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.