AN ACT
1-1 relating to the regulation of telecommunications utilities by the
1-2 Public Utility Commission of Texas and the provision of
1-3 telecommunications services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 12.005, Utilities Code, is amended to
1-6 read as follows:
1-7 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility
1-8 Commission of Texas is subject to Chapter 325, Government Code
1-9 (Texas Sunset Act). Unless continued in existence as provided by
1-10 that chapter, the commission is abolished and this title expires
1-11 September 1, 2005 [2001].
1-12 SECTION 2. Section 13.002, Utilities Code, is amended to
1-13 read as follows:
1-14 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of
1-15 Public Utility Counsel is subject to Chapter 325, Government Code
1-16 (Texas Sunset Act). Unless continued in existence as provided by
1-17 that chapter, the office is abolished and this chapter expires
1-18 September 1, 2005 [2001].
1-19 SECTION 3. Subsection (c), Section 15.024, Utilities Code,
1-20 is amended to read as follows:
1-21 (c) A penalty may not be assessed under this section if the
1-22 person against whom the penalty may be assessed remedies the
1-23 violation before the 31st day after the date the person receives
1-24 the notice under Subsection (b). A person who claims to have
2-1 remedied an alleged violation has the burden of proving to the
2-2 commission that the alleged violation was remedied and was
2-3 accidental or inadvertent. This subsection does not apply to a
2-4 violation of Chapter 55 or 64.
2-5 SECTION 4. Section 51.001, Utilities Code, is amended by
2-6 amending Subsection (a) and adding Subsection (g) to read as
2-7 follows:
2-8 (a) Significant changes have occurred in telecommunications
2-9 since the law from which this title is derived was originally
2-10 adopted. To encourage and accelerate the development of a
2-11 competitive and advanced telecommunications environment and
2-12 infrastructure, new rules, policies, and principles must be
2-13 formulated and applied to protect the public interest. Changes in
2-14 technology and market structure have increased the need for minimum
2-15 standards of service quality, customer service, and fair business
2-16 practices to ensure high-quality service to customers and a healthy
2-17 marketplace where competition is permitted by law. It is the
2-18 purpose of this subtitle to grant the commission authority to make
2-19 and enforce rules necessary to protect customers of
2-20 telecommunications services consistent with the public interest.
2-21 (g) It is the policy of this state to ensure that customers
2-22 in all regions of this state, including low-income customers and
2-23 customers in rural and high cost areas, have access to
2-24 telecommunications and information services, including
2-25 interexchange services, cable services, wireless services, and
2-26 advanced telecommunications and information services, that are
3-1 reasonably comparable to those services provided in urban areas and
3-2 that are available at prices that are reasonably comparable to
3-3 prices charged for similar services in urban areas. Not later than
3-4 November 1, 1999, the commission shall begin a review and
3-5 evaluation of the availability and the pricing of
3-6 telecommunications and information services, including
3-7 interexchange services, cable services, wireless services, and
3-8 advanced telecommunications and information services, in rural and
3-9 high cost areas, as well as the convergence of telecommunications
3-10 services. The commission shall file a report with the legislature
3-11 not later than January 1, 2001. The report must include the
3-12 commission's recommendations on the issues reviewed and evaluated.
3-13 SECTION 5. Subdivisions (6), (7), and (10), Section 51.002,
3-14 Utilities Code, are amended to read as follows:
3-15 (6) "Long run incremental cost" has the meaning
3-16 assigned by 16 T.A.C. Section 23.91 or its successor.
3-17 (7) "Pricing flexibility" includes:
3-18 (A) customer specific contracts;
3-19 (B) packaging of services;
3-20 (C) volume, term, and discount pricing;
3-21 (D) zone density pricing, with a zone to be
3-22 defined as an exchange; and
3-23 (E) other promotional pricing.
3-24 (10) "Telecommunications provider":
3-25 (A) means:
3-26 (i) a certificated telecommunications
4-1 utility;
4-2 (ii) a shared tenant service provider;
4-3 (iii) a nondominant carrier of
4-4 telecommunications services;
4-5 (iv) a provider of commercial mobile
4-6 service as defined by Section 332(d), Communications Act of 1934
4-7 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
4-8 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
4-9 Law 103-66), except that the term does not include these entities
4-10 for the purposes of Chapter 55 or 64;
4-11 (v) a telecommunications entity that
4-12 provides central office based PBX-type sharing or resale
4-13 arrangements;
4-14 (vi) an interexchange telecommunications
4-15 carrier;
4-16 (vii) a specialized common carrier;
4-17 (viii) a reseller of communications;
4-18 (ix) a provider of operator services;
4-19 (x) a provider of customer-owned pay
4-20 telephone service; or
4-21 (xi) another person or entity determined
4-22 by the commission to provide telecommunications services to
4-23 customers in this state; and
4-24 (B) does not mean:
4-25 (i) a provider of enhanced or information
4-26 services, or another user of telecommunications services, who does
5-1 not also provide telecommunications services; or
5-2 (ii) a state agency or state institution
5-3 of higher education, or a service provided by a state agency or
5-4 state institution of higher education.
5-5 SECTION 6. Section 51.004, Utilities Code, is amended to
5-6 read as follows:
5-7 Sec. 51.004. PRICING FLEXIBILITY. (a) A discount or other
5-8 form of pricing flexibility may not be preferential, prejudicial,
5-9 [or] discriminatory, predatory, or anticompetitive.
5-10 (b) This title does not prohibit a volume discount or other
5-11 discount based on a reasonable business purpose. A price that is
5-12 set at or above the long run incremental cost of a service is
5-13 presumed not to be a predatory price.
5-14 SECTION 7. The section heading to Section 52.058, Utilities
5-15 Code, is amended to read as follows:
5-16 Sec. 52.058. GENERAL PROVISIONS RELATING TO NEW OR
5-17 EXPERIMENTAL SERVICES OR PROMOTIONAL RATES.
5-18 SECTION 8. Subchapter B, Chapter 52, Utilities Code, is
5-19 amended by adding Sections 52.0583, 52.0584, and 52.0585 to read as
5-20 follows:
5-21 Sec. 52.0583. NEW SERVICES. (a) An incumbent local
5-22 exchange company may introduce a new service 10 days after
5-23 providing an informational notice to the commission, to the office,
5-24 and to any person who holds a certificate of operating authority in
5-25 the incumbent local exchange company's certificated area or areas
5-26 or who has an effective interconnection agreement with the
6-1 incumbent local exchange company.
6-2 (b) An incumbent local exchange company shall price each new
6-3 service at or above the service's long run incremental cost. The
6-4 commission shall allow a company serving fewer than one million
6-5 access lines in this state to establish a service's long run
6-6 incremental cost by adopting, at that company's option, the cost
6-7 studies of a larger company for that service that have been
6-8 accepted by the commission.
6-9 (c) An affected person, the office on behalf of residential
6-10 or small commercial customers, or the commission may file a
6-11 complaint at the commission challenging whether the pricing by an
6-12 incumbent local exchange company of a new service is in compliance
6-13 with Subsection (b).
6-14 (d) If a complaint is filed under Subsection (c), the
6-15 incumbent local exchange company has the burden of proving that the
6-16 company set the price for the new service in accordance with the
6-17 applicable provisions of this subchapter. If the complaint is
6-18 finally resolved in favor of the complainant, the company:
6-19 (1) shall, not later than the 10th day after the date
6-20 the complaint is finally resolved, amend the price of the service
6-21 as necessary to comply with the final resolution; or
6-22 (2) may, at the company's option, discontinue the
6-23 service.
6-24 (e) A company electing incentive regulation under Chapter 58
6-25 or 59 may introduce new services only in accordance with the
6-26 applicable provisions of Chapter 58 or 59.
7-1 Sec. 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
7-2 PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision of
7-3 this title, an incumbent local exchange company may exercise
7-4 pricing flexibility in accordance with this section, including the
7-5 packaging of any regulated service such as basic local
7-6 telecommunications service with any other regulated or unregulated
7-7 service or any service of an affiliate. The company may exercise
7-8 pricing flexibility 10 days after providing an informational notice
7-9 to the commission, to the office, and to any person who holds a
7-10 certificate of operating authority in the incumbent local exchange
7-11 company's certificated area or areas or who has an effective
7-12 interconnection agreement with the incumbent local exchange
7-13 company. Pricing flexibility includes all pricing arrangements
7-14 included in the definition of "pricing flexibility" prescribed by
7-15 Section 51.002 and includes packaging of any regulated service with
7-16 any unregulated service or any service of an affiliate.
7-17 (b) An incumbent local exchange company, at the company's
7-18 option, shall price each regulated service offered separately or as
7-19 part of a package under Subsection (a) at either the service's
7-20 tariffed rate or at a rate not lower than the service's long run
7-21 incremental cost. The commission shall allow a company serving
7-22 fewer than one million access lines in this state to establish a
7-23 service's long run incremental cost by adopting, at that company's
7-24 option, the cost studies of a larger company for that service that
7-25 have been accepted by the commission.
7-26 (c) An affected person, the office on behalf of residential
8-1 or small commercial customers, or the commission may file a
8-2 complaint alleging that an incumbent local exchange company has
8-3 priced a regulated service in a manner that does not meet the
8-4 pricing standards of this subchapter. The complaint must be filed
8-5 before the 31st day after the date the company implements the rate.
8-6 (d) A company electing incentive regulation under Chapter 58
8-7 or 59 may use pricing and packaging flexibility and introduce
8-8 customer promotional offerings only in accordance with the
8-9 applicable provisions of Chapter 58 or 59.
8-10 Sec. 52.0585. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
8-11 incumbent local exchange company may offer a promotion for a
8-12 regulated service for not more than 90 days in any 12-month period.
8-13 (b) The company shall file with the commission a promotional
8-14 offering that consists of:
8-15 (1) waiver of installation charges or service order
8-16 charges, or both, for not more than 90 days in a 12-month period;
8-17 or
8-18 (2) a temporary discount of not more than 25 percent
8-19 from the tariffed rate for not more than 60 days in a 12-month
8-20 period.
8-21 (c) An incumbent local exchange company is not required to
8-22 obtain commission approval to make a promotional offering described
8-23 by Subsection (b).
8-24 (d) An incumbent local exchange company may offer a
8-25 promotion of any regulated service as part of a package of services
8-26 consisting of any regulated service with any other regulated or
9-1 unregulated service or any service of an affiliate.
9-2 SECTION 9. Section 52.102, Utilities Code, as amended by
9-3 Section 18.04, S.B. No. 1368, Acts of the 76th Legislature, Regular
9-4 Session, 1999, is amended to read as follows:
9-5 Sec. 52.102. LIMITED REGULATORY AUTHORITY. (a) Except as
9-6 otherwise provided by this subchapter, Subchapters D and K, Chapter
9-7 55, and Section 55.011, the commission has only the following
9-8 jurisdiction over a telecommunications utility subject to this
9-9 subchapter:
9-10 (1) to require registration under Section 52.103;
9-11 (2) to conduct an investigation under Section 52.104;
9-12 (3) to require the filing of reports as the commission
9-13 periodically directs;
9-14 (4) to require the maintenance of statewide average
9-15 rates or prices of telecommunications service;
9-16 (5) to require a telecommunications utility that had
9-17 more than six percent of the total intrastate access minutes of use
9-18 as measured for the most recent 12-month period to pass switched
9-19 access rate reductions under this title to customers as required by
9-20 Section 52.112;
9-21 (6) to require access to telecommunications service
9-22 under Section 52.105; and
9-23 (7) [(6)] to require the quality of telecommunications
9-24 service provided to be adequate under Section 52.106.
9-25 (b) The authority provided by Subsection (a)(5) expires on
9-26 the date on which Section 52.112 expires.
10-1 SECTION 10. Section 52.108, Utilities Code, is amended to
10-2 read as follows:
10-3 Sec. 52.108. OTHER PROHIBITED PRACTICES. The commission may
10-4 enter any order necessary to protect the public interest if the
10-5 commission finds after notice and hearing that a telecommunications
10-6 utility has:
10-7 (1) failed to maintain statewide average rates;
10-8 (2) abandoned interexchange message telecommunications
10-9 service to a local exchange area in a manner contrary to the public
10-10 interest; [or]
10-11 (3) engaged in a pattern of preferential or
10-12 discriminatory activities prohibited by Section 53.003, 55.005, or
10-13 55.006; or
10-14 (4) failed to pass switched access rate reductions to
10-15 customers under Chapter 56 or other law, as required by Section
10-16 52.112.
10-17 SECTION 11. Subsection (a), Section 52.110, Utilities Code,
10-18 is amended to read as follows:
10-19 (a) In a proceeding before the commission in which it is
10-20 alleged that a telecommunications utility engaged in conduct in
10-21 violation of Section 52.107, 52.108, [or] 52.109, or 52.112, the
10-22 burden of proof is on:
10-23 (1) a telecommunications utility complaining of
10-24 conduct committed against it in violation of this subchapter; or
10-25 (2) except as provided by Subsection (b), the
10-26 responding telecommunications utility if the proceedings are:
11-1 (A) brought by a customer or customer
11-2 representative who is not a telecommunications utility; or
11-3 (B) initiated by the commission.
11-4 SECTION 12. Subchapter C, Chapter 52, Utilities Code, is
11-5 amended by adding Section 52.112 to read as follows:
11-6 Sec. 52.112. REDUCTION PASS-THROUGH REQUIRED. (a) Each
11-7 telecommunications utility that had more than six percent of the
11-8 total intrastate access minutes of use as measured for the most
11-9 recent 12-month period shall pass through to customers switched
11-10 access rate reductions under this title. The residential customer
11-11 class shall receive not less than a proportionate share of the
11-12 reductions.
11-13 (b) Within six months following each reduction in intrastate
11-14 switched access rates under this title, each telecommunications
11-15 utility subject to this section shall file with the commission a
11-16 sworn affidavit confirming that the utility has reduced the per
11-17 minute rates it charges under its basic rate schedule to reflect
11-18 the per minute reduction in intrastate switched access rates.
11-19 (c) This section expires on the second anniversary of the
11-20 date incumbent local exchange companies doing business in the state
11-21 are no longer prohibited by federal law from offering interLATA and
11-22 interstate long distance service.
11-23 SECTION 13. Subchapter D, Chapter 52, Utilities Code, is
11-24 amended by adding Section 52.155 to read as follows:
11-25 Sec. 52.155. PROHIBITION OF EXCESSIVE ACCESS CHARGES.
11-26 (a) A telecommunications utility that holds a certificate of
12-1 operating authority or a service provider certificate of operating
12-2 authority may not charge a higher amount for originating or
12-3 terminating intrastate switched access than the prevailing rates
12-4 charged by the holder of the certificate of convenience and
12-5 necessity in whose territory the call originated or terminated
12-6 unless:
12-7 (1) the commission specifically approves the higher
12-8 rate; or
12-9 (2) subject to commission review, the
12-10 telecommunications utility establishes statewide average composite
12-11 originating and terminating intrastate switched access rates based
12-12 on a reasonable approximation of traffic originating and
12-13 terminating between all holders of certificates of convenience and
12-14 necessity in this state.
12-15 (b) Notwithstanding any other provision of this title, the
12-16 commission has all jurisdiction necessary to enforce this section.
12-17 SECTION 14. Subchapter F, Chapter 52, Utilities Code, is
12-18 amended by adding Section 52.256 to read as follows:
12-19 Sec. 52.256. PLAN AND REPORT OF WORKFORCE DIVERSITY AND
12-20 OTHER BUSINESS PRACTICES. (a) In this section, "small business"
12-21 and "historically underutilized business" have the meanings
12-22 assigned by Section 481.191, Government Code.
12-23 (b) Before January 1, 2000, each telecommunications utility
12-24 shall develop and submit to the commission a comprehensive
12-25 five-year plan to enhance diversity of its workforce in all
12-26 occupational categories and for increasing opportunities for small
13-1 and historically underutilized businesses. The plan must consist
13-2 of:
13-3 (1) the telecommunications utility's performance with
13-4 regard to workforce diversity and contracting with small and
13-5 historically underutilized businesses;
13-6 (2) initiatives that the telecommunications utility
13-7 will pursue in these areas over the period of the plan;
13-8 (3) a listing of programs and activities the
13-9 telecommunications utility will undertake to achieve each of these
13-10 initiatives; and
13-11 (4) a listing of the business partnership initiatives
13-12 the telecommunications utility will undertake to facilitate small
13-13 and historically underutilized business entry into the
13-14 telecommunications market, taking into account opportunities for
13-15 contracting and joint ventures.
13-16 (c) Each telecommunications utility shall submit an annual
13-17 report to the commission and the legislature relating to its
13-18 efforts to improve workforce diversity and contracting
13-19 opportunities for small and historically underutilized businesses.
13-20 The report must include:
13-21 (1) the diversity of the telecommunications utility's
13-22 workforce as of the time of the report;
13-23 (2) the telecommunications utility's level of
13-24 contracting with small and historically underutilized businesses;
13-25 (3) the specific progress made under the plan under
13-26 Subsection (b);
14-1 (4) the specific initiatives, programs, and activities
14-2 undertaken under the plan during the preceding year;
14-3 (5) an assessment of the success of each of those
14-4 initiatives, programs, and activities;
14-5 (6) the extent to which the telecommunications utility
14-6 has carried out its initiatives to facilitate opportunities for
14-7 contracts or joint ventures with small and historically
14-8 underutilized businesses; and
14-9 (7) the initiatives, programs, and activities the
14-10 telecommunications utility will pursue during the next year to
14-11 increase the diversity of its workforce and contracting
14-12 opportunities for small and historically underutilized businesses.
14-13 SECTION 15. Section 54.007, Utilities Code, is amended to
14-14 read as follows:
14-15 Sec. 54.007. FLEXIBILITY PLAN. (a) After the commission
14-16 grants an application for a certificate of convenience and
14-17 necessity, a certificate of operating authority, or a service
14-18 provider certificate of operating authority or determines that a
14-19 certificate is not needed for the applicant to provide the relevant
14-20 services, the commission shall conduct appropriate proceedings to
14-21 establish a transitional flexibility plan for the incumbent local
14-22 exchange company in the same area or areas as the new certificate
14-23 holder.
14-24 (b) A basic local telecommunications service price of the
14-25 incumbent local exchange company may not be increased before the
14-26 fourth anniversary of the date the certificate is granted to the
15-1 applicant except that the price may be increased[:]
15-2 [(1)] as provided by this title[;]
15-3 [(2) when the new certificate holder has completed the
15-4 build-out plan required by Subchapter C, if applicable; or]
15-5 [(3) when a competitor for basic local
15-6 telecommunications service provides the service in an area in which
15-7 the build-out requirements have been eliminated].
15-8 SECTION 16. Subchapter C, Chapter 54, Utilities Code, is
15-9 amended to read as follows:
15-10 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
15-11 Sec. 54.101. DEFINITION. In this subchapter, "certificate"
15-12 means a certificate of operating authority.
15-13 Sec. 54.102. APPLICATION FOR CERTIFICATE. (a) A [In lieu
15-14 of applying for a certificate of convenience and necessity, a]
15-15 person may apply for a certificate of operating authority.
15-16 (b) [An applicant for a facilities-based certificate of
15-17 operating authority must include with the application a proposed
15-18 build-out plan in compliance with this subchapter that demonstrates
15-19 how the applicant will, over a six-year period, deploy facilities
15-20 throughout the geographic area of the certificated service area.]
15-21 [(c)] The applicant must file with the application a sworn
15-22 statement that the applicant has applied for each municipal
15-23 consent, franchise, or permit required for the type of services and
15-24 facilities for which the applicant has applied.
15-25 (c) An affiliate of a person holding a certificate of
15-26 convenience and necessity may hold a certificate of operating
16-1 authority if the holder of the certificate of convenience and
16-2 necessity is in compliance with federal law and Federal
16-3 Communications Commission rules governing affiliates and structural
16-4 separation. An affiliate of a person holding a certificate of
16-5 convenience and necessity may not directly or indirectly sell to a
16-6 non-affiliate any regulated product or service purchased from the
16-7 person holding a certificate of convenience and necessity at any
16-8 rate or price less than the price paid to the person holding a
16-9 certificate of convenience and necessity.
16-10 (d) A person may hold a certificate for all or any portion
16-11 of a service area for which one or more affiliates of the person
16-12 holds a certificate of operating authority, a service provider
16-13 certificate of operating authority, or a certificate of convenience
16-14 and necessity.
16-15 (e) An affiliate of a company that holds a certificate of
16-16 convenience and necessity and that serves more than five million
16-17 access lines in this state may hold a certificate of operating
16-18 authority or service provider certificate of operating authority to
16-19 provide service in an area of this state in which its affiliated
16-20 company is the incumbent local exchange company. However, the
16-21 affiliate holding the certificate of operating authority or service
16-22 provider certificate of operating authority may not provide in that
16-23 area any service listed in Sections 58.051(a)(1)-(4) or Sections
16-24 58.151(1)-(4), or any subset of those services, in a manner that
16-25 results in a customer-specific contract so long as the affiliated
16-26 company that is the incumbent local exchange company may not
17-1 provide those services or subsets of services in a manner that
17-2 results in a customer-specific contract under Section 58.003 in
17-3 that area. This subsection does not preclude an affiliate of a
17-4 company holding a certificate of convenience and necessity from
17-5 holding a certificate of operating authority in any area of this
17-6 state to provide advanced services as defined by rules or orders of
17-7 the Federal Communications Commission, or preclude such an advanced
17-8 services affiliate from using any form of pricing flexibility, with
17-9 regard to services other than those subject to the restrictions
17-10 provided by this subsection. This subsection does not preclude a
17-11 long distance affiliate from using any form of pricing flexibility
17-12 with regard to services other than those services subject to the
17-13 restrictions provided by this subsection. In addition, the
17-14 affiliate holding the certificate of operating authority or service
17-15 provider certificate of operating authority may not offer, in an
17-16 area for which the affiliated incumbent local exchange company
17-17 holds a certificate of convenience and necessity, a service listed
17-18 in Sections 58.151(1)-(4) as a component of a package of services,
17-19 as a promotional offering, or with a volume or term discount until
17-20 the affiliated incumbent local exchange company may offer those
17-21 services in pricing flexibility offerings in accordance with
17-22 Section 58.004, unless the customer of one of these pricing
17-23 flexibility offerings is a federal, state, or local governmental
17-24 entity.
17-25 (f) The commission has the authority to enforce this
17-26 section.
18-1 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE. (a) The
18-2 commission must grant or deny a certificate not later than the 60th
18-3 day after the date the application for the certificate is filed.
18-4 The commission may extend the deadline on good cause shown.
18-5 (b) The commission shall grant each certificate on a
18-6 nondiscriminatory basis after considering factors such as:
18-7 (1) [the adequacy of the applicant's build-out plan;]
18-8 [(2)] the technical and financial qualifications of
18-9 the applicant; and
18-10 (2) [(3)] the applicant's ability to meet the
18-11 commission's quality of service requirements.
18-12 (c) In an exchange of an incumbent local exchange company
18-13 that serves fewer than 31,000 access lines, in addition to the
18-14 factors described by Subsection (b), the commission shall consider:
18-15 (1) the effect of granting the certificate on a public
18-16 utility serving the area and on that utility's customers;
18-17 (2) the ability of that public utility to provide
18-18 adequate service at reasonable rates;
18-19 (3) the effect of granting the certificate on the
18-20 ability of that public utility to act as the provider of last
18-21 resort; and
18-22 (4) the ability of the exchange, not the company, to
18-23 support more than one provider of service.
18-24 (d) Except as provided by Subsections (e) and (f), the
18-25 commission may grant an application for a certificate only for an
18-26 area or areas that are contiguous and reasonably compact and cover
19-1 an area of at least 27 square miles.
19-2 (e) In an exchange in a county that has a population of less
19-3 than 500,000 and that is served by an incumbent local exchange
19-4 company that has more than 31,000 access lines, an area covering
19-5 less than 27 square miles may be approved if the area is contiguous
19-6 and reasonably compact and has at least 20,000 access lines.
19-7 (f) In an exchange of a company that serves fewer than
19-8 31,000 access lines in this state, the commission may grant an
19-9 application only for an area that has boundaries similar to the
19-10 boundaries of the serving central office that is served by the
19-11 incumbent local exchange company that holds the certificate of
19-12 convenience and necessity for the area.
19-13 [Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS. (a) The
19-14 build-out plan required by Section 54.102 must provide that, by the
19-15 end of the:]
19-16 [(1) first year, 10 percent of the area to be served
19-17 must be served with facilities that are not facilities of the
19-18 incumbent local exchange company;]
19-19 [(2) third year, 50 percent of the area to be served
19-20 must be served with facilities that are not facilities of the
19-21 incumbent local exchange company; and]
19-22 [(3) sixth year, 100 percent of the area to be served
19-23 must be served with facilities that are not facilities of the
19-24 incumbent local exchange company.]
19-25 [(b) The build-out plan may permit the certificate holder to
19-26 serve not more than 40 percent of the certificate holder's service
20-1 area by reselling the incumbent local exchange company's
20-2 facilities. The resale must be in accordance with:]
20-3 [(1) Section 54.105; and]
20-4 [(2) the resale tariff approved by the commission
20-5 under Subchapter C, Chapter 60.]
20-6 [(c) The resale limitation applies to an incumbent local
20-7 exchange facility that a certificate holder resells in providing
20-8 local exchange telephone service, regardless of whether:]
20-9 [(1) the certificate holder purchases the facility
20-10 directly from the incumbent local exchange company; or]
20-11 [(2) an intermediary carrier purchases the facility
20-12 from the incumbent local exchange company and then provides the
20-13 facility to the certificate holder for resale.]
20-14 [(d) To meet the build-out requirement prescribed by this
20-15 subchapter, a certificate holder:]
20-16 [(1) may not use commercial mobile service; and]
20-17 [(2) may use personal communication services (PCS) or
20-18 other wireless technology licensed or allocated by the Federal
20-19 Communications Commission after January 1, 1995.]
20-20 [Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES.
20-21 Before the sixth anniversary of the date a certificate is granted,
20-22 the certificate holder may extend service by resale only:]
20-23 [(1) in the area it is obligated to serve under the
20-24 approved build-out plan; and]
20-25 [(2) to the distant premises of one of its
20-26 multi-premises customers beyond the approved build-out area but in
21-1 its certificated service area.]
21-2 Sec. 54.104 [54.106]. TIME OF SERVICE REQUIREMENTS.
21-3 (a) The commission by rule may prescribe the period within which a
21-4 certificate holder must be able to serve customers.
21-5 (b) Notwithstanding Subsection (a), a certificate holder
21-6 must serve a customer [in the build-out area] not later than the
21-7 30th day after the date the customer requests service.
21-8 [Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES.
21-9 As part of the build-out requirements, the commission may not
21-10 require a certificate holder to:]
21-11 [(1) place a drop facility on each customer's
21-12 premises; or]
21-13 [(2) activate a fiber optic facility in advance of a
21-14 customer request.]
21-15 [Sec. 54.108. BUILD-OUT PLAN COMPLIANCE. (a) A certificate
21-16 holder shall file periodic reports with the commission
21-17 demonstrating compliance with:]
21-18 [(1) the plan approved by the commission; and]
21-19 [(2) the resale limitation prescribed by Section
21-20 54.104(b).]
21-21 [(b) The commission may administratively and temporarily
21-22 waive compliance with the six-year build-out plan on a showing of
21-23 good cause.]
21-24 [Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
21-25 CERTAIN PROVIDERS. (a) The commission may waive the build-out
21-26 requirements of this subchapter for an additional applicant in a
22-1 particular area:]
22-2 [(1) on or after the sixth anniversary of the date a
22-3 certificate is granted for that area; or]
22-4 [(2) on or after the date a certificate holder
22-5 completes the holder's build-out plan in that area.]
22-6 [(b) The build-out requirements of this subchapter do not
22-7 apply to a service area:]
22-8 [(1) that is served by an incumbent local exchange
22-9 company that:]
22-10 [(A) has more than one million access lines; and]
22-11 [(B) on September 1, 1995, was subject to a
22-12 prohibition under federal law on the provision of interLATA
22-13 service; and]
22-14 [(2) for which all prohibitions on the incumbent local
22-15 exchange company's provision of interLATA services are removed so
22-16 the company can offer interLATA service together with local and
22-17 intraLATA toll service.]
22-18 [Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS.
22-19 (a) The commission on application may conduct a hearing to
22-20 determine:]
22-21 [(1) whether the build-out requirements of Sections
22-22 54.102(b), 54.103(e) and (f), 54.104, 54.105, 54.106, and 54.107
22-23 have created a barrier to the entry of facilities-based local
22-24 exchange telephone service competition in an exchange in a county
22-25 that has a population of more than 500,000 and that is served by a
22-26 company that has more than 31,000 access lines; and]
23-1 [(2) the effect of the resale provisions on the
23-2 development of competition, other than the development of
23-3 competition in the certificated areas of companies that serve fewer
23-4 than 31,000 access lines as provided by Section 54.156(a).]
23-5 [(b) In making a determination under Subsection (a), the
23-6 commission shall consider:]
23-7 [(1) this title's policy to encourage construction of
23-8 local exchange networks;]
23-9 [(2) the number and type of competitors that have
23-10 sought to provide local exchange competition under the existing
23-11 rules prescribed by this title; and]
23-12 [(3) whether adopting new build-out and resale rules
23-13 would make innovative and competitive local exchange telephone
23-14 services more likely to be provided.]
23-15 [(c) The commission may change a requirement described by
23-16 Subsection (a)(1) or prescribed by Subchapter D if:]
23-17 [(1) the commission determines that the build-out
23-18 requirements have created a barrier to facilities-based local
23-19 exchange competition in an exchange described by Subsection (a)(1);
23-20 and]
23-21 [(2) the changes will encourage additional
23-22 facilities-based competition.]
23-23 [(d) Notwithstanding Subsection (c), the commission may not
23-24 reduce an exchange size to below 12 square miles or increase the
23-25 resale percentage prescribed by Section 54.104(b) to more than 50
23-26 percent.]
24-1 [(e) A rule adopted under Subsection (c) may apply only to a
24-2 person who files an application for a certificate after the date
24-3 the rule is adopted.]
24-4 Sec. 54.105 [54.111]. PENALTY FOR VIOLATION OF TITLE. If a
24-5 certificate holder fails to comply with a requirement of this
24-6 title, the commission may:
24-7 (1) revoke the holder's certificate;
24-8 (2) impose against the holder administrative penalties
24-9 under Subchapter B, Chapter 15; or
24-10 (3) take another action under Subchapter B, Chapter
24-11 15.
24-12 SECTION 17. Subchapter E, Chapter 54, Utilities Code, is
24-13 amended by adding Section 54.2025 to read as follows:
24-14 Sec. 54.2025. LEASE OF FIBER OPTIC CABLE FACILITIES.
24-15 Nothing in this subchapter shall prevent a municipality, or a
24-16 municipal electric system that is a member of a municipal power
24-17 agency formed under Chapter 163 by adoption of a concurrent
24-18 resolution by the participating municipalities on or before August
24-19 1, 1975, from leasing any of the excess capacity of its fiber optic
24-20 cable facilities (dark fiber), so long as the rental of the fiber
24-21 facilities is done on a nondiscriminatory, nonpreferential basis.
24-22 SECTION 18. Subchapter A, Chapter 55, Utilities Code, is
24-23 amended by adding Section 55.012 to read as follows:
24-24 Sec. 55.012. TELECOMMUNICATIONS BILLING. (a) The
24-25 proliferation of charges for separate services, products,
24-26 surcharges, fees, and taxes on a bill for telecommunications
25-1 products or services has increased the complexity of those bills to
25-2 such an extent that in some cases the bills have become difficult
25-3 for customers to understand.
25-4 (b) A bill from a local exchange company for
25-5 telecommunications products or services should be simplified into
25-6 general categories to the extent that simplification is consistent
25-7 with providing customers sufficient information about the charges
25-8 included in the bill to understand the basis and source of the
25-9 charges.
25-10 (c) To the extent permitted by law, a monthly bill from a
25-11 local exchange company for local exchange telephone service shall
25-12 include an aggregate charge for each of the following categories:
25-13 (1) basic local service charges and fees, which
25-14 includes carrier's charges for basic local telecommunications
25-15 service and related fees, assessments, and surcharges;
25-16 (2) optional services; and
25-17 (3) taxes, which includes any taxes applicable to the
25-18 charges described by Subdivisions (1) and (2).
25-19 SECTION 19. Subchapter A, Chapter 55, Utilities Code, is
25-20 amended by adding Section 55.013 to read as follows:
25-21 Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL
25-22 TELECOMMUNICATIONS SERVICE. (a) A provider of basic local
25-23 telecommunications service may not discontinue that service because
25-24 of nonpayment by a residential customer of charges for long
25-25 distance service. Payment shall first be allocated to basic local
25-26 telecommunications service.
26-1 (b) For purposes of allocating payment in this section, if
26-2 the provider of basic local telecommunications service bundles its
26-3 basic local telecommunications service with long distance service
26-4 or any other service and provides a discount for the basic local
26-5 telecommunications service because of that bundling, the rate of
26-6 basic local telecommunications service shall be the rate the
26-7 provider charges for stand-alone basic local telecommunications
26-8 service.
26-9 (c) Notwithstanding Subsection (a), the commission shall
26-10 adopt and implement rules, not later than January 1, 2000, to
26-11 prevent customer abuse of the protections afforded by this section.
26-12 The rules must include:
26-13 (1) provisions requiring a provider of basic local
26-14 telecommunications service to offer and implement toll blocking
26-15 capability to limit a customer's ability to incur additional
26-16 charges for long distance services after nonpayment for long
26-17 distance services; and
26-18 (2) provisions regarding fraudulent activity in
26-19 response to which a provider may discontinue a residential
26-20 customer's basic local telecommunications service.
26-21 (d) Notwithstanding any other provision of this title, the
26-22 commission has all jurisdiction necessary to establish a maximum
26-23 price that an incumbent local exchange company may charge a long
26-24 distance service provider to initiate the toll blocking capability
26-25 required to be offered under the rules adopted under Subsection
26-26 (c). The maximum price established under this subsection shall be
27-1 observed by all providers of basic local telecommunications service
27-2 in the incumbent local exchange company's certificated service
27-3 area. Notwithstanding Sections 52.102 and 52.152, the commission
27-4 has all jurisdiction necessary to enforce this section.
27-5 (e) A provider of basic local exchange telecommunications
27-6 service shall comply with the requirements of this section not
27-7 later than March 1, 2000.
27-8 SECTION 20. Subchapter A, Chapter 55, Utilities Code, is
27-9 amended by adding Section 55.014 to read as follows:
27-10 Sec. 55.014. PROVISION OF ADVANCED TELECOMMUNICATIONS
27-11 SERVICES. (a) In this section, "advanced service" means any
27-12 telecommunications service other than residential or business basic
27-13 local exchange telephone service, caller identification service,
27-14 and customer calling features.
27-15 (b) This section applies to a company electing under Chapter
27-16 58 or a company that holds a certificate of operating authority or
27-17 service provider certificate of operating authority.
27-18 (c) Notwithstanding any other provision of this title,
27-19 beginning September 1, 2001, a company to which this section
27-20 applies that provides advanced telecommunications services within
27-21 the company's urban service areas, shall, on a bona fide retail
27-22 request for those services, provide in rural areas of this state
27-23 served by the company advanced telecommunications services that
27-24 are reasonably comparable to the advanced services provided in
27-25 urban areas. The company shall offer the advanced
27-26 telecommunications services:
28-1 (1) at prices, terms, and conditions that are
28-2 reasonably comparable to the prices, terms, and conditions for
28-3 similar advanced services provided by the company in urban areas;
28-4 and
28-5 (2) within 15 months after the bona fide request for
28-6 those advanced services.
28-7 (d) Notwithstanding any other provision of this title, a
28-8 company to which this section applies shall, on a bona fide retail
28-9 request for those services, offer caller identification service and
28-10 custom calling features in rural areas served by the company. The
28-11 company shall offer the services:
28-12 (1) at prices, terms, and conditions reasonably
28-13 comparable to the company's prices, terms, and conditions for
28-14 similar services in urban areas; and
28-15 (2) within 15 months after the bona fide request for
28-16 those services.
28-17 (e) This section may not be construed to require a company
28-18 to:
28-19 (1) begin providing services in a rural area in which
28-20 the company does not provide local exchange telephone service; or
28-21 (2) provide a service in a rural area of this state
28-22 unless the company provides the service in urban areas of this
28-23 state.
28-24 (f) For purposes of this section, a company to which this
28-25 section applies is considered to provide services in urban areas of
28-26 this state if the company provides services in a municipality with
29-1 a population of more than 190,000.
29-2 (g) Notwithstanding any other provision of this title, the
29-3 commission has all jurisdiction necessary to enforce this section.
29-4 SECTION 21. Subchapter A, Chapter 55, Utilities Code, is
29-5 amended by adding Section 55.015 to read as follows:
29-6 Sec. 55.015. LIFELINE SERVICE. (a) The commission shall
29-7 adopt rules prohibiting a telecommunications provider from
29-8 discontinuing basic local exchange telephone service to a consumer
29-9 who receives lifeline service because of nonpayment by the consumer
29-10 of charges for other services billed by the provider, including
29-11 long distance service.
29-12 (b) The commission shall adopt rules providing for automatic
29-13 enrollment to receive lifeline service for eligible consumers. The
29-14 Texas Department of Human Services, on request of the commission,
29-15 shall assist in the adoption and implementation of those rules.
29-16 The commission and the Texas Department of Human Services shall
29-17 enter into a memorandum of understanding establishing the
29-18 respective duties of the commission and department in relation to
29-19 the automatic enrollment.
29-20 (c) A telecommunications provider may block a lifeline
29-21 service participant's access to all long distance service except
29-22 toll-free numbers when the participant owes an outstanding amount
29-23 for that service. The telecommunications provider shall remove the
29-24 block without additional cost to the participant on payment of the
29-25 outstanding amount.
29-26 (d) A telecommunications provider shall offer a consumer who
30-1 applies for or receives lifeline service the option of blocking all
30-2 toll calls or, if technically capable, placing a limit on the
30-3 amount of toll calls. The provider may not charge the consumer an
30-4 administrative charge or other additional amount for the blocking
30-5 service.
30-6 (e) In this section, "lifeline service" means a retail local
30-7 service offering described by 47 C.F.R. Section 54.401(a), as
30-8 amended.
30-9 SECTION 22. Section 3.312, Public Utility Regulatory Act of
30-10 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as added by
30-11 Section 1, Chapter 919, Acts of the 75th Legislature, Regular
30-12 Session, 1997, is codified as Subchapter K, Chapter 55, Utilities
30-13 Code, and amended to read as follows:
30-14 SUBCHAPTER K. SELECTION OF TELECOMMUNICATIONS UTILITIES
30-15 Sec. 55.301. STATE POLICY. It is the policy of this state
30-16 to ensure that all customers are protected from the unauthorized
30-17 switching of a telecommunications utility selected by the customer
30-18 to provide telecommunications service.
30-19 Sec. 55.302. COMMISSION RULES. (a) The commission shall
30-20 adopt nondiscriminatory and competitively neutral rules to
30-21 implement this subchapter, including rules that:
30-22 (1) ensure that customers are protected from deceptive
30-23 practices in the obtaining of authorizations and verifications
30-24 required by this subchapter;
30-25 (2) are applicable to all local exchange telephone
30-26 services, interexchange telecommunications service, and other
31-1 telecommunications service provided by telecommunications utilities
31-2 in this state;
31-3 (3) are consistent with the rules and regulations
31-4 prescribed by the Federal Communications Commission for the
31-5 selection of telecommunications utilities;
31-6 (4) permit telecommunications utilities to select any
31-7 method of verification of a [carrier-initiated] change order
31-8 authorized by Section 55.303;
31-9 (5) [require telecommunications utilities to maintain
31-10 records relating to a customer-initiated change in accordance with
31-11 Section 55.304;]
31-12 [(6)] require the reversal of certain changes in the
31-13 selection of a customer's telecommunications utility in accordance
31-14 with Section 55.304(a) [55.305(a)];
31-15 (6) [(7)] prescribe, in accordance with Section
31-16 55.304(b) [55.305(b)], the duties of a telecommunications utility
31-17 that initiates an unauthorized customer change; and
31-18 (7) [(8)] provide for corrective action and the
31-19 imposition of penalties in accordance with Sections 55.305 [55.306]
31-20 and 55.306 [55.307].
31-21 (b) The commission is granted all necessary jurisdiction to
31-22 adopt rules required by this subchapter and to enforce those rules
31-23 and this subchapter.
31-24 (c) The commission may notify customers of their rights
31-25 under the rules.
31-26 Sec. 55.303. VERIFICATION OF [CARRIER-INITIATED] CHANGE.
32-1 [(a)] A telecommunications utility may verify a
32-2 [carrier-initiated] change order by:
32-3 (1) obtaining written authorization from the customer;
32-4 (2) obtaining a toll-free electronic authorization
32-5 placed from the telephone number that is the subject of the change
32-6 order; or
32-7 (3) an oral authorization obtained by an independent
32-8 third party.
32-9 [(b) In addition to the methods provided by Subsection (a),
32-10 a telecommunications utility may verify a carrier-initiated change
32-11 order by mailing to the customer an information package that is
32-12 consistent with the requirements of 47 C.F.R. Section 64.1100(d)
32-13 and that contains a postage-prepaid postcard or mailer. The change
32-14 is considered verified if the telecommunications utility does not
32-15 receive a cancellation of the change order from the customer within
32-16 14 days after the date of the mailing.]
32-17 [Sec. 55.304. CUSTOMER-INITIATED CHANGE. (a) A
32-18 telecommunications utility to whom a customer has changed its
32-19 service on the initiative of the customer shall maintain a record
32-20 of nonpublic customer-specific information that could be used to
32-21 establish that the customer authorized the change.]
32-22 [(b) Notwithstanding Subsection (a), if the Federal
32-23 Communications Commission requires verification, the
32-24 telecommunications utility shall use the verification methods
32-25 required by the Federal Communications Commission.]
32-26 Sec. 55.304 [55.305]. UNAUTHORIZED CHANGE. (a) If a change
33-1 in the selection of a customer's telecommunications utility is not
33-2 made or verified in accordance with this subchapter, the change, on
33-3 request by the customer, shall be reversed within a period
33-4 established by commission ruling.
33-5 (b) A telecommunications utility that initiates an
33-6 unauthorized customer change shall:
33-7 (1) pay all usual and customary charges associated
33-8 with returning the customer to its original telecommunications
33-9 utility;
33-10 (2) pay the telecommunications utility from which the
33-11 customer was changed any amount paid by the customer that would
33-12 have been paid to that telecommunications utility if the
33-13 unauthorized change had not been made;
33-14 (3) return to the customer any amount paid by the
33-15 customer that exceeds the charges that would have been imposed for
33-16 identical services by the telecommunications utility from which the
33-17 customer was changed if the unauthorized change had not been made;
33-18 and
33-19 (4) provide to the original telecommunications utility
33-20 from which the customer was changed all billing records to enable
33-21 that telecommunications utility to comply with this subchapter.
33-22 (c) The telecommunications utility from which the customer
33-23 was changed shall provide to the customer all benefits associated
33-24 with the service on receipt of payment for service provided during
33-25 the unauthorized change.
33-26 (d) A customer is not liable for charges incurred during the
34-1 first 30 days after the date of an unauthorized carrier change.
34-2 Sec. 55.305 [55.306]. CORRECTIVE ACTION AND PENALTIES.
34-3 (a) If the commission finds that a telecommunications utility has
34-4 repeatedly violated the commission's telecommunications utility
34-5 selection rules, the commission shall order the utility to take
34-6 corrective action as necessary. In addition, the utility may be
34-7 subject to administrative penalties under Sections 15.023-15.027.
34-8 (b) An administrative penalty collected under this section
34-9 shall be used to enforce this subchapter.
34-10 Sec. 55.306 [55.307]. REPEATED AND RECKLESS VIOLATION. If
34-11 the commission finds that a telecommunications utility has
34-12 repeatedly and recklessly violated the commission's
34-13 telecommunications utility selection rules, the commission may, if
34-14 consistent with the public interest, suspend, restrict, deny, or
34-15 revoke the registration or certificate, including an amended
34-16 certificate, of the telecommunications utility and, by taking that
34-17 action, deny the telecommunications utility the right to provide
34-18 service in this state.
34-19 Sec. 55.307. DECEPTIVE OR FRAUDULENT PRACTICE. The
34-20 commission may prohibit a utility from engaging in a deceptive or
34-21 fraudulent practice, including a marketing practice, involving the
34-22 selection of a customer's telecommunications utility. The
34-23 commission may define deceptive and fraudulent practices to which
34-24 this section applies.
34-25 Sec. 55.308. CONSISTENCY WITH FEDERAL LAW. Notwithstanding
34-26 any other provision of this subchapter, rules adopted by the
35-1 commission under this subchapter shall be consistent with
35-2 applicable federal laws and rules.
35-3 SECTION 23. Section 56.021, Utilities Code, as amended by
35-4 Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular
35-5 Session, 1999, is amended to read as follows:
35-6 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
35-7 commission shall adopt and enforce rules requiring local exchange
35-8 companies to establish a universal service fund to:
35-9 (1) assist telecommunications providers [local
35-10 exchange companies] in providing basic local telecommunications
35-11 service at reasonable rates in high cost rural areas;
35-12 (2) reimburse telecommunications providers [local
35-13 exchange companies] for revenue lost by providing tel-assistance
35-14 service under Subchapter C;
35-15 (3) reimburse the telecommunications carrier that
35-16 provides the statewide telecommunications relay access service
35-17 under Subchapter D;
35-18 (4) finance the specialized telecommunications device
35-19 assistance program established under Subchapter E; [and]
35-20 (5) reimburse the department, the Texas Commission for
35-21 the Deaf and Hard of Hearing, and the commission for costs incurred
35-22 in implementing this chapter and Chapter 57; and
35-23 (6) reimburse a telecommunications carrier providing
35-24 lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
35-25 amended.
35-26 SECTION 24. Sections 56.023 and 56.024, Utilities Code, are
36-1 amended to read as follows:
36-2 Sec. 56.023. COMMISSION POWERS AND DUTIES. (a) The
36-3 commission shall:
36-4 (1) in a manner that assures reasonable rates for
36-5 basic local telecommunications service, adopt eligibility criteria
36-6 and review procedures, including a method for administrative
36-7 review, the commission finds necessary to fund the universal
36-8 service fund and make distributions from that fund;
36-9 (2) determine which telecommunications providers
36-10 [local exchange companies] meet the eligibility criteria;
36-11 (3) determine the amount of and approve a procedure
36-12 for reimbursement to telecommunications providers [local exchange
36-13 companies] of revenue lost in providing tel-assistance service
36-14 under Subchapter C;
36-15 (4) establish and collect fees from the universal
36-16 service fund necessary to recover the costs the department and the
36-17 commission incur in administering this chapter and Chapter 57; and
36-18 (5) approve procedures for the collection and
36-19 disbursal of the revenue of the universal service fund.
36-20 (b) The eligibility criteria must require that a
36-21 telecommunications provider [local exchange company], in compliance
36-22 with the commission's quality of service requirements:
36-23 (1) offer service to each consumer within the
36-24 company's certificated area; and
36-25 (2) render continuous and adequate service within the
36-26 company's certificated area.
37-1 (c) The commission shall adopt rules for the administration
37-2 of the universal service fund and may act as necessary and
37-3 convenient to administer the fund.
37-4 Sec. 56.024. REPORTS; CONFIDENTIALITY. (a) The commission
37-5 may require a [local exchange company or another]
37-6 telecommunications provider to provide a report or information
37-7 necessary to assess contributions and disbursements to the
37-8 universal service fund.
37-9 (b) A report or information is confidential and not subject
37-10 to disclosure under Chapter 552, Government Code.
37-11 SECTION 25. Section 56.026, Utilities Code, is amended to
37-12 read as follows:
37-13 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS. (a) A
37-14 revenue requirement showing is not required for a disbursement from
37-15 the universal service fund under this subchapter.
37-16 (b) The commission shall make each disbursement from the
37-17 universal service fund promptly and efficiently so that a
37-18 telecommunications provider [or local exchange company] does not
37-19 experience an unnecessary cash-flow change as a result of a change
37-20 in governmental policy.
37-21 (c) Notwithstanding any other provision of this title, if an
37-22 electing company reduces rates in conjunction with receiving
37-23 disbursements from the universal service fund, the commission may
37-24 not reduce the amount of those disbursements, except that:
37-25 (1) if a local end user customer of the electing
37-26 company switches to another local service provider that serves the
38-1 customer entirely through the use of its own facilities and not
38-2 partially or solely through the use of unbundled network elements,
38-3 the electing company's disbursement may be reduced by the amount
38-4 attributable to that customer under Section 56.021(1); or
38-5 (2) if a local end user customer of the electing
38-6 company switches to another local service provider, and the new
38-7 local service provider serves the customer partially or solely
38-8 through the use of unbundled network elements provided by the
38-9 electing company, the electing company's disbursement attributable
38-10 to that customer under Section 56.021(1) may be reduced only if the
38-11 commission establishes an equitable allocation formula for the
38-12 disbursement.
38-13 (d) Any reductions in switched access service rates for
38-14 local exchange companies with more than 125,000 access lines in
38-15 service in this state on December 31, 1998, that are made in
38-16 accordance with this section shall be proportional, based on
38-17 equivalent minutes of use, to reductions in intraLATA toll rates,
38-18 and those reductions shall be offset by equal disbursements from
38-19 the universal service fund under Section 56.021(1). To the extent
38-20 that the disbursements from the universal service fund under
38-21 Section 56.021(1) for small and rural local exchange companies are
38-22 used to decrease the implicit support in intraLATA toll and
38-23 switched access rates, the decrease shall be made in a
38-24 competitively neutral manner.
38-25 SECTION 26. Subchapter B, Chapter 56, Utilities Code, is
38-26 amended by adding Section 56.028 to read as follows:
39-1 Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR
39-2 CERTAIN INTRALATA SERVICE. On request of an incumbent local
39-3 exchange company that is not an electing company under Chapters 58
39-4 and 59, the commission shall provide reimbursement through the
39-5 universal service fund for reduced rates for intraLATA
39-6 interexchange high capacity (1.544 Mbps) service for entities
39-7 described in Section 58.253(a). The amount of reimbursement shall
39-8 be the difference between the company's tariffed rate for that
39-9 service as of January 1, 1998, and the lowest rate offered for that
39-10 service by any local exchange company electing incentive regulation
39-11 under Chapter 58.
39-12 SECTION 27. Section 56.071, Utilities Code, is amended to
39-13 read as follows:
39-14 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS. (a) The
39-15 commission shall adopt and enforce rules requiring a local exchange
39-16 company to establish a telecommunications service assistance
39-17 program to provide a reduction in the cost of telecommunications
39-18 service to each eligible consumer in the company's certificated
39-19 area. The reduction must be a reduction on the consumer's
39-20 telephone bill.
39-21 (b) In addition to local exchange companies, this subchapter
39-22 applies to telecommunications providers that receive universal
39-23 service fund support in accordance with the commission's universal
39-24 service fund rules, and any reference to or requirement imposed on
39-25 local exchange companies in this subchapter shall also apply to
39-26 those telecommunications providers.
40-1 (c) Except as provided by Section 56.075(b), the reduction
40-2 allowed by the program is 65 percent of the applicable tariff rate
40-3 for the service provided.
40-4 (d) [(c)] The program is named "tel-assistance service."
40-5 SECTION 28. Subsection (b), Section 56.072, Utilities Code,
40-6 is amended to read as follows:
40-7 (b) To be eligible for the tel-assistance service program,
40-8 an applicant must:
40-9 (1) be a head of household and disabled, as determined
40-10 by the department, or be 65 years of age or older; and
40-11 (2) have a household income at or below the poverty
40-12 level, as determined by the United States Office of Management and
40-13 Budget and reported annually in the Federal Register.
40-14 SECTION 29. Section 56.072, Utilities Code, is amended by
40-15 adding Subsection (d) to read as follows:
40-16 (d) The commission shall adopt rules providing for automatic
40-17 enrollment to receive tel-assistance service for eligible
40-18 consumers. The department, on request of the commission, shall
40-19 assist in the adoption and implementation of those rules. The
40-20 commission and the department shall enter into a memorandum of
40-21 understanding establishing the respective duties of the commission
40-22 and the department in relation to the automatic enrollment.
40-23 SECTION 30. Subsection (a), Section 56.073, Utilities Code,
40-24 is amended to read as follows:
40-25 (a) Each three [six] months, the department shall provide to
40-26 each local exchange company a list of all persons eligible for the
41-1 tel-assistance service program that includes each person's:
41-2 (1) name;
41-3 (2) address; and
41-4 (3) if applicable, telephone number.
41-5 SECTION 31. Subchapter C, Chapter 56, Utilities Code, is
41-6 amended by adding Section 56.079 to read as follows:
41-7 Sec. 56.079. RELATIONSHIP TO OTHER SERVICES. (a) The
41-8 commission shall adopt rules prohibiting a telecommunications
41-9 provider from discontinuing local exchange telephone service to a
41-10 consumer who receives tel-assistance service because of nonpayment
41-11 by the consumer of charges for other services billed by the
41-12 provider, including long distance service.
41-13 (b) A telecommunications provider may block a tel-assistance
41-14 service participant's access to all long distance service except
41-15 toll-free numbers when the participant owes an outstanding amount
41-16 for that service. The telecommunications provider shall remove the
41-17 block without additional cost to the participant on payment of the
41-18 outstanding amount.
41-19 (c) A telecommunications provider shall offer a consumer who
41-20 applies for or receives tel-assistance service the option of
41-21 blocking all toll calls or, if technically capable, placing a limit
41-22 on the amount of toll calls. The provider may not charge the
41-23 consumer an administrative charge or other additional amount for
41-24 the blocking service.
41-25 SECTION 32. Section 57.042, Utilities Code, is amended to
41-26 read as follows:
42-1 Sec. 57.042. DEFINITIONS. In this subchapter:
42-2 (1) "Ambulatory health care center" means a health
42-3 care clinic or an association of such a clinic that is:
42-4 (A) exempt from federal income taxation under
42-5 Section 501(a), Internal Revenue Code of 1986, as amended, as an
42-6 organization described by Section 501(c)(3), as amended; and
42-7 (B) funded wholly or partly by a grant under 42
42-8 U.S.C. Section 254b, 254c, or 256, as amended.
42-9 (2) "Board" means the telecommunications
42-10 infrastructure fund board.
42-11 (3) [(2)] "Commercial mobile service provider" means a
42-12 provider of commercial mobile service as defined by Section 332(d),
42-13 Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
42-14 Communications Commission rules, and the Omnibus Budget
42-15 Reconciliation Act of 1993 (Pub. L. No. 103-66).
42-16 (4) [(3)] "Fund" means the telecommunications
42-17 infrastructure fund.
42-18 (5) [(4)] "Institution of higher education" means:
42-19 (A) an institution of higher education as
42-20 defined by Section 61.003, Education Code; or
42-21 (B) a private or independent institution of
42-22 higher education as defined by Section 61.003, Education Code.
42-23 (6) [(5)] "Library" means:
42-24 (A) a public library or regional library system
42-25 as those terms are defined by Section 441.122, Government Code; or
42-26 (B) a library operated by an institution of
43-1 higher education or a school district.
43-2 (7) [(6)] "Public not-for-profit health care facility"
43-3 means a rural or regional hospital or other entity such as a rural
43-4 health clinic that:
43-5 (A) is supported by local or regional tax
43-6 revenue; [or]
43-7 (B) is a certified not-for-profit health
43-8 corporation, under federal law; or
43-9 (C) is an ambulatory health care center.
43-10 (8) [(7)] "School district" includes an independent
43-11 school district, a common school district, and a rural high school
43-12 district.
43-13 (9) [(8)] "Public school" means a public elementary or
43-14 secondary school, including an open-enrollment charter school, a
43-15 home-rule school district school, and a school with a campus or
43-16 campus program charter.
43-17 (10) [(9)] "Taxable telecommunications receipts" means
43-18 taxable telecommunications receipts reported under Chapter 151, Tax
43-19 Code.
43-20 (11) [(10)] "Telemedicine":
43-21 (A) means medical services delivered by
43-22 telecommunications technologies to rural or underserved public
43-23 not-for-profit health care facilities or primary health care
43-24 facilities in collaboration with an academic health center and an
43-25 associated teaching hospital or tertiary center or with another
43-26 public not-for-profit health care facility; and
44-1 (B) includes consultive services, diagnostic
44-2 services, interactive video consultation, teleradiology,
44-3 telepathology, and distance education for working health care
44-4 professionals.
44-5 SECTION 33. Subchapter A, Chapter 58, Utilities Code, is
44-6 amended by adding Section 58.003 to read as follows:
44-7 Sec. 58.003. CUSTOMER-SPECIFIC CONTRACTS. (a)
44-8 Notwithstanding any other provision of this chapter, but subject to
44-9 Subsection (b), an electing company may not offer in an exchange a
44-10 service, or an appropriate subset of a service, listed in Sections
44-11 58.051(a)(1)-(4) or Sections 58.151(1)-(4) in a manner that results
44-12 in a customer-specific contract, unless the other party to the
44-13 contract is a federal, state, or local governmental entity, until
44-14 the earlier of September 1, 2003, or the date on which the
44-15 commission finds that at least 40 percent of the total access lines
44-16 for that service or appropriate subset of that service in that
44-17 exchange are served by competitive alternative providers that are
44-18 not affiliated with the electing company.
44-19 (b) The requirements prescribed by Subsection (a) do not
44-20 apply to an electing company serving fewer than five million access
44-21 lines after the date on which it completes the infrastructure
44-22 improvements described in this subsection. The electing company
44-23 must also notify the commission of the company's binding commitment
44-24 to make the following infrastructure improvements not later than
44-25 September 1, 2000:
44-26 (1) install Common Channel Signaling 7 capability in
45-1 each central office; and
45-2 (2) connect all of the company's serving central
45-3 offices to their respective LATA tandem central offices with
45-4 optical fiber or equivalent facilities.
45-5 (c) The commission by rule shall prescribe appropriate
45-6 subsets of services.
45-7 (d) An electing company may file with the commission a
45-8 request for a finding under this section. The filing must include
45-9 information sufficient for the commission to perform a review and
45-10 evaluation in relation to the particular exchange and the
45-11 particular service or appropriate subset of a service for which the
45-12 electing company wants to offer customer-specific contracts. The
45-13 commission must grant or deny the request not later than the 60th
45-14 day after the date the electing company files the request.
45-15 (e) The commitments described by Subsection (b) do not apply
45-16 to exchanges of the company sold or transferred before, or for
45-17 which contracts for sale or transfer are pending on, September 1,
45-18 2001. In the case of exchanges for which contracts for sale or
45-19 transfer are pending as of March 1, 2001, where the purchaser
45-20 withdrew or defaulted before September 1, 2001, the company shall
45-21 have one year from the date of withdrawal or default to comply with
45-22 the commitments.
45-23 (f) This section does not preclude an electing company from
45-24 offering a customer-specific contract to the extent allowed by this
45-25 title as of August 31, 1999.
45-26 SECTION 34. Subchapter A, Chapter 58, Utilities Code, is
46-1 amended by adding Section 58.004 to read as follows:
46-2 Sec. 58.004. PACKAGING, TERM AND VOLUME DISCOUNTS, AND
46-3 PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision of
46-4 this chapter, an electing company that has more than five million
46-5 access lines in this state may not offer in an exchange a service
46-6 listed in Sections 58.151(1)-(4) as a component of a package of
46-7 services or as a promotional offering until the company makes the
46-8 reduction in switched access service rates required by Section
46-9 58.301(2) unless the customer of one of the pricing flexibility
46-10 offerings described in this subsection is a federal, state, or
46-11 local governmental entity.
46-12 (b) Notwithstanding any other provision of this chapter, an
46-13 electing company that has more than five million access lines in
46-14 this state may not offer a volume or term discount on any service
46-15 listed in Sections 58.151(1)-(4) until September 1, 2000, unless
46-16 the customer of one of the pricing flexibility offerings described
46-17 in this subsection is a federal, state, or local governmental
46-18 entity.
46-19 (c) Notwithstanding any other provision of this chapter, an
46-20 electing company that has more than five million access lines in
46-21 this state may offer in an exchange a service listed in Sections
46-22 58.051(a)(1)-(4) as a component of a package of services, as a
46-23 promotional offering, or with a volume or term discount on and
46-24 after September 1, 1999.
46-25 SECTION 35. Section 58.021, Utilities Code, is amended to
46-26 read as follows:
47-1 Sec. 58.021. ELECTION. (a) An incumbent local exchange
47-2 company may elect to be subject to incentive regulation and to make
47-3 the corresponding infrastructure commitment under this chapter by
47-4 notifying the commission in writing of its election.
47-5 (b) The notice must include a statement that the company
47-6 agrees to:
47-7 (1) limit until September 1, 2005, [for four years]
47-8 any increase in a rate the company charges for basic network
47-9 services as prescribed by Subchapter C; and
47-10 (2) fulfill the infrastructure commitment prescribed
47-11 by Subchapters F and G.
47-12 (c) Except as provided in Subsection (d), an election under
47-13 this chapter remains in effect until the legislature eliminates the
47-14 incentive regulation authorized by this chapter and Chapter 59.
47-15 (d) The commission may allow an electing company serving
47-16 fewer than five million access lines to withdraw the company's
47-17 election under this chapter:
47-18 (1) on application by the company; and
47-19 (2) only for good cause.
47-20 (e) In this section, "good cause" includes only matters
47-21 beyond the control of the company.
47-22 SECTION 36. Section 58.023, Utilities Code, is amended to
47-23 read as follows:
47-24 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
47-25 services provided by an electing company are classified into two
47-26 [three] categories:
48-1 (1) basic network services governed by Subchapter C;
48-2 and
48-3 (2) nonbasic [discretionary services governed by
48-4 Subchapter D; and]
48-5 [(3) competitive] services governed by Subchapter E.
48-6 SECTION 37. Section 58.024, Utilities Code, is amended to
48-7 read as follows:
48-8 Sec. 58.024. SERVICE RECLASSIFICATION. (a) The commission
48-9 may reclassify a[:]
48-10 [(1)] basic network service as a nonbasic
48-11 [discretionary or competitive] service[; or]
48-12 [(2) discretionary service as a competitive service].
48-13 (b) The commission shall establish criteria for determining
48-14 whether a service should be reclassified. The criteria must
48-15 include consideration of the:
48-16 (1) availability of the service from other providers;
48-17 (2) [proportion of the market that receives the
48-18 service;]
48-19 [(3)] effect of the reclassification on service
48-20 subscribers; and
48-21 (3) [(4)] nature of the service.
48-22 (c) The commission may not reclassify a service until:
48-23 (1) each competitive safeguard prescribed by
48-24 Subchapters B-H, Chapter 60, is fully implemented; or
48-25 (2) for a company that serves more than five million
48-26 access lines in this state, the date on which the Federal
49-1 Communications Commission determines in accordance with 47 U.S.C.
49-2 Section 271 that the company or any of its affiliates may enter the
49-3 interLATA telecommunications market in this state.
49-4 (d) The commission may reclassify a service subject to the
49-5 following conditions:
49-6 (1) the electing company must file a request for a
49-7 service reclassification including information sufficient for the
49-8 commission to perform a review and evaluation under Subsection (b);
49-9 (2) the commission must grant or deny the request not
49-10 later than the 60th day after the date the electing company files
49-11 the request for service reclassification; and
49-12 (3) there is a rebuttable presumption that the request
49-13 for service reclassification by the electing company should be
49-14 granted if the commission finds that there is a competitive
49-15 alternative provider serving customers through means other than
49-16 total service resale.
49-17 SECTION 38. Section 58.028, Utilities Code, is amended to
49-18 read as follows:
49-19 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION.
49-20 (a) Not later than January 1, 2004 [2000], the commission shall
49-21 begin a review and evaluation of each company that elects under
49-22 this chapter or Chapter 59.
49-23 (b) The review must include an evaluation of the effects of
49-24 the election, including:
49-25 (1) consumer benefits;
49-26 (2) impact of competition;
50-1 (3) infrastructure investments; and
50-2 (4) quality of service.
50-3 (c) The commission shall file a report with the legislature
50-4 not later than January 1, 2005 [2001]. The report must include the
50-5 commission's recommendations as to whether the incentive regulation
50-6 provided by this chapter and Chapter 59 should be extended,
50-7 modified, eliminated, or replaced with another form of regulation.
50-8 (d) This section expires September 1, 2005 [2001].
50-9 SECTION 39. Section 58.051, Utilities Code, is amended to
50-10 read as follows:
50-11 Sec. 58.051. SERVICES INCLUDED. (a) Unless reclassified
50-12 under Section 58.024, the following services are basic network
50-13 services:
50-14 (1) flat rate residential [and business] local
50-15 exchange telephone service, including primary directory listings
50-16 and the receipt of a directory and any applicable mileage or zone
50-17 charges;
50-18 (2) residential tone dialing service;
50-19 (3) lifeline and tel-assistance service;
50-20 (4) service connection for basic residential services;
50-21 (5) direct inward dialing service for basic
50-22 residential services;
50-23 (6) private pay telephone access service;
50-24 (7) call trap and trace service;
50-25 (8) access for all residential and business end users
50-26 to 911 service provided by a local authority and access to dual
51-1 party relay service;
51-2 (9) [switched access service;]
51-3 [(10) interconnection to competitive providers;]
51-4 [(11)] mandatory residential extended area service
51-5 arrangements;
51-6 (10) [(12)] mandatory residential extended
51-7 metropolitan service or other mandatory residential toll-free
51-8 calling arrangements; and
51-9 (11) residential call waiting service
51-10 [(13) interconnection for commercial mobile service
51-11 providers;]
51-12 [(14) directory assistance; and]
51-13 [(15) "1-plus" intraLATA message toll service].
51-14 (b) Electing companies shall offer each basic network
51-15 service as a separately tariffed service in addition to any
51-16 packages or other pricing flexibility offerings that include those
51-17 basic network services.
51-18 SECTION 40. Sections 58.054 and 58.055, Utilities Code, are
51-19 amended to read as follows:
51-20 Sec. 58.054. RATES CAPPED. (a) As a condition of election
51-21 under this chapter, an electing company shall commit to not
51-22 increasing a rate for a basic network service on or before the
51-23 fourth anniversary of its election date.
51-24 (b) The rates an electing company may charge on or before
51-25 that fourth anniversary are the rates charged by the company on
51-26 June 1, 1995, or, for a company that elects under this chapter
52-1 after September 1, 1999, the rates charged on the date of its
52-2 election, without regard to a proceeding pending under:
52-3 (1) Section 15.001;
52-4 (2) Subchapter D, Chapter 53; or
52-5 (3) Subchapter G, Chapter 2001, Government Code.
52-6 (c) Notwithstanding Subsections (a) and (b), the cap on the
52-7 rates for basic network services for a company electing under this
52-8 chapter may not expire before September 1, 2005.
52-9 Sec. 58.055. RATE ADJUSTMENT BY COMPANY. (a) An electing
52-10 company may increase a rate for a basic network service during the
52-11 election [four-year] period prescribed by Section 58.054 only:
52-12 (1) with commission approval that the proposed change
52-13 is included in Section 58.056, 58.057, or 58.058; and
52-14 (2) as provided by Sections 58.056, 58.057, 58.058,
52-15 and 58.059.
52-16 (b) Notwithstanding Subchapter F, Chapter 60, an electing
52-17 company may, on its own initiative, decrease a rate for a basic
52-18 network service during the electing [four-year] period.
52-19 (c) [The company may decrease the rate for switched access
52-20 service to an amount above the service's long run incremental cost.]
52-21 [(d)] The company may decrease the rate for a basic local
52-22 telecommunications service [other than switched access] to an
52-23 amount above the service's appropriate cost. If the company has
52-24 been required to perform or has elected to perform a long run
52-25 incremental cost study, the appropriate cost for the service is the
52-26 service's long run incremental cost.
53-1 SECTION 41. Section 58.060, Utilities Code, is amended to
53-2 read as follows:
53-3 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION. After
53-4 the expiration of the [four-year] period during which the rates for
53-5 basic network services are capped as prescribed by Section 58.054
53-6 [expires], an electing company may increase a rate for a basic
53-7 network service only:
53-8 (1) with commission approval subject to this title;
53-9 and
53-10 (2) to the extent consistent with achieving universal
53-11 affordable service.
53-12 SECTION 42. Subchapter C, Chapter 58, Utilities Code, is
53-13 amended by adding Section 58.063 to read as follows:
53-14 Sec. 58.063. PRICING AND PACKAGING FLEXIBILITY.
53-15 (a) Notwithstanding Section 58.052(b) or Subchapter F, Chapter 60,
53-16 an electing company may exercise pricing flexibility for basic
53-17 network services, including the packaging of basic network services
53-18 with any other regulated or unregulated service or any service of
53-19 an affiliate. The company may exercise pricing flexibility in
53-20 accordance with this section 10 days after providing an
53-21 informational notice to the commission, to the office, and to any
53-22 person who holds a certificate of operating authority in the
53-23 electing company's certificated area or areas or who has an
53-24 effective interconnection agreement with the electing company.
53-25 (b) An electing company shall set the price of a package of
53-26 services containing basic network services and nonbasic services at
54-1 any level at or above the lesser of:
54-2 (1) the sum of the long run incremental costs of any
54-3 basic network services and nonbasic services contained in the
54-4 package; or
54-5 (2) the sum of the tariffed prices of any basic
54-6 network services contained in the package and the long run
54-7 incremental costs of nonbasic services contained in the package.
54-8 (c) Except as provided by Section 58.003, an electing
54-9 company may flexibly price a package that includes a basic network
54-10 service in any manner provided by Section 51.002(7).
54-11 SECTION 43. Subchapter E, Chapter 58, Utilities Code, is
54-12 amended to read as follows:
54-13 SUBCHAPTER E. NONBASIC [COMPETITIVE] SERVICES
54-14 Sec. 58.151. SERVICES INCLUDED. The following services are
54-15 classified as nonbasic [competitive] services:
54-16 (1) flat rate business local exchange telephone
54-17 service, including primary directory listings and the receipt of a
54-18 directory, and any applicable mileage or zone charges, except that
54-19 the prices for this service shall be capped until September 1,
54-20 2005, at the prices in effect on September 1, 1999;
54-21 (2) business tone dialing service, except that the
54-22 prices for this service shall be capped until September 1, 2005, at
54-23 the prices in effect on September 1, 1999;
54-24 (3) service connection for all business services,
54-25 except that the prices for this service shall be capped until
54-26 September 1, 2005, at the prices in effect on September 1, 1999;
55-1 (4) direct inward dialing for basic business services,
55-2 except that the prices for this service shall be capped until
55-3 September 1, 2005, at the prices in effect on September 1, 1999;
55-4 (5) "1-plus" intraLATA message toll services;
55-5 (6) 0+ and 0- operator services;
55-6 (7) call waiting, call forwarding, and custom calling,
55-7 except that:
55-8 (A) residential call waiting service shall be
55-9 classified as a basic network service; and
55-10 (B) for an electing company subject to Section
55-11 58.301, prices for residential call forwarding and other custom
55-12 calling services shall be capped at the prices in effect on
55-13 September 1, 1999, until the electing company implements the
55-14 reduction in switched access rates described by Section 58.301(2);
55-15 (8) call return, caller identification, and call
55-16 control options, except that, for an electing company subject to
55-17 Section 58.301, prices for residential call return, caller
55-18 identification, and call control options shall be capped at the
55-19 prices in effect on September 1, 1999, until the electing company
55-20 implements the reduction in switched access rates described by
55-21 Section 58.301(2);
55-22 (9) central office based PBX-type services;
55-23 (10) billing and collection services, including
55-24 installment billing and late payment charges for customers of the
55-25 electing company;
55-26 (11) integrated services digital network (ISDN)
56-1 services, except that prices for Basic Rate Interface (BRI) ISDN
56-2 services, which comprise up to two 64 Kbps B-channels and one 16
56-3 Kbps D-channel, shall be capped until September 1, 2005, at the
56-4 prices in effect on September 1, 1999;
56-5 (12) new services;
56-6 (13) directory assistance services, except that an
56-7 electing company shall provide to a residential customer the first
56-8 three directory assistance inquiries in a monthly billing cycle at
56-9 no charge;
56-10 (14) services described in the WATS tariff as the
56-11 tariff existed on January 1, 1995;
56-12 (15) [(2)] 800 and foreign exchange services;
56-13 (16) [(3)] private line service;
56-14 (17) [(4)] special access service;
56-15 (18) [(5)] services from public pay telephones;
56-16 (19) [(6)] paging services and mobile services (IMTS);
56-17 (20) [(7)] 911 services provided to a local authority
56-18 that are available from another provider [premises equipment];
56-19 (21) [(8)] speed dialing; [and]
56-20 (22) [(9)] three-way calling; and
56-21 (23) all other services subject to the commission's
56-22 jurisdiction that are not specifically classified as basic network
56-23 services in Section 58.051, except that nothing in this section
56-24 shall preclude a customer from subscribing to a local flat rate
56-25 residential or business line for a computer modem or a facsimile
56-26 machine.
57-1 Sec. 58.152. PRICES. (a) An electing company may set the
57-2 price for any nonbasic [a competitive] service at any level above
57-3 the lesser of the:
57-4 (1) service's long run incremental cost in accordance
57-5 with the imputation rules prescribed by or under Subchapter D,
57-6 Chapter 60; or
57-7 (2) price for the service in effect on September 1,
57-8 1999.
57-9 (b) Subject to Section 51.004, an electing [Subject to the
57-10 requirements of Sections 60.001 and 60.002, the] company may use
57-11 pricing flexibility for a nonbasic [competitive] service. Pricing
57-12 flexibility includes all pricing arrangements included in the
57-13 definition of "pricing flexibility" prescribed by Section 51.002
57-14 and includes packages that include basic network services
57-15 [(c) Notwithstanding Subsection (a) or (b), the company may not
57-16 increase the price of a competitive service in a geographic area in
57-17 which that service or a functionally equivalent service is not
57-18 readily available from another provider].
57-19 Sec. 58.153. NEW SERVICES. (a) Subject to the pricing
57-20 conditions prescribed by Section 58.152(a), an electing company may
57-21 introduce a new service 10 days after providing an informational
57-22 notice to the commission, to the office, and to any person who
57-23 holds a certificate of operating authority in the electing
57-24 company's certificated area or areas or who has an effective
57-25 interconnection agreement with the electing company.
57-26 (b) An electing company serving more than five million
58-1 access lines in this state shall provide notice to any person who
58-2 holds a certificate of operating authority in the electing
58-3 company's certificated area or areas or who has an effective
58-4 interconnection agreement with the electing company of any changes
58-5 in the generally available prices and terms under which the
58-6 electing company offers basic or nonbasic telecommunications
58-7 services regulated by the commission at retail rates to subscribers
58-8 that are not telecommunications providers. Changes requiring
58-9 notice under this subsection include the introduction of any new
58-10 nonbasic services, any new features or functions of basic or
58-11 nonbasic services, promotional offerings of basic or nonbasic
58-12 services, or the discontinuation of then-current features or
58-13 services. The electing company shall provide the notice:
58-14 (1) if the electing company is required to give notice
58-15 to the commission, at the same time the company provides that
58-16 notice; or
58-17 (2) if the electing company is not required to give
58-18 notice to the commission, at least 45 days before the effective
58-19 date of a price change or 90 days before the effective date of a
58-20 change other than a price change, unless the commission determines
58-21 that the notice should not be given.
58-22 (c) An affected person, the office on behalf of residential
58-23 or small commercial customers, or the commission may file a
58-24 complaint at the commission challenging whether the pricing by an
58-25 incumbent local exchange company of a new service is in compliance
58-26 with Section 58.152(a). The commission shall allow the company to
59-1 continue to provide the service while the complaint is pending.
59-2 (d) If a complaint is filed under Subsection (c), the
59-3 electing company has the burden of proving that the company set the
59-4 price for the new service in accordance with Section 58.152(a). If
59-5 the complaint is finally resolved in favor of the complainant, the
59-6 company:
59-7 (1) shall, not later than the 10th day after the date
59-8 the complaint is finally resolved, amend the price of the service
59-9 as necessary to comply with the final resolution; or
59-10 (2) may, at the company's option, discontinue the
59-11 service.
59-12 (e) The notice requirement prescribed by Subsection (b)
59-13 expires September 1, 2003.
59-14 SECTION 44. Subchapter E, Chapter 58, Utilities Code, is
59-15 amended by adding Section 58.155 to read as follows:
59-16 Sec. 58.155. INTERCONNECTION. Because interconnection to
59-17 competitive providers and interconnection for commercial mobile
59-18 service providers are subject to the requirements of Sections 251
59-19 and 252, Communications Act of 1934 (47 U.S.C. Sections 251 and
59-20 252), as amended, and Federal Communications Commission rules,
59-21 including the commission's authority to arbitrate issues,
59-22 interconnection is not addressed in this subchapter or Subchapter
59-23 B.
59-24 SECTION 45. Chapter 58, Utilities Code, is amended by adding
59-25 Subchapter H to read as follows:
60-1 SUBCHAPTER H. SWITCHED ACCESS SERVICES
60-2 Sec. 58.301. SWITCHED ACCESS RATE REDUCTION. An electing
60-3 company with greater than five million access lines in this state
60-4 shall reduce its switched access rates on a combined originating
60-5 and terminating basis as follows:
60-6 (1) the electing company shall reduce switched access
60-7 rates on a combined originating and terminating basis in effect on
60-8 September 1, 1999, by one cent a minute; and
60-9 (2) the electing company shall reduce switched access
60-10 rates on a combined originating and terminating basis by an
60-11 additional two cents a minute on the earlier of:
60-12 (A) July 1, 2000; or
60-13 (B) the date the electing company, or its
60-14 affiliate formed in compliance with 47 U.S.C. Section 272, as
60-15 amended, actually begins providing interLATA services in this state
60-16 in accordance with the authorization required by 47 U.S.C. Section
60-17 271, as amended.
60-18 Sec. 58.302. SWITCHED ACCESS RATE CAP. (a) An electing
60-19 company may not increase the per minute rates for switched access
60-20 services on a combined originating and terminating basis above the
60-21 lesser of:
60-22 (1) the rates for switched access services charged by
60-23 that electing company on September 1, 1999, as may be further
60-24 reduced on implementation of the universal service fund under
60-25 Chapter 56; or
60-26 (2) the applicable rate described by Section 58.301 as
61-1 may be further reduced on implementation of the universal service
61-2 fund under Chapter 56.
61-3 (b) Notwithstanding Subchapter F, Chapter 60, but subject to
61-4 Section 60.001, an electing company may, on its own initiative,
61-5 decrease a rate charged for switched access service to any amount
61-6 above the long run incremental cost of the service.
61-7 Sec. 58.303. SWITCHED ACCESS CHARGE STUDY. (a) Not later
61-8 than November 1, 1999, the commission shall begin a review and
61-9 evaluation of the rates for intrastate switched access service.
61-10 The review shall include an evaluation of at least the following
61-11 issues:
61-12 (1) whether alternative rate structures for recovery
61-13 of switched access revenues are in the public interest and
61-14 competitively neutral; and
61-15 (2) whether disparities in rates for switched access
61-16 service between local exchange companies are in the public
61-17 interest.
61-18 (b) The commission shall file a report with the legislature
61-19 not later than January 1, 2001. The report must include the
61-20 commission's recommendations on the issues reviewed and evaluated.
61-21 (c) This section expires September 1, 2001.
61-22 SECTION 46. Section 59.021, Utilities Code, is amended by
61-23 adding Subsection (c) to read as follows:
61-24 (c) A company electing under this chapter may renew the
61-25 election for successive two-year periods. An election that is
61-26 renewed under this subsection remains in effect until the earlier
62-1 of the date that:
62-2 (1) the election expires because it was not renewed;
62-3 (2) the commission allows the company to withdraw its
62-4 election under Section 59.022; or
62-5 (3) the legislature eliminates the incentive
62-6 regulation authorized by this chapter and Chapter 58.
62-7 SECTION 47. Section 59.024, Utilities Code, is amended to
62-8 read as follows:
62-9 Sec. 59.024. RATE CHANGES. (a) Except for the charges
62-10 permitted under Subchapter C, Chapter 55, Subchapter B, Chapter 56,
62-11 and Section 55.024, an electing company may not, [on or] before the
62-12 end of the company's election period under this chapter [sixth
62-13 anniversary of its election date], increase a rate previously
62-14 established for that company under this title unless the commission
62-15 approves the proposed change as authorized under Subsection (c) or
62-16 (d).
62-17 (b) For purposes of Subsection (a), the company's previously
62-18 established rates are the rates charged by the company on its
62-19 election date without regard to a proceeding pending under:
62-20 (1) Section 15.001;
62-21 (2) Subchapter D, Chapter 53; or
62-22 (3) Subchapter G, Chapter 2001, Government Code.
62-23 (c) The commission, on motion of the electing company or on
62-24 its own motion, shall adjust prices for services to reflect changes
62-25 in Federal Communications Commission separations that affect
62-26 intrastate net income by at least 10 percent.
63-1 (d) Notwithstanding Subsection (a), the [The] commission, on
63-2 request of the electing company, shall allow a rate group
63-3 reclassification that results from access line growth.
63-4 (e) Section 58.059 applies to a rate change under this
63-5 section.
63-6 SECTION 48. Section 59.025, Utilities Code, is amended to
63-7 read as follows:
63-8 Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any
63-9 other provision of this title, the commission may not, on the
63-10 commission's own motion, reduce an electing company's rates for
63-11 switched access services before the expiration of the election
63-12 [six-year] period prescribed by Section 59.024, but may approve a
63-13 reduction proposed by the electing company.
63-14 SECTION 49. Subsection (a), Section 59.026, Utilities Code,
63-15 is amended to read as follows:
63-16 (a) On or before the end [sixth anniversary] of the
63-17 company's election period [date], an electing company is not, under
63-18 any circumstances, subject to:
63-19 (1) a complaint or hearing regarding the
63-20 reasonableness of the company's:
63-21 (A) rates;
63-22 (B) overall revenues;
63-23 (C) return on invested capital; or
63-24 (D) net income; or
63-25 (2) a complaint that a rate is excessive.
63-26 SECTION 50. Subchapter B, Chapter 59, Utilities Code, is
64-1 amended by adding Sections 59.030, 59.031, and 59.032 to read as
64-2 follows:
64-3 Sec. 59.030. NEW SERVICES. (a) An electing company may
64-4 introduce a new service 10 days after providing an informational
64-5 notice to the commission, to the office, and to any person who
64-6 holds a certificate of operating authority in the electing
64-7 company's certificated area or areas or who has an effective
64-8 interconnection agreement with the electing company.
64-9 (b) An electing company shall price each new service at or
64-10 above the service's long run incremental cost. The commission
64-11 shall allow a company serving fewer than one million access lines
64-12 to establish a service's long run incremental cost by adopting, at
64-13 that company's option, the cost studies of a larger company for
64-14 that service that has been accepted by the commission.
64-15 (c) An affected person, the office on behalf of residential
64-16 or small commercial customers, or the commission may file a
64-17 complaint at the commission challenging whether the pricing by an
64-18 electing company of a new service is in compliance with Subsection
64-19 (b).
64-20 (d) If a complaint is filed under Subsection (c), the
64-21 electing company has the burden of proving that the company set the
64-22 price for the new service in accordance with the applicable
64-23 provisions of this subchapter. If the complaint is finally
64-24 resolved in favor of the complainant, the electing company:
64-25 (1) shall, not later than the 10th day after the date
64-26 the complaint is finally resolved, amend the price of the service
65-1 as necessary to comply with the final resolution; or
65-2 (2) may, at the company's option, discontinue the
65-3 service.
65-4 Sec. 59.031. PRICING AND PACKAGING FLEXIBILITY.
65-5 (a) Notwithstanding Section 59.027(b) or Subchapter F, Chapter 60,
65-6 an electing company may exercise pricing flexibility in accordance
65-7 with this section, including the packaging of any regulated service
65-8 such as basic local telecommunications service with any other
65-9 regulated or unregulated service or any service of an affiliate.
65-10 The electing company may exercise pricing flexibility 10 days after
65-11 providing an informational notice to the commission, to the office,
65-12 and to any person who holds a certificate of operating authority in
65-13 the electing company's certificated area or areas or who has an
65-14 effective interconnection agreement with the electing company.
65-15 Pricing flexibility includes all pricing arrangements included in
65-16 the definition of "pricing flexibility" prescribed by Section
65-17 51.002(7) and includes packaging of regulated services with
65-18 unregulated services or any service of an affiliate.
65-19 (b) An electing company, at the company's option, shall
65-20 price each regulated service offered separately or as part of a
65-21 package under Subsection (a) at either the service's tariffed rate
65-22 or at a rate not lower than the service's long run incremental
65-23 cost. The commission shall allow a company serving fewer than one
65-24 million access lines to establish a service's long run incremental
65-25 cost by adopting, at that company's option, the cost studies of a
65-26 larger company for that service that have been accepted by the
66-1 commission.
66-2 (c) An affected person, the office on behalf of residential
66-3 or small commercial customers, or the commission may file a
66-4 complaint alleging that an electing company has priced a regulated
66-5 service in a manner that does not meet the pricing standards of
66-6 this subchapter. The complaint must be filed before the 31st day
66-7 after the company implements the rate.
66-8 Sec. 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
66-9 electing company may offer a promotion for a regulated service for
66-10 not more than 90 days in any 12-month period.
66-11 (b) The electing company shall file with the commission a
66-12 promotional offering that consists of:
66-13 (1) waiver of installation charges or service order
66-14 charges, or both, for not more than 90 days in a 12-month period;
66-15 or
66-16 (2) a temporary discount of not more than 25 percent
66-17 from the tariffed rate for not more than 60 days in a 12-month
66-18 period.
66-19 (c) An electing company is not required to obtain commission
66-20 approval to make a promotional offering described by Subsection
66-21 (b).
66-22 (d) An electing company may offer a promotion of any
66-23 regulated service as part of a package of services consisting of
66-24 any regulated service with any other regulated or unregulated
66-25 service or any service of an affiliate.
66-26 SECTION 51. Section 60.042, Utilities Code, is amended to
67-1 read as follows:
67-2 Sec. 60.042. PROHIBITED RESALE OR SHARING. (a) A provider
67-3 of telecommunications service may not impose a restriction on the
67-4 resale or sharing of a service:
67-5 (1) for which the provider is not a dominant provider;
67-6 or
67-7 (2) entitled to regulatory treatment as a nonbasic
67-8 [competitive] service under Subchapter E, Chapter 58, if the
67-9 provider is a company electing regulation under Chapter 58.
67-10 (b) An incumbent local exchange company must comply with the
67-11 resale provisions of 47 U.S.C. Section 251(c)(4), as amended,
67-12 unless exempted under 47 U.S.C. Section 251(f), as amended.
67-13 (c) If a company electing under Chapter 58 offers basic or
67-14 nonbasic services regulated by the commission to its retail
67-15 customers as a promotional offering, the electing company shall
67-16 make those services available for resale by a certificated
67-17 telecommunications utility on terms that are no less favorable than
67-18 the terms on which the services are made available to retail
67-19 customers in accordance with this section. For a promotion with a
67-20 duration of 90 days or less, the electing company's basic or
67-21 nonbasic services shall be made available to the certificated
67-22 telecommunications utility at the electing company's promotional
67-23 rate, without an avoided-cost discount. For a promotion with a
67-24 duration of more than 90 days, the electing company's basic or
67-25 nonbasic services shall be made available to the certificated
67-26 telecommunications utility at a rate reflecting the avoided-cost
68-1 discount, if any, from the promotional rate.
68-2 SECTION 52. Subchapter I, Chapter 60, Utilities Code, is
68-3 amended by adding Sections 60.164 and 60.165 to read as follows:
68-4 Sec. 60.164. PERMISSIBLE JOINT MARKETING. Except as
68-5 prescribed in Chapters 61, 62, and 63, the commission may not adopt
68-6 any rule or order that would prohibit a local exchange company from
68-7 jointly marketing or selling its products and services with the
68-8 products and services of any of its affiliates in any manner
68-9 permitted by federal law or applicable rules or orders of the
68-10 Federal Communications Commission.
68-11 Sec. 60.165. AFFILIATE RULE. Except as prescribed in
68-12 Chapters 61, 62, and 63, the commission may not adopt any rule or
68-13 order that would prescribe for any local exchange company any
68-14 affiliate rule, including any accounting rule, any cost allocation
68-15 rule, or any structural separation rule, that is more burdensome
68-16 than federal law or applicable rules or orders of the Federal
68-17 Communications Commission. Notwithstanding any other provision in
68-18 this title, the commission may not attribute or impute to a local
68-19 exchange company a price discount offered by an affiliate of the
68-20 local exchange company to the affiliate's customers. This section
68-21 does not limit the authority of the commission to consider a
68-22 complaint brought under Subchapter A, Chapter 52, Section 53.003,
68-23 or this chapter.
68-24 SECTION 53. Section 62.108, Utilities Code, is amended to
68-25 read as follows:
68-26 Sec. 62.108. EXPIRATION. This subchapter expires August 31,
69-1 2005 [1999].
69-2 SECTION 54. Section 62.136, Utilities Code, is amended to
69-3 read as follows:
69-4 Sec. 62.136. EXPIRATION. This subchapter expires August 31,
69-5 2005 [1999].
69-6 SECTION 55. Subtitle C, Title 2, Utilities Code, is amended
69-7 by adding Chapter 64 to read as follows:
69-8 CHAPTER 64. CUSTOMER PROTECTION
69-9 SUBCHAPTER A. GENERAL PROVISIONS
69-10 Sec. 64.001. CUSTOMER PROTECTION POLICY. (a) The
69-11 legislature finds that new developments in telecommunications
69-12 services, as well as changes in market structure, marketing
69-13 techniques, and technology, make it essential that customers have
69-14 safeguards against fraudulent, unfair, misleading, deceptive, or
69-15 anticompetitive business practices and against businesses that do
69-16 not have the technical and financial resources to provide adequate
69-17 service.
69-18 (b) The purpose of this chapter is to establish customer
69-19 protection standards and confer on the commission authority to
69-20 adopt and enforce rules to protect customers from fraudulent,
69-21 unfair, misleading, deceptive, or anticompetitive practices.
69-22 (c) Nothing in this section shall be construed to abridge
69-23 customer rights set forth in commission rules in effect at the time
69-24 of the enactment of this chapter.
69-25 (d) This chapter does not limit the constitutional,
69-26 statutory, and common law authority of the office of the attorney
70-1 general.
70-2 Sec. 64.002. DEFINITIONS. In this chapter:
70-3 (1) "Billing agent" means any entity that submits
70-4 charges to the billing utility on behalf of itself or any provider
70-5 of a product or service.
70-6 (2) "Billing utility" means any telecommunications
70-7 provider, as defined by Section 51.002, that issues a bill directly
70-8 to a customer for any telecommunications product or service.
70-9 (3) "Certificated telecommunications utility" means a
70-10 telecommunications utility that has been granted either a
70-11 certificate of convenience and necessity, a certificate of
70-12 operating authority, or a service provider certificate of operating
70-13 authority.
70-14 (4) "Customer" means any person in whose name
70-15 telephone service is billed, including individuals, governmental
70-16 units at all levels of government, corporate entities, and any
70-17 other entity with legal capacity to be billed for telephone
70-18 service.
70-19 (5) "Service provider" means any entity that offers a
70-20 product or service to a customer and that directly or indirectly
70-21 charges to or collects from a customer's bill an amount for the
70-22 product or service on a customer's bill received from a billing
70-23 utility.
70-24 (6) "Telecommunications utility" has the meaning
70-25 assigned by Section 51.002.
70-26 Sec. 64.003. CUSTOMER AWARENESS. (a) The commission shall
71-1 promote public awareness of changes in telecommunications markets,
71-2 provide customers with information necessary to make informed
71-3 choices about available options, and ensure that customers have an
71-4 adequate understanding of their rights.
71-5 (b) The commission shall compile a report on customer
71-6 service at least once each year showing the comparative customer
71-7 information from reports given to the commission it deems
71-8 necessary.
71-9 (c) The commission shall adopt and enforce rules to require
71-10 a certificated telecommunications utility to give clear, uniform,
71-11 and understandable information to customers about rates, terms,
71-12 services, customer rights, and other necessary information as
71-13 determined by the commission.
71-14 (d) Customer awareness efforts by the commission shall be
71-15 conducted in English and Spanish and any other language as
71-16 necessary.
71-17 Sec. 64.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
71-18 of telecommunications services are entitled to:
71-19 (1) protection from fraudulent, unfair, misleading,
71-20 deceptive, or anticompetitive practices, including protection from
71-21 being billed for services that were not authorized or provided;
71-22 (2) choice of a telecommunications service provider
71-23 and to have that choice honored;
71-24 (3) information in English and Spanish and any other
71-25 language as the commission deems necessary concerning rates, key
71-26 terms, and conditions;
72-1 (4) protection from discrimination on the basis of
72-2 race, color, sex, nationality, religion, marital status, income
72-3 level, or source of income and from unreasonable discrimination on
72-4 the basis of geographic location;
72-5 (5) impartial and prompt resolution of disputes with a
72-6 certificated telecommunications utility and disputes with a
72-7 telecommunications service provider related to unauthorized charges
72-8 and switching of service;
72-9 (6) privacy of customer consumption and credit
72-10 information;
72-11 (7) accuracy of billing;
72-12 (8) bills presented in a clear, readable format and
72-13 easy-to-understand language;
72-14 (9) information in English and Spanish and any other
72-15 language as the commission deems necessary concerning low-income
72-16 assistance programs and deferred payment plans;
72-17 (10) all consumer protections and disclosures
72-18 established by the Fair Credit Reporting Act (15 U.S.C. Section
72-19 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601
72-20 et seq.); and
72-21 (11) programs that offer eligible low-income customers
72-22 an affordable rate package and bill payment assistance programs
72-23 designed to reduce uncollectible accounts.
72-24 (b) The commission may adopt and enforce rules as necessary
72-25 or appropriate to carry out this section, including rules for
72-26 minimum service standards for a certificated telecommunications
73-1 utility relating to customer deposits and the extension of credit,
73-2 switching fees, termination of service, an affordable rate package,
73-3 and bill payment assistance programs for low-income customers. The
73-4 commission may waive language requirements for good cause.
73-5 (c) The commission shall request the comments of the office
73-6 of the attorney general in developing the rules that may be
73-7 necessary or appropriate to carry out this section.
73-8 (d) The commission shall coordinate its enforcement efforts
73-9 regarding the prosecution of fraudulent, misleading, deceptive, and
73-10 anticompetitive business practices with the office of the attorney
73-11 general in order to ensure consistent treatment of specific alleged
73-12 violations.
73-13 (e) Nothing in this section shall be construed to abridge
73-14 customer rights set forth in commission rules in effect at the time
73-15 of the enactment of this chapter.
73-16 SUBCHAPTER B. CERTIFICATION, REGISTRATION,
73-17 AND REPORTING REQUIREMENTS
73-18 Sec. 64.051. ADOPTION OF RULES. (a) The commission shall
73-19 adopt rules relating to certification, registration, and reporting
73-20 requirements for a certificated telecommunications utility, all
73-21 telecommunications utilities that are not dominant carriers, and
73-22 pay telephone providers.
73-23 (b) The rules adopted under Subsection (a) shall be
73-24 consistent with and no less effective than federal law and may not
73-25 require the disclosure of highly sensitive competitive or trade
73-26 secret information.
74-1 Sec. 64.052. SCOPE OF RULES. The commission may adopt and
74-2 enforce rules to:
74-3 (1) require certification or registration with the
74-4 commission as a condition of doing business in this state;
74-5 (2) amend certificates or registrations to reflect
74-6 changed ownership and control;
74-7 (3) establish rules for customer service and
74-8 protection;
74-9 (4) suspend or revoke certificates or registrations
74-10 for repeated violations of this chapter or commission rules, except
74-11 that the commission may not revoke a certificate of convenience and
74-12 necessity of a telecommunications utility except as provided by
74-13 Section 54.008; and
74-14 (5) order disconnection of a pay telephone service
74-15 provider's pay telephones or revocation of certification or
74-16 registration for repeated violations of this chapter or commission
74-17 rules.
74-18 Sec. 64.053. REPORTS. The commission may require a
74-19 telecommunications service provider to submit reports to the
74-20 commission concerning any matter over which it has authority under
74-21 this chapter.
74-22 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
74-23 Sec. 64.101. POLICY. It is the policy of this state that
74-24 all customers be protected from the unauthorized switching of a
74-25 telecommunications service provider selected by the customer to
74-26 provide service.
75-1 Sec. 64.102. RULES RELATING TO CHOICE. The commission shall
75-2 adopt and enforce rules that:
75-3 (1) ensure that customers are protected from deceptive
75-4 practices employed in obtaining authorizations of service and in
75-5 the verification of change orders, including negative option
75-6 marketing, sweepstakes, and contests that cause customers to
75-7 unknowingly change their telecommunications service provider;
75-8 (2) provide for clear, easily understandable
75-9 identification, in each bill sent to a customer, of all
75-10 telecommunications service providers submitting charges on the
75-11 bill;
75-12 (3) ensure that every service provider submitting
75-13 charges on the bill is clearly and easily identified on the bill
75-14 along with its services, products, and charges;
75-15 (4) provide that unauthorized changes in service be
75-16 remedied at no cost to the customer within a period established by
75-17 the commission;
75-18 (5) require refunds or credits to the customer in the
75-19 event of an unauthorized change; and
75-20 (6) provide for penalties for violations of commission
75-21 rules adopted under this section, including fines and revocation of
75-22 certificates or registrations, by this action denying the
75-23 certificated telecommunications utility the right to provide
75-24 service in this state, except that the commission may not revoke a
75-25 certificate of convenience and necessity of a telecommunications
75-26 utility except as provided by Section 54.008.
76-1 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
76-2 Sec. 64.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
76-3 service provider or billing agent may submit charges for a new
76-4 product or service to be billed on a customer's telephone bill on
76-5 or after the effective date of this section only if:
76-6 (1) the service provider offering the product or
76-7 service has thoroughly informed the customer of the product or
76-8 service being offered, including all associated charges, and has
76-9 explicitly informed the customer that the associated charges for
76-10 the product or service will appear on the customer's telephone
76-11 bill;
76-12 (2) the customer has clearly and explicitly consented
76-13 to obtain the product or service offered and to have the associated
76-14 charges appear on the customer's telephone bill and the consent has
76-15 been verified as provided by Subsection (b); and
76-16 (3) the service provider offering the product or
76-17 service and any billing agent for the service provider:
76-18 (A) has provided the customer with a toll-free
76-19 telephone number the customer may call and an address to which the
76-20 customer may write to resolve any billing dispute and to answer
76-21 questions; and
76-22 (B) has contracted with the billing utility to
76-23 bill for products and services on the billing utility's bill as
76-24 provided by Subsection (c).
76-25 (b) The customer consent required by Subsection (a)(2) must
76-26 be verified by the service provider offering the product or service
77-1 by authorization from the customer. A record of the customer
77-2 consent, including verification, must be maintained by the service
77-3 provider offering the product or service for a period of at least
77-4 24 months immediately after the consent and verification have been
77-5 obtained. The method of obtaining customer consent and
77-6 verification must include one or more of the following:
77-7 (1) written authorization from the customer;
77-8 (2) toll-free electronic authorization placed from the
77-9 telephone number that is the subject of the product or service;
77-10 (3) oral authorization obtained by an independent
77-11 third party; or
77-12 (4) any other method of authorization approved by the
77-13 commission or the Federal Communications Commission.
77-14 (c) The contract required by Subsection (a)(3)(B) must
77-15 include the service provider's name, business address, and business
77-16 telephone number and shall be maintained by the billing utility for
77-17 as long as the billing for the products and services continues and
77-18 for the 24 months immediately following the permanent
77-19 discontinuation of the billing.
77-20 (d) A service provider offering a product or service to be
77-21 charged on a customer's telephone bill and any billing agent for
77-22 the service provider may not use any fraudulent, unfair,
77-23 misleading, deceptive, or anticompetitive marketing practice to
77-24 obtain customers, including the use of negative option marketing,
77-25 sweepstakes, and contests.
77-26 (e) Unless verification is required by federal law or rules
78-1 implementing federal law, Subsection (b) does not apply to
78-2 customer-initiated transactions with a certificated
78-3 telecommunications provider for which the service provider has the
78-4 appropriate documentation.
78-5 (f) If a service provider is notified by a billing utility
78-6 that a customer has reported to the billing utility that a charge
78-7 made by the service provider is unauthorized, the service provider
78-8 shall cease to charge the customer for the unauthorized product or
78-9 service.
78-10 (g) This section does not apply to message
78-11 telecommunications services charges that are initiated by dialing
78-12 1+, 0+, 0-, 1010XXX, or collect calls and charges for video
78-13 services if the service provider has the necessary call detail
78-14 record to establish the billing for the call or service.
78-15 Sec. 64.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a
78-16 customer's telephone bill is charged for any product or service
78-17 without proper customer consent or verification, the billing
78-18 utility, on its knowledge or notification of any unauthorized
78-19 charge, shall promptly, not later than 45 days after the date of
78-20 knowledge or notification of the charge:
78-21 (1) notify the service provider to cease charging the
78-22 customer for the unauthorized product or service;
78-23 (2) remove any unauthorized charge from the customer's
78-24 bill;
78-25 (3) refund or credit to the customer all money that
78-26 has been paid by the customer for any unauthorized charge, and if
79-1 the unauthorized charge is not adjusted within three billing
79-2 cycles, shall pay interest on the amount of the unauthorized
79-3 charge;
79-4 (4) on the customer's request, provide the customer
79-5 with all billing records under its control related to any
79-6 unauthorized charge within 15 business days after the date of the
79-7 removal of the unauthorized charge from the customer's bill; and
79-8 (5) maintain for at least 24 months a record of every
79-9 customer who has experienced any unauthorized charge for a product
79-10 or service on the customer's telephone bill and who has notified
79-11 the billing utility of the unauthorized charge.
79-12 (b) A record required by Subsection (a)(5) shall contain for
79-13 each unauthorized charge:
79-14 (1) the name of the service provider that offered the
79-15 product or service;
79-16 (2) any affected telephone numbers or addresses;
79-17 (3) the date the customer requested that the billing
79-18 utility remove the unauthorized charge;
79-19 (4) the date the unauthorized charge was removed from
79-20 the customer's telephone bill; and
79-21 (5) the date any money that the customer paid for the
79-22 unauthorized charges was refunded or credited to the customer.
79-23 (c) A billing utility may not:
79-24 (1) disconnect or terminate telecommunications service
79-25 to any customer for nonpayment of an unauthorized charge; or
79-26 (2) file an unfavorable credit report against a
80-1 customer who has not paid charges the customer has alleged were
80-2 unauthorized unless the dispute regarding the unauthorized charge
80-3 is ultimately resolved against the customer, except that the
80-4 customer shall remain obligated to pay any charges that are not in
80-5 dispute, and this subsection does not apply to those undisputed
80-6 charges.
80-7 Sec. 64.153. RECORDS OF DISPUTED CHARGES. (a) Every
80-8 service provider shall maintain a record of every disputed charge
80-9 for a product or service placed on a customer's bill.
80-10 (b) The record required under Subsection (a) shall contain
80-11 for every disputed charge:
80-12 (1) any affected telephone numbers or addresses;
80-13 (2) the date the customer requested that the billing
80-14 utility remove the unauthorized charge;
80-15 (3) the date the unauthorized charge was removed from
80-16 the customer's telephone bill; and
80-17 (4) the date action was taken to refund or credit to
80-18 the customer any money that the customer paid for the unauthorized
80-19 charges.
80-20 (c) The record required by Subsection (a) shall be
80-21 maintained for at least 24 months following the completion of all
80-22 steps required by Section 64.152(a).
80-23 Sec. 64.154. NOTICE. (a) A billing utility shall provide
80-24 notice of a customer's rights under this section in the manner
80-25 prescribed by the commission.
80-26 (b) Notice of a customer's rights must be provided by mail
81-1 to each residential and retail business customer within 60 days of
81-2 the effective date of this section or by inclusion in the
81-3 publication of the telephone directory next following the effective
81-4 date of this section. In addition, each billing utility shall send
81-5 the notice to new customers at the time service is initiated or to
81-6 any customer at that customer's request.
81-7 Sec. 64.155. PROVIDING COPY OF RECORDS. A billing utility
81-8 shall provide a copy of records maintained under Sections
81-9 64.151(c), 64.152, and 64.154 to the commission staff on request.
81-10 A service provider shall provide a copy of records maintained under
81-11 Sections 64.151(b) and 64.153 to the commission on request.
81-12 Sec. 64.156. VIOLATIONS. (a) If the commission finds that
81-13 a billing utility violated this subchapter, the commission may
81-14 implement penalties and other enforcement actions under Chapter 15.
81-15 (b) If the commission finds that any other service provider
81-16 or billing agent subject to this subchapter has violated this
81-17 subchapter or has knowingly provided false information to the
81-18 commission on matters subject to this subchapter, the commission
81-19 may enforce the provisions of Chapter 15 against the service
81-20 provider or billing agent as if it were regulated by the
81-21 commission.
81-22 (c) Neither the authority granted under this section nor any
81-23 other provision of this subchapter shall be construed to grant the
81-24 commission jurisdiction to regulate service providers or billing
81-25 agents who are not otherwise subject to commission regulation,
81-26 other than as specifically provided by this chapter.
82-1 (d) If the commission finds that a billing utility or
82-2 service provider repeatedly violates this subchapter, the
82-3 commission may, if the action is consistent with the public
82-4 interest, suspend, restrict, or revoke the registration or
82-5 certificate of the telecommunications service provider, by this
82-6 action denying the telecommunications service provider the right to
82-7 provide service in this state, except that the commission may not
82-8 revoke a certificate of convenience and necessity of a
82-9 telecommunications utility except as provided by Section 54.008.
82-10 (e) If the commission finds that a service provider or
82-11 billing agent has repeatedly violated any provision of this
82-12 subchapter, the commission may order the billing utility to
82-13 terminate billing and collection services for that service provider
82-14 or billing agent.
82-15 (f) Nothing in this subchapter shall be construed to
82-16 preclude a billing utility from taking action on its own to
82-17 terminate or restrict its billing and collection services.
82-18 Sec. 64.157. DISPUTES. (a) The commission may resolve
82-19 disputes between a retail customer and a billing utility, service
82-20 provider, or telecommunications utility.
82-21 (b) In exercising its authority under Subsection (a), the
82-22 commission may:
82-23 (1) order a billing utility or service provider to
82-24 produce information or records;
82-25 (2) require that all contracts, bills, and other
82-26 communications from a billing utility or service provider display a
83-1 working toll-free telephone number that customers may call with
83-2 complaints and inquiries;
83-3 (3) require a billing utility or service provider to
83-4 refund or credit overcharges or unauthorized charges with interest
83-5 if the billing utility or service provider has failed to comply
83-6 with commission rules or a contract with the customer;
83-7 (4) order appropriate relief to ensure that a
83-8 customer's choice of a telecommunications service provider is
83-9 honored;
83-10 (5) require the continuation of service to a
83-11 residential or small commercial customer while a dispute is pending
83-12 regarding charges the customer has alleged were unauthorized; and
83-13 (6) investigate an alleged violation.
83-14 (c) The commission shall adopt procedures for the resolution
83-15 of disputes in a timely manner, which in no event shall exceed 60
83-16 days.
83-17 Sec. 64.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by
83-18 the commission under this subchapter shall be consistent with and
83-19 not more burdensome than applicable federal laws and rules.
83-20 SECTION 56. Section 55.012, Utilities Code, as added by this
83-21 Act, takes effect March 1, 2000.
83-22 SECTION 57. The following provisions of the Utilities Code
83-23 are repealed:
83-24 (1) Section 58.062; and
83-25 (2) Subchapter D, Chapter 58.
83-26 SECTION 58. This Act takes effect September 1, 1999.
S.B. No. 560
84-1 SECTION 59. The importance of this legislation and the
84-2 crowded condition of the calendars in both houses create an
84-3 emergency and an imperative public necessity that the
84-4 constitutional rule requiring bills to be read on three several
84-5 days in each house be suspended, and this rule is hereby suspended,
84-6 and that this Act take effect and be in force according to its
84-7 terms, and it is so enacted.
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 560 passed the Senate on
April 16, 1999, by the following vote: Yeas 30, Nays 0;
May 27, 1999, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 28, 1999, House
granted request of the Senate; May 30, 1999, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 560 passed the House, with
amendments, on May 25, 1999, by a non-record vote; May 28, 1999,
House granted request of the Senate for appointment of Conference
Committee; May 30, 1999, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor