SRC-DBM S.B. 1020 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1020
76R6039  CBH-DBy: Shapleigh
Economic Development
4/11/1999
As Filed


DIGEST 

Currently, many Texan consumers purchase "prepaid calling cards" which are
available from a wide variety of outlets and give the consumer access to
telephone services up to the dollar value on the card. However, despite
their convenience, there is often no way for the consumer to determine the
per-minute rate, minimum rates, or per-call fees associated with the use of
the cards.  Several states have already enacted laws or adopted regulations
requiring disclosure of these important terms and conditions on prepaid
calling cards.  Such disclosures enable consumers to compare cards when
shopping and may provide them with some recourse if a card provider goes
out of business.  S.B. 1020 would authorize the Public Utility Commission
of Texas (commission) to prescribe, by rule, standards regarding the
information a prepaid calling card company shall disclose to customers in
relation to the rates and terms of service for prepaid calling services
offered in this state.   

PURPOSE

As proposed, S.B. 1020 sets forth provisions for telephone prepaid calling
services. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Public Utility Commission of Texas
in SECTION 1 (Sections 55.253(b) and (c), Chapter 55J, Utilities Code) of
this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 55J, Utilities Code, by adding Section 55.253,
as follows: 

Sec. 55.253.  TELEPHONE PREPAID CALLING SERVICES.  Defines "prepaid calling
card company," and "prepaid calling service."  Authorizes the Public
Utility Commission of Texas (commission) to prescribe, by rule, standards
regarding the information a prepaid calling card company shall disclose to
customers in relation to the rates and terms of service for prepaid calling
services offered in this state.  Provides that the commission is granted
all necessary jurisdiction to adopt rules under this section and to enforce
those rules and this section.  Provides that a violation of a rule adopted
under this chapter is subject to enforcement under Chapter 15B. 

SECTION 2.Emergency clause.
  Effective date: upon passage.