By Van de Putte H.B. No. 1701
76R6881 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of telecommunications utilities and to
1-3 the provision of telecommunications and related services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The section heading to Section 52.058, Utilities
1-6 Code, is amended to read as follows:
1-7 Sec. 52.058. GENERAL PROVISIONS RELATING TO NEW OR
1-8 EXPERIMENTAL SERVICES OR PROMOTIONAL RATES.
1-9 SECTION 2. Subchapter B, Chapter 52, Utilities Code, is
1-10 amended by adding Sections 52.0583, 52.0584, and 52.0585 to read as
1-11 follows:
1-12 Sec. 52.0583. NEW SERVICES. (a) An incumbent local exchange
1-13 company may introduce a new service 24 hours after providing an
1-14 informational notice to the commission.
1-15 (b) An incumbent local exchange company shall price each new
1-16 service at or above the service's long run incremental cost. The
1-17 commission shall allow a company serving fewer than one million
1-18 access lines in this state to establish a service's long run
1-19 incremental cost by adopting, at that company's option, the cost
1-20 studies of a larger company for that service that have been
1-21 accepted by the commission.
1-22 (c) Only an affected person may file a complaint with the
1-23 commission challenging whether the pricing by an incumbent local
1-24 exchange company of a new service is in compliance with Subsection
2-1 (b). The commission shall allow the company to continue to provide
2-2 the service while the complaint is pending.
2-3 (d) An affected person filing a complaint under Subsection
2-4 (c) has the burden of proving that the incumbent local exchange
2-5 company did not set the price for the new service in accordance
2-6 with the applicable provisions of this subchapter. If the
2-7 complaint is finally resolved in favor of the complainant, the
2-8 company:
2-9 (1) shall, not later than the 10th day after the date
2-10 the complaint is finally resolved, amend the price of the service
2-11 as necessary to comply with the final resolution; or
2-12 (2) may, at the company's option, discontinue the
2-13 service.
2-14 Sec. 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
2-15 PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision of
2-16 this title, an incumbent local exchange company may exercise
2-17 pricing flexibility in accordance with this section, including the
2-18 packaging of any regulated service such as basic local
2-19 telecommunications service with any other regulated or unregulated
2-20 service or any service of an affiliate. The company may exercise
2-21 pricing flexibility 24 hours after providing an informational
2-22 notice to the commission.
2-23 (b) An incumbent local exchange company, at the company's
2-24 option, shall price each regulated service offered separately or as
2-25 part of a package under Subsection (a) at either the service's
2-26 tariffed rate or at a rate not lower than the service's long run
2-27 incremental cost. The commission shall allow a company serving
3-1 fewer than one million access lines in this state to establish a
3-2 service's long run incremental cost by adopting, at that company's
3-3 option, the cost studies of a larger company for that service that
3-4 have been accepted by the commission.
3-5 (c) Only an affected person may file a complaint alleging
3-6 that an incumbent local exchange company has priced a regulated
3-7 service in a manner that does not meet the pricing standards of
3-8 this subchapter. The complaint must be filed before the 31st day
3-9 after the company implements the rate.
3-10 Sec. 52.0585. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
3-11 incumbent local exchange company may offer a promotion for a
3-12 regulated service for not more than 90 days in any 12-month period.
3-13 (b) The company shall file with the commission a promotional
3-14 offering that consists of:
3-15 (1) waiver of installation charges or service order
3-16 charges, or both, for not more than 90 days in a 12-month period;
3-17 or
3-18 (2) a temporary discount of not more than 25 percent
3-19 from the tariffed rate for not more than 60 days in a 12-month
3-20 period.
3-21 (c) An incumbent local exchange company is not required to
3-22 obtain commission approval to make a promotional offering described
3-23 by Subsection (b).
3-24 (d) An incumbent local exchange company may offer a
3-25 promotion of any regulated service as part of a package of services
3-26 consisting of any regulated service with any other regulated or
3-27 unregulated service or any service of an affiliate.
4-1 SECTION 3. Subchapter C, Chapter 54, Utilities Code, is
4-2 amended by adding Section 54.1015 to read as follows:
4-3 Sec. 54.1015. EFFECT OF AFFILIATE. Notwithstanding any
4-4 other provision of this title, a person may hold a certificate for
4-5 all or any portion of a service area for which one or more
4-6 affiliates of the person holds a certificate of operating
4-7 authority, a service provider certificate of operating authority,
4-8 or a certificate of convenience and necessity.
4-9 SECTION 4. Section 54.103, Utilities Code, is amended by
4-10 adding Subsection (g) to read as follows:
4-11 (g) Notwithstanding any other provision of this title, in
4-12 determining whether to grant a certificate, the commission may not
4-13 consider whether an affiliate of the applicant holds a certificate
4-14 of operating authority, a service provider certificate of operating
4-15 authority, or a certificate of convenience and necessity for all or
4-16 part of the territory the applicant has applied to serve.
4-17 SECTION 5. Section 56.026, Utilities Code, is amended by
4-18 adding Subsections (c) and (d) to read as follows:
4-19 (c) Notwithstanding any other provision of this title, if a
4-20 company electing under Chapter 58 or 59 agrees to reduce rates in
4-21 conjunction with receiving disbursements from the universal service
4-22 fund, the commission may not reduce the amount of those
4-23 disbursements unless the electing company agrees to the
4-24 disbursement reduction.
4-25 (d) Any reductions in switched access services rates to
4-26 offset disbursements from the universal service fund under Section
4-27 56.021(1) to local exchange companies with more than 125,000 access
5-1 lines in service in this state on December 31, 1998, shall be
5-2 proportional, based on equivalent minutes of use, to reductions in
5-3 intraLATA toll rates. To the extent that the disbursements from
5-4 the universal service fund under Section 56.021(1) for small and
5-5 rural local exchange companies are used to decrease the implicit
5-6 support in intraLATA toll and switched access rates, the decreases
5-7 shall be made in a competitively neutral manner.
5-8 SECTION 6. Subchapter B, Chapter 56, Utilities Code, is
5-9 amended by adding Sections 56.027 and 56.028 to read as follows:
5-10 Sec. 56.027. UNIVERSAL SERVICE CHARGE SURCHARGE. A local
5-11 exchange company may recover its universal service fund assessment
5-12 through a surcharge added to the bills of the local exchange
5-13 company's customers.
5-14 Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR
5-15 CERTAIN INTRALATA SERVICE. On request of a local exchange company
5-16 that is not an electing company under Chapter 58 or 59, the
5-17 commission shall provide reimbursement through the universal
5-18 service fund for reduced rates for intraLATA interexchange high
5-19 capacity (1.544 Mbps) service for entities described by Section
5-20 58.253(a). The amount of reimbursement shall be equal to the
5-21 difference between the company's tariffed rates for that service on
5-22 January 1, 1998, and the lowest rate offered for that service by
5-23 any company electing incentive regulation under Chapter 58.
5-24 SECTION 7. Section 58.021, Utilities Code, is amended by
5-25 adding Subsections (c) and (d) to read as follows:
5-26 (c) Except as provided by Subsection (d), an election under
5-27 this chapter remains in effect until the legislature eliminates the
6-1 incentive regulation authorized by this chapter and Chapter 59.
6-2 (d) Notwithstanding any other provision of this chapter, an
6-3 electing company serving fewer than five million access lines in
6-4 this state may withdraw its election under this chapter at any time
6-5 after the later of September 1, 2001, or the fourth anniversary of
6-6 the company's election date.
6-7 SECTION 8. Section 58.023, Utilities Code, is amended to
6-8 read as follows:
6-9 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
6-10 services provided by an electing company are classified into two
6-11 [three] categories:
6-12 (1) basic network services governed by Subchapter C;
6-13 and
6-14 (2) nonbasic [discretionary services governed by
6-15 Subchapter D; and]
6-16 [(3) competitive] services governed by Subchapter E.
6-17 SECTION 9. Sections 58.024(a) and (b), Utilities Code, are
6-18 amended to read as follows:
6-19 (a) The commission may reclassify a[:]
6-20 [(1)] basic network service as a nonbasic
6-21 [discretionary or competitive] service[; or]
6-22 [(2) discretionary service as a competitive service].
6-23 (b) The commission shall establish criteria for determining
6-24 whether a service should be reclassified. The criteria may only
6-25 [must] include consideration of the:
6-26 (1) availability of the service from other providers;
6-27 (2) proportion of the market that receives the
7-1 service;
7-2 (3) effect of the reclassification on service
7-3 subscribers; and
7-4 (4) nature of the service.
7-5 SECTION 10. Section 58.051, Utilities Code, is amended to
7-6 read as follows:
7-7 Sec. 58.051. SERVICES INCLUDED. Unless reclassified under
7-8 Section 58.024, the following services are basic network services:
7-9 (1) flat rate residential [and business] local
7-10 exchange voice telephone service, including primary directory
7-11 listings and the receipt of a directory and any applicable mileage
7-12 or zone charges;
7-13 (2) residential tone dialing service;
7-14 (3) lifeline and tel-assistance service;
7-15 (4) service connection for basic residential services;
7-16 (5) direct inward dialing service for basic
7-17 residential services;
7-18 (6) private pay telephone access service;
7-19 (7) call trap and trace service;
7-20 (8) access for all residential and business end users
7-21 to 911 service provided by a local authority and access to dual
7-22 party relay service;
7-23 (9) [switched access service;]
7-24 [(10) interconnection to competitive providers;]
7-25 [(11)] mandatory extended area service arrangements;
7-26 and
7-27 (10) [(12)] mandatory extended metropolitan service or
8-1 other mandatory toll-free calling arrangements[;]
8-2 [(13) interconnection for commercial mobile service
8-3 providers;]
8-4 [(14) directory assistance; and]
8-5 [(15) "1-plus" intraLATA message toll service].
8-6 SECTION 11. Section 58.054, Utilities Code, is amended by
8-7 adding Subsections (c) and (d) to read as follows:
8-8 (c) Notwithstanding Subsections (a) and (b), the cap on the
8-9 rates for basic network services for a company electing under this
8-10 subchapter may not expire before September 1, 2001.
8-11 (d) The cap on the rates for basic network services does not
8-12 preclude an electing company from charging and collecting a
8-13 surcharge or fee, or both, required or permitted to be assessed
8-14 under any provision of this title.
8-15 SECTION 12. Section 58.055, Utilities Code, is amended to
8-16 read as follows:
8-17 Sec. 58.055. RATE ADJUSTMENT BY COMPANY. (a) An electing
8-18 company may increase a rate for a basic network service during the
8-19 [four-year] period the company's rates for basic network services
8-20 are capped as prescribed by Section 58.054 only:
8-21 (1) with commission approval that the proposed change
8-22 is included in Section 58.056, 58.057, or 58.058; and
8-23 (2) as provided by Sections 58.056, 58.057, 58.058,
8-24 and 58.059.
8-25 (b) Notwithstanding Subchapter F, Chapter 60, an electing
8-26 company may, on its own initiative, decrease a rate for a basic
8-27 network service during the [four-year] period the company's rates
9-1 for basic network services are capped as prescribed by Section
9-2 58.054.
9-3 (c) [The company may decrease the rate for switched access
9-4 service to an amount above the service's long run incremental cost.]
9-5 [(d)] The company may decrease the rate for a basic local
9-6 telecommunications service [other than switched access] to an
9-7 amount above the service's appropriate cost. If the company has
9-8 been required to perform or has elected to perform a long run
9-9 incremental cost study, the appropriate cost for the service is the
9-10 service's long run incremental cost.
9-11 SECTION 13. Section 58.058, Utilities Code, is amended to
9-12 read as follows:
9-13 Sec. 58.058. RATE GROUP RECLASSIFICATION. Notwithstanding
9-14 Section 58.054 [Subchapter B], the commission, on request of the
9-15 electing company, shall allow a rate group reclassification that
9-16 results from access line growth.
9-17 SECTION 14. Subchapter C, Chapter 58, Utilities Code, is
9-18 amended by adding Section 58.0595 to read as follows:
9-19 Sec. 58.0595. PRICING AND PACKAGING FLEXIBILITY. (a)
9-20 Notwithstanding Section 58.052(b) or Subchapter F, Chapter 60, an
9-21 electing company may exercise pricing flexibility for basic network
9-22 services including the packaging of basic network services with any
9-23 other regulated or unregulated service or any service of an
9-24 affiliate. The company may exercise pricing flexibility in
9-25 accordance with this section 24 hours after providing an
9-26 informational notice to the commission.
9-27 (b) An electing company shall set the price of a package of
10-1 services containing basic network services and nonbasic services at
10-2 any level at or above the lesser of:
10-3 (1) the sum of the long run incremental costs of any
10-4 basic network services and nonbasic services contained in the
10-5 package; or
10-6 (2) the sum of the tariffed prices of any basic
10-7 network services contained in the package and the long run
10-8 incremental costs of nonbasic services contained in the package.
10-9 SECTION 15. Section 58.060, Utilities Code, is amended to
10-10 read as follows:
10-11 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION. After
10-12 the expiration of the [four-year] period during which the company's
10-13 rates for basic network services are capped as prescribed by
10-14 Section 58.054 [expires], an electing company may increase a rate
10-15 for a basic network service only:
10-16 (1) with commission approval subject to this title;
10-17 and
10-18 (2) to the extent consistent with achieving universal
10-19 affordable service.
10-20 SECTION 16. Subchapter E, Chapter 58, Utilities Code, is
10-21 amended to read as follows:
10-22 SUBCHAPTER E. NONBASIC [COMPETITIVE] SERVICES
10-23 Sec. 58.151. SERVICES INCLUDED. The following services are
10-24 classified as nonbasic [competitive] services:
10-25 (1) flat rate business local exchange telephone
10-26 service, including primary directory listings and the receipt of a
10-27 directory, and any applicable mileage or zone charges;
11-1 (2) service connection for all business services;
11-2 (3) direct inward dialing for basic business services;
11-3 (4) "1-plus" intraLATA message toll services;
11-4 (5) 0+ and 0- operator services;
11-5 (6) call waiting, call forwarding, and custom calling;
11-6 (7) call return, caller identification, and call
11-7 control options;
11-8 (8) central office based PBX-type services;
11-9 (9) billing and collection services, including
11-10 installment billing and late payment charges;
11-11 (10) integrated services digital network (ISDN)
11-12 services;
11-13 (11) switched access services;
11-14 (12) new services;
11-15 (13) directory assistance services;
11-16 (14) services described in the WATS tariff as the
11-17 tariff existed on January 1, 1995;
11-18 (15) [(2)] 800 and foreign exchange services;
11-19 (16) [(3)] private line service;
11-20 (17) [(4)] special access service;
11-21 (18) [(5)] services from public pay telephones;
11-22 (19) [(6)] paging services and mobile services (IMTS);
11-23 (20) [(7)] 911 services provided to a local authority
11-24 [premises equipment];
11-25 (21) [(8)] speed dialing; [and]
11-26 (22) [(9)] three-way calling;
11-27 (23) data services; and
12-1 (24) all other services subject to the commission's
12-2 jurisdiction that are not specifically classified as basic network
12-3 services in Section 58.051.
12-4 Sec. 58.152. PRICES. (a) An electing company may set the
12-5 price for any nonbasic [a competitive] service at any level above
12-6 the lesser of the:
12-7 (1) service's long run incremental cost in accordance
12-8 with the imputation rules prescribed by or under Subchapter D,
12-9 Chapter 60; or
12-10 (2) price for the service in effect on September 1,
12-11 1999.
12-12 (b) An electing [Subject to the requirements of Sections
12-13 60.001 and 60.002, the] company may use pricing flexibility for a
12-14 nonbasic [competitive] service. Pricing flexibility includes all
12-15 pricing arrangements included in the definition of "pricing
12-16 flexibility" prescribed by Section 51.002 and includes packages
12-17 that include basic network services.
12-18 (c) When an electing company that is required, as of January
12-19 1, 1999, to obtain the authorization described by 47 U.S.C. Section
12-20 271 and its subsequent amendments to provide certain interLATA
12-21 services obtains a final order permitting the company to provide
12-22 those services in this state and the electing company or an
12-23 affiliate of the company formed in compliance with 47 U.S.C.
12-24 Section 272 and its subsequent amendments actually begins providing
12-25 that service in this state, the electing company shall reduce its
12-26 rates in effect on that date for originating and terminating
12-27 switched access services by the amount of two cents per
13-1 conversation minute of use [Notwithstanding Subsection (a) or (b),
13-2 the company may not increase the price of a competitive service in
13-3 a geographic area in which that service or a functionally
13-4 equivalent service is not readily available from another provider].
13-5 (d) Notwithstanding Subsection (a), an electing company may
13-6 not increase the rates for switched access services, computed on an
13-7 average conversation minute of use basis above the lesser of:
13-8 (1) the rates for switched access services charged by
13-9 that electing company on December 31, 1998, as those rates may be
13-10 voluntarily reduced by the company in conjunction with receiving
13-11 disbursements under Chapter 56; or
13-12 (2) the rates for switched access services described
13-13 by Subsection (c).
13-14 Sec. 58.153. NEW SERVICES. (a) Subject to the pricing
13-15 conditions prescribed by Section 58.152(a), an electing company may
13-16 introduce a new service 24 hours after providing an informational
13-17 notice to the commission.
13-18 (b) Only an affected person may file a complaint with the
13-19 commission challenging whether the pricing by an incumbent local
13-20 exchange company of a new service is in compliance with Section
13-21 58.152(a). The commission shall allow the company to continue to
13-22 provide the service while the complaint is pending.
13-23 (c) An affected person filing a complaint under Subsection
13-24 (b) has the burden of proving that the incumbent local exchange
13-25 company did not set the price for the new service in accordance
13-26 with Section 58.152(a). If the complaint is finally resolved in
13-27 favor of the complainant, the company:
14-1 (1) shall, not later than the 10th day after the date
14-2 the complaint is finally resolved, amend the price of the service
14-3 as necessary to comply with the final resolution; or
14-4 (2) may, at the company's option, discontinue the
14-5 service.
14-6 SECTION 17. Section 59.021, Utilities Code, is amended by
14-7 adding Subsection (c) to read as follows:
14-8 (c) A company electing under this chapter may renew the
14-9 election for successive two-year periods. An election that is
14-10 renewed under this subsection remains in effect until the earlier
14-11 of the date the:
14-12 (1) election expires because it was not renewed;
14-13 (2) commission allows the company to withdraw its
14-14 election under Section 59.022; or
14-15 (3) legislature eliminates the incentive regulation
14-16 authorized by this chapter and Chapter 58.
14-17 SECTION 18. Section 59.024, Utilities Code, is amended by
14-18 amending Subsections (a), (d), and (e) and adding Subsections (f)
14-19 and (g) to read as follows:
14-20 (a) Except for the charges permitted under Subchapter C,
14-21 Chapter 55, Subchapter B, Chapter 56, and Section 55.024, an
14-22 electing company may not, [on or] before the end of the company's
14-23 election period under this chapter [sixth anniversary of its
14-24 election date], increase a rate previously established for that
14-25 company under this title unless the commission approves the
14-26 proposed change as authorized under Subsection (c) or (d).
14-27 (d) Notwithstanding Subsection (a), the [The] commission, on
15-1 request of the electing company, shall allow a rate group
15-2 reclassification that results from access line growth.
15-3 (e) The cap on an electing company's rates does not preclude
15-4 the company from charging and collecting a surcharge or fee, or
15-5 both, required or permitted to be assessed under any provision of
15-6 this title.
15-7 (f) An electing company may, on its own initiative, decrease
15-8 a rate during the company's election period. Section 58.059 does
15-9 not apply to a rate decrease under this subsection.
15-10 (g) Except as provided by Subsection (f), Section 58.059
15-11 applies to a rate change under this section.
15-12 SECTION 19. Section 59.025, Utilities Code, is amended to
15-13 read as follows:
15-14 Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any
15-15 other provision of this title, the commission may not, on the
15-16 commission's own motion, reduce an electing company's rates for
15-17 switched access services before the expiration of the election
15-18 [six-year] period prescribed by Section 59.024, but may approve a
15-19 reduction proposed by the electing company.
15-20 SECTION 20. Section 59.026(a), Utilities Code, is amended to
15-21 read as follows:
15-22 (a) On or before the end [sixth anniversary] of the
15-23 company's election period [date], an electing company is not, under
15-24 any circumstances, subject to:
15-25 (1) a complaint or hearing regarding the
15-26 reasonableness of the company's:
15-27 (A) rates;
16-1 (B) overall revenues;
16-2 (C) return on invested capital; or
16-3 (D) net income; or
16-4 (2) a complaint that a rate is excessive.
16-5 SECTION 21. Subchapter B, Chapter 59, Utilities Code, is
16-6 amended by adding Sections 59.030, 59.031, and 59.032 to read as
16-7 follows:
16-8 Sec. 59.030. NEW SERVICES. (a) An electing company may
16-9 introduce a new service 24 hours after providing an informational
16-10 notice to the commission.
16-11 (b) An electing company shall price each new service at or
16-12 above the service's long run incremental cost. The commission
16-13 shall allow a company serving fewer than one million access lines
16-14 in this state to establish a service's long run incremental cost by
16-15 adopting, at that company's option, the cost studies of a larger
16-16 company for that service that have been accepted by the commission.
16-17 (c) Only an affected person may file a complaint with the
16-18 commission challenging whether the pricing by an electing company
16-19 of a new service is in compliance with Subsection (b). The
16-20 commission shall allow the company to continue to provide the
16-21 service while the complaint is pending.
16-22 (d) An affected person filing a complaint under Subsection
16-23 (c) has the burden of proving that the electing company did not set
16-24 the price for the new service in accordance with the applicable
16-25 provisions of this subchapter. If the complaint is finally
16-26 resolved in favor of the complainant, the company:
16-27 (1) shall, not later than the 10th day after the date
17-1 the complaint is finally resolved, amend the price of the service
17-2 as necessary to comply with the final resolution; or
17-3 (2) may, at the company's option, discontinue the
17-4 service.
17-5 Sec. 59.031. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
17-6 PROMOTIONAL OFFERINGS. (a) Notwithstanding Section 59.027(b) or
17-7 Subchapter F, Chapter 60, an electing company may exercise pricing
17-8 flexibility in accordance with this section, including the
17-9 packaging of any regulated service such as basic local
17-10 telecommunications service with any other regulated or unregulated
17-11 service or any service of an affiliate. The company may exercise
17-12 pricing flexibility 24 hours after providing an informational
17-13 notice to the commission.
17-14 (b) An electing company, at the company's option, shall
17-15 price each regulated service offered separately or as part of a
17-16 package under Subsection (a) at either the service's tariffed rate
17-17 or at a rate not lower than the service's long run incremental
17-18 cost. The commission shall allow a company serving fewer than one
17-19 million access lines in this state to establish a service's long
17-20 run incremental cost by adopting, at that company's option, the
17-21 cost studies of a larger company for that service that have been
17-22 accepted by the commission.
17-23 (c) Only an affected person may file a complaint alleging
17-24 that an electing company has priced a regulated service in a manner
17-25 that does not meet the pricing standards of this subchapter. The
17-26 complaint must be filed before the 31st day after the company
17-27 implements the rate.
18-1 Sec. 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
18-2 electing company may offer a promotion for a regulated service for
18-3 not more than 90 days in any 12-month period.
18-4 (b) The company shall file with the commission a promotional
18-5 offering that consists of:
18-6 (1) waiver of installation charges or service order
18-7 charges, or both, for not more than 90 days in a 12-month period;
18-8 or
18-9 (2) a temporary discount of not more than 25 percent
18-10 from the tariffed rate for not more than 60 days in a 12-month
18-11 period.
18-12 (c) An electing company is not required to obtain commission
18-13 approval to make a promotional offering described by Subsection
18-14 (b).
18-15 (d) An electing company may offer a promotion of any
18-16 regulated service as part of a package of services consisting of
18-17 any regulated service with any other regulated or unregulated
18-18 service or any service of an affiliate.
18-19 SECTION 22. Section 60.042, Utilities Code, is amended to
18-20 read as follows:
18-21 Sec. 60.042. PROHIBITED RESALE OR SHARING. A provider of
18-22 telecommunications service may not impose a restriction on the
18-23 resale or sharing of a service:
18-24 (1) for which the provider is not a dominant provider;
18-25 or
18-26 (2) entitled to regulatory treatment as a nonbasic
18-27 [competitive] service under Subchapter E, Chapter 58, if the
19-1 provider is a company electing regulation under Chapter 58.
19-2 SECTION 23. Subchapter I, Chapter 60, Utilities Code, is
19-3 amended by adding Sections 60.164 and 60.165 to read as follows:
19-4 Sec. 60.164. PERMISSIBLE JOINT MARKETING. Except as
19-5 prescribed by Chapters 61 and 63, the commission may not adopt a
19-6 rule or order that would prohibit a local exchange company from
19-7 marketing or selling the company's products and services jointly
19-8 with the products and services of an affiliate in a manner
19-9 permitted by federal law or applicable rules of the Federal
19-10 Communications Commission.
19-11 Sec. 60.165. AFFILIATE RULES. (a) Except as prescribed by
19-12 Chapters 61 and 63, the commission may not adopt a rule or order
19-13 that would prescribe for a local exchange company an affiliate
19-14 rule, including an accounting rule, cost allocation rule, or
19-15 structural separation rule, that is more burdensome than prescribed
19-16 by federal law or applicable rules of the Federal Communications
19-17 Commission.
19-18 (b) Notwithstanding any other provision of this title, the
19-19 commission may not attribute or impute to a local exchange company
19-20 a price discount offered by an affiliate to the affiliate's
19-21 customers.
19-22 SECTION 24. (a) The Public Utility Commission of Texas
19-23 shall implement the universal service fund in all areas of this
19-24 state not later than November 1, 1999.
19-25 (b) The Public Utility Commission of Texas shall establish
19-26 and implement the universal service fund provisions required by
19-27 Section 56.021(1), Utilities Code, for all eligible
20-1 telecommunications providers not later than November 1, 1999.
20-2 SECTION 25. The following provisions of the Utilities Code
20-3 are repealed:
20-4 (1) Section 58.062; and
20-5 (2) Subchapter D, Chapter 58.
20-6 SECTION 26. This Act takes effect September 1, 1999.
20-7 SECTION 27. The importance of this legislation and the
20-8 crowded condition of the calendars in both houses create an
20-9 emergency and an imperative public necessity that the
20-10 constitutional rule requiring bills to be read on three several
20-11 days in each house be suspended, and this rule is hereby suspended.