SRC-AAA S.B. 760 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 760
By: Sibley
Economic Development
3-4-97
As Filed


DIGEST 

Currently, state law provides limited means by which to punish telephone
companies that switch a customer to that company's service without
authorization, a practice known as "slamming."  The Public Utility
Commission of Texas (commission) has no authority to punish companies for
slamming customers. Customers who have been switched without their
authorization are limited to filing complaints with the state attorney
general or the Federal Communications Commission.  This bill gives the
commission  rulemaking authority to govern slamming in the long distance
and local exchange markets in Texas, including requiring the verification
of a customer's request to change telecommunications utilities, specifying
that a customer not be required to pay a company that has slammed the
customer, authorizing the commission to levy fines against companies
guilty of slamming, and authorizing the commission to ban a company from
providing service in this state for severe cases of misconduct. 

PURPOSE

As proposed, S.B. 760  requires the Public Utility Commission to adopt
nondiscriminatory and competitively neutral telecommunications utility
selection rules governing the customer's selection of telecommunication
utilities that meet certain provisions.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to Public Utility Commission of Texas in
SECTION 1 (Section 3.312, Article 1446c-0, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title IIIG, Article 1446c-0, V.T.C.S. (Public Utility
Regulatory Act of 1995), by adding Section 3.312, as follows: 

Sec. 3.312. TELECOMMUNICATIONS UTILITY SELECTION RULES.  Requires the
Public Utility Commission of Texas (commission) to adopt nondiscriminatory
and competitively neutral telecommunications utility selection rules
governing the customer's selection of telecommunications utilities that
meet certain provisions.  Grants the commission jurisdiction to adopt
rules required by this section and to enforce the provisions of these
rules and this section.  Authorizes the commission to notify customers of
their rights under these rules. 

SECTION 2. Amends Section 3.051(c), Article 1446c-0 V.T.C.S.,  to make a
conforming change. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.