a) of this Act.
159-9 (b) All transactions between the local exchange company and
159-10 the affiliate providing a service described by Section 3.582(a) of
159-11 this Act shall be conducted on an "arms length" basis with respect
159-12 to the acquisition of that service from the affiliate.
159-13 (c) The local exchange company shall maintain and keep
159-14 available for inspection by the commission copies of all contracts
159-15 or arrangements between the company and an affiliate relating to
159-16 the local exchange company's acquisition of a service described by
159-17 Section 3.582(a) of this Act from the affiliate. The local
159-18 exchange company's records must show each cash or noncash
159-19 transaction with the affiliate for that service, including the
159-20 payments for goods and services or any property right.
159-21 (d) The local exchange company and an affiliate engaged in a
159-22 service described by Section 3.582(a) of this Act may not jointly
159-23 own or share in the use of any property.
159-24 Sec. 3.584. ADDITIONAL COMPETITIVE SAFEGUARDS. (a) A local
159-25 exchange company may not discriminate between an affiliate
159-26 providing a service described by Section 3.582(a) of this Act and
159-27 any other person in the provision or procurement of goods,
160-1 services, facilities, or information or in the establishment of
160-2 standards.
160-3 (b) A local exchange company or its affiliate may not use
160-4 revenues from local exchange telephone service or from
160-5 local-exchange-company-provided access services to subsidize the
160-6 provision of a service described by Section 3.582(a) of this Act.
160-7 (c) This section does not prohibit the investment by an
160-8 affiliate of dividends or profits derived from a local exchange
160-9 company or the development of a product or service described by
160-10 Section 3.582(a) of this Act by an affiliate of a local exchange
160-11 company for the local exchange company if the investment or
160-12 development complies with Section 3.583 of this Act.
160-13 SUBTITLE N. TELECOMMUNICATIONS SERVICE ASSISTANCE PROGRAM;
160-14 UNIVERSAL SERVICE FUND
160-15 Sec. 3.601 <3.351>. TEL-ASSISTANCE SERVICE. The commission
160-16 shall adopt and enforce rules requiring each local exchange company
160-17 to establish a telecommunications service assistance program to be
160-18 called "tel-assistance service." This service is established to
160-19 provide eligible consumers with a reduction in costs of
160-20 telecommunications services.
160-21 Sec. 3.602 <3.352>. ELIGIBILITY FOR TEL-ASSISTANCE SERVICE;
160-22 BURDEN OF PROOF; BILLING. (a) To be eligible for tel-assistance
160-23 service, an applicant must be a head of household<, 65 years of age
160-24 or older,> and disabled as determined by the Texas Department of
160-25 Human Services and must have a household income at or below the
160-26 poverty level as determined by the United States Office of
160-27 Management and Budget and reported annually in the Federal
161-1 Register. The department, in accordance with this subtitle and
161-2 rules adopted by the department for the program, shall develop
161-3 procedures for taking applications for certification of eligibility
161-4 and for determining program eligibility. The burden of proving
161-5 eligibility for tel-assistance service is on the consumer applying
161-6 for the service.
161-7 (b) Each six months the department shall provide a list or
161-8 lists of the names, addresses, and, if applicable, telephone
161-9 numbers of all persons eligible for tel-assistance service to each
161-10 local exchange company. The local exchange company shall determine
161-11 from the list those consumers to whom the company provides service
161-12 and within 60 days after receiving the list shall begin
161-13 tel-assistance billing for eligible consumers. This billing shall
161-14 continue until the local exchange company is notified by the
161-15 department that a consumer is no longer eligible to receive
161-16 tel-assistance service.
161-17 Sec. 3.603 <3.353>. TEL-ASSISTANCE SERVICES; BILLING; RATES.
161-18 (a) The local exchange company shall provide tel-assistance
161-19 service to all eligible consumers within its certificated area in
161-20 the form of a reduction on each eligible consumer's telephone bill.
161-21 The reduction shall apply only to the following types of service:
161-22 (1) residential flat rate basic local exchange
161-23 service;
161-24 (2) residential local exchange access service; and
161-25 (3) residential local area calling usage, except that
161-26 the reduction for local area calling usage shall be limited to an
161-27 amount such that together with the reduction for local exchange
162-1 access service the rate does not exceed the comparable reduced flat
162-2 rate for the service.
162-3 (b) No other local voice service may be provided to the
162-4 dwelling place of a tel-assistance consumer, nor may single or
162-5 party line optional extended area service, optional extended area
162-6 calling service, foreign zone, or foreign exchange service be
162-7 provided to a tel-assistance consumer. Nothing in this section
162-8 shall prohibit a person otherwise eligible to receive
162-9 tel-assistance service from obtaining and using telecommunications
162-10 equipment designed to aid such person in utilizing
162-11 telecommunications services.
162-12 (c) The reduction allowed by the telecommunications service
162-13 assistance program shall be 65 percent of the applicable tariff
162-14 rate for the service provided.
162-15 Sec. 3.604 <3.354>. STATEWIDE TELECOMMUNICATIONS RELAY
162-16 ACCESS SERVICE FOR HEARING-IMPAIRED AND SPEECH-IMPAIRED. (a) The
162-17 commission shall adopt and enforce rules establishing a statewide
162-18 telecommunications relay access service for the hearing-impaired
162-19 and speech-impaired using specialized communications equipment such
162-20 as telecommunications devices for the deaf (TDD) and operator
162-21 translations. The purpose of this section is to provide for the
162-22 uniform and coordinated provision of the service on a statewide
162-23 basis by one telecommunications carrier.
162-24 (b) Commission rules relating to a statewide
162-25 telecommunications relay access service for the hearing-impaired
162-26 and speech-impaired shall provide that:
162-27 (1) the service shall provide the hearing-impaired and
163-1 speech-impaired with access to the telecommunications network in
163-2 Texas equal to that provided other customers;
163-3 (2) the service shall consist of the following:
163-4 (A) switching and transmission of the call;
163-5 (B) verbal and print translations by either live
163-6 or automated means between hearing-impaired and speech-impaired
163-7 individuals who use TDD equipment or similar automated devices and
163-8 others who do not have such equipment; and
163-9 (C) other service enhancements proposed by the
163-10 carrier and approved by the commission;
163-11 (3) the calling or called party shall bear no charge
163-12 for calls originating and terminating within the same local calling
163-13 area;
163-14 (4) the calling or called party shall bear one-half of
163-15 the total charges established by contract with the commission for
163-16 intrastate interexchange calls;
163-17 (5) as specified in its contract with the commission,
163-18 charges related to providing the service which are not borne by a
163-19 calling or called party pursuant to Subdivisions (3) and (4) of
163-20 this subsection shall be funded from the universal service fund;
163-21 (6) local exchange companies may not impose
163-22 interexchange carrier access charges on calls which make use of
163-23 this service and which originate and terminate in the same local
163-24 calling area;
163-25 (7) local exchange companies shall provide billing and
163-26 collection services in support of this service at just and
163-27 reasonable rates; and
164-1 (8) if the commission orders a local exchange company
164-2 to provide for a trial telecommunications relay access service for
164-3 the hearing-impaired or speech-impaired, all pertinent costs and
164-4 design information from this trial shall be available to the
164-5 general public.
164-6 (c) The commission shall allow telecommunications utilities
164-7 to recover their universal service fund assessment related to this
164-8 service through a surcharge which the utility may add to its
164-9 customers' bills. The commission shall specify how the amount of
164-10 the surcharge is to be determined by each utility. If a utility
164-11 chooses to impose the surcharge, the bill shall list the surcharge
164-12 as the "universal service fund surcharge."
164-13 (d) The commission shall set the appropriate assessments for
164-14 the funding of the service by all telecommunications utilities. In
164-15 setting the appropriate assessments, the commission shall consider
164-16 the aggregate calling pattern of the users of the service and all
164-17 other factors found appropriate and in the public interest by the
164-18 commission. The commission shall review the assessments annually
164-19 and adjust the assessments as found appropriate hereunder.
164-20 (e) The commission shall select the telecommunications
164-21 carrier which will provide the statewide telecommunications relay
164-22 access service for the hearing-impaired and speech-impaired. In
164-23 awarding the contract for this service, the commission shall make a
164-24 written award of the contract to the offerer whose proposal is the
164-25 most advantageous to the state, considering price, the interests of
164-26 the hearing-impaired and speech-impaired community in having access
164-27 to a high quality and technologically advanced telecommunications
165-1 system, and all other factors listed in the commission's request
165-2 for proposals. The commission shall consider each proposal in a
165-3 manner that does not disclose the contents of the proposal to
165-4 competing offerers. The commission's evaluation of the proposals
165-5 shall include:
165-6 (1) charges for the service;
165-7 (2) service enhancements proposed by the offerers;
165-8 (3) technological sophistication of the network
165-9 proposed by the offerers; and
165-10 (4) the proposed commencement date for the service.
165-11 (f) The telecommunications carrier providing the service
165-12 shall be compensated for providing such service at rates, terms,
165-13 and conditions established in its contract with the commission.
165-14 This compensation may include a return on the investment required
165-15 to provide the service and compensation for unbillable and
165-16 uncollectible calls placed through the service, provided that
165-17 compensation for unbillable and uncollectible calls shall be
165-18 subject to a reasonable limitation as determined by the commission.
165-19 (g) The advisory committee to assist the commission in
165-20 administering this section is composed of the following persons
165-21 appointed by the commission:
165-22 (1) two deaf persons recommended by the Texas
165-23 Association of the Deaf;
165-24 (2) one hearing-impaired person recommended by
165-25 Self-Help for the Hard of Hearing;
165-26 (3) one hearing-impaired person recommended by the
165-27 American Association of Retired Persons;
166-1 (4) one deaf and blind person recommended by the Texas
166-2 Deaf/Blind Association;
166-3 (5) one speech-impaired person and one speech-impaired
166-4 and hearing-impaired person recommended by the Coalition of Texans
166-5 with Disabilities;
166-6 (6) two representatives of telecommunications
166-7 utilities, one representing a nonlocal exchange utility and one
166-8 representing a local exchange company, chosen from a list of
166-9 candidates provided by the Texas Telephone Association;
166-10 (7) two persons, at least one of whom is deaf, with
166-11 experience in providing relay services recommended by the Texas
166-12 Commission for the Deaf and Hearing-Impaired; and
166-13 (8) two public members recommended by organizations
166-14 representing consumers of telecommunications services.
166-15 (h) The commission shall appoint advisory committee members
166-16 based on recommended lists of candidates submitted in accordance
166-17 with Subdivision (6) of Subsection (g) of this section. The
166-18 advisory committee shall monitor the establishment, administration,
166-19 and promotion of the statewide telecommunications relay access
166-20 service and advise the commission in pursuing a service which meets
166-21 the needs of the hearing-impaired and speech-impaired in
166-22 communicating with other users of telecommunications services. The
166-23 terms of office of each member of the advisory committee shall be
166-24 two years. A member whose term has expired shall continue to serve
166-25 until a qualified replacement is appointed. The members of the
166-26 advisory committee shall serve without compensation but shall be
166-27 entitled to reimbursement at rates established for state employees
167-1 for travel and per diem incurred in the performance of their
167-2 official duties. The commission shall reimburse members of the
167-3 advisory committee in accordance with this subsection and shall
167-4 provide clerical and staff support to the advisory committee,
167-5 including a secretary to record the committee meetings. The
167-6 commission's costs associated with the advisory committee shall be
167-7 reimbursed from the universal service fund.
167-8 Sec. 3.605 <3.355>. DISTANCE LEARNING ACTIVITIES BY
167-9 EDUCATIONAL INSTITUTIONS AND INFORMATION SHARING PROGRAMS BY
167-10 LIBRARIES; REDUCED RATES. (a) The commission by rule shall
167-11 require a dominant carrier to file a tariff containing a reduced
167-12 rate for a telecommunications service the commission finds is
167-13 directly related to a distance learning activity that is or could
167-14 be conducted by an educational institution in this state or an
167-15 information sharing program that is or could be conducted by a
167-16 library in this state.
167-17 (b) The commission rules shall specify:
167-18 (1) the telecommunications services that qualify under
167-19 this section;
167-20 (2) the process by which an educational institution or
167-21 library qualifies for a reduced rate;
167-22 (3) the date by which a dominant carrier shall file a
167-23 tariff;
167-24 (4) guidelines and criteria by which the services and
167-25 reduced rates shall further the goals stated in Subsection (d) of
167-26 this section; and
167-27 (5) any other requirements, terms, and conditions that
168-1 the commission determines to be in the public interest.
168-2 (c) A tariff filing by a dominant carrier under this
168-3 section:
168-4 (1) shall concern only the implementation of this
168-5 section;
168-6 (2) is not a rate change under Section 3.211 of this
168-7 Act; and
168-8 (3) does not affect any of the carrier's other rates
168-9 or services.
168-10 (d) The services and reduced rates shall be designed to:
168-11 (1) encourage the development and offering of distance
168-12 learning activities by educational institutions or information
168-13 sharing programs of libraries;
168-14 (2) meet the distance learning needs identified by the
168-15 educational community and the information sharing needs identified
168-16 by libraries; and
168-17 (3) recover the long-run incremental costs of
168-18 providing the services, to the extent those costs can be
168-19 identified, so as to avoid subsidizing educational institutions or
168-20 libraries.
168-21 (e) The commission is not required to determine the long-run
168-22 incremental cost of providing a service before approving a reduced
168-23 rate for the service. Until cost determination rules are developed
168-24 and the rates established under this section are changed as
168-25 necessary to ensure proper cost recovery, the reduced rates
168-26 established by the commission shall be equal to 75 percent of the
168-27 otherwise applicable rate. After the commission develops cost
169-1 determination rules for telecommunications services generally, it
169-2 shall ensure that a reduced rate approved under this section
169-3 recovers service-specific long-run incremental costs and avoids
169-4 subsidization.
169-5 (f) An educational institution, library, or dominant carrier
169-6 may at any time request the commission to:
169-7 (1) provide for a reduced rate for a service directly
169-8 related to a distance learning activity or an information sharing
169-9 program that is not covered by commission rules;
169-10 (2) change a rate;
169-11 (3) amend a tariff; or
169-12 (4) amend a commission rule.
169-13 (g) If the commission determines that a change requested
169-14 under Subsection (f) is appropriate, it shall make the requested
169-15 change.
169-16 (h) In this section:
169-17 (1) "Distance learning" means instruction, learning,
169-18 and training that is transmitted from one site to one or more sites
169-19 by telecommunications services that are used by an educational
169-20 institution predominantly for such instruction, learning, or
169-21 training, including video, data, voice, and electronic information.
169-22 (2) "Educational institution" means and includes:
169-23 (A) accredited primary or secondary schools
169-24 owned or operated by state and local governmental entities or
169-25 private entities;
169-26 (B) institutions of higher education as defined
169-27 by Section 61.003, Education Code;
170-1 (C) private institutions of higher education
170-2 accredited by a recognized accrediting agency as defined by Section
170-3 61.003(13), Education Code;
170-4 (D) the Central Education Agency, its successors
170-5 and assigns;
170-6 (E) regional education service centers
170-7 established and operated pursuant to Sections 11.32 and 11.33,
170-8 Education Code; and
170-9 (F) the Texas Higher Education Coordinating
170-10 Board, its successors and assigns.
170-11 (3) "Library" means a "public library" or "regional
170-12 library system" as those terms are defined by Section 441.122,
170-13 Government Code, or a library operated by an institution of higher
170-14 education or a school district.
170-15 Sec. 3.606. TELECOMMUNICATIONS INFRASTRUCTURE FUND. (a) In
170-16 this section:
170-17 (1) "Board" means the Telecommunications
170-18 Infrastructure Fund Board.
170-19 (2) "Fund" means the telecommunications infrastructure
170-20 fund.
170-21 (3) "Institution of higher education" has the meaning
170-22 assigned by Section 61.003, Education Code, and also includes a
170-23 "private or independent institution of higher education" as defined
170-24 by Section 61.003, Education Code.
170-25 (4) "Library" means a "public library," or "regional
170-26 library system" as those terms are defined by Section 441.122,
170-27 Government Code, or a library operated by an institution of higher
171-1 education or a school district.
171-2 (5) "School district" has the meaning assigned by
171-3 Section 19.001, Education Code.
171-4 (6) "Private network services" means the
171-5 telecommunications services provided to an entity described in
171-6 Section 3.359(b)(1)(A) of this Act and includes broadband services,
171-7 customized, and packaged network services and does not limit the
171-8 local exchange company from providing these services with
171-9 facilities which are also used to provide other services to other
171-10 customers.
171-11 (7) "Public, not-for-profit hospital" or "public
171-12 not-for-profit health care facility" means a rural or regional
171-13 hospital or entity such as a rural health clinic which is supported
171-14 by local or regional tax levies or is, under federal definition, a
171-15 certified not-for-profit health corporation.
171-16 (8) "Telemedicine" means consultive, diagnostic, or
171-17 other medical services delivered via telecommunications
171-18 technologies to rural or underserved public, not-for-profit
171-19 hospitals and primary health care facilities in collaboration with
171-20 an academic health center and associated teaching hospitals or
171-21 tertiary centers. Telemedicine includes, but is not limited to,
171-22 interactive video consultation, teleradiology, telepathology, and
171-23 distance education for working health care professionals.
171-24 (9) "Commercial mobile service provider" means a
171-25 provider of commercial mobile service under Sections 153(n) and
171-26 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.),
171-27 Federal Communications Commission rules, and the Omnibus Budget
172-1 Reconciliation Act of 1993.
172-2 (b) The legislature finds that commercial mobile service
172-3 providers benefit from the public telecommunications network by the
172-4 ability to originate and terminate calls that transverse mobile and
172-5 cellular network and that they will benefit by virtue of the
172-6 advancement of the public telecommunications network through
172-7 projects funded under this section. Therefore, it is the policy of
172-8 this state that commercial mobile service providers contribute an
172-9 appropriate amount to the telecommunications infrastructure fund.
172-10 (c) The board shall administer the fund, including the two
172-11 accounts in the fund. The board consists of nine members. Three
172-12 members are appointed by the governor, three members are appointed
172-13 by the lieutenant governor, and three members are appointed by the
172-14 governor from a list of individuals submitted by the speaker of the
172-15 house of representatives. Members of the board serve for
172-16 staggered, six-year terms, with three members' terms expiring on
172-17 August 31 of each odd-numbered year. The governor shall designate
172-18 the presiding officer of the board.
172-19 (d) The governor and the lieutenant governor, in making
172-20 their appointments to the board, and the speaker of the house of
172-21 representatives, in compiling the list of recommended persons,
172-22 shall attempt to select members who are representative of, but not
172-23 limited to, urban and rural school districts, institutions of
172-24 higher education, libraries, and the public. A person may not
172-25 serve on the board if the person is required to register as a
172-26 lobbyist under Chapter 305, Government Code, because of the
172-27 person's activities for compensation on behalf of a profession
173-1 related to the operation of the board.
173-2 (e) Members of the board serve without pay but are entitled
173-3 to reimbursement for their actual expenses incurred in attending
173-4 meetings of the board or in attending to other work of the board
173-5 if approved by the chairman of the board.
173-6 (f) The board is subject to Chapters 551 and 2001,
173-7 Government Code. The board is subject to Chapter 325, Government
173-8 Code (Texas Sunset Act). Unless continued in existence as provided
173-9 by that chapter, the advisory board and this section expire
173-10 September 1, 2006.
173-11 (g) The board is authorized to employ any personnel as
173-12 reasonably necessary to perform duties delegated by the board, and
173-13 the board may also enter into contracts as are necessary with state
173-14 agencies or private entities to perform its duties.
173-15 (h) The board may appoint any committees as it determines
173-16 may assist it in performing its duties under this section.
173-17 (i) The board shall prepare an annual report detailing the
173-18 revenues deposited to the credit of the fund, including each
173-19 account, and summarizing the grants and loans made from each
173-20 account. Not later than January 15 of each year, the board shall
173-21 submit the report for the preceding year to the governor and to
173-22 each standing committee in the senate and house of representatives
173-23 that has jurisdiction over public or higher education.
173-24 (j) The fund is composed of the telecommunications utilities
173-25 account and the commercial mobile service providers account. The
173-26 telecommunications utilities account is financed by an annual
173-27 assessment on all telecommunications utilities doing business in
174-1 this state. Each telecommunications utility shall pay the annual
174-2 assessment in accordance with the ratio that the annual taxable
174-3 telecommunications receipts reported by that telecommunications
174-4 utility under Chapter 151, Tax Code, bears to the total annual
174-5 taxable telecommunications receipts reported by all
174-6 telecommunications utilities under Chapter 151, Tax Code.
174-7 (k) The commercial mobile service providers account is
174-8 financed by an annual assessment on all commercial mobile service
174-9 providers doing business in this state. Each commercial mobile
174-10 service provider shall pay the annual assessment in accordance with
174-11 the ratio that the annual taxable telecommunications receipts
174-12 reported by that provider under Chapter 151, Tax Code, bears to the
174-13 total annual taxable telecommunications receipts reported by all
174-14 commercial mobile service providers under Chapter 151, Tax Code.
174-15 (l) For the fiscal year beginning September 1, 1995, and for
174-16 the nine fiscal years immediately following that year, for a total
174-17 of 10 years, the comptroller shall assess and collect a total
174-18 annual amount of $75 million from telecommunications utilities and
174-19 a total annual amount of $75 million from commercial mobile service
174-20 providers. The amounts assessed against both the
174-21 telecommunications utilities and the commercial mobile service
174-22 providers shall be assessed and collected in each year without
174-23 respect to whether all of the funds previously collected and
174-24 deposited in either or both accounts have been disbursed or spent
174-25 due to lack of demand or otherwise.
174-26 (m) The comptroller may require telecommunications utilities
174-27 and commercial mobile service providers to provide any reports and
175-1 information as are needed to fulfill the duties of the comptroller
175-2 provided by this section. Any information provided to the
175-3 comptroller by a telecommunications utility or commercial mobile
175-4 service provider under this section is confidential and exempt from
175-5 disclosure under Chapter 552, Government Code.
175-6 (n) All amounts collected by the comptroller from
175-7 telecommunications utilities under Subsection (l) of this section
175-8 shall be deposited to the credit of the telecommunications
175-9 utilities account in the telecommunications infrastructure fund in
175-10 the state treasury. All amounts collected by the comptroller from
175-11 commercial mobile service providers under Subsection (l) of this
175-12 section shall be deposited to the credit of the commercial mobile
175-13 service providers account in the telecommunications infrastructure
175-14 fund in the state treasury. Money in the fund may be appropriated
175-15 only for a use consistent with the purposes of this section.
175-16 Sections 403.094 and 403.095, Government Code, do not apply to the
175-17 fund or either account.
175-18 (o) From funds appropriated to the board, the comptroller
175-19 shall issue warrants as requested by the board in accordance with
175-20 the purposes of this section, including warrants to grantees of the
175-21 board in amounts certified by the board to the comptroller.
175-22 (p) In addition to any appropriated funds, the board may
175-23 accept gifts, grants, and donations and use them for the purposes
175-24 of this section.
175-25 (q) The board shall use money in the telecommunications
175-26 utilities account to award grants and loans in accordance with this
175-27 section to fund equipment purchases, including computers, printers,
176-1 computer labs, and video equipment, for public schools and for
176-2 intracampus and intercampus wiring to enable those public schools
176-3 to use the equipment. The board shall use money in the commercial
176-4 mobile service providers account for any purpose authorized by this
176-5 section, including equipment purchases, wiring, material, program
176-6 development, training, installation costs, or any statewide
176-7 telecommunications network.
176-8 (r) Subject to the limitations prescribed by Subsection (q)
176-9 of this section, the board may award grants to projects and
176-10 proposals that:
176-11 (1) provide equipment and infrastructure needed for
176-12 distance learning, information sharing programs of libraries, and
176-13 telemedicine services;
176-14 (2) develop and implement the initial or prototypical
176-15 delivery of courses and other distance learning material;
176-16 (3) train teachers, faculty, librarians, or
176-17 technicians in the use of distance learning or information sharing
176-18 materials and equipment;
176-19 (4) develop curricula and instructional material
176-20 especially suited for delivery by telecommunications;
176-21 (5) provide electronic information; or
176-22 (6) establish or carry out information sharing
176-23 programs.
176-24 (s) Subject to the limitations prescribed by Subsection (q)
176-25 of this section, the board may award loans to projects and
176-26 proposals to acquire equipment needed for distance learning and
176-27 telemedicine projects.
177-1 (t) In awarding grants and loans in accordance with this
177-2 section, the board shall give priority to projects and proposals
177-3 that:
177-4 (1) represent collaborative efforts involving multiple
177-5 schools, universities, or libraries;
177-6 (2) contribute matching funds from other sources;
177-7 (3) show promise of becoming self-sustaining;
177-8 (4) help users of information learn new ways to
177-9 acquire and use information through telecommunications;
177-10 (5) extend specific educational information and
177-11 knowledge services to groups not previously served, especially
177-12 those in rural and remote areas;
177-13 (6) result in more efficient or effective learning
177-14 than through conventional teaching;
177-15 (7) improve the effectiveness and efficiency of health
177-16 care delivery; or
177-17 (8) take advantage of distance learning opportunities
177-18 in rural and urban school districts with disproportionate numbers
177-19 of at-risk youths or with high dropout rates.
177-20 (u) The Texas Higher Education Coordinating Board, the
177-21 Central Education Agency, and the Texas State Library and Archives
177-22 Commission shall adopt policies and procedures in consultation with
177-23 the board that are designed to aid the board in achieving the
177-24 purposes of this section.
177-25 (v) In distributing funds to public schools, the board
177-26 shall take into account the relative property wealth per student of
177-27 the recipient school districts and recognize the unique needs of
178-1 rural communities.
178-2 Sec. 3.607 <3.356>. RECOVERY OF LOST REVENUES. A local
178-3 exchange company is entitled to recover the lost revenue, if any,
178-4 resulting solely from the provision of tel-assistance service from
178-5 the universal service fund, the establishment of which is provided
178-6 for by this Act.
178-7 Sec. 3.608 <3.357>. UNIVERSAL SERVICE FUND. (a) The
178-8 commission shall adopt and enforce rules requiring local exchange
178-9 companies to establish a universal service fund to assist local
178-10 exchange companies in providing basic local telecommunications
178-11 service <exchange service> at reasonable rates in high cost rural
178-12 areas, to reimburse local exchange companies for revenues lost as a
178-13 result of providing tel-assistance service under this Act, to
178-14 reimburse the telecommunications carrier providing the statewide
178-15 telecommunications relay access service for the hearing-impaired
178-16 and speech-impaired as authorized in Section 3.604 <3.354> of this
178-17 Act, and to reimburse the Texas Department of Human Services and
178-18 the commission for costs incurred in implementing the provisions of
178-19 this subtitle.
178-20 (b)(1) For local exchange companies serving fewer than five
178-21 million access lines, in addition to the authority described by
178-22 Subsection (a) of this section, the commission may adopt any
178-23 mechanisms necessary to maintain reasonable rates for local
178-24 exchange telephone service and shall establish rules that would
178-25 expand the universal service fund in the circumstances prescribed
178-26 by this subsection.
178-27 (2) In the event of a commission order, rule, or
179-1 policy, the effect of which is to reduce the amount of the high
179-2 cost assistance fund, except an order entered in an individual
179-3 company revenue requirements proceeding, the commission shall
179-4 implement a mechanism through the universal service fund to replace
179-5 the reasonably projected reduction in revenues caused by that
179-6 regulatory action.
179-7 (3) In the event of a Federal Communications
179-8 Commission order, rule, or policy, the effect of which is to change
179-9 the federal universal service fund revenues of a local exchange
179-10 company or change costs or revenues assigned to the intrastate
179-11 jurisdiction, the commission shall implement a mechanism, through
179-12 either the universal service fund or an increase to rates if that
179-13 increase would not adversely impact universal service, to replace
179-14 the reasonably projected change in revenues caused by the
179-15 regulatory action.
179-16 (4) In the event of a commission change in its policy
179-17 with respect to intraLATA "1+" dialing access, the commission shall
179-18 implement a mechanism, through either the universal service fund or
179-19 an increase to rates if that increase would not adversely impact
179-20 universal service, to replace the reasonably projected reduction in
179-21 contribution caused by the action. Contribution for purposes of
179-22 this subdivision equals average intraLATA long distance message
179-23 telecommunications service (MTS) revenue, including intraLATA toll
179-24 pooling and associated impacts, per minute less average MTS cost
179-25 per minute less the average contribution from switched access times
179-26 the projected change in intraLATA "1+" minutes of use.
179-27 (5) In the event of any other governmental agency
180-1 issuing an order, rule, or policy, the effect of which is to
180-2 increase costs or decrease revenues of the intrastate jurisdiction,
180-3 the commission shall implement a mechanism through either the
180-4 universal service fund or an increase to rates if that increase
180-5 would not adversely impact universal service, to replace the
180-6 reasonably projected increase in costs or decrease in revenues
180-7 caused by that regulatory action.
180-8 (6) A revenue requirement showing is not required with
180-9 respect to disbursements from the universal service fund under
180-10 Subsection (a) or (b) of this section. Those disbursements shall
180-11 be implemented promptly and efficiently so that telecommunications
180-12 providers and local exchange companies do not experience
180-13 unnecessary cash flow changes as a result of these changes in
180-14 governmental policy.
180-15 (c) The universal service fund shall be funded by a
180-16 statewide uniform charge, at rates and on services determined by
180-17 the commission, payable by all telecommunications providers
180-18 <utilities> that have access to the customer base. In establishing
180-19 the uniform level of the charge and the services to which it will
180-20 apply, the commission may not make or grant an unreasonable
180-21 preference or advantage to a telecommunications provider <utility>
180-22 or subject a telecommunications provider <utility> to unreasonable
180-23 prejudice or disadvantage. The charge shall be paid in accordance
180-24 with procedures approved by the commission.
180-25 (d) <(c)> The commission shall:
180-26 (1) establish, in a manner that assures reasonable
180-27 rates for basic local telecommunications <exchange> service,
181-1 eligibility criteria and review procedures, including a method for
181-2 administrative review, it finds necessary for funding of and
181-3 distribution from <participation in> the universal service fund;
181-4 (2) determine which local exchange companies meet the
181-5 eligibility criteria, which, at a minimum, include the requirement
181-6 to offer service to every consumer within its certificated area and
181-7 render continuous and adequate service within the area or areas, in
181-8 compliance with the commission's quality of service requirements;
181-9 (3) determine the amount of and approve a procedure
181-10 for reimbursement to local exchange companies of revenue lost in
181-11 providing tel-assistance service under this Act;
181-12 (4) prescribe and collect fees from the universal
181-13 service fund necessary to recover the costs the Texas Department of
181-14 Human Services and the commission incurred in implementing and
181-15 administrating the provisions of this subtitle; and
181-16 (5) approve procedures for the collection and
181-17 disbursal of the revenues of the universal service fund.
181-18 (e) <(d)> The commission shall adopt rules for the
181-19 implementation and administration of the universal service fund.
181-20 (f) <(e)> The commission may do all things necessary and
181-21 convenient to implement and administer the universal service fund,
181-22 including require local exchange companies and other
181-23 telecommunications providers to provide any reports and information
181-24 needed to assess contributions to the fund. All reports and
181-25 information are confidential and not subject to disclosure under
181-26 Chapter 552, Government Code.
181-27 Sec. 3.609 <3.358>. INTERACTIVE MULTIMEDIA COMMUNICATIONS.
182-1 (a) The commission shall permit a local exchange company that
182-2 provides interactive multimedia communications services to
182-3 establish rates at levels necessary, using sound ratemaking
182-4 principles, to recover costs associated with providing the
182-5 services. Unless determined by the commission to be in the public
182-6 interest, a local exchange company may not establish rates under
182-7 this subsection that are less than the local exchange company's
182-8 long-run incremental costs of providing the interactive multimedia
182-9 communications services.
182-10 (b) In this section, "interactive multimedia communications"
182-11 has the meaning assigned by Section 14.0451(a), Education Code, as
182-12 added by Chapter 868, Acts of the 73rd Legislature, Regular
182-13 Session, 1993.
182-14 Sec. 3.610 <3.359>. SEVERABILITY. If this subtitle
182-15 conflicts with another provision of this Act, this subtitle
182-16 prevails.
182-17 SUBTITLE O <I>. AUTOMATIC DIAL ANNOUNCING DEVICES
182-18 Sec. 3.651 <3.401>. DEFINITIONS. In this subtitle:
182-19 (1) "Automated dial announcing device" or "ADAD" means
182-20 automated equipment used for telephone solicitation or collection
182-21 that is capable:
182-22 (A) of storing telephone numbers to be called or
182-23 that has a random or sequential number generator capable of
182-24 producing numbers to be called; and
182-25 (B) alone or in conjunction with other
182-26 equipment, of conveying a prerecorded or synthesized voice message
182-27 to the number called without the use of a live operator.
183-1 (2) "LEC" means a local exchange company, as that term
183-2 is defined by Section 3.002 <3.001> of this Act.
183-3 Sec. 3.652 <3.402>. EXEMPTIONS. This subtitle does not
183-4 apply to the use of an ADAD to make a telephone call:
183-5 (1) relating to an emergency or a public service under
183-6 a program developed or approved by the emergency management
183-7 coordinator of the county in which the call was received; or
183-8 (2) made by a public or private primary or secondary
183-9 school system to locate or account for a truant student.
183-10 Sec. 3.653 <3.403>. REQUIREMENTS FOR OPERATION OF ADAD.
183-11 (a) A person may not operate an ADAD to make a telephone call if
183-12 the device plays a recorded message when a connection is completed
183-13 to a telephone number unless:
183-14 (1) the person has obtained a permit from the
183-15 commission and given written notice specifying the type of device
183-16 to each telecommunications utility over whose system the device is
183-17 to be used;
183-18 (2) the device is not used for random number dialing
183-19 or to dial numbers determined by successively increasing or
183-20 decreasing integers;
183-21 (3) the message states during the first 30 seconds of
183-22 the call the nature of the call, the identity of the person,
183-23 company, or organization making the call, and the telephone number
183-24 from which the call was made, provided, however, that if an ADAD is
183-25 used for debt collection purposes and the use complies with
183-26 applicable federal law and regulations, and the ADAD is used by a
183-27 live operator for automatic dialing or hold announcement purposes,
184-1 the use complies with this subdivision;
184-2 (4) the device disconnects from the called person's
184-3 line not later than 30 seconds after the call is terminated by
184-4 either party or, if the device cannot disconnect within that
184-5 period, a live operator introduces the call and receives the oral
184-6 consent of the called person before beginning a prerecorded or
184-7 synthesized voice message; <and>
184-8 (5) the device, when used for solicitation purposes,
184-9 has a message shorter than one minute or has the technical capacity
184-10 to recognize a telephone answering device on the called person's
184-11 line and terminates the call within one minute; and
184-12 (6) for calls terminating in this state, the device is
184-13 not used to make a call:
184-14 (A) before noon or after 9 p.m. on a Sunday or
184-15 before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the
184-16 device is used for solicitation; or
184-17 (B) at an hour at which collection calls would
184-18 be prohibited under the federal Fair Debt Collection Practices Act
184-19 (15 U.S.C. Section 1692 et seq.), if the device is used for
184-20 collection purposes.
184-21 (b) In addition to the requirements prescribed by Subsection
184-22 (a) of this section, if during the call a cross-promotion or
184-23 reference to a pay-per-call information service is made, the call
184-24 shall include:
184-25 (1) a statement that a charge will be incurred by a
184-26 caller who makes a call to a pay-per-call information services
184-27 telephone number;
185-1 (2) the amount of the flat-rate or cost-per-minute
185-2 charge that will be incurred or the amount of both if both charges
185-3 will be incurred; and
185-4 (3) the estimated amount of time required to receive
185-5 the entire information offered by the service during a call.
185-6 (c) In this section, "pay-per-call information service"
185-7 means a service that allows a caller to dial a specified "900" or
185-8 "976" number to call a service that routinely delivers, for a
185-9 predetermined and sometimes time-sensitive fee, a prerecorded or
185-10 live message or interactive program.
185-11 Sec. 3.654 <3.404>. INVESTIGATION OF COMPLAINTS; VIOLATIONS;
185-12 DISCONNECTION OF SERVICE. (a) The commission shall investigate
185-13 complaints relating to the use of an ADAD and enforce this
185-14 subtitle.
185-15 (b) If the commission or a court determines that a person
185-16 has violated this subtitle, the commission or court shall require a
185-17 telecommunications utility to disconnect service to the person.
185-18 The telecommunications utility may reconnect service to the person
185-19 only on a determination by the commission that the person will
185-20 comply with this subtitle. The utility shall give notice to the
185-21 person using the device of its intent to disconnect service not
185-22 later than the third day before the date of the disconnection,
185-23 except that if the device is causing network congestion or
185-24 blockage, the notice may be given on the day before the date of
185-25 disconnection.
185-26 (c) A telecommunications utility may, without an order by
185-27 the commission or a court, disconnect or refuse to connect service
186-1 to a person using or intending to use an ADAD if the utility
186-2 determines that the device would cause or is causing network harm.
186-3 Sec. 3.655 <3.405>. APPLICATION FOR PERMIT TO OPERATE ADAD.
186-4 (a) An application for a permit to use one or more ADADs must be
186-5 made using the form prescribed by the commission and must be
186-6 accompanied by a fee in a reasonable amount computed to cover the
186-7 enforcement cost to the commission, but not to exceed $500, as
186-8 determined by the commission. A permit is valid for one year after
186-9 its effective date. Subject to Subsection (c) of this section, a
186-10 permit may be renewed annually by making the filing required by
186-11 this section and paying a filing fee of not more than $100, as
186-12 determined by the commission. The proceeds of the fees shall be
186-13 deposited to the credit of the general revenue fund.
186-14 (b) Each application for the issuance or renewal of a permit
186-15 under this section must contain the telephone number of each ADAD
186-16 that will be used and the physical address from which the ADAD will
186-17 operate. If the telephone number of an ADAD or the physical
186-18 address from which the ADAD operates changes, the owner or operator
186-19 of the ADAD shall notify the commission by certified mail of each
186-20 new number or address not later than the 48th hour before the hour
186-21 at which the ADAD will begin operating with the new telephone
186-22 number or at the new address. If the owner or operator of an ADAD
186-23 fails to notify the commission as required by this subsection
186-24 within the period prescribed by this subsection, the permit is
186-25 automatically invalid.
186-26 (c) In determining if a permit should be issued or renewed,
186-27 the commission shall consider the compliance record of the owner or
187-1 operator of the ADAD. The commission may deny an application for
187-2 the issuance or renewal of a permit because of the applicant's
187-3 compliance record.
187-4 (d) The commission shall provide to an LEC on request a copy
187-5 of a permit issued under this section and of any changes relating
187-6 to the permit.
187-7 (e) An LEC that receives a complaint relating to the use of
187-8 an ADAD shall send the complaint to the commission. The commission
187-9 by rule shall prescribe the procedures and requirements for sending
187-10 a complaint to the commission.
187-11 Sec. 3.656 <3.406>. VIOLATIONS; PENALTIES. (a) A person
187-12 who owns or operates an ADAD and who operates the ADAD without a
187-13 valid permit or with an expired permit or who operates the ADAD in
187-14 violation of this subtitle or a commission rule or order is subject
187-15 to an administrative penalty of not more than $1,000 for each day
187-16 or portion of a day during which the ADAD was operating in
187-17 violation of this section.
187-18 (b) The administrative penalty authorized by this section is
187-19 civil in nature and is cumulative of any other penalty provided by
187-20 law.
187-21 (c) The commission by rule shall prescribe the procedures
187-22 for assessing an administrative penalty under this section. The
187-23 procedures shall require proper notice and hearing in accordance
187-24 with Chapter 2001, Government Code.
187-25 (d) A person may appeal the final order of the commission
187-26 under Chapter 2001, Government Code, using the substantial evidence
187-27 rule on appeal.
188-1 (e) The proceeds of administrative penalties collected under
188-2 this section shall be deposited to the credit of the general
188-3 revenue fund.
188-4 Sec. 3.657 <3.407>. REVOCATION OF PERMIT; OFFENSES.
188-5 (a) The commission may revoke a permit issued under this subtitle
188-6 for failure to comply with this subtitle.
188-7 (b) A person commits an offense if the person owns or
188-8 operates an ADAD that the person knows is operating in violation of
188-9 this subtitle. An offense under this subsection is a Class A
188-10 misdemeanor.
188-11 Sec. 3.658 <3.408>. RULEMAKING AUTHORITY. The commission
188-12 may adopt any rules necessary to carry out its powers and duties
188-13 under this subtitle.
188-14 Sec. 3.659 <3.409>. COMPLIANCE WITH CONSUMERS' REQUESTS NOT
188-15 TO BE CALLED. Every telephone solicitor operating in this state
188-16 who makes consumer telephone calls subject to Section 37.02 of the
188-17 Business & Commerce Code shall implement in-house systems and
188-18 procedures so that every effort is made not to call consumers who
188-19 ask not to be called again. The commission is granted all
188-20 necessary power and authority to enforce the provisions of this
188-21 section.
188-22 Sec. 3.660 <3.410>. NOTICE TO CONSUMER OF PROVISIONS OF
188-23 CHAPTER 37 OF THE BUSINESS & COMMERCE CODE AND SECTION 3.659
188-24 <3.409>. The commission by rule shall require that a local
188-25 exchange company or telephone cooperative inform its customers of
188-26 the provisions of Chapter 37 of the Business & Commerce Code and
188-27 Section 3.659 <3.409> of this Act by:
189-1 (1) inserting the notice annually in the billing
189-2 statement mailed to a customer; or
189-3 (2) publishing the notice in the consumer information
189-4 pages of its local telephone directory.
189-5 SECTION 50. (a) Subchapter D, Chapter 74, Property Code, is
189-6 amended by adding Section 74.3011 to read as follows:
189-7 Sec. 74.3011. DELIVERY OF MONEY TO RURAL SCHOLARSHIP FUND.
189-8 (a) Notwithstanding and in addition to any other provision of this
189-9 chapter or other law, a local telephone exchange company may
189-10 deliver reported money to a scholarship fund for rural students
189-11 instead of delivering the money to the state treasurer as
189-12 prescribed by Section 74.301.
189-13 (b) A local telephone exchange company may deliver the money
189-14 under this section only to a scholarship fund established by one or
189-15 more local telephone exchange companies in this state to enable
189-16 needy students from rural areas to attend college, technical
189-17 school, or another postsecondary educational institution.
189-18 (c) A local telephone exchange company shall file with the
189-19 state treasurer a verification of money delivered under this
189-20 section that complies with Section 74.302.
189-21 (d) A claim for money delivered to a scholarship fund under
189-22 this section must be filed with the local telephone exchange
189-23 company that delivered the money. The local telephone exchange
189-24 company shall forward the claim to the administrator of the
189-25 scholarship fund to which the money was delivered. The scholarship
189-26 fund shall pay the claim if the fund determines in good faith that
189-27 the claim is valid. A person aggrieved by a claim decision may
190-1 file a suit against the fund in a district court in the county in
190-2 which the administrator of the scholarship fund is located in
190-3 accordance with Section 74.506.
190-4 (e) The state treasurer shall prescribe forms and procedures
190-5 governing this section, including forms and procedures relating to:
190-6 (1) notice of presumed abandoned property;
190-7 (2) delivery of reported money to a scholarship fund;
190-8 and
190-9 (3) filing of a claim.
190-10 (f) In this section, "local telephone exchange company"
190-11 means a telecommunications utility certificated to provide local
190-12 exchange service within the state and that is a telephone
190-13 cooperative or has fewer than 50,000 access lines in service in
190-14 this state.
190-15 (g) During a state fiscal year, the total amount of money
190-16 that may be transferred by all local telephone exchange companies
190-17 under this section may not exceed $400,000. The state treasury
190-18 shall keep a record of the total amount of money transferred
190-19 annually. When the total amount of money transferred during a state
190-20 fiscal year equals the amount allowed by this subsection, the
190-21 treasury shall notify each local telephone exchange company that
190-22 the company may not transfer any additional money to the company's
190-23 scholarship fund during the remainder of that state fiscal year.
190-24 (b) Section 74.3011, Property Code, as added by this Act,
190-25 applies only to money that a local telephone exchange company would
190-26 otherwise be required to deliver to the state treasurer on or after
190-27 the effective date of this Act. Money that was required to be
191-1 delivered to the state treasurer before the effective date of this
191-2 Act is governed by the law in effect when the money was required to
191-3 be delivered, and that law is continued in effect for that purpose.
191-4 SECTION 51. (a) Subchapter D, Chapter 74, Property Code, is
191-5 amended by adding Section 74.3012 to read as follows:
191-6 Sec. 74.3012. DELIVERY OF MONEY TO URBAN SCHOLARSHIP FUND.
191-7 (a) Notwithstanding and in addition to any other provision of this
191-8 chapter or other law, a local exchange company may deliver reported
191-9 money to a scholarship fund for urban students instead of
191-10 delivering the money to the state treasurer as prescribed by
191-11 Section 74.301.
191-12 (b) A local exchange company may deliver the money under
191-13 this section only to a scholarship fund established by one or more
191-14 local exchange companies in this state to enable needy students
191-15 from urban areas to attend college, technical school, or another
191-16 postsecondary educational institution.
191-17 (c) A local exchange company shall file with the state
191-18 treasurer a verification of money delivered under this section that
191-19 complies with Section 74.302.
191-20 (d) A claim for money delivered to a scholarship fund under
191-21 this section must be filed with the local exchange company that
191-22 delivered the money. The local exchange company shall forward the
191-23 claim to the administrator of the scholarship fund to which the
191-24 money was delivered. The scholarship fund shall pay the claim if
191-25 the fund determines in good faith that the claim is valid. A person
191-26 aggrieved by a claim decision may file a suit against the fund in a
191-27 district court in the county in which the administrator of the
192-1 scholarship fund is located in accordance with Section 74.506.
192-2 (e) The state treasurer shall prescribe forms and procedures
192-3 governing this section, including forms and procedures relating to:
192-4 (1) notice of presumed abandoned property;
192-5 (2) delivery of reported money to a scholarship fund;
192-6 and
192-7 (3) filing of a claim.
192-8 (f) In this section, "local exchange company" means a
192-9 telecommunications utility certificated to provide local exchange
192-10 telephone service within the state and that has 50,000 or more
192-11 access lines in service in this state and is not a telephone
192-12 cooperative.
192-13 (g) During the 1995-1996 fiscal year, the total amount of
192-14 money that may be transferred by all local exchange companies under
192-15 this section may not exceed $400,000. During each subsequent state
192-16 fiscal year, the total amount of money that may be transferred by
192-17 all local exchange companies under this section may not exceed the
192-18 total amount of money transferred to rural scholarship funds under
192-19 Section 74.3011 during the previous state fiscal year. The state
192-20 treasury shall keep a record of the total amount of money
192-21 transferred annually. If the total amount of money transferred
192-22 during a state fiscal year equals the amount allowed by this
192-23 subsection, the treasury shall notify each local exchange company
192-24 that the company may not transfer any additional money to the
192-25 company's scholarship fund during the remainder of that state
192-26 fiscal year.
192-27 (b) Section 74.3012, Property Code, as added by this Act,
193-1 applies only to money that a local exchange company would otherwise
193-2 be required to deliver to the state treasurer on or after the
193-3 effective date of this Act. Money that was required to be delivered
193-4 to the state treasurer before the effective date of this Act is
193-5 governed by the law in effect when the money was required to be
193-6 delivered, and that law is continued in effect for that purpose.
193-7 SECTION 52. As soon as possible after the effective date of
193-8 this Act, the governor and lieutenant governor shall appoint the
193-9 members of the Telecommunications Infrastructure Fund Board created
193-10 by Section 3.606, Public Utility Regulatory Act of 1995, as enacted
193-11 by S.B. 319, Acts of the 74th Legislature, Regular Session, 1995,
193-12 as added by this Act. The governor shall appoint two members with
193-13 terms expiring on August 31, 1997, two members with terms expiring
193-14 on August 31, 1999, and two members with terms expiring on August
193-15 31, 2001. The terms of the members appointed from the list
193-16 provided by the speaker of the house of representatives must be
193-17 staggered so that the terms of one-third of those appointees expire
193-18 every odd-numbered year. The lieutenant governor shall appoint one
193-19 member with a term expiring on August 31, 1997, one member with a
193-20 term expiring on August 31, 1999, and one member with a term
193-21 expiring on August 31, 2001.
193-22 SECTION 53. All laws or parts of laws in conflict with this
193-23 Act are repealed effective September 1, 1995.
193-24 SECTION 54. (a) This Act takes effect September 1, 1995.
193-25 (b) Section 3.2555, Public Utility Regulatory Act of 1995,
193-26 as enacted by S.B. 319, Acts of the 74th Legislature, Regular
193-27 Session, 1995, as added by this Act, applies only to a franchise or
194-1 contract entered into or amended on or after September 1, 1995. A
194-2 franchise or contract entered into before September 1, 1995, and
194-3 not amended on or after that date is governed by the law in effect
194-4 when the contract was entered into or last amended, and that law is
194-5 continued in effect for that purpose.
194-6 (c) Sections 3.304(a)(2) and (3), Public Utility Regulatory
194-7 Act of 1995, as enacted by S.B. 319, Acts of the 74th Legislature,
194-8 Regular Session, 1995, as amended by this Act, apply only to a
194-9 petition filed on or after April 15, 1995. A petition filed before
194-10 April 15, 1995, is governed by the law in effect when the petition
194-11 was filed, and that law is continued in effect for that purpose.
194-12 SECTION 55. The importance of this legislation and the
194-13 crowded condition of the calendars in both houses create an
194-14 emergency and an imperative public necessity that the
194-15 constitutional rule requiring bills to be read on three several
194-16 days in each house be suspended, and this rule is hereby suspended.