By Puente                                             H.B. No. 3750
         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.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter C, Chapter 52, Utilities Code, is
 1-5     amended by adding Section 52.112 to read as follows:
 1-6           Sec. 52.112.  PASS-THROUGH OF ACCESS RATE REDUCTION.  (a)  An
 1-7     interexchange telecommunications utility doing business in this
 1-8     state shall pass through to all customers reductions in intrastate
 1-9     access charges ordered by the commission, including reductions
1-10     ordered under Chapter 56.
1-11           (b)  The commission may require an interexchange
1-12     telecommunications utility to file with the commission a plan
1-13     detailing how the utility intends to pass through reductions.  A
1-14     plan submitted to the commission must provide for reductions for
1-15     each customer class that are proportional to the reductions in
1-16     intrastate access charges for that customer class.
1-17           (c)  Notwithstanding Section 52.102, the commission has all
1-18     jurisdiction necessary to implement and enforce this section,
1-19     including the authority to enter any necessary order and to impose
1-20     an administrative penalty under Chapter 15.
1-21           SECTION 2.  Section 56.026, Utilities Code, is amended by
 2-1     adding Subsection (c) to read as follows:
 2-2           (c)  A local exchange company regulated under PURA Chapter 58
 2-3     may receive a disbursement from the high cost universal service
 2-4     fund through a mechanism designed to offset any implicit subsidy of
 2-5     basic local telecommunications service contained in access charges
 2-6     to the extent the disbursement does not exceed the amount
 2-7     determined by the commission to be an implicit subsidy of basic
 2-8     local telecommunications service.
 2-9           SECTION 3.  Section 58.021, Utilities Code, is amended by
2-10     adding Subsections (c) and (d) to read as follows:
2-11           (c)  Except as provided by Subsection (d), an election under
2-12     this chapter remains in effect until the legislature eliminates the
2-13     incentive regulation authorized by this chapter and Chapter 59.
2-14           (d)  Notwithstanding any other provision of this chapter, an
2-15     electing company serving fewer than five million access lines in
2-16     this state may withdraw its election under this chapter at any time
2-17     after the later of September 1, 2001, or the fourth anniversary of
2-18     the company's election date.
2-19           SECTION 4.  Section 58.054, Utilities Code, is amended by
2-20     adding Subsection (c) to read as follows:
2-21           (c)  Notwithstanding Subsections (a) and (b), the cap on the
2-22     rates for basic network services for a company electing under this
2-23     subchapter may not expire before September 1, 2001.
2-24           SECTION 5.  The importance of this legislation and the
2-25     crowded condition of the calendars in both houses create an
 3-1     emergency and an imperative public necessity that the
 3-2     constitutional rule requiring bills to be read on three several
 3-3     days in each house be suspended, and this rule is hereby suspended,
 3-4     and that this Act take effect and be in force from and after its
 3-5     passage, and it is so enacted.