By Gallego                                            H.B. No. 3222
         76R87 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to Internet access in rural areas.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 55, Utilities Code, is amended by adding
 1-5     Subchapter L to read as follows:
 1-6                SUBCHAPTER L.  INTERNET ACCESS IN RURAL AREAS
 1-7           Sec. 55.351.  DEFINITIONS.  In this subchapter:
 1-8                 (1)  "Internet" means the largest nonproprietary
 1-9     nonprofit cooperative public computer network, popularly known as
1-10     the Internet.
1-11                 (2)  "Rural community" means a municipality or
1-12     unincorporated area that is wholly or primarily located in a
1-13     nonmetropolitan county as defined by the United States Census
1-14     Bureau in the most recent federal decennial census.
1-15           Sec. 55.352.  INTERNET ACCESS BY EDUCATIONAL INSTITUTION.
1-16     (a)  In this section, "educational institution" has the meaning
1-17     assigned by Section 57.021.
1-18           (b)  Notwithstanding any other provision of this title, an
1-19     educational institution located in a rural community that does not
1-20     have a local Internet service provider may resell to residents and
1-21     businesses of that community, or share with those residents or
1-22     businesses, access to the Internet, including a toll-free
1-23     connection, toll-free dialing arrangement, or a wireless or cable
1-24     connection that the institution uses to obtain access to the
 2-1     Internet.
 2-2           (c)  If an educational institution located in an exchange
 2-3     that does not have toll-free access to the Internet resells a
 2-4     toll-free connection or toll-free dialing arrangement the
 2-5     institution uses to obtain access to the Internet, the institution
 2-6     shall use all profits made from reselling connections to subsidize
 2-7     the installation and maintenance of existing and future Internet
 2-8     connections.
 2-9           Sec. 55.353.  TARIFF RATE  FOR INTERNET SERVICE PROVIDER.
2-10     (a)  A telecommunications utility serving a rural community in
2-11     which access to the Internet is not available from a local Internet
2-12     service provider or an educational institution that can provide
2-13     access under Section 55.352 shall offer to an Internet service
2-14     provider that agrees to provide toll-free access to the Internet to
2-15     all or part of the residents or businesses of the rural community
2-16     discounted rates for Internet access and for the installation and
2-17     maintenance of Internet connections.
2-18           (b)  The  discounted rate for a service required under
2-19     Subsection (a) may not be distance sensitive and may not be higher
2-20     than 105 percent of the long-run incremental cost, including
2-21     installation.
2-22           (c)  To be eligible to receive a discounted rate under this
2-23     section, an Internet service provider must agree to:
2-24                 (1)  offer to the residents and businesses of the rural
2-25     community dial-up connections with the capability of transmitting
2-26     at least 28.8 kilobits per second;
2-27                 (2)  offer to the residents and businesses of the rural
 3-1     community service equivalent to a connection on 95 percent of
 3-2     connection attempts between 9 a.m. and 9 p.m.  daily; and
 3-3                 (3)  not impose a monthly charge for Internet access
 3-4     that is more than 10 percent greater than the average monthly
 3-5     charge imposed by national Internet service providers for toll-free
 3-6     access.
 3-7           (d)  Internet access provided under this section may not be
 3-8     shared or resold to a person who is not a resident or business of a
 3-9     rural community.
3-10           (e)  Each telecommunications utility described by Subsection
3-11     (a) shall file a tariff for the discounted rates required by this
3-12     section.  Not earlier than the 30th day after the date that the
3-13     tariff is filed, an Internet service provider that wants to provide
3-14     service under this section may file an application with the
3-15     commission to receive the discounted rates.  The commission shall
3-16     determine whether the Internet service provider meets the
3-17     requirements prescribed by this section.  If more than one Internet
3-18     service provider files an application to serve the same rural
3-19     community, the commission shall choose one provider based on the
3-20     requirements prescribed by this section and any criteria the
3-21     commission may prescribe that the commission determines are in the
3-22     best interest of the rural community.
3-23           SECTION 2.  This Act takes effect September 1, 1999.  A
3-24     telecommunications utility shall file tariffs in accordance with
3-25     Section 55.353, Utilities Code, as added by this Act, not later
3-26     than January 1, 2000.
3-27           SECTION 3.  The importance of this legislation and the
 4-1     crowded condition of the calendars in both houses create an
 4-2     emergency and an imperative public necessity that the
 4-3     constitutional rule requiring bills to be read on three several
 4-4     days in each house be suspended, and this rule is hereby suspended.