By:  Sibley                                           S.B. No. 1915

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the regulation of utilities.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 1.034, Public Utility Regulatory Act of

 1-4     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

 1-5     to read as follows:

 1-6           Sec. 1.034.  Orders; Transcript and Exhibits; Public Records.

 1-7     (a)  All orders of the commission shall be in writing and shall

 1-8     contain detailed findings of the facts upon which they are passed.

 1-9           (b)  The commission shall retain a copy of the transcript and

1-10     the exhibits in any matter in which the commission issues an order.

1-11     All files pertaining to matters which were at any time pending

1-12     before the commission and to records, reports, and inspections

1-13     required by Subtitle E of this title, Title II of this Act, and

1-14     Title III of this Act shall be public records, subject to the terms

1-15     of Chapter 552, Government Code.

1-16           (c)  The commission may establish a system to provide

1-17     electronic access to information that is stored in computer banks

1-18     maintained by the commission and that is not considered to be

1-19     confidential by law, whether constitutional, statutory, or judicial

1-20     decision.  The system must be reviewed and approved by the

1-21     Department of Information Resources.  The commission may impose a

1-22     fee for electronic access to the information in an amount

1-23     reasonable and necessary to cover the costs of payments to the

 2-1     Texas Public Finance Authority associated with establishing the

 2-2     electronic access system.

 2-3           SECTION 2.  Section 3.002, Public Utility Regulatory Act of

 2-4     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

 2-5     by adding Subdivision (13) to read as follows:

 2-6                 (13)  "Rural telephone company" means an incumbent

 2-7     local exchange company that meets one or more of the following

 2-8     requirements:

 2-9                       (A)  the company provides local exchange

2-10     telephone service to a certificated service area that does not

2-11     include:

2-12                             (i)  a municipality with a population of

2-13     more than 10,000, as determined by the most recent statistics of

2-14     the United States Bureau of the Census; or

2-15                             (ii)  any area, whether or not

2-16     incorporated, included within an area that as of August 10, 1993,

2-17     was an urbanized area as determined by the United States Bureau of

2-18     the Census;

2-19                       (B)  the company provides local exchange

2-20     telephone service, including exchange access, to fewer than 50,000

2-21     access lines in the state;

2-22                       (C)  the company provides local exchange

2-23     telephone service to a study area with fewer than 100,000 access

2-24     lines; or

2-25                       (D)  as of February 28, 1996, less than 15

 3-1     percent of the company's access lines were located in

 3-2     municipalities with a population of more than 50,000.

 3-3           SECTION 3.  Section 3.211, Public Utility Regulatory Act of

 3-4     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

 3-5     by adding Subsection (k) to read as follows:

 3-6           (k)  Notwithstanding any other law, including Subtitles H and

 3-7     I of this title, if the assessment imposed under Section 3.606 of

 3-8     this Act is increased by an Act of the 75th Legislature, Regular

 3-9     Session, 1997, the commission may permit a public utility to

3-10     recover exclusively from its retail customers the amount of the

3-11     increase.  In considering a request for this recovery, the

3-12     commission shall consider only whether the recovery is equitable in

3-13     the applicable circumstances and the proper computation of the

3-14     amount under Subtitle H or I of this title, Section 3.354 of this

3-15     Act applies to the rate adjustment procedure.

3-16           SECTION 4.  Subtitle E, Title III, Public Utility Regulatory

3-17     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

3-18     amended by adding Section 3.2133 to read as follows:

3-19           Sec. 3.2133.  RURAL TELEPHONE COMPANIES.  To better conform

3-20     state and federal regulation of incumbent local exchange companies,

3-21     and subject to such duties as the commission may determine are

3-22     appropriate under 47 U.S.C. Sections 251(a), (b), and (c), the

3-23     commission shall permit a rural telephone company not otherwise

3-24     exempt from interconnection obligations under state law to apply

3-25     for the exemptions to and suspensions and modifications of the

 4-1     duties as provided by 47 U.S.C. Section 251(f).

 4-2           SECTION 5.  Section 3.302, Public Utility Regulatory Act of

 4-3     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

 4-4     to read as follows:

 4-5           Sec. 3.302.  Caller Identification Services.  (a)  This

 4-6     section applies only to the provision of caller identification

 4-7     service.

 4-8           (b)  A person may not offer a caller identification service

 4-9     unless the person obtains written authorization from the

4-10     commission.

4-11           (c)  Except as provided by Subsection (e) of this section,

4-12     the [The] commission shall require that a provider of caller

4-13     identification service offer per-call blocking at no charge to each

4-14     telephone subscriber in the specific area in which the service is

4-15     offered.

4-16           (d)  Except as provided by Subsection (e) of this section,

4-17     the [The] commission shall require that a provider offer per-line

4-18     blocking at no charge to a particular customer if the commission

4-19     receives from the customer written certification that the customer

4-20     has a compelling need for per-line blocking.  If a customer later

4-21     removes the per-line block, the provider may assess a service order

4-22     charge relating to administrative costs in an amount approved by

4-23     the commission to reinstate the per-line block.  The commission may

4-24     prescribe and assess fees and assessments from providers of caller

4-25     identification service in an amount sufficient to cover the

 5-1     additional expenses incurred by the commission in implementing the

 5-2     customer certification provisions of this subsection.  Reports,

 5-3     records, and information received under this subsection by the

 5-4     commission or by a provider of caller identification service are

 5-5     confidential and may be used only for the purposes of administering

 5-6     this subsection.

 5-7           (e)  A telephone solicitor may not use any method, including

 5-8     per-call blocking or per-line blocking, that prevents caller

 5-9     identification information for the telephone solicitor's lines used

5-10     to make consumer telephone calls from being shown by a device

5-11     capable of displaying caller identification information.  In this

5-12     subsection, "telephone solicitor" and "consumer telephone call"

5-13     have the meanings assigned by Section 37.01, Business & Commerce

5-14     Code.

5-15           (e-1)  Not later than January 1, 1998, from each line used

5-16     for consumer telephone calls, a telephone solicitor shall remove

5-17     per-line blocking and any other method prohibited by Subsection (e)

5-18     of this section.  This subsection expires January 31, 1998.

5-19           (f)  The commission may only prescribe in relation to

5-20     blocking the requirements prescribed by Subsections (c), [and] (d),

5-21     and (e) of this section.

5-22           (g) [(f)]  A person may not use a caller identification

5-23     service to compile and sell specific local call information without

5-24     the affirmative consent and approval of the originating telephone

5-25     customer.  This subsection does not prohibit the provider from:

 6-1                 (1)  verifying network performance or from testing the

 6-2     provision of caller identification service;

 6-3                 (2)  compiling, using, and disclosing aggregate caller

 6-4     identification information; or

 6-5                 (3)  complying with applicable law or legal process.

 6-6           (h) [(g)]  This section does not apply to:

 6-7                 (1)  an identification service that is used within the

 6-8     same limited system, including a central office based PBX-type

 6-9     system;

6-10                 (2)  information that is used on a public agency's

6-11     emergency telephone line or on a line that receives the primary

6-12     emergency telephone number (9-1-1);

6-13                 (3)  information passed between telecommunications

6-14     utilities, enhanced service providers, or other entities that is

6-15     necessary for the set-up, processing, transmission, or billing of

6-16     telecommunications or related services;

6-17                 (4)  information provided in compliance with applicable

6-18     law or legal process; or

6-19                 (5)  an identification service provided in connection

6-20     with a "700," "800," or "900" access code telecommunications

6-21     service.

6-22           (i) [(h)]  In this section:

6-23                 (1)  "Caller identification information" means:

6-24                       (A)  the telephone listing number and/or name of

6-25     the customer from whose telephone instrument a telephone number is

 7-1     dialed; or

 7-2                       (B)  other information that may be used to

 7-3     identify the specific originating number or originating location of

 7-4     a wire or electronic communication transmitted by a telephone

 7-5     instrument.

 7-6                 (2)  "Caller identification service" means a service

 7-7     offered by a telecommunications utility that provides caller

 7-8     identification information to a device capable of displaying the

 7-9     information.

7-10                 (3)  "Per-call blocking" means a telecommunications

7-11     service that prevents the transmission of caller identification

7-12     information to a called party on an individual call if the calling

7-13     party acts affirmatively to prevent the transmission of the caller

7-14     identification information.

7-15                 (4)  "Per-line blocking" means a telecommunications

7-16     service that prevents the transmission of caller identification

7-17     information to a called party on every call unless the calling

7-18     party acts affirmatively to release the caller identification

7-19     information.

7-20           (j) [(i)]  A commercial mobile service provider may offer

7-21     caller identification services under the same terms and conditions

7-22     provided by Subsections (c)-(g) [(f)] of this section.

7-23           SECTION 6.  Subsection (q), Section 3.606, Public Utility

7-24     Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

7-25     Statutes), is amended to read as follows:

 8-1           (q)  The board shall use money in the telecommunications

 8-2     utilities account to award grants and loans in accordance with this

 8-3     section to fund equipment purchases, including computers, printers,

 8-4     computer labs, and video equipment, for public schools and for

 8-5     intracampus and intercampus wiring to enable those public schools

 8-6     to use the equipment.  The board shall use money in the commercial

 8-7     mobile service providers account for any purpose authorized by this

 8-8     section, including equipment purchases, wiring, material, program

 8-9     development, training, installation costs, or any statewide

8-10     telecommunications network.  Grants and loans awarded in accordance

8-11     with this section to public school collaboratives may be disbursed

8-12     through regional education service centers on request of the public

8-13     schools participating in the collaborative.

8-14           SECTION 7.  Subsection (a), Section 3.608, Public Utility

8-15     Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

8-16     Statutes), is amended to read as follows:

8-17           (a)  The commission shall adopt and enforce rules requiring

8-18     local exchange companies to establish a universal service fund to

8-19     assist local exchange companies in providing basic local

8-20     telecommunications service at reasonable rates in high cost [rural]

8-21     areas, to reimburse local exchange companies for revenues lost as a

8-22     result of providing tel-assistance service under this Act, to

8-23     reimburse the telecommunications carrier providing the statewide

8-24     telecommunications relay access service for the hearing-impaired

8-25     and speech-impaired as authorized in Section 3.604 of this Act, and

 9-1     to reimburse the Texas Department of Human Services and the

 9-2     commission for costs incurred in implementing the provisions of

 9-3     this subtitle.

 9-4           (g)  For the purposes of applying rules and otherwise

 9-5     administering this section, the commission shall treat a rural

 9-6     telephone company, having fewer than 100,000 access lines as of

 9-7     January 1, 1997, in the same manner it treats an incumbent local

 9-8     exchange company serving fewer than 31,000 access lines in this

 9-9     state or a telephone cooperative corporation.

9-10           SECTION 8.  Subsection (a), Section 3.653, Public Utility

9-11     Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

9-12     Statutes), is amended to read as follows:

9-13           (a)  A person may not operate an ADAD to make a telephone

9-14     call if the device plays a recorded message when a connection is

9-15     completed to a telephone number unless:

9-16                 (1)  the person has obtained a permit from the

9-17     commission and given written notice specifying the type of device

9-18     to each telecommunications utility over whose system the device is

9-19     to be used;

9-20                 (2)  the device is not used for random number dialing

9-21     or to dial numbers determined by successively increasing or

9-22     decreasing integers;

9-23                 (3)  the message states during the first 30 seconds of

9-24     the call the nature of the call, the identity of the person,

9-25     company, or organization making the call, and the telephone number

 10-1    from which the call was made, provided, however, that if an ADAD is

 10-2    used for debt collection purposes and the use complies with

 10-3    applicable federal law and regulations, and the ADAD is used by a

 10-4    live operator for automatic dialing or hold announcement purposes,

 10-5    the use complies with this subdivision;

 10-6                (4)  the device disconnects from the called person's

 10-7    line not later than 30 seconds after the call is terminated by

 10-8    either party or, if the device cannot disconnect within that

 10-9    period, a live operator introduces the call and receives the oral

10-10    consent of the called person before beginning a prerecorded or

10-11    synthesized voice message;

10-12                (5)  the device, when used for solicitation purposes,

10-13    has a message shorter than 30 seconds [one minute] or has the

10-14    technical capacity to recognize a telephone answering device on the

10-15    called person's line and terminates the call within 30 seconds [one

10-16    minute]; and

10-17                (6)  for calls terminating in this state, the device is

10-18    not used to make a call:

10-19                      (A)  before noon or after 9 p.m. on a Sunday or

10-20    before 9 a.m. or after 9 p.m. on a weekday or a Saturday, if the

10-21    device is used for solicitation; or

10-22                      (B)  at an hour at which collection calls would

10-23    be prohibited under the federal Fair Debt Collection Practices Act

10-24    (15 U.S.C. Section 1692 et seq.), if the device is used for

10-25    collection purposes.

 11-1          SECTION 9.  Subsection (e), Section 3.656, Public Utility

 11-2    Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

 11-3    Statutes), is amended to read as follows:

 11-4          (e)  The proceeds of administrative penalties collected under

 11-5    this section shall be deposited to the credit of the commission and

 11-6    shall be used by the commission to enforce this subtitle [general

 11-7    revenue fund].

 11-8          SECTION 10.  Subtitle O, Title III, Public Utility Regulatory

 11-9    Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

11-10    amended by adding Section 3.661 to read as follows:

11-11          Sec. 3.661.  EDUCATIONAL PROGRAM.  In addition to the notice

11-12    required by Section 3.660 of this Act, the commission shall conduct

11-13    an educational program designed to inform the public of its rights

11-14    under Section 3.659 of this Act and Section 37.02, Business &

11-15    Commerce Code.  The educational program shall be directed to all

11-16    residential telephone subscribers and shall be conducted no less

11-17    frequently than annually if funds are available.

11-18          SECTION 11.  Subtitle K, Title I, Public Utility Regulatory

11-19    Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes, is

11-20    amended by adding Section 1.408 to read as follows:

11-21          Sec. 1.408.  REFUNDS FOR OVERBILLING.  The commission by rule

11-22    shall require a public utility that charges a customer more than

11-23    the lawful rate for the service being purchased by the customer to

11-24    refund the overcharged amount by an adjustment made for the entire

11-25    period of the overcharges.

 12-1          SECTION 12.  This Act takes effect September 1, 1997.

 12-2          SECTION 13.  The importance of this legislation and the

 12-3    crowded condition of the calendars in both houses create an

 12-4    emergency and an imperative public necessity that the

 12-5    constitutional rule requiring bills to be read on three several

 12-6    days in each house be suspended, and this rule is hereby suspended.