76R12535 CBH-F By Counts H.B. No. 2692 Substitute the following for H.B. No. 2692: By Counts C.S.H.B. No. 2692 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to universal service revenue recovery and affiliated 1-3 activities of local exchange telephone companies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 56, Utilities Code, is 1-6 amended by adding Sections 56.027 and 56.028 to read as follows: 1-7 Sec. 56.027. UNIVERSAL SERVICE CHARGE SURCHARGE. A local 1-8 exchange company may recover its universal service fund assessment 1-9 through a surcharge added to the bills of the local exchange 1-10 company's customers. 1-11 Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR 1-12 CERTAIN INTRALATA SERVICE. On request of a local exchange company 1-13 that is not an electing company under Chapter 58 or 59, the 1-14 commission shall provide reimbursement through the universal 1-15 service fund for reduced rates for intraLATA interexchange high 1-16 capacity (1.544 Mbps) service for entities described by Section 1-17 58.253(a). The amount of reimbursement shall be equal to the 1-18 difference between the company's tariffed rates for that service on 1-19 January 1, 1998, and the lowest rate offered for that service by 1-20 any company electing incentive regulation under Chapter 58. 1-21 SECTION 2. Subchapter I, Chapter 60, Utilities Code, is 1-22 amended by adding Sections 60.164 and 60.165 to read as follows: 1-23 Sec. 60.164. PERMISSIBLE JOINT MARKETING. Except as 1-24 prescribed by Chapters 61 and 63, the commission may not adopt a 2-1 rule or order that would prohibit a local exchange company from 2-2 marketing or selling the company's products and services jointly 2-3 with the products and services of an affiliate in a manner 2-4 permitted by federal law or applicable rules of the Federal 2-5 Communications Commission. 2-6 Sec. 60.165. AFFILIATE RULES. (a) Except as prescribed by 2-7 Chapters 61 and 63, the commission may not adopt a rule or order 2-8 that would prescribe for a local exchange company an affiliate 2-9 rule, including an accounting rule, cost allocation rule, or 2-10 structural separation rule, that is more burdensome than prescribed 2-11 by federal law or applicable rules of the Federal Communications 2-12 Commission. 2-13 (b) Notwithstanding any other provision of this title, the 2-14 commission may not attribute or impute to a local exchange company 2-15 a price discount offered by an affiliate to the affiliate's 2-16 customers. 2-17 SECTION 3. The importance of this legislation and the 2-18 crowded condition of the calendars in both houses create an 2-19 emergency and an imperative public necessity that the 2-20 constitutional rule requiring bills to be read on three several 2-21 days in each house be suspended, and this rule is hereby suspended, 2-22 and that this Act take effect and be in force from and after its 2-23 passage, and it is so enacted.