By Siebert H.B. No. 3572
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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
1-13 exchange company may introduce a new service 24 hours after
1-14 providing an 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.
2-1 (c) Only an affected person may file a complaint with the
2-2 commission challenging whether the pricing by an incumbent local
2-3 exchange company of a new service is in compliance with Subsection
2-4 (b). The commission shall allow the company to continue to provide
2-5 the service while the complaint is pending.
2-6 (d) An affected person filing a complaint under Subsection
2-7 (c) has the burden of proving that the incumbent local exchange
2-8 company did not set the price for the new service in accordance
2-9 with the applicable provisions of this subchapter. If the
2-10 complaint is finally resolved in favor of the complainant, the
2-11 company:
2-12 (1) shall, not later than the 10th day after the date
2-13 the complaint is finally resolved, amend the price of the service
2-14 as necessary to comply with the final resolution; or
2-15 (2) may, at the company's option, discontinue the
2-16 service.
2-17 Sec. 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
2-18 PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision of
2-19 this title, an incumbent local exchange company may exercise
2-20 pricing flexibility in accordance with this section, including the
2-21 packaging of any regulated service such as basic local
2-22 telecommunications service with any other regulated or unregulated
2-23 service or any service of an affiliate. The company may exercise
2-24 pricing flexibility 24 hours after providing an informational
2-25 notice to the commission.
3-1 (b) An incumbent local exchange company, at the company's
3-2 option, shall price each regulated service offered separately or as
3-3 part of a package under Subsection (a) at either the service's
3-4 tariffed rate or at a rate not lower than the service's long run
3-5 incremental cost. The commission shall allow a company serving
3-6 fewer than one million access lines in this state to establish a
3-7 service's long run incremental cost by adopting, at that company's
3-8 option, the cost studies of a larger company for that service that
3-9 have been accepted by the commission.
3-10 (c) Only an affected person may file a complaint alleging
3-11 that an incumbent local exchange company has priced a regulated
3-12 service in a manner that does not meet the pricing standards of
3-13 this subchapter. The complaint must be filed before the 31st day
3-14 after the company implements the rate.
3-15 Sec. 52.0585. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
3-16 incumbent local exchange company may offer a promotion for a
3-17 regulated service for not more than 90 days in any 12-month period.
3-18 (b) The company shall file with the commission a promotional
3-19 offering that consists of:
3-20 (1) waiver of installation charges or service order
3-21 charges, or both, for not more than 90 days in a 12-month period;
3-22 or
3-23 (2) a temporary discount of not more than 25 percent
3-24 from the tariffed rate for not more than 60 days in a 12-month
3-25 period.
4-1 (c) An incumbent local exchange company is not required to
4-2 obtain commission approval to make a promotional offering described
4-3 by Subsection (b).
4-4 (d) An incumbent local exchange company may offer a
4-5 promotion of any regulated service as part of a package of services
4-6 consisting of any regulated service with any other regulated or
4-7 unregulated service or any service of an affiliate.
4-8 SECTION 3. Subchapter C, Chapter 54, Utilities Code, is
4-9 amended by adding Section 54.1015 to read as follows:
4-10 Sec. 54.1015. EFFECT OF AFFILIATE. Notwithstanding any
4-11 other provision of this title, a person may hold a certificate for
4-12 all or any portion of a service area for which one or more
4-13 affiliates of the person holds a certificate of operating
4-14 authority, a service provider certificate of operating authority,
4-15 or a certificate of convenience and necessity.
4-16 SECTION 4. Section 54.103, Utilities Code, is amended by
4-17 adding Subsection (g) to read as follows:
4-18 (g) Notwithstanding any other provision of this title, in
4-19 determining whether to grant a certificate, the commission may not
4-20 consider whether an affiliate of the applicant holds a certificate
4-21 of operating authority, a service provider certificate of operating
4-22 authority, or a certificate of convenience and necessity for all or
4-23 part of the territory the applicant has applied to serve.
4-24 SECTION 5. Section 58.023, Utilities Code, is amended to
4-25 read as follows:
5-1 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
5-2 services provided by an electing company are classified into two
5-3 [three] categories:
5-4 (1) basic network services governed by Subchapter C;
5-5 and
5-6 (2) nonbasic [discretionary services governed by]
5-7 [Subchapter D; and]
5-8 [(3) competitive] services governed by Subchapter E.
5-9 SECTION 6. Sections 58.024(a) and (b), Utilities Code, are
5-10 amended to read as follows:
5-11 (a) The commission may reclassify a[:]
5-12 [(1)] basic network service as a nonbasic
5-13 [discretionary or competitive] service[; or]
5-14 [(2) discretionary service as a competitive service].
5-15 (b) The commission shall establish criteria for determining
5-16 whether a service should be reclassified. The criteria may only
5-17 [must] include consideration of the:
5-18 (1) availability of the service from other providers;
5-19 (2) proportion of the market that receives the
5-20 service;
5-21 (3) effect of the reclassification on service
5-22 subscribers; and
5-23 (4) nature of the service.
5-24 SECTION 7. Section 58.051, Utilities Code, is amended to
5-25 read as follows:
6-1 Sec. 58.051. SERVICES INCLUDED. Unless reclassified under
6-2 Section 58.024, the following services are basic network services:
6-3 (1) flat rate residential [and business] local
6-4 exchange voice telephone service, including primary directory
6-5 listings and the receipt of a directory and any applicable mileage
6-6 or zone charges;
6-7 (2) residential tone dialing service;
6-8 (3) lifeline and tel-assistance service;
6-9 (4) service connection for basic residential services;
6-10 (5) direct inward dialing service for basic
6-11 residential services;
6-12 (6) private pay telephone access service;
6-13 (7) call trap and trace service;
6-14 (8) access for all residential and business end users
6-15 to 911 service provided by a local authority and access to dual
6-16 party relay service;
6-17 (9) [switched access service;]
6-18 [(10) interconnection to competitive providers;]
6-19 [(11)] mandatory extended area service arrangements;
6-20 and
6-21 (10) [(12)] mandatory extended metropolitan service or
6-22 other mandatory toll-free calling arrangements[;]
6-23 [(13) interconnection for commercial mobile service]
6-24 [providers;]
6-25 [(14) directory assistance; and]
7-1 [(15) "1 plus" intraLATA message toll service].
7-2 SECTION 8. Subchapter C, Chapter 58, Utilities Code, is
7-3 amended by adding Section 58.0595 to read as follows:
7-4 Sec. 58.0595. PRICING AND PACKAGING FLEXIBILITY. (a)
7-5 Notwithstanding Section 58.052(b) or Subchapter F, Chapter 60, an
7-6 electing company may exercise pricing flexibility for basic network
7-7 services including the packaging of basic network services with any
7-8 other regulated or unregulated service or any service of an
7-9 affiliate. The company may exercise pricing flexibility in
7-10 accordance with this section 24 hours after providing an
7-11 informational notice to the commission.
7-12 (b) An electing company shall set the price of a package of
7-13 services containing basic network services and nonbasic services at
7-14 any level at or above the lesser of:
7-15 (1) the sum of the long run incremental costs of any
7-16 basic network services and nonbasic services contained in the
7-17 package; or
7-18 (2) the sum of the tariffed prices of any basic
7-19 network services contained in the package and the long run
7-20 incremental costs of nonbasic services contained in the package.
7-21 SECTION 9. Subchapter E, Chapter 58, Utilities Code, is
7-22 amended to read as follows:
7-23 SUBCHAPTER E. NONBASIC [COMPETITIVE] SERVICES
7-24 Sec. 58.151. SERVICES INCLUDED. The following services are
7-25 classified as nonbasic [competitive] services:
8-1 (1) flat rate business local exchange telephone
8-2 service, including primary directory listings and the receipt of a
8-3 directory, and any applicable mileage or zone charges;
8-4 (2) service connection for all business services;
8-5 (3) direct inward dialing for basic business services;
8-6 (4) "1-plus" intraLATA message toll services;
8-7 (5) 0+ and 0- operator services;
8-8 (6) call waiting, call forwarding, and custom calling;
8-9 (7) call return, caller identification, and call
8-10 control options;
8-11 (8) central office based PBX-type services;
8-12 (9) billing and collection services, including
8-13 installment billing and late payment charges;
8-14 (10) integrated services digital network (ISDN)
8-15 services;
8-16 (11) switched access services;
8-17 (12) new services;
8-18 (13) directory assistance services;
8-19 (14) services described in the WATS tariff as the
8-20 tariff existed on January 1, 1995;
8-21 (15) [(2)] 800 and foreign exchange services;
8-22 (16) [(3)] private line service;
8-23 (17) [(4)] special access service;
8-24 (18) [(5)] services from public pay telephones;
8-25 (19) [(6)] paging services and mobile services (IMTS);
9-1 (20) [(7)] 911 services provided to a local authority
9-2 [premises equipment];
9-3 (21) [(8)] speed dialing; [and]
9-4 (22) [(9)] three-way calling;
9-5 (23) data services; and
9-6 (24) all other services subject to the commission's
9-7 jurisdiction that are not specifically classified as basic network
9-8 services in Section 58.051.
9-9 Sec. 58.152. PRICES. (a) An electing company may set the
9-10 price for any nonbasic [a competitive] service at any level above
9-11 the lesser of the:
9-12 (1) service's long run incremental cost in accordance
9-13 with the imputation rules prescribed by or under Subchapter D,
9-14 Chapter 60; or
9-15 (2) price for the service in effect on September 1,
9-16 1999.
9-17 (b) An electing [Subject to the requirements of Sections]
9-18 [60.001 and 60.002, the] company may use pricing flexibility for a
9-19 nonbasic [competitive] service. Pricing flexibility includes all
9-20 pricing arrangements included in the definition of "pricing
9-21 flexibility" prescribed by Section 51.002 and includes packages
9-22 that include basic network services.
9-23 [(c) Notwithstanding Subsection (a) or (b), the company may
9-24 not increase the price of a competitive service in a geographic
9-25 area in which that service or a functionally equivalent service is
10-1 not readily available from another provider].
10-2 Sec. 58.153. NEW SERVICES. (a) Subject to the pricing
10-3 conditions prescribed by Section 58.152(a), an electing company may
10-4 introduce a new service 24 hours after providing an informational
10-5 notice to the commission.
10-6 (b) Only an affected person may file a complaint with the
10-7 commission challenging whether the pricing by an incumbent local
10-8 exchange company of a new service is in compliance with Section
10-9 58.152(a). The commission shall allow the company to continue to
10-10 provide the service while the complaint is pending.
10-11 (c) An affected person filing a complaint under Subsection
10-12 (b) has the burden of proving that the incumbent local exchange
10-13 company did not set the price for the new service in accordance
10-14 with Section 58.152(a). If the complaint is finally resolved in
10-15 favor of the complainant, the company:
10-16 (1) shall, not later than the 10th day after the date
10-17 the complaint is finally resolved, amend the price of the service
10-18 as necessary to comply with the final resolution; or
10-19 (2) may, at the company's option, discontinue the
10-20 service.
10-21 SECTION 10. Subchapter B, Chapter 59, Utilities Code, is
10-22 amended by adding Sections 59.030, 59.031, and 59.032 to read as
10-23 follows:
10-24 Sec. 59.030. NEW SERVICES. (a) An electing company may
10-25 introduce a new service 24 hours after providing an informational
11-1 notice to the commission.
11-2 (b) An electing company shall price each new service at or
11-3 above the service's long run incremental cost. The commission
11-4 shall allow a company serving fewer than one million access lines
11-5 in this state to establish a service's long run incremental cost by
11-6 adopting, at that company's option, the cost studies of a larger
11-7 company for that service that have been accepted by the commission.
11-8 (c) Only an affected person may file a complaint with the
11-9 commission challenging whether the pricing by an electing company
11-10 of a new service is in compliance with Subsection (b). The
11-11 commission shall allow the company to continue to provide the
11-12 service while the complaint is pending.
11-13 (d) An affected person filing a complaint under Subsection
11-14 (c) has the burden of proving that the electing company did not set
11-15 the price for the new service in accordance with the applicable
11-16 provisions of this subchapter. If the complaint is finally
11-17 resolved in favor of the complainant, the company:
11-18 (1) shall, not later than the 10th day after the date
11-19 the complaint is finally resolved, amend the price of the service
11-20 as necessary to comply with the final resolution; or
11-21 (2) may, at the company's option, discontinue the
11-22 service.
11-23 Sec. 59.031. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
11-24 PROMOTIONAL OFFERINGS. (a) Notwithstanding Section 59.027(b) or
11-25 Subchapter F, Chapter 60, an electing company may exercise pricing
12-1 flexibility in accordance with this section, including the
12-2 packaging of any regulated service such as basic local
12-3 telecommunications service with any other regulated or unregulated
12-4 service or any service of an affiliate. The company may exercise
12-5 pricing flexibility 24 hours after providing an informational
12-6 notice to the commission.
12-7 (b) An electing company, at the company's option, shall
12-8 price each regulated service offered separately or as part of a
12-9 package under Subsection (a) at either the service's tariffed rate
12-10 or at a rate not lower than the service's long run incremental
12-11 cost. The commission shall allow a company serving fewer than one
12-12 million access lines in this state to establish a service's long
12-13 run incremental cost by adopting, at that company's option, the
12-14 cost studies of a larger company for that service that have been
12-15 accepted by the commission.
12-16 (c) Only an affected person may file a complaint alleging
12-17 that an electing company has priced a regulated service in a manner
12-18 that does not meet the pricing standards of this subchapter. The
12-19 complaint must be filed before the 31st day after the company
12-20 implements the rate.
12-21 Sec. 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
12-22 electing company may offer a promotion for a regulated service for
12-23 not more than 90 days in any 12-month period.
12-24 (b) The company shall file with the commission a promotional
12-25 offering that consists of:
13-1 (1) waiver of installation charges or service order
13-2 charges, or both, for not more than 90 days in a 12-month period;
13-3 or
13-4 (2) a temporary discount of not more than 25 percent
13-5 from the tariffed rate for not more than 60 days in a 12-month
13-6 period.
13-7 (c) An electing company is not required to obtain commission
13-8 approval to make a promotional offering described by Subsection
13-9 (b).
13-10 (d) An electing company may offer a promotion of any
13-11 regulated service as part of a package of services consisting of
13-12 any regulated service with any other regulated or unregulated
13-13 service or any service of an affiliate.
13-14 SECTION 11. The following provisions of the Utilities Code
13-15 are repealed:
13-16 (1) Section 58.062; and
13-17 (2) Subchapter D, Chapter 58.
13-18 SECTION 12. This Act takes effect September 1, 1999.
13-19 SECTION 13. The importance of this legislation and the
13-20 crowded condition of the calendars in both houses create an
13-21 emergency and an imperative public necessity that the
13-22 constitutional rule requiring bills to be read on three several
13-23 days in each house be suspended, and this rule is hereby suspended.