By Hunter                                             H.B. No. 3692
         76R9256 T                           
                                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.  Section 58.021, Utilities Code, is amended by
 1-6     adding Subsections (c) and (d) to read as follows:
 1-7           (c)  Except as provided by Subsection (d), an election under
 1-8     this chapter remains in effect until the legislature eliminates the
 1-9     incentive regulation authorized by this chapter and Chapter 59.
1-10           SECTION 2.  Section 58.062, Utilities Code, is amended to
1-11     read as follows:
1-12           Sec. 58.062.  SWITCHED ACCESS RATES.  Notwithstanding any
1-13     other provision of this title, the commission may [not] reduce an
1-14     electing company's rates for switched access services only if the
1-15     electing company seeks a rate increase for a basic network service
1-16     as provided in Section 58.060 of this Chapter after [before] the
1-17     expiration of the cap on basic network services.
1-18           SECTION 3.  Section 59.021, Utilities Code, is amended by
1-19     adding Subsection (c) to read as follows:
1-20           (c)  A company electing under this chapter may renew the
1-21     election for successive two-year periods.  An election that is
1-22     renewed under this subsection remains in effect until the earlier
1-23     of the date the:
1-24                 (1)  election expires because it was not renewed;
 2-1                 (2)  commission allows the company to withdraw its
 2-2     election under Section 59.022; or
 2-3                 (3)  legislature eliminates the incentive regulation
 2-4     authorized by this chapter and Chapter 58.
 2-5           SECTION 4.  Section 59.024, Utilities Code, is amended by
 2-6     amending Subsections (a) and (d) and adding Subsections (f) and (g)
 2-7     to read as follows:
 2-8           (a)  Except for the charges permitted under Subchapter C,
 2-9     Chapter 55, Subchapter B, Chapter 56, and Section 55.024, an
2-10     electing company may not, [on or] before the end of the company's
2-11     election period under this chapter [sixth anniversary of its]
2-12     [election date], increase a rate previously established for that
2-13     company under this title unless the commission approves the
2-14     proposed change as authorized under Subsection (c) or (d).
2-15           (d)  Notwithstanding Subsection (a), the [The] commission, on
2-16     request of the electing company, shall allow a rate group
2-17     reclassification that results from access line growth.
2-18           (f)  An electing company may, on its own initiative, decrease
2-19     a rate during the company's election period.  Section 58.059 does
2-20     not apply to a rate decrease under this subsection.
2-21           (g)  Except as provided by Subsection (f), Section 58.059
2-22     applies to a rate change under this section.
2-23           SECTION 5.  Section 59.025, Utilities Code, is amended to
2-24     read as follows:
2-25           Sec. 59.025.  Switched Access Rates.  Notwithstanding any
2-26     other provision of this title, the commission may not, on the
2-27     commission's own motion, reduce an electing company's rates for
 3-1     switched access services before the expiration of the election
 3-2     [six-year] period prescribed by Section 59.024, but may approve a
 3-3     reduction proposed by the electing company.
 3-4           SECTION 6.  Section 59.026(a), Utilities Code, is amended to
 3-5     read as follows:
 3-6           (a)  On or before the end [sixth anniversary] of the
 3-7     company's election period [date], an electing company is not, under
 3-8     any circumstances, subject to:
 3-9                 (1)  a complaint or hearing regarding the
3-10     reasonableness of the company's:
3-11                       (A)  rates;
3-12                       (B)  overall revenues;
3-13                       (C)  return on invested capital; or
3-14                       (D)  net income; or
3-15                 (2)  a complaint that a rate is excessive.
3-16           SECTION 7.  This Act takes effect September 1, 1999.
3-17           SECTION 8.  The importance of this legislation and the
3-18     crowded condition of the calendars in both houses create an
3-19     emergency and an imperative public necessity that the
3-20     constitutional rule requiring bills to be read on three several
3-21     days in each house be suspended, and this rule is hereby suspended.