76R16761 E
By Sibley, et al. S.B. No. 560
Substitute the following for S.B. No. 560:
By Wolens C.S.S.B. No. 560
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of telecommunications utilities by the
1-3 Public Utility Commission of Texas and the provision of
1-4 telecommunications services.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 12.005, Utilities Code, is amended to
1-7 read as follows:
1-8 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility
1-9 Commission of Texas is subject to Chapter 325, Government Code
1-10 (Texas Sunset Act). Unless continued in existence as provided by
1-11 that chapter, the commission is abolished and this title expires
1-12 September 1, 2005 [2001].
1-13 SECTION 2. Section 13.002, Utilities Code, is amended to
1-14 read as follows:
1-15 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of
1-16 Public Utility Counsel is subject to Chapter 325, Government Code
1-17 (Texas Sunset Act). Unless continued in existence as provided by
1-18 that chapter, the office is abolished and this chapter expires
1-19 September 1, 2005 [2001].
1-20 SECTION 3. Section 15.024(c), Utilities Code, is amended to
1-21 read as follows:
1-22 (c) A penalty may not be assessed under this section if the
1-23 person against whom the penalty may be assessed remedies the
2-1 violation before the 31st day after the date the person receives
2-2 the notice under Subsection (b). A person who claims to have
2-3 remedied an alleged violation has the burden of proving to the
2-4 commission that the alleged violation was remedied and was
2-5 accidental or inadvertent. This subsection does not apply to a
2-6 violation of Chapter 55 or 64.
2-7 SECTION 4. Section 51.001, Utilities Code, is amended by
2-8 amending Subsection (a) and adding Subsection (g) to read as
2-9 follows:
2-10 (a) Significant changes have occurred in telecommunications
2-11 since the law from which this title is derived was originally
2-12 adopted. To encourage and accelerate the development of a
2-13 competitive and advanced telecommunications environment and
2-14 infrastructure, new rules, policies, and principles must be
2-15 formulated and applied to protect the public interest. Changes in
2-16 technology and market structure have increased the need for minimum
2-17 standards of service quality, customer service, and fair business
2-18 practices to ensure high-quality service to customers and a healthy
2-19 marketplace where competition is permitted by law. It is the
2-20 purpose of this subtitle to grant the commission authority to make
2-21 and enforce rules necessary to protect customers of
2-22 telecommunications services consistent with the public interest.
2-23 (g) It is the policy of this state to ensure that customers
2-24 in all regions of this state, including low-income customers and
2-25 customers in rural and high cost areas, have access to
2-26 telecommunications and information services, including
2-27 interexchange services, cable services, wireless services, and
3-1 advanced telecommunications and information services, that are
3-2 reasonably comparable to those services provided in urban areas and
3-3 that are available at prices that are reasonably comparable to
3-4 prices charged for similar services in urban areas. Not later than
3-5 November 1, 1999, the commission shall begin a review and
3-6 evaluation of the availability and the pricing of
3-7 telecommunications and information services, including
3-8 interexchange services, cable services, wireless services, and
3-9 advanced telecommunications and information services, in rural and
3-10 high cost areas, as well as the convergence of telecommunications
3-11 services. The commission shall file a report with the legislature
3-12 not later than January 1, 2001. The report must include the
3-13 commission's recommendations on the issues reviewed and evaluated.
3-14 SECTION 5. Sections 51.002(6) and (10), Utilities Code, are
3-15 amended to read as follows:
3-16 (6) "Long run incremental cost" has the meaning
3-17 assigned by 16 T.A.C. Section 23.91 or its successor.
3-18 (10) "Telecommunications provider":
3-19 (A) means:
3-20 (i) a certificated telecommunications
3-21 utility;
3-22 (ii) a shared tenant service provider;
3-23 (iii) a nondominant carrier of
3-24 telecommunications services;
3-25 (iv) a provider of commercial mobile
3-26 service as defined by Section 332(d), Communications Act of 1934
3-27 (47 U.S.C. Section 151 et seq.), Federal Communications Commission
4-1 rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
4-2 Law 103-66), except that the term does not include these entities
4-3 for the purposes of Chapter 55 or 64;
4-4 (v) a telecommunications entity that
4-5 provides central office based PBX-type sharing or resale
4-6 arrangements;
4-7 (vi) an interexchange telecommunications
4-8 carrier;
4-9 (vii) a specialized common carrier;
4-10 (viii) a reseller of communications;
4-11 (ix) a provider of operator services;
4-12 (x) a provider of customer-owned pay
4-13 telephone service; or
4-14 (xi) another person or entity determined
4-15 by the commission to provide telecommunications services to
4-16 customers in this state; and
4-17 (B) does not mean:
4-18 (i) a provider of enhanced or information
4-19 services, or another user of telecommunications services, who does
4-20 not also provide telecommunications services; or
4-21 (ii) a state agency or state institution
4-22 of higher education, or a service provided by a state agency or
4-23 state institution of higher education.
4-24 SECTION 6. Section 51.004, Utilities Code, is amended to
4-25 read as follows:
4-26 Sec. 51.004. PRICING FLEXIBILITY. (a) A discount or other
4-27 form of pricing flexibility may not be preferential, prejudicial,
5-1 [or] discriminatory, predatory, or anticompetitive.
5-2 (b) This title does not prohibit a volume discount or other
5-3 discount based on a reasonable business purpose. A price that is
5-4 set at or above the long run incremental cost of a service is
5-5 presumed to comply with this section.
5-6 SECTION 7. The section heading to Section 52.058, Utilities
5-7 Code, is amended to read as follows:
5-8 Sec. 52.058. GENERAL PROVISIONS RELATING TO NEW OR
5-9 EXPERIMENTAL SERVICES OR PROMOTIONAL RATES.
5-10 SECTION 8. Subchapter B, Chapter 52, Utilities Code, is
5-11 amended by adding Sections 52.0583, 52.0584, and 52.0585 to read as
5-12 follows:
5-13 Sec. 52.0583. NEW SERVICES. (a) An incumbent local exchange
5-14 company may introduce a new service 10 days after providing an
5-15 informational notice to the commission, to the office, and to any
5-16 person who holds a certificate of operating authority in the
5-17 incumbent local exchange company's certificated area or areas or
5-18 who has an effective interconnection agreement with the incumbent
5-19 local exchange company.
5-20 (b) An incumbent local exchange company shall price each new
5-21 service at or above the service's long run incremental cost. The
5-22 commission shall allow a company serving fewer than one million
5-23 access lines in this state to establish a service's long run
5-24 incremental cost by adopting, at that company's option, the cost
5-25 studies of a larger company for that service that have been
5-26 accepted by the commission.
5-27 (c) An affected person, the office on behalf of residential
6-1 or small commercial customers, or the commission may file a
6-2 complaint at the commission challenging whether the pricing by an
6-3 incumbent local exchange company of a new service is in compliance
6-4 with Subsection (b).
6-5 (d) If a complaint is filed under Subsection (c), the
6-6 incumbent local exchange company has the burden of proving that the
6-7 company set the price for the new service in accordance with the
6-8 applicable provisions of this subchapter. If the complaint is
6-9 finally resolved in favor of the complainant, the company:
6-10 (1) shall, not later than the 10th day after the date
6-11 the complaint is finally resolved, amend the price of the service
6-12 as necessary to comply with the final resolution; or
6-13 (2) may, at the company's option, discontinue the
6-14 service.
6-15 (e) A company electing incentive regulation under Chapter 58
6-16 or 59 may introduce new services only in accordance with the
6-17 applicable provisions of Chapter 58 or 59.
6-18 Sec. 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER
6-19 PROMOTIONAL OFFERINGS. (a) Notwithstanding any other provision of
6-20 this title, an incumbent local exchange company may exercise
6-21 pricing flexibility in accordance with this section, including the
6-22 packaging of any regulated service such as basic local
6-23 telecommunications service with any other regulated or unregulated
6-24 service or any service of an affiliate. The company may exercise
6-25 pricing flexibility 10 days after providing an informational notice
6-26 to the commission, to the office, and to any person who holds a
6-27 certificate of operating authority in the incumbent local exchange
7-1 company's certificated area or areas or who has an effective
7-2 interconnection agreement with the incumbent local exchange
7-3 company. Pricing flexibility includes all pricing arrangements
7-4 included in the definition of "pricing flexibility" prescribed by
7-5 Section 51.002 and includes packaging of any regulated service with
7-6 any unregulated service or any service of an affiliate.
7-7 (b) An incumbent local exchange company, at the company's
7-8 option, shall price each regulated service offered separately or as
7-9 part of a package under Subsection (a) at either the service's
7-10 tariffed rate or at a rate not lower than the service's long run
7-11 incremental cost. The commission shall allow a company serving
7-12 fewer than one million access lines in this state to establish a
7-13 service's long run incremental cost by adopting, at that company's
7-14 option, the cost studies of a larger company for that service that
7-15 have been accepted by the commission.
7-16 (c) An affected person, the office on behalf of residential
7-17 or small commercial customers, or the commission may file a
7-18 complaint alleging that an incumbent local exchange company has
7-19 priced a regulated service in a manner that does not meet the
7-20 pricing standards of this subchapter. The complaint must be filed
7-21 before the 31st day after the date the company implements the rate.
7-22 (d) A company electing incentive regulation under Chapter 58
7-23 or 59 may use pricing and packaging flexibility and introduce
7-24 customer promotional offerings only in accordance with the
7-25 applicable provisions of Chapter 58 or 59.
7-26 Sec. 52.0585. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
7-27 incumbent local exchange company may offer a promotion for a
8-1 regulated service for not more than 90 days in any 12-month period.
8-2 (b) The company shall file with the commission a promotional
8-3 offering that consists of:
8-4 (1) waiver of installation charges or service order
8-5 charges, or both, for not more than 90 days in a 12-month period;
8-6 or
8-7 (2) a temporary discount of not more than 25 percent
8-8 from the tariffed rate for not more than 60 days in a 12-month
8-9 period.
8-10 (c) An incumbent local exchange company is not required to
8-11 obtain commission approval to make a promotional offering described
8-12 by Subsection (b).
8-13 (d) An incumbent local exchange company may offer a
8-14 promotion of any regulated service as part of a package of services
8-15 consisting of any regulated service with any other regulated or
8-16 unregulated service or any service of an affiliate.
8-17 SECTION 9. Section 52.102, Utilities Code, as amended by
8-18 Section 18.04, S.B. No. 1368, Acts of the 76th Legislature, Regular
8-19 Session, 1999, is amended to read as follows:
8-20 Sec. 52.102. LIMITED REGULATORY AUTHORITY. (a) Except as
8-21 otherwise provided by this subchapter, Subchapters D and K, Chapter
8-22 55, and Section 55.011, the commission has only the following
8-23 jurisdiction over a telecommunications utility subject to this
8-24 subchapter:
8-25 (1) to require registration under Section 52.103;
8-26 (2) to conduct an investigation under Section 52.104;
8-27 (3) to require the filing of reports as the commission
9-1 periodically directs;
9-2 (4) to require the maintenance of statewide average
9-3 rates or prices of telecommunications service;
9-4 (5) to require a telecommunications utility that had
9-5 more than six percent of the total intrastate access minutes of use
9-6 as measured for the most recent 12-month period to pass switched
9-7 access rate reductions under this title to customers as required by
9-8 Section 52.112;
9-9 (6) to require access to telecommunications service
9-10 under Section 52.105; and
9-11 (7) [(6)] to require the quality of telecommunications
9-12 service provided to be adequate under Section 52.106.
9-13 (b) The authority provided by Subsection (a)(5) expires on
9-14 the date on which Section 52.112 expires.
9-15 SECTION 10. Section 52.108, Utilities Code, is amended to
9-16 read as follows:
9-17 Sec. 52.108. OTHER PROHIBITED PRACTICES. The commission may
9-18 enter any order necessary to protect the public interest if the
9-19 commission finds after notice and hearing that a telecommunications
9-20 utility has:
9-21 (1) failed to maintain statewide average rates;
9-22 (2) abandoned interexchange message telecommunications
9-23 service to a local exchange area in a manner contrary to the public
9-24 interest; [or]
9-25 (3) engaged in a pattern of preferential or
9-26 discriminatory activities prohibited by Section 53.003, 55.005, or
9-27 55.006; or
10-1 (4) failed to pass switched access rate reductions to
10-2 customers under Chapter 56 or other law, as required by Section
10-3 52.112.
10-4 SECTION 11. Section 52.110(a), Utilities Code, is amended to
10-5 read as follows:
10-6 (a) In a proceeding before the commission in which it is
10-7 alleged that a telecommunications utility engaged in conduct in
10-8 violation of Section 52.107, 52.108, [or] 52.109, or 52.112, the
10-9 burden of proof is on:
10-10 (1) a telecommunications utility complaining of
10-11 conduct committed against it in violation of this subchapter; or
10-12 (2) except as provided by Subsection (b), the
10-13 responding telecommunications utility if the proceedings are:
10-14 (A) brought by a customer or customer
10-15 representative who is not a telecommunications utility; or
10-16 (B) initiated by the commission.
10-17 SECTION 12. Subchapter C, Chapter 52, Utilities Code, is
10-18 amended by adding Section 52.112 to read as follows:
10-19 Sec. 52.112. REDUCTION PASS-THROUGH REQUIRED. (a) Each
10-20 telecommunications utility that had more than six percent of the
10-21 total intrastate access minutes of use as measured for the most
10-22 recent 12-month period shall pass through to customers switched
10-23 access rate reductions under this title. The residential customer
10-24 class shall receive not less than a proportionate share of the
10-25 reductions.
10-26 (b) Within six months following each reduction in intrastate
10-27 switched access charges under this title, each telecommunications
11-1 utility subject to this section shall file a report with the
11-2 commission demonstrating its compliance on an average revenue per
11-3 minute basis with Subsection (a).
11-4 (c) This section expires on the second anniversary of the
11-5 date incumbent local exchange companies doing business in the state
11-6 are no longer prohibited by federal law from offering interLATA and
11-7 interstate long distance service.
11-8 SECTION 13. Subchapter D, Chapter 52, Utilities Code, is
11-9 amended by adding Section 52.155 to read as follows:
11-10 Sec. 52.155. PROHIBITION OF EXCESSIVE ACCESS CHARGES.
11-11 (a) A telecommunications utility that holds a certificate of
11-12 operating authority or a service provider certificate of operating
11-13 authority may not charge a higher amount for originating or
11-14 terminating intrastate switched access than the prevailing rates
11-15 charged by the holder of the certificate of convenience and
11-16 necessity in whose territory the call originated or terminated
11-17 unless:
11-18 (1) the commission specifically approves the higher
11-19 rate; or
11-20 (2) subject to commission review, the
11-21 telecommunications utility establishes statewide average composite
11-22 originating and terminating intrastate switched access rates based
11-23 on a reasonable approximation of traffic originating and
11-24 terminating between all holders of certificates of convenience and
11-25 necessity in this state.
11-26 (b) Notwithstanding any other provision of this title, the
11-27 commission has all jurisdiction necessary to enforce this section.
12-1 SECTION 14. Section 54.007, Utilities Code, is amended to
12-2 read as follows:
12-3 Sec. 54.007. FLEXIBILITY PLAN. (a) After the commission
12-4 grants an application for a certificate of convenience and
12-5 necessity, a certificate of operating authority, or a service
12-6 provider certificate of operating authority or determines that a
12-7 certificate is not needed for the applicant to provide the relevant
12-8 services, the commission shall conduct appropriate proceedings to
12-9 establish a transitional flexibility plan for the incumbent local
12-10 exchange company in the same area or areas as the new certificate
12-11 holder.
12-12 (b) A basic local telecommunications service price of the
12-13 incumbent local exchange company may not be increased before the
12-14 fourth anniversary of the date the certificate is granted to the
12-15 applicant except that the price may be increased[:]
12-16 [(1)] as provided by this title[;]
12-17 [(2) when the new certificate holder has completed the
12-18 build-out plan required by Subchapter C, if applicable; or]
12-19 [(3) when a competitor for basic local
12-20 telecommunications service provides the service in an area in which
12-21 the build-out requirements have been eliminated].
12-22 SECTION 15. Subchapter C, Chapter 54, Utilities Code, is
12-23 amended to read as follows:
12-24 SUBCHAPTER C. CERTIFICATE OF OPERATING AUTHORITY
12-25 Sec. 54.101. DEFINITION. In this subchapter, "certificate"
12-26 means a certificate of operating authority.
12-27 Sec. 54.102. APPLICATION FOR CERTIFICATE. (a) A [In lieu
13-1 of applying for a certificate of convenience and necessity, a]
13-2 person may apply for a certificate of operating authority.
13-3 (b) [An applicant for a facilities-based certificate of
13-4 operating authority must include with the application a proposed
13-5 build-out plan in compliance with this subchapter that demonstrates
13-6 how the applicant will, over a six-year period, deploy facilities
13-7 throughout the geographic area of the certificated service area.]
13-8 [(c)] The applicant must file with the application a sworn
13-9 statement that the applicant has applied for each municipal
13-10 consent, franchise, or permit required for the type of services and
13-11 facilities for which the applicant has applied.
13-12 (c) An affiliate of a person holding a certificate of
13-13 convenience and necessity may hold a certificate of operating
13-14 authority if the holder of the certificate of convenience and
13-15 necessity is in compliance with federal law and Federal
13-16 Communications Commission rules governing affiliates and structural
13-17 separation. An affiliate of a person holding a certificate of
13-18 convenience and necessity may not directly or indirectly sell to a
13-19 non-affiliate any regulated product or service purchased from the
13-20 person holding a certificate of convenience and necessity at any
13-21 rate or price less than the price paid to the person holding a
13-22 certificate of convenience and necessity.
13-23 (d) A person may hold a certificate for all or any portion
13-24 of a service area for which one or more affiliates of the person
13-25 holds a certificate of operating authority, a service provider
13-26 certificate of operating authority, or a certificate of convenience
13-27 and necessity.
14-1 (e) An affiliate of a company that holds a certificate of
14-2 convenience and necessity and that serves more than five million
14-3 access lines in this state may hold a certificate of operating
14-4 authority or service provider certificate of operating authority to
14-5 provide service in an area of this state in which its affiliated
14-6 company is the incumbent local exchange company. However, the
14-7 affiliate holding the certificate of operating authority or service
14-8 provider certificate of operating authority may not provide in that
14-9 area customer-specific contracts so long as the affiliated company
14-10 that is the incumbent local exchange company may not provide
14-11 customer-specific contracts under Section 58.003 in that area.
14-12 This subsection does not preclude an affiliate of a company holding
14-13 a certificate of convenience and necessity from holding a
14-14 certificate of operating authority in any area of this state to
14-15 provide advanced services as defined by rules or orders of the
14-16 Federal Communications Commission.
14-17 Sec. 54.103. GRANT OR DENIAL OF CERTIFICATE. (a) The
14-18 commission must grant or deny a certificate not later than the 60th
14-19 day after the date the application for the certificate is filed.
14-20 The commission may extend the deadline on good cause shown.
14-21 (b) The commission shall grant each certificate on a
14-22 nondiscriminatory basis after considering factors such as:
14-23 (1) [the adequacy of the applicant's build-out plan;]
14-24 [(2)] the technical and financial qualifications of
14-25 the applicant; and
14-26 (2) [(3)] the applicant's ability to meet the
14-27 commission's quality of service requirements.
15-1 (c) In an exchange of an incumbent local exchange company
15-2 that serves fewer than 31,000 access lines, in addition to the
15-3 factors described by Subsection (b), the commission shall consider:
15-4 (1) the effect of granting the certificate on a public
15-5 utility serving the area and on that utility's customers;
15-6 (2) the ability of that public utility to provide
15-7 adequate service at reasonable rates;
15-8 (3) the effect of granting the certificate on the
15-9 ability of that public utility to act as the provider of last
15-10 resort; and
15-11 (4) the ability of the exchange, not the company, to
15-12 support more than one provider of service.
15-13 (d) Except as provided by Subsections (e) and (f), the
15-14 commission may grant an application for a certificate only for an
15-15 area or areas that are contiguous and reasonably compact and cover
15-16 an area of at least 27 square miles.
15-17 (e) In an exchange in a county that has a population of less
15-18 than 500,000 and that is served by an incumbent local exchange
15-19 company that has more than 31,000 access lines, an area covering
15-20 less than 27 square miles may be approved if the area is contiguous
15-21 and reasonably compact and has at least 20,000 access lines.
15-22 (f) In an exchange of a company that serves fewer than
15-23 31,000 access lines in this state, the commission may grant an
15-24 application only for an area that has boundaries similar to the
15-25 boundaries of the serving central office that is served by the
15-26 incumbent local exchange company that holds the certificate of
15-27 convenience and necessity for the area.
16-1 [Sec. 54.104. BUILD-OUT PLAN REQUIREMENTS. (a) The
16-2 build-out plan required by Section 54.102 must provide that, by the
16-3 end of the:]
16-4 [(1) first year, 10 percent of the area to be served
16-5 must be served with facilities that are not facilities of the
16-6 incumbent local exchange company;]
16-7 [(2) third year, 50 percent of the area to be served
16-8 must be served with facilities that are not facilities of the
16-9 incumbent local exchange company; and]
16-10 [(3) sixth year, 100 percent of the area to be served
16-11 must be served with facilities that are not facilities of the
16-12 incumbent local exchange company.]
16-13 [(b) The build-out plan may permit the certificate holder to
16-14 serve not more than 40 percent of the certificate holder's service
16-15 area by reselling the incumbent local exchange company's
16-16 facilities. The resale must be in accordance with:]
16-17 [(1) Section 54.105; and]
16-18 [(2) the resale tariff approved by the commission
16-19 under Subchapter C, Chapter 60.]
16-20 [(c) The resale limitation applies to an incumbent local
16-21 exchange facility that a certificate holder resells in providing
16-22 local exchange telephone service, regardless of whether:]
16-23 [(1) the certificate holder purchases the facility
16-24 directly from the incumbent local exchange company; or]
16-25 [(2) an intermediary carrier purchases the facility
16-26 from the incumbent local exchange company and then provides the
16-27 facility to the certificate holder for resale.]
17-1 [(d) To meet the build-out requirement prescribed by this
17-2 subchapter, a certificate holder:]
17-3 [(1) may not use commercial mobile service; and]
17-4 [(2) may use personal communication services (PCS) or
17-5 other wireless technology licensed or allocated by the Federal
17-6 Communications Commission after January 1, 1995.]
17-7 [Sec. 54.105. SIX-YEAR LIMITATION ON RESALE OF SERVICES.
17-8 Before the sixth anniversary of the date a certificate is granted,
17-9 the certificate holder may extend service by resale only:]
17-10 [(1) in the area it is obligated to serve under the
17-11 approved build-out plan; and]
17-12 [(2) to the distant premises of one of its
17-13 multi-premises customers beyond the approved build-out area but in
17-14 its certificated service area.]
17-15 Sec. 54.104 [54.106]. TIME OF SERVICE REQUIREMENTS.
17-16 (a) The commission by rule may prescribe the period within which a
17-17 certificate holder must be able to serve customers.
17-18 (b) Notwithstanding Subsection (a), a certificate holder
17-19 must serve a customer [in the build-out area] not later than the
17-20 30th day after the date the customer requests service.
17-21 [Sec. 54.107. REQUIREMENTS RELATING TO CERTAIN FACILITIES.
17-22 As part of the build-out requirements, the commission may not
17-23 require a certificate holder to:]
17-24 [(1) place a drop facility on each customer's
17-25 premises; or]
17-26 [(2) activate a fiber optic facility in advance of a
17-27 customer request.]
18-1 [Sec. 54.108. BUILD-OUT PLAN COMPLIANCE. (a) A certificate
18-2 holder shall file periodic reports with the commission
18-3 demonstrating compliance with:]
18-4 [(1) the plan approved by the commission; and]
18-5 [(2) the resale limitation prescribed by Section
18-6 54.104(b).]
18-7 [(b) The commission may administratively and temporarily
18-8 waive compliance with the six-year build-out plan on a showing of
18-9 good cause.]
18-10 [Sec. 54.109. ELIMINATION OF BUILD-OUT REQUIREMENTS FOR
18-11 CERTAIN PROVIDERS. (a) The commission may waive the build-out
18-12 requirements of this subchapter for an additional applicant in a
18-13 particular area:]
18-14 [(1) on or after the sixth anniversary of the date a
18-15 certificate is granted for that area; or]
18-16 [(2) on or after the date a certificate holder
18-17 completes the holder's build-out plan in that area.]
18-18 [(b) The build-out requirements of this subchapter do not
18-19 apply to a service area:]
18-20 [(1) that is served by an incumbent local exchange
18-21 company that:]
18-22 [(A) has more than one million access lines; and]
18-23 [(B) on September 1, 1995, was subject to a
18-24 prohibition under federal law on the provision of interLATA
18-25 service; and]
18-26 [(2) for which all prohibitions on the incumbent local
18-27 exchange company's provision of interLATA services are removed so
19-1 the company can offer interLATA service together with local and
19-2 intraLATA toll service.]
19-3 [Sec. 54.110. HEARING ON BUILD-OUT AND RESALE REQUIREMENTS.
19-4 (a) The commission on application may conduct a hearing to
19-5 determine:]
19-6 [(1) whether the build-out requirements of Sections
19-7 54.102(b), 54.103(e) and (f), 54.104, 54.105, 54.106, and 54.107
19-8 have created a barrier to the entry of facilities-based local
19-9 exchange telephone service competition in an exchange in a county
19-10 that has a population of more than 500,000 and that is served by a
19-11 company that has more than 31,000 access lines; and]
19-12 [(2) the effect of the resale provisions on the
19-13 development of competition, other than the development of
19-14 competition in the certificated areas of companies that serve fewer
19-15 than 31,000 access lines as provided by Section 54.156(a).]
19-16 [(b) In making a determination under Subsection (a), the
19-17 commission shall consider:]
19-18 [(1) this title's policy to encourage construction of
19-19 local exchange networks;]
19-20 [(2) the number and type of competitors that have
19-21 sought to provide local exchange competition under the existing
19-22 rules prescribed by this title; and]
19-23 [(3) whether adopting new build-out and resale rules
19-24 would make innovative and competitive local exchange telephone
19-25 services more likely to be provided.]
19-26 [(c) The commission may change a requirement described by
19-27 Subsection (a)(1) or prescribed by Subchapter D if:]
20-1 [(1) the commission determines that the build-out
20-2 requirements have created a barrier to facilities-based local
20-3 exchange competition in an exchange described by Subsection (a)(1);
20-4 and]
20-5 [(2) the changes will encourage additional
20-6 facilities-based competition.]
20-7 [(d) Notwithstanding Subsection (c), the commission may not
20-8 reduce an exchange size to below 12 square miles or increase the
20-9 resale percentage prescribed by Section 54.104(b) to more than 50
20-10 percent.]
20-11 [(e) A rule adopted under Subsection (c) may apply only to a
20-12 person who files an application for a certificate after the date
20-13 the rule is adopted.]
20-14 Sec. 54.105 [54.111]. PENALTY FOR VIOLATION OF TITLE. If a
20-15 certificate holder fails to comply with a requirement of this
20-16 title, the commission may:
20-17 (1) revoke the holder's certificate;
20-18 (2) impose against the holder administrative penalties
20-19 under Subchapter B, Chapter 15; or
20-20 (3) take another action under Subchapter B, Chapter
20-21 15.
20-22 SECTION 16. Subchapter A, Chapter 55, Utilities Code, is
20-23 amended by adding Section 55.012 to read as follows:
20-24 Sec. 55.012. TELECOMMUNICATIONS BILLING. (a) The
20-25 proliferation of charges for separate services, products,
20-26 surcharges, fees, and taxes on a bill for telecommunications
20-27 products or services has increased the complexity of those bills to
21-1 such an extent that in some cases the bills have become difficult
21-2 for customers to understand.
21-3 (b) A bill from a local exchange company for
21-4 telecommunications products or services should be simplified into
21-5 general categories to the extent that simplification is consistent
21-6 with providing customers sufficient information about the charges
21-7 included in the bill to understand the basis and source of the
21-8 charges.
21-9 (c) To the extent permitted by law, a monthly bill from a
21-10 local exchange company for local exchange telephone service shall
21-11 include an aggregate charge for each of the following categories:
21-12 (1) basic local service charges and fees, which
21-13 includes carrier's charges for basic local telecommunications
21-14 service and related fees, assessments, and surcharges;
21-15 (2) optional services; and
21-16 (3) taxes, which includes any taxes applicable to the
21-17 charges described by Subdivisions (1) and (2).
21-18 SECTION 17. Subchapter A, Chapter 55, Utilities Code, is
21-19 amended by adding Section 55.013 to read as follows:
21-20 Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL
21-21 TELECOMMUNICATIONS SERVICE. (a) A provider of basic local
21-22 telecommunications service may not discontinue that service because
21-23 of nonpayment by a residential customer of charges for long
21-24 distance service. Payment shall first be allocated to basic local
21-25 telecommunications service.
21-26 (b) For purposes of allocating payment in this section, if
21-27 the provider of basic local telecommunications service bundles its
22-1 basic local telecommunications service with long distance service
22-2 or any other service and provides a discount for the basic local
22-3 telecommunications service because of that bundling, the rate of
22-4 basic local telecommunications service shall be the rate the
22-5 provider charges for stand-alone basic local telecommunications
22-6 service.
22-7 (c) Notwithstanding Subsection (a), the commission shall
22-8 adopt and implement rules, not later than January 1, 2000, to
22-9 prevent customer abuse of the protections afforded by this section.
22-10 The rules must include:
22-11 (1) provisions requiring a provider of basic local
22-12 telecommunications service to offer and implement, at the request
22-13 and expense of a long distance service provider, toll blocking
22-14 capability to limit a customer's ability to incur additional
22-15 charges for long distance services after nonpayment for long
22-16 distance services; and
22-17 (2) provisions regarding fraudulent activity in
22-18 response to which a provider may discontinue a residential
22-19 customer's basic local telecommunications service.
22-20 (d) Notwithstanding any other provision of this title, the
22-21 commission has all jurisdiction necessary to establish a maximum
22-22 price that an incumbent local exchange company may charge a long
22-23 distance service provider to initiate the toll blocking capability
22-24 required to be offered under the rules adopted under Subsection
22-25 (c). The maximum price established under this subsection shall be
22-26 observed by all providers of basic local telecommunications service
22-27 in the incumbent local exchange company's certificated service
23-1 area. Notwithstanding Sections 52.102 and 52.152, the commission
23-2 has all jurisdiction necessary to enforce this section.
23-3 SECTION 18. Subchapter A, Chapter 55, is amended by adding
23-4 Section 55.014 to read as follows:
23-5 Sec. 55.014. PROVISION OF ADVANCED TELECOMMUNICATIONS
23-6 SERVICES. (a) In this section, "advanced service" means any
23-7 telecommunications service other than residential or business basic
23-8 local exchange telephone service, caller identification service,
23-9 and customer calling features.
23-10 (b) This section applies to a company electing under Chapter
23-11 58 or a company that holds a certificate of operating authority or
23-12 service provider certificate of operating authority.
23-13 (c) Notwithstanding any other provision of this title,
23-14 beginning September 1, 2001, a company to which this section
23-15 applies that provides advanced telecommunications services within
23-16 the company's urban service areas, shall, on a bona fide retail
23-17 request for those services, provide in rural areas of this state
23-18 served by the company advanced telecommunications services that
23-19 are reasonably comparable to the advanced services provided in
23-20 urban areas. The company shall offer the advanced
23-21 telecommunications services:
23-22 (1) at prices, terms, and conditions that are
23-23 reasonably comparable to the prices, terms, and conditions for
23-24 similar advanced services provided by the company in urban areas;
23-25 and
23-26 (2) within 15 months after the bona fide request for
23-27 those advanced services.
24-1 (d) Notwithstanding any other provision of this title, a
24-2 company to which this section applies shall, on a bona fide retail
24-3 request for those services, offer caller identification service and
24-4 custom calling features in rural areas served by the company. The
24-5 company shall offer the services:
24-6 (1) at prices, terms, and conditions reasonably
24-7 comparable to the company's prices, terms, and conditions for
24-8 similar services in urban areas; and
24-9 (2) within 15 months after the bona fide request for
24-10 those services.
24-11 (e) This section may not be construed to require a company
24-12 to:
24-13 (1) begin providing services in a rural area in which
24-14 the company does not provide local exchange telephone service; or
24-15 (2) provide a service in a rural area of this state
24-16 unless the company provides the service in urban areas of this
24-17 state.
24-18 (f) For purposes of this section, a company to which this
24-19 section applies is considered to provide services in urban areas of
24-20 this state if the company provides services in a municipality with
24-21 a population of more than 190,000.
24-22 (g) Notwithstanding any other provision of this title, the
24-23 commission has all jurisdiction necessary to enforce this section.
24-24 SECTION 19. Subchapter A, Chapter 55, Utilities Code, is
24-25 amended by adding Section 55.015 to read as follows:
24-26 Sec. 55.015. LIFELINE SERVICE. (a) The commission shall
24-27 adopt rules prohibiting a telecommunications provider from
25-1 discontinuing local exchange telephone service to a consumer who
25-2 receives lifeline service because of nonpayment by the consumer of
25-3 charges for other services billed by the provider, including long
25-4 distance service.
25-5 (b) The commission shall adopt rules providing for automatic
25-6 enrollment to receive lifeline service for eligible consumers. The
25-7 Texas Department of Human Services, on request of the commission,
25-8 shall assist in the adoption and implementation of those rules.
25-9 The commission and the Texas Department of Human Services shall
25-10 enter into a memorandum of understanding establishing the
25-11 respective duties of the commission and department in relation to
25-12 the automatic enrollment.
25-13 (c) A telecommunications provider may block a lifeline
25-14 service participant's access to all long distance service except
25-15 toll-free numbers when the participant owes an outstanding amount
25-16 for that service. The telecommunications provider shall remove the
25-17 block without additional cost to the participant on payment of the
25-18 outstanding amount.
25-19 (d) A telecommunications provider shall offer a consumer who
25-20 applies for or receives lifeline service the option of blocking all
25-21 toll calls or, if technically capable, placing a limit on the
25-22 amount of toll calls. The provider may not charge the consumer an
25-23 administrative charge or other additional amount for the blocking
25-24 service.
25-25 (e) In this section, "lifeline service" means a retail local
25-26 service offering described by 47 C.F.R. Section 54.401(a), as
25-27 amended.
26-1 SECTION 20. Section 3.312, Public Utility Regulatory Act of
26-2 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as added by
26-3 Section 1, Chapter 919, Acts of the 75th Legislature, Regular
26-4 Session, 1997, is codified as Subchapter K, Chapter 55, Utilities
26-5 Code, and amended to read as follows:
26-6 SUBCHAPTER K. SELECTION OF TELECOMMUNICATIONS UTILITIES
26-7 Sec. 55.301. STATE POLICY. It is the policy of this state
26-8 to ensure that all customers are protected from the unauthorized
26-9 switching of a telecommunications utility selected by the customer
26-10 to provide telecommunications service.
26-11 Sec. 55.302. COMMISSION RULES. (a) The commission shall
26-12 adopt nondiscriminatory and competitively neutral rules to
26-13 implement this subchapter, including rules that:
26-14 (1) ensure that customers are protected from deceptive
26-15 practices in the obtaining of authorizations and verifications
26-16 required by this subchapter;
26-17 (2) are applicable to all local exchange telephone
26-18 services, interexchange telecommunications service, and other
26-19 telecommunications service provided by telecommunications utilities
26-20 in this state;
26-21 (3) are consistent with the rules and regulations
26-22 prescribed by the Federal Communications Commission for the
26-23 selection of telecommunications utilities;
26-24 (4) permit telecommunications utilities to select any
26-25 method of verification of a [carrier-initiated] change order
26-26 authorized by Section 55.303;
26-27 (5) [require telecommunications utilities to maintain
27-1 records relating to a customer-initiated change in accordance with
27-2 Section 55.304;]
27-3 [(6)] require the reversal of certain changes in the
27-4 selection of a customer's telecommunications utility in accordance
27-5 with Section 55.304(a) [55.305(a)];
27-6 (6) [(7)] prescribe, in accordance with Section
27-7 55.304(b) [55.305(b)], the duties of a telecommunications utility
27-8 that initiates an unauthorized customer change; and
27-9 (7) [(8)] provide for corrective action and the
27-10 imposition of penalties in accordance with Sections 55.305 [55.306]
27-11 and 55.306 [55.307].
27-12 (b) The commission is granted all necessary jurisdiction to
27-13 adopt rules required by this subchapter and to enforce those rules
27-14 and this subchapter.
27-15 (c) The commission may notify customers of their rights
27-16 under the rules.
27-17 Sec. 55.303. VERIFICATION OF [CARRIER-INITIATED] CHANGE.
27-18 [(a)] A telecommunications utility may verify a
27-19 [carrier-initiated] change order by:
27-20 (1) obtaining written authorization from the customer;
27-21 (2) obtaining a toll-free electronic authorization
27-22 placed from the telephone number that is the subject of the change
27-23 order; or
27-24 (3) an oral authorization obtained by an independent
27-25 third party.
27-26 [(b) In addition to the methods provided by Subsection (a),
27-27 a telecommunications utility may verify a carrier-initiated change
28-1 order by mailing to the customer an information package that is
28-2 consistent with the requirements of 47 C.F.R. Section 64.1100(d)
28-3 and that contains a postage-prepaid postcard or mailer. The change
28-4 is considered verified if the telecommunications utility does not
28-5 receive a cancellation of the change order from the customer within
28-6 14 days after the date of the mailing.]
28-7 [Sec. 55.304. CUSTOMER-INITIATED CHANGE. (a) A
28-8 telecommunications utility to whom a customer has changed its
28-9 service on the initiative of the customer shall maintain a record
28-10 of nonpublic customer-specific information that could be used to
28-11 establish that the customer authorized the change.]
28-12 [(b) Notwithstanding Subsection (a), if the Federal
28-13 Communications Commission requires verification, the
28-14 telecommunications utility shall use the verification methods
28-15 required by the Federal Communications Commission.]
28-16 Sec. 55.304 [55.305]. UNAUTHORIZED CHANGE. (a) If a change
28-17 in the selection of a customer's telecommunications utility is not
28-18 made or verified in accordance with this subchapter, the change, on
28-19 request by the customer, shall be reversed within a period
28-20 established by commission ruling.
28-21 (b) A telecommunications utility that initiates an
28-22 unauthorized customer change shall:
28-23 (1) pay all usual and customary charges associated
28-24 with returning the customer to its original telecommunications
28-25 utility;
28-26 (2) pay the telecommunications utility from which the
28-27 customer was changed any amount paid by the customer that would
29-1 have been paid to that telecommunications utility if the
29-2 unauthorized change had not been made;
29-3 (3) return to the customer any amount paid by the
29-4 customer that exceeds the charges that would have been imposed for
29-5 identical services by the telecommunications utility from which the
29-6 customer was changed if the unauthorized change had not been made;
29-7 and
29-8 (4) provide to the original telecommunications utility
29-9 from which the customer was changed all billing records to enable
29-10 that telecommunications utility to comply with this subchapter.
29-11 (c) The telecommunications utility from which the customer
29-12 was changed shall provide to the customer all benefits associated
29-13 with the service on receipt of payment for service provided during
29-14 the unauthorized change.
29-15 (d) A customer is not liable for charges incurred during the
29-16 first 30 days after the date of an unauthorized carrier change.
29-17 Sec. 55.305 [55.306]. CORRECTIVE ACTION AND PENALTIES. (a)
29-18 If the commission finds that a telecommunications utility has
29-19 repeatedly violated the commission's telecommunications utility
29-20 selection rules, the commission shall order the utility to take
29-21 corrective action as necessary. In addition, the utility may be
29-22 subject to administrative penalties under Sections 15.023-15.027.
29-23 (b) An administrative penalty collected under this section
29-24 shall be used to enforce this subchapter.
29-25 Sec. 55.306 [55.307]. REPEATED AND RECKLESS VIOLATION. If
29-26 the commission finds that a telecommunications utility has
29-27 repeatedly and recklessly violated the commission's
30-1 telecommunications utility selection rules, the commission may, if
30-2 consistent with the public interest, suspend, restrict, deny, or
30-3 revoke the registration or certificate, including an amended
30-4 certificate, of the telecommunications utility and, by taking that
30-5 action, deny the telecommunications utility the right to provide
30-6 service in this state.
30-7 Sec. 55.307. DECEPTIVE OR FRAUDULENT PRACTICE. The
30-8 commission may prohibit a utility from engaging in a deceptive or
30-9 fraudulent practice, including a marketing practice, involving the
30-10 selection of a customer's telecommunications utility. The
30-11 commission may define deceptive and fraudulent practices to which
30-12 this section applies.
30-13 Sec. 55.308. CONSISTENCY WITH FEDERAL LAW. Notwithstanding
30-14 any other provision of this subchapter, rules adopted by the
30-15 commission under this subchapter shall be consistent with
30-16 applicable federal laws and rules.
30-17 SECTION 21. Section 56.021, Utilities Code, as amended by
30-18 Section 18.08, S.B. No. 1368, Acts of the 76th Legislature, Regular
30-19 Session, 1999, is amended to read as follows:
30-20 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
30-21 commission shall adopt and enforce rules requiring local exchange
30-22 companies to establish a universal service fund to:
30-23 (1) assist telecommunications providers [local
30-24 exchange companies] in providing basic local telecommunications
30-25 service at reasonable rates in high cost rural areas;
30-26 (2) reimburse telecommunications providers [local
30-27 exchange companies] for revenue lost by providing tel-assistance
31-1 service under Subchapter C;
31-2 (3) reimburse the telecommunications carrier that
31-3 provides the statewide telecommunications relay access service
31-4 under Subchapter D;
31-5 (4) finance the specialized telecommunications device
31-6 assistance program established under Subchapter E; [and]
31-7 (5) reimburse the department, the Texas Commission for
31-8 the Deaf and Hard of Hearing, and the commission for costs incurred
31-9 in implementing this chapter and Chapter 57; and
31-10 (6) reimburse a telecommunications carrier providing
31-11 lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
31-12 amended.
31-13 SECTION 22. Sections 56.023 and 56.024, Utilities Code, are
31-14 amended to read as follows:
31-15 Sec. 56.023. COMMISSION POWERS AND DUTIES. (a) The
31-16 commission shall:
31-17 (1) in a manner that assures reasonable rates for
31-18 basic local telecommunications service, adopt eligibility criteria
31-19 and review procedures, including a method for administrative
31-20 review, the commission finds necessary to fund the universal
31-21 service fund and make distributions from that fund;
31-22 (2) determine which telecommunications providers
31-23 [local exchange companies] meet the eligibility criteria;
31-24 (3) determine the amount of and approve a procedure
31-25 for reimbursement to telecommunications providers [local exchange
31-26 companies] of revenue lost in providing tel-assistance service
31-27 under Subchapter C;
32-1 (4) establish and collect fees from the universal
32-2 service fund necessary to recover the costs the department and the
32-3 commission incur in administering this chapter and Chapter 57; and
32-4 (5) approve procedures for the collection and
32-5 disbursal of the revenue of the universal service fund.
32-6 (b) The eligibility criteria must require that a
32-7 telecommunications provider [local exchange company], in compliance
32-8 with the commission's quality of service requirements:
32-9 (1) offer service to each consumer within the
32-10 company's certificated area; and
32-11 (2) render continuous and adequate service within the
32-12 company's certificated area.
32-13 (c) The commission shall adopt rules for the administration
32-14 of the universal service fund and may act as necessary and
32-15 convenient to administer the fund.
32-16 Sec. 56.024. REPORTS; CONFIDENTIALITY. (a) The commission
32-17 may require a [local exchange company or another]
32-18 telecommunications provider to provide a report or information
32-19 necessary to assess contributions and disbursements to the
32-20 universal service fund.
32-21 (b) A report or information is confidential and not subject
32-22 to disclosure under Chapter 552, Government Code.
32-23 SECTION 23. Section 56.026, Utilities Code, is amended to
32-24 read as follows:
32-25 Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS. (a) A
32-26 revenue requirement showing is not required for a disbursement from
32-27 the universal service fund under this subchapter.
33-1 (b) The commission shall make each disbursement from the
33-2 universal service fund promptly and efficiently so that a
33-3 telecommunications provider [or local exchange company] does not
33-4 experience an unnecessary cash-flow change as a result of a change
33-5 in governmental policy.
33-6 (c) Notwithstanding any other provision of this title, if an
33-7 electing company reduces rates in conjunction with receiving
33-8 disbursements from the universal service fund, the commission may
33-9 not reduce the amount of those disbursements, except that:
33-10 (1) if a local end user customer of the electing
33-11 company switches to another local service provider that serves the
33-12 customer entirely through the use of its own facilities and not
33-13 partially or solely through the use of unbundled network elements,
33-14 the electing company's disbursement may be reduced by the amount
33-15 attributable to that customer under Section 56.021(1); or
33-16 (2) if a local end user customer of the electing
33-17 company switches to another local service provider, and the new
33-18 local service provider serves the customer partially or solely
33-19 through the use of unbundled network elements provided by the
33-20 electing company, the electing company's disbursement attributable
33-21 to that customer under Section 56.021(1) may be reduced only if the
33-22 commission establishes an equitable allocation formula for the
33-23 disbursement.
33-24 (d) Any reductions in switched access service rates for
33-25 local exchange companies with more than 125,000 access lines in
33-26 service in this state on December 31, 1998, that are made in
33-27 accordance with this section shall be proportional, based on
34-1 equivalent minutes of use, to reductions in intraLATA toll rates,
34-2 and those reductions shall be offset by equal disbursements from
34-3 the universal service fund under Section 56.021(1). To the extent
34-4 that the disbursements from the universal service fund under
34-5 Section 56.021(1) for small and rural local exchange companies are
34-6 used to decrease the implicit support in intraLATA toll and
34-7 switched access rates, the decrease shall be made in a
34-8 competitively neutral manner.
34-9 SECTION 24. Subchapter B, Chapter 56, Utilities Code, is
34-10 amended by adding Section 56.028 to read as follows:
34-11 Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR
34-12 CERTAIN INTRALATA SERVICE. On request of an incumbent local
34-13 exchange company that is not an electing company under Chapters 58
34-14 and 59, the commission shall provide reimbursement through the
34-15 universal service fund for reduced rates for intraLATA
34-16 interexchange high capacity (1.544 Mbps) service for entities
34-17 described in Section 58.253(a). The amount of reimbursement shall
34-18 be the difference between the company's tariffed rate for that
34-19 service as of January 1, 1998, and the lowest rate offered for that
34-20 service by any local exchange company electing incentive regulation
34-21 under Chapter 58.
34-22 SECTION 25. Section 56.071, Utilities Code, is amended to
34-23 read as follows:
34-24 Sec. 56.071. TEL-ASSISTANCE SERVICE REQUIREMENTS. (a) The
34-25 commission shall adopt and enforce rules requiring a local exchange
34-26 company to establish a telecommunications service assistance
34-27 program to provide a reduction in the cost of telecommunications
35-1 service to each eligible consumer in the company's certificated
35-2 area. The reduction must be a reduction on the consumer's
35-3 telephone bill.
35-4 (b) In addition to local exchange companies, this subchapter
35-5 applies to telecommunications providers that receive universal
35-6 service fund support in accordance with the commission's universal
35-7 service fund rules, and any reference to or requirement imposed on
35-8 local exchange companies in this subchapter shall also apply to
35-9 those telecommunications providers.
35-10 (c) Except as provided by Section 56.075(b), the reduction
35-11 allowed by the program is 65 percent of the applicable tariff rate
35-12 for the service provided.
35-13 (d) [(c)] The program is named "tel-assistance service."
35-14 SECTION 26. Section 56.072, Utilities Code, is amended by
35-15 adding Subsection (d) to read as follows:
35-16 (d) The commission shall adopt rules providing for automatic
35-17 enrollment to receive tel-assistance service for eligible
35-18 consumers. The department, on request of the commission, shall
35-19 assist in the adoption and implementation of those rules. The
35-20 commission and the department shall enter into a memorandum of
35-21 understanding establishing the respective duties of the commission
35-22 and the department in relation to the automatic enrollment.
35-23 SECTION 27. Subchapter C, Chapter 56, Utilities Code, is
35-24 amended by adding Section 56.079 to read as follows:
35-25 Sec. 56.079. RELATIONSHIP TO OTHER SERVICES. (a) The
35-26 commission shall adopt rules prohibiting a telecommunications
35-27 provider from discontinuing local exchange telephone service to a
36-1 consumer who receives tel-assistance service because of nonpayment
36-2 by the consumer of charges for other services billed by the
36-3 provider, including long distance service.
36-4 (b) A telecommunications provider may block a tel-assistance
36-5 service participant's access to all long distance service except
36-6 toll-free numbers when the participant owes an outstanding amount
36-7 for that service. The telecommunications provider shall remove the
36-8 block without additional cost to the participant on payment of the
36-9 outstanding amount.
36-10 (c) A telecommunications provider shall offer a consumer who
36-11 applies for or receives tel-assistance service the option of
36-12 blocking all toll calls or, if technically capable, placing a limit
36-13 on the amount of toll calls. The provider may not charge the
36-14 consumer an administrative charge or other additional amount for
36-15 the blocking service.
36-16 SECTION 28. Subchapter A, Chapter 58, Utilities Code, is
36-17 amended by adding Section 58.003 to read as follows:
36-18 Sec. 58.003. CUSTOMER-SPECIFIC CONTRACTS.
36-19 (a) Notwithstanding any other provision of this chapter, an
36-20 electing company may not offer in an exchange a service or an
36-21 appropriate subset of a service listed in Sections 58.051(a)(1)-(4)
36-22 or Sections 58.151(1)-(4) in a manner that results in a
36-23 customer-specific contract, unless the other party to the contract
36-24 is a federal, state, or local governmental entity, until the
36-25 earlier of September 1, 2005, or the date on which the commission
36-26 finds that at least 40 percent of the total access lines for that
36-27 service or appropriate subset of that service in that exchange are
37-1 served by competitive alternative providers that are not affiliated
37-2 with the electing company.
37-3 (b) In addition to the requirements prescribed by Subsection
37-4 (a), an electing company serving fewer than five million access
37-5 lines must also notify the commission of the company's binding
37-6 commitment to make the following infrastructure improvements not
37-7 later than September 1, 2001:
37-8 (1) install Common Channel Signaling 7 capability in
37-9 each central office; and
37-10 (2) connect all of the company's serving central
37-11 offices to their respective LATA tandem central offices with
37-12 optical fiber or equivalent facilities.
37-13 (c) The commission by rule shall prescribe appropriate
37-14 subsets of services.
37-15 (d) An electing company may file with the commission a
37-16 request for a finding under this section. The filing must include
37-17 information sufficient for the commission to perform a review and
37-18 evaluation in relation to the particular exchange and the
37-19 particular service or appropriate subset of a service for which the
37-20 electing company wants to offer customer-specific contracts. The
37-21 commission must grant or deny the request not later than the 60th
37-22 day after the date the electing company files the request.
37-23 (e) The commitments described by Subsection (b) do not apply
37-24 to exchanges of the company sold or transferred before, or for
37-25 which contracts for sale or transfer are pending on, September 1,
37-26 2001. In the case of exchanges for which contracts for sale or
37-27 transfer are pending as of March 1, 2001, where the purchaser
38-1 withdrew or defaulted before September 1, 2001, the company shall
38-2 have one year from the date of withdrawal or default to comply with
38-3 the commitments.
38-4 (f) This section does not preclude an electing company from
38-5 offering a customer-specific contract to the extent allowed by this
38-6 title as of August 31, 1999.
38-7 SECTION 29. Section 58.021, Utilities Code, is amended to
38-8 read as follows:
38-9 Sec. 58.021. ELECTION. (a) An incumbent local exchange
38-10 company may elect to be subject to incentive regulation and to make
38-11 the corresponding infrastructure commitment under this chapter by
38-12 notifying the commission in writing of its election.
38-13 (b) The notice must include a statement that the company
38-14 agrees to:
38-15 (1) limit until September 1, 2005, [for four years]
38-16 any increase in a rate the company charges for basic network
38-17 services as prescribed by Subchapter C; and
38-18 (2) fulfill the infrastructure commitment prescribed
38-19 by Subchapters F and G.
38-20 (c) Except as provided in Subsection (d), an election under
38-21 this chapter remains in effect until the legislature eliminates the
38-22 incentive regulation authorized by this chapter and Chapter 59.
38-23 (d) The commission may allow an electing company serving
38-24 fewer than five million access lines to withdraw the company's
38-25 election under this chapter:
38-26 (1) on application by the company; and
38-27 (2) only for good cause.
39-1 (e) In this section, "good cause" includes only matters
39-2 beyond the control of the company.
39-3 SECTION 30. Section 58.023, Utilities Code, is amended to
39-4 read as follows:
39-5 Sec. 58.023. SERVICE CLASSIFICATION. On election, the
39-6 services provided by an electing company are classified into two
39-7 [three] categories:
39-8 (1) basic network services governed by Subchapter C;
39-9 and
39-10 (2) nonbasic [discretionary services governed by
39-11 Subchapter D; and]
39-12 [(3) competitive] services governed by Subchapter E.
39-13 SECTION 31. Section 58.024, Utilities Code, is amended to
39-14 read as follows:
39-15 Sec. 58.024. SERVICE RECLASSIFICATION. (a) The commission
39-16 may reclassify a[:]
39-17 [(1)] basic network service as a nonbasic
39-18 [discretionary or competitive] service[; or]
39-19 [(2) discretionary service as a competitive service].
39-20 (b) The commission shall establish criteria for determining
39-21 whether a service should be reclassified. The criteria must
39-22 include consideration of the:
39-23 (1) availability of the service from other providers;
39-24 (2) [proportion of the market that receives the
39-25 service;]
39-26 [(3)] effect of the reclassification on service
39-27 subscribers; and
40-1 (3) [(4)] nature of the service.
40-2 (c) The commission may not reclassify a service until:
40-3 (1) each competitive safeguard prescribed by
40-4 Subchapters B-H, Chapter 60, is fully implemented; or
40-5 (2) for a company that serves more than five million
40-6 access lines in this state, the date on which the Federal
40-7 Communications Commission determines in accordance with 47 U.S.C.
40-8 Section 271 that the company or any of its affiliates may enter the
40-9 interLATA telecommunications market in this state.
40-10 (d) The commission may reclassify a service subject to the
40-11 following conditions:
40-12 (1) the electing company must file a request for a
40-13 service reclassification including information sufficient for the
40-14 commission to perform a review and evaluation under Subsection (b);
40-15 (2) the commission must grant or deny the request not
40-16 later than the 60th day after the date the electing company files
40-17 the request for service reclassification; and
40-18 (3) there is a rebuttable presumption that the request
40-19 for service reclassification by the electing company should be
40-20 granted if the commission finds that there is a competitive
40-21 alternative provider serving customers through means other than
40-22 total service resale.
40-23 SECTION 32. Section 58.028, Utilities Code, is amended to
40-24 read as follows:
40-25 Sec. 58.028. REVIEW AND REPORT OF EFFECTS OF ELECTION.
40-26 (a) Not later than January 1, 2004 [2000], the commission shall
40-27 begin a review and evaluation of each company that elects under
41-1 this chapter or Chapter 59.
41-2 (b) The review must include an evaluation of the effects of
41-3 the election, including:
41-4 (1) consumer benefits;
41-5 (2) impact of competition;
41-6 (3) infrastructure investments; and
41-7 (4) quality of service.
41-8 (c) The commission shall file a report with the legislature
41-9 not later than January 1, 2005 [2001]. The report must include the
41-10 commission's recommendations as to whether the incentive regulation
41-11 provided by this chapter and Chapter 59 should be extended,
41-12 modified, eliminated, or replaced with another form of regulation.
41-13 (d) This section expires September 1, 2005 [2001].
41-14 SECTION 33. Section 58.051, Utilities Code, is amended to
41-15 read as follows:
41-16 Sec. 58.051. SERVICES INCLUDED. (a) Unless reclassified
41-17 under Section 58.024, the following services are basic network
41-18 services:
41-19 (1) flat rate residential [and business] local
41-20 exchange telephone service, including primary directory listings
41-21 and the receipt of a directory and any applicable mileage or zone
41-22 charges;
41-23 (2) residential tone dialing service;
41-24 (3) lifeline and tel-assistance service;
41-25 (4) service connection for basic residential services;
41-26 (5) direct inward dialing service for basic
41-27 residential services;
42-1 (6) private pay telephone access service;
42-2 (7) call trap and trace service;
42-3 (8) access for all residential and business end users
42-4 to 911 service provided by a local authority and access to dual
42-5 party relay service;
42-6 (9) [switched access service;]
42-7 [(10) interconnection to competitive providers;]
42-8 [(11)] mandatory residential extended area service
42-9 arrangements;
42-10 (10) [(12)] mandatory residential extended
42-11 metropolitan service or other mandatory residential toll-free
42-12 calling arrangements; and
42-13 (11) residential call waiting service
42-14 [(13) interconnection for commercial mobile service
42-15 providers;]
42-16 [(14) directory assistance; and]
42-17 [(15) "1-plus" intraLATA message toll service].
42-18 (b) Electing companies shall offer each basic network
42-19 service as a separately tariffed service in addition to any
42-20 packages or other pricing flexibility offerings that include those
42-21 basic network services.
42-22 SECTION 34. Sections 58.054 and 58.055, Utilities Code, are
42-23 amended to read as follows:
42-24 Sec. 58.054. RATES CAPPED. (a) As a condition of election
42-25 under this chapter, an electing company shall commit to not
42-26 increasing a rate for a basic network service on or before the
42-27 fourth anniversary of its election date.
43-1 (b) The rates an electing company may charge on or before
43-2 that fourth anniversary are the rates charged by the company on
43-3 June 1, 1995, or, for a company that elects under this chapter
43-4 after September 1, 1999, the rates charged on the date of its
43-5 election, without regard to a proceeding pending under:
43-6 (1) Section 15.001;
43-7 (2) Subchapter D, Chapter 53; or
43-8 (3) Subchapter G, Chapter 2001, Government Code.
43-9 (c) Notwithstanding Subsections (a) and (b), the cap on the
43-10 rates for basic network services for a company electing under this
43-11 chapter may not expire before September 1, 2005.
43-12 Sec. 58.055. RATE ADJUSTMENT BY COMPANY. (a) An electing
43-13 company may increase a rate for a basic network service during the
43-14 election [four-year] period prescribed by Section 58.054 only:
43-15 (1) with commission approval that the proposed change
43-16 is included in Section 58.056, 58.057, or 58.058; and
43-17 (2) as provided by Sections 58.056, 58.057, 58.058,
43-18 and 58.059.
43-19 (b) Notwithstanding Subchapter F, Chapter 60, an electing
43-20 company may, on its own initiative, decrease a rate for a basic
43-21 network service during the electing [four-year] period.
43-22 (c) [The company may decrease the rate for switched access
43-23 service to an amount above the service's long run incremental cost.]
43-24 [(d)] The company may decrease the rate for a basic local
43-25 telecommunications service [other than switched access] to an
43-26 amount above the service's appropriate cost. If the company has
43-27 been required to perform or has elected to perform a long run
44-1 incremental cost study, the appropriate cost for the service is the
44-2 service's long run incremental cost.
44-3 SECTION 35. Section 58.060, Utilities Code, is amended to
44-4 read as follows:
44-5 Sec. 58.060. RATE ADJUSTMENT AFTER CAP EXPIRATION. After
44-6 the expiration of the [four-year] period during which the rates for
44-7 basic network services are capped as prescribed by Section 58.054
44-8 [expires], an electing company may increase a rate for a basic
44-9 network service only:
44-10 (1) with commission approval subject to this title;
44-11 and
44-12 (2) to the extent consistent with achieving universal
44-13 affordable service.
44-14 SECTION 36. Subchapter C, Chapter 58, Utilities Code, is
44-15 amended by adding Section 58.063 to read as follows:
44-16 Sec. 58.063. PRICING AND PACKAGING FLEXIBILITY. (a)
44-17 Notwithstanding Section 58.052(b) or Subchapter F, Chapter 60, an
44-18 electing company may exercise pricing flexibility for basic network
44-19 services, including the packaging of basic network services with
44-20 any other regulated or unregulated service or any service of an
44-21 affiliate. The company may exercise pricing flexibility in
44-22 accordance with this section 10 days after providing an
44-23 informational notice to the commission, to the office, and to any
44-24 person who holds a certificate of operating authority in the
44-25 electing company's certificated area or areas or who has an
44-26 effective interconnection agreement with the electing company.
44-27 (b) An electing company shall set the price of a package of
45-1 services containing basic network services and nonbasic services at
45-2 any level at or above the lesser of:
45-3 (1) the sum of the long run incremental costs of any
45-4 basic network services and nonbasic services contained in the
45-5 package; or
45-6 (2) the sum of the tariffed prices of any basic
45-7 network services contained in the package and the long run
45-8 incremental costs of nonbasic services contained in the package.
45-9 (c) Except as provided by Section 58.003, an electing
45-10 company may flexibly price a package that includes a basic network
45-11 service in any manner provided by Section 51.002(7).
45-12 SECTION 37. Subchapter E, Chapter 58, Utilities Code, is
45-13 amended to read as follows:
45-14 SUBCHAPTER E. NONBASIC [COMPETITIVE] SERVICES
45-15 Sec. 58.151. SERVICES INCLUDED. The following services are
45-16 classified as nonbasic [competitive] services:
45-17 (1) flat rate business local exchange telephone
45-18 service, including primary directory listings and the receipt of a
45-19 directory, and any applicable mileage or zone charges, except that
45-20 the prices for this service shall be capped until September 1,
45-21 2005, at the prices in effect on September 1, 1999;
45-22 (2) business tone dialing service, except that the
45-23 prices for this service shall be capped until September 1, 2005, at
45-24 the prices in effect on September 1, 1999;
45-25 (3) service connection for all business services,
45-26 except that the prices for this service shall be capped until
45-27 September 1, 2005, at the prices in effect on September 1, 1999;
46-1 (4) direct inward dialing for basic business services,
46-2 except that the prices for this service shall be capped until
46-3 September 1, 2005, at the prices in effect on September 1, 1999;
46-4 (5) "1-plus" intraLATA message toll services;
46-5 (6) 0+ and 0- operator services;
46-6 (7) call waiting, call forwarding, and custom calling,
46-7 except that:
46-8 (A) residential call waiting service shall be
46-9 classified as a basic network service; and
46-10 (B) for an electing company subject to Section
46-11 58.301, prices for residential call forwarding and other custom
46-12 calling services shall be capped at the prices in effect on
46-13 September 1, 1999, until the electing company implements the
46-14 reduction in switched access rates described by Section 58.301(2);
46-15 (8) call return, caller identification, and call
46-16 control options, except that, for an electing company subject to
46-17 Section 58.301, prices for residential call return, caller
46-18 identification, and call control options shall be capped at the
46-19 prices in effect on September 1, 1999, until the electing company
46-20 implements the reduction in switched access rates described by
46-21 Section 58.301(2);
46-22 (9) central office based PBX-type services;
46-23 (10) billing and collection services, including
46-24 installment billing and late payment charges for customers of the
46-25 electing company;
46-26 (11) integrated services digital network (ISDN)
46-27 services, except that prices for Basic Rate Interface (BRI) ISDN
47-1 services, which comprise up to two 64 Kbps B-channels and one 16
47-2 Kbps D-channel, shall be capped until September 1, 2005, at the
47-3 prices in effect on September 1, 1999;
47-4 (12) new services;
47-5 (13) directory assistance services, except that an
47-6 electing company shall provide to a residential customer the first
47-7 three directory assistance inquiries in a monthly billing cycle at
47-8 no charge;
47-9 (14) services described in the WATS tariff as the
47-10 tariff existed on January 1, 1995;
47-11 (15) [(2)] 800 and foreign exchange services;
47-12 (16) [(3)] private line service;
47-13 (17) [(4)] special access service;
47-14 (18) [(5)] services from public pay telephones;
47-15 (19) [(6)] paging services and mobile services (IMTS);
47-16 (20) [(7)] 911 services provided to a local authority
47-17 that are available from another provider [premises equipment];
47-18 (21) [(8)] speed dialing; [and]
47-19 (22) [(9)] three-way calling; and
47-20 (23) all other services subject to the commission's
47-21 jurisdiction that are not specifically classified as basic network
47-22 services in Section 58.051, except that nothing in this section
47-23 shall preclude a customer from subscribing to a local flat rate
47-24 residential or business line for a computer modem or a facsimile
47-25 machine.
47-26 Sec. 58.152. PRICES. (a) An electing company may set the
47-27 price for any nonbasic [a competitive] service at any level above
48-1 the lesser of the:
48-2 (1) service's long run incremental cost in accordance
48-3 with the imputation rules prescribed by or under Subchapter D,
48-4 Chapter 60; or
48-5 (2) price for the service in effect on September 1,
48-6 1999.
48-7 (b) Subject to Section 51.004, an electing [Subject to the
48-8 requirements of Sections 60.001 and 60.002, the] company may use
48-9 pricing flexibility for a nonbasic [competitive] service. Pricing
48-10 flexibility includes all pricing arrangements included in the
48-11 definition of "pricing flexibility" prescribed by Section 51.002
48-12 and includes packages that include basic network services
48-13 [(c) Notwithstanding Subsection (a) or (b), the company may not
48-14 increase the price of a competitive service in a geographic area in
48-15 which that service or a functionally equivalent service is not
48-16 readily available from another provider].
48-17 Sec. 58.153. NEW SERVICES. (a) Subject to the pricing
48-18 conditions prescribed by Section 58.152(a), an electing company may
48-19 introduce a new service 10 days after providing an informational
48-20 notice to the commission, to the office, and to any person who
48-21 holds a certificate of operating authority in the electing
48-22 company's certificated area or areas or who has an effective
48-23 interconnection agreement with the electing company.
48-24 (b) An electing company serving more than five million
48-25 access lines in this state shall provide notice to any person who
48-26 holds a certificate of operating authority in the electing
48-27 company's certificated area or areas or who has an effective
49-1 interconnection agreement with the electing company of any changes
49-2 in the generally available prices and terms under which the
49-3 electing company offers basic or nonbasic telecommunications
49-4 services regulated by the commission at retail rates to subscribers
49-5 that are not telecommunications providers. Changes requiring
49-6 notice under this subsection include the introduction of any new
49-7 nonbasic services, any new features or functions of basic or
49-8 nonbasic services, promotional offerings of basic or nonbasic
49-9 services, or the discontinuation of then-current features or
49-10 services. The electing company shall provide the notice:
49-11 (1) if the electing company is required to give notice
49-12 to the commission, at the same time the company provides that
49-13 notice; or
49-14 (2) if the electing company is not required to give
49-15 notice to the commission, at least 45 days before the effective
49-16 date of a price change or 90 days before the effective date of a
49-17 change other than a price change, unless the commission determines
49-18 that the notice should not be given.
49-19 (c) An affected person, the office on behalf of residential
49-20 or small commercial customers, or the commission may file a
49-21 complaint at the commission challenging whether the pricing by an
49-22 incumbent local exchange company of a new service is in compliance
49-23 with Section 58.152(a). The commission shall allow the company to
49-24 continue to provide the service while the complaint is pending.
49-25 (d) If a complaint is filed under Subsection (c), the
49-26 electing company has the burden of proving that the company set
49-27 the price for the new service in accordance with Section 58.152(a).
50-1 If the complaint is finally resolved in favor of the complainant,
50-2 the company:
50-3 (1) shall, not later than the 10th day after the date
50-4 the complaint is finally resolved, amend the price of the service
50-5 as necessary to comply with the final resolution; or
50-6 (2) may, at the company's option, discontinue the
50-7 service.
50-8 (e) The notice requirement prescribed by Subsection (b)
50-9 expires September 1, 2003.
50-10 SECTION 38. Subchapter E, Chapter 58, Utilities Code, is
50-11 amended by adding Section 58.155 to read as follows:
50-12 Sec. 58.155. INTERCONNECTION. Because interconnection to
50-13 competitive providers and interconnection for commercial mobile
50-14 service providers are subject to the requirements of Sections 251
50-15 and 252, Communications Act of 1934, as amended (47 U.S.C. Sections
50-16 251 and 252), as amended, and Federal Communications Commission
50-17 rules, including the commission's authority to arbitrate issues,
50-18 interconnection is not addressed in this subchapter or Subchapter
50-19 B.
50-20 SECTION 39. Chapter 58, Utilities Code, is amended by adding
50-21 Subchapter H to read as follows:
50-22 SUBCHAPTER H. SWITCHED ACCESS SERVICES
50-23 Sec. 58.301. SWITCHED ACCESS RATE REDUCTION. An electing
50-24 company with greater than five million access lines in this state
50-25 shall reduce its switched access rates on a combined originating
50-26 and terminating basis as follows:
50-27 (1) the electing company shall reduce switched access
51-1 rates on a combined originating and terminating basis in effect on
51-2 September 1, 1999, by one cent a minute; and
51-3 (2) the electing company shall reduce switched access
51-4 rates on a combined originating and terminating basis by an
51-5 additional two cents a minute on the earlier of:
51-6 (A) July 1, 2000; or
51-7 (B) the date the electing company, or its
51-8 affiliate formed in compliance with 47 U.S.C. Section 272, as
51-9 amended, actually begins providing interLATA services in this state
51-10 in accordance with the authorization required by 47 U.S.C. Section
51-11 271, as amended.
51-12 Sec. 58.302. SWITCHED ACCESS RATE CAP. (a) An electing
51-13 company may not increase the per minute rates for switched access
51-14 services on a combined originating and terminating basis above the
51-15 lesser of:
51-16 (1) the rates for switched access services charged by
51-17 that electing company on September 1, 1999, as may be further
51-18 reduced on implementation of the universal service fund under
51-19 Chapter 56; or
51-20 (2) the applicable rate described by Section 58.301 as
51-21 may be further reduced on implementation of the universal service
51-22 fund under Chapter 56.
51-23 (b) Notwithstanding Subchapter F, Chapter 60, but subject to
51-24 Section 60.001, an electing company may, on its own initiative,
51-25 decrease a rate charged for switched access service to any amount
51-26 above the long run incremental cost of the service.
51-27 Sec. 58.303. SWITCHED ACCESS CHARGE STUDY. (a) Not later
52-1 than November 1, 1999, the commission shall begin a review and
52-2 evaluation of the rates for intrastate switched access service. The
52-3 review shall include an evaluation of at least the following
52-4 issues:
52-5 (1) whether alternative rate structures for recovery
52-6 of switched access revenues are in the public interest and
52-7 competitively neutral; and
52-8 (2) whether disparities in rates for switched access
52-9 service between local exchange companies are in the public
52-10 interest.
52-11 (b) The commission shall file a report with the legislature
52-12 not later than January 1, 2001. The report must include the
52-13 commission's recommendations on the issues reviewed and evaluated.
52-14 (c) This section expires September 1, 2001.
52-15 SECTION 40. Section 59.021, Utilities Code, is amended by
52-16 adding Subsection (c) to read as follows:
52-17 (c) A company electing under this chapter may renew the
52-18 election for successive two-year periods. An election that is
52-19 renewed under this subsection remains in effect until the earlier
52-20 of the date that:
52-21 (1) the election expires because it was not renewed;
52-22 (2) the commission allows the company to withdraw its
52-23 election under Section 59.022; or
52-24 (3) the legislature eliminates the incentive
52-25 regulation authorized by this chapter and Chapter 58.
52-26 SECTION 41. Section 59.024, Utilities Code, is amended to
52-27 read as follows:
53-1 Sec. 59.024. RATE CHANGES. (a) Except for the charges
53-2 permitted under Subchapter C, Chapter 55, Subchapter B, Chapter 56,
53-3 and Section 55.024, an electing company may not, [on or] before the
53-4 end of the company's election period under this chapter [sixth
53-5 anniversary of its election date], increase a rate previously
53-6 established for that company under this title unless the commission
53-7 approves the proposed change as authorized under Subsection (c) or
53-8 (d).
53-9 (b) For purposes of Subsection (a), the company's previously
53-10 established rates are the rates charged by the company on its
53-11 election date without regard to a proceeding pending under:
53-12 (1) Section 15.001;
53-13 (2) Subchapter D, Chapter 53; or
53-14 (3) Subchapter G, Chapter 2001, Government Code.
53-15 (c) The commission, on motion of the electing company or on
53-16 its own motion, shall adjust prices for services to reflect changes
53-17 in Federal Communications Commission separations that affect
53-18 intrastate net income by at least 10 percent.
53-19 (d) Notwithstanding Subsection (a), the [The] commission, on
53-20 request of the electing company, shall allow a rate group
53-21 reclassification that results from access line growth.
53-22 (e) Section 58.059 applies to a rate change under this
53-23 section.
53-24 SECTION 42. Section 59.025, Utilities Code, is amended to
53-25 read as follows:
53-26 Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any
53-27 other provision of this title, the commission may not, on the
54-1 commission's own motion, reduce an electing company's rates for
54-2 switched access services before the expiration of the election
54-3 [six-year] period prescribed by Section 59.024, but may approve a
54-4 reduction proposed by the electing company.
54-5 SECTION 43. Subsection (a), Section 59.026, Utilities Code,
54-6 is amended to read as follows:
54-7 (a) On or before the end [sixth anniversary] of the
54-8 company's election period [date], an electing company is not,
54-9 under any circumstances, subject to:
54-10 (1) a complaint or hearing regarding the
54-11 reasonableness of the company's:
54-12 (A) rates;
54-13 (B) overall revenues;
54-14 (C) return on invested capital; or
54-15 (D) net income; or
54-16 (2) a complaint that a rate is excessive.
54-17 SECTION 44. Subchapter B, Chapter 59, Utilities Code, is
54-18 amended by adding Sections 59.030, 59.031, and 59.032 to read as
54-19 follows:
54-20 Sec. 59.030. NEW SERVICES. (a) An electing company may
54-21 introduce a new service 10 days after providing an informational
54-22 notice to the commission, to the office, and to any person who
54-23 holds a certificate of operating authority in the electing
54-24 company's certificated area or areas or who has an effective
54-25 interconnection agreement with the electing company.
54-26 (b) An electing company shall price each new service at or
54-27 above the service's long run incremental cost. The commission
55-1 shall allow a company serving fewer than one million access lines
55-2 to establish a service's long run incremental cost by adopting, at
55-3 that company's option, the cost studies of a larger company for
55-4 that service that has been accepted by the commission.
55-5 (c) An affected person, the office on behalf of residential
55-6 or small commercial customers, or the commission may file a
55-7 complaint at the commission challenging whether the pricing by an
55-8 electing company of a new service is in compliance with Subsection
55-9 (b).
55-10 (d) If a complaint is filed under Subsection (c), the
55-11 electing company has the burden of proving that the company set the
55-12 price for the new service in accordance with the applicable
55-13 provisions of this subchapter. If the complaint is finally
55-14 resolved in favor of the complainant, the electing company:
55-15 (1) shall, not later than the 10th day after the date
55-16 the complaint is finally resolved, amend the price of the service
55-17 as necessary to comply with the final resolution; or
55-18 (2) may, at the company's option, discontinue the
55-19 service.
55-20 Sec. 59.031. PRICING AND PACKAGING FLEXIBILITY. (a)
55-21 Notwithstanding Section 59.027(b) or Subchapter F, Chapter 60, an
55-22 electing company may exercise pricing flexibility in accordance
55-23 with this section, including the packaging of any regulated service
55-24 such as basic local telecommunications service with any other
55-25 regulated or unregulated service or any service of an affiliate.
55-26 The electing company may exercise pricing flexibility 10 days after
55-27 providing an informational notice to the commission, to the office,
56-1 and to any person who holds a certificate of operating authority in
56-2 the electing company's certificated area or areas or who has an
56-3 effective interconnection agreement with the electing company.
56-4 Pricing flexibility includes all pricing arrangements included in
56-5 the definition of "pricing flexibility" prescribed by Section
56-6 51.002(7) and includes packaging of regulated services with
56-7 unregulated services or any service of an affiliate.
56-8 (b) An electing company, at the company's option, shall
56-9 price each regulated service offered separately or as part of a
56-10 package under Subsection (a) at either the service's tariffed rate
56-11 or at a rate not lower than the service's long run incremental
56-12 cost. The commission shall allow a company serving fewer than one
56-13 million access lines to establish a service's long run incremental
56-14 cost by adopting, at that company's option, the cost studies of a
56-15 larger company for that service that have been accepted by the
56-16 commission.
56-17 (c) An affected person, the office on behalf of residential
56-18 or small commercial customers, or the commission may file a
56-19 complaint alleging that an electing company has priced a regulated
56-20 service in a manner that does not meet the pricing standards of
56-21 this subchapter. The complaint must be filed before the 31st day
56-22 after the company implements the rate.
56-23 Sec. 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
56-24 electing company may offer a promotion for a regulated service for
56-25 not more than 90 days in any 12-month period.
56-26 (b) The electing company shall file with the commission a
56-27 promotional offering that consists of:
57-1 (1) waiver of installation charges or service order
57-2 charges, or both, for not more than 90 days in a 12-month period;
57-3 or
57-4 (2) a temporary discount of not more than 25 percent
57-5 from the tariffed rate for not more than 60 days in a 12-month
57-6 period.
57-7 (c) An electing company is not required to obtain commission
57-8 approval to make a promotional offering described by Subsection
57-9 (b).
57-10 (d) An electing company may offer a promotion of any
57-11 regulated service as part of a package of services consisting of
57-12 any regulated service with any other regulated or unregulated
57-13 service or any service of an affiliate.
57-14 SECTION 45. Section 60.042, Utilities Code, is amended to
57-15 read as follows:
57-16 Sec. 60.042. PROHIBITED RESALE OR SHARING. (a) A provider
57-17 of telecommunications service may not impose a restriction on the
57-18 resale or sharing of a service:
57-19 (1) for which the provider is not a dominant provider;
57-20 or
57-21 (2) entitled to regulatory treatment as a nonbasic
57-22 [competitive] service under Subchapter E, Chapter 58, if the
57-23 provider is a company electing regulation under Chapter 58.
57-24 (b) An incumbent local exchange company must comply with the
57-25 resale provisions of 47 U.S.C. Section 251(c)(4), as amended,
57-26 unless exempted under 47 U.S.C. Section 251(f), as amended.
57-27 (c) If a company electing under Chapter 58 offers basic or
58-1 nonbasic services regulated by the commission to its retail
58-2 customers as a promotional offering, the electing company shall
58-3 make those services available for resale by a certificated
58-4 telecommunications utility on terms that are no less favorable than
58-5 the terms on which the services are made available to retail
58-6 customers in accordance with this section. For a promotion with a
58-7 duration of 90 days or less, the electing company's basic or
58-8 nonbasic services shall be made available to the certificated
58-9 telecommunications utility at the electing company's promotional
58-10 rate, without an avoided-cost discount. For a promotion with a
58-11 duration of more than 90 days, the electing company's basic or
58-12 nonbasic services shall be made available to the certificated
58-13 telecommunications utility at a rate reflecting the avoided-cost
58-14 discount, if any, from the promotional rate.
58-15 SECTION 46. Subchapter I, Chapter 60, Utilities Code, is
58-16 amended by adding Sections 60.164 and 60.165 to read as follows:
58-17 Sec. 60.164. PERMISSIBLE JOINT MARKETING. Except as
58-18 prescribed in Chapters 61, 62, and 63, the commission may not adopt
58-19 any rule or order that would prohibit a local exchange company from
58-20 jointly marketing or selling its products and services with the
58-21 products and services of any of its affiliates in any manner
58-22 permitted by federal law or applicable rules or orders of the
58-23 Federal Communications Commission.
58-24 Sec. 60.165. AFFILIATE RULE. Except as prescribed in
58-25 Chapters 61, 62, and 63, the commission may not adopt any rule or
58-26 order that would prescribe for any local exchange company any
58-27 affiliate rule, including any accounting rule, any cost allocation
59-1 rule, or any structural separation rule, that is more burdensome
59-2 than federal law or applicable rules or orders of the Federal
59-3 Communications Commission. Notwithstanding any other provision in
59-4 this title, the commission may not attribute or impute to a local
59-5 exchange company a price discount offered by an affiliate of the
59-6 local exchange company to the affiliate's customers. This section
59-7 does not limit the authority of the commission to consider a
59-8 complaint brought under Subchapter A, Chapter 52, Section 53.003,
59-9 or this chapter.
59-10 SECTION 47. Section 62.074(b), Utilities Code, is amended to
59-11 read as follows:
59-12 (b) An incumbent local exchange company may not:
59-13 (1) develop a rate for a telecommunications service or
59-14 provide a telecommunications service to benefit primarily the
59-15 company's separate affiliate for the affiliate's video or audio
59-16 programming unless the rate or service is available to any
59-17 purchaser without discrimination, except that an incumbent local
59-18 exchange company may market or sell the audio or video programming
59-19 products or services provided by the company's separate affiliate
59-20 without marketing or selling the audio or video programming
59-21 products or services of a nonaffiliated provider;
59-22 (2) provide a telecommunications service for the
59-23 separate affiliate's audio or video programming in an unreasonably
59-24 preferential manner;
59-25 (3) transfer an asset to the separate affiliate for
59-26 less than the amount for which the asset is available to a third
59-27 party in an arm's-length transaction;
60-1 (4) have a director, officer, or employee in common
60-2 with the separate affiliate;
60-3 (5) own property in common with the separate
60-4 affiliate; or
60-5 (6) enter into a customer-specific contract with the
60-6 separate affiliate to provide tariffed telecommunications services
60-7 unless substantially the same contract terms are generally
60-8 available to nonaffiliated interests.
60-9 SECTION 48. Section 62.108, Utilities Code, is amended to
60-10 read as follows:
60-11 Sec. 62.108. EXPIRATION. This subchapter expires August 31,
60-12 2005 [1999].
60-13 SECTION 49. Section 62.136, Utilities Code, is amended to
60-14 read as follows:
60-15 Sec. 62.136. EXPIRATION. This subchapter expires August 31,
60-16 2005 [1999].
60-17 SECTION 50. Subtitle C, Title 2, Utilities Code, is amended
60-18 by adding Chapter 64 to read as follows:
60-19 CHAPTER 64. CUSTOMER PROTECTION
60-20 SUBCHAPTER A. GENERAL PROVISIONS
60-21 Sec. 64.001. CUSTOMER PROTECTION POLICY. (a) The
60-22 legislature finds that new developments in telecommunications
60-23 services, as well as changes in market structure, marketing
60-24 techniques, and technology, make it essential that customers have
60-25 safeguards against fraudulent, unfair, misleading, deceptive, or
60-26 anticompetitive business practices and against businesses that do
60-27 not have the technical and financial resources to provide adequate
61-1 service.
61-2 (b) The purpose of this chapter is to establish customer
61-3 protection standards and confer on the commission authority to
61-4 adopt and enforce rules to protect customers from fraudulent,
61-5 unfair, misleading, deceptive, or anticompetitive practices.
61-6 (c) Nothing in this section shall be construed to abridge
61-7 customer rights set forth in commission rules in effect at the time
61-8 of the enactment of this chapter.
61-9 (d) This chapter does not limit the constitutional,
61-10 statutory, and common law authority of the office of the attorney
61-11 general.
61-12 Sec. 64.002. DEFINITIONS. In this chapter:
61-13 (1) "Billing agent" means any entity that submits
61-14 charges to the billing utility on behalf of itself or any provider
61-15 of a product or service.
61-16 (2) "Billing utility" means any telecommunications
61-17 provider, as defined by Section 51.002, that issues a bill directly
61-18 to a customer for any telecommunications product or service.
61-19 (3) "Certificated telecommunications utility" means a
61-20 telecommunications utility that has been granted either a
61-21 certificate of convenience and necessity, a certificate of
61-22 operating authority, or a service provider certificate of operating
61-23 authority.
61-24 (4) "Customer" means any person in whose name
61-25 telephone service is billed, including individuals, governmental
61-26 units at all levels of government, corporate entities, and any
61-27 other entity with legal capacity to be billed for telephone
62-1 service.
62-2 (5) "Service provider" means any entity that offers a
62-3 product or service to a customer and that directly or indirectly
62-4 charges to or collects from a customer's bill an amount for the
62-5 product or service on a customer's bill received from a billing
62-6 utility.
62-7 (6) "Telecommunications utility" has the meaning
62-8 assigned by Section 51.002.
62-9 Sec. 64.003. CUSTOMER AWARENESS. (a) The commission shall
62-10 promote public awareness of changes in telecommunications markets,
62-11 provide customers with information necessary to make informed
62-12 choices about available options, and ensure that customers have an
62-13 adequate understanding of their rights.
62-14 (b) The commission shall compile a report on customer
62-15 service at least once each year showing the comparative customer
62-16 information from reports given to the commission it deems
62-17 necessary.
62-18 (c) The commission shall adopt and enforce rules to require
62-19 a certificated telecommunications utility to give clear, uniform,
62-20 and understandable information to customers about rates, terms,
62-21 services, customer rights, and other necessary information as
62-22 determined by the commission.
62-23 (d) Customer awareness efforts by the commission shall be
62-24 conducted in English and Spanish and any other language as
62-25 necessary.
62-26 Sec. 64.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers
62-27 of telecommunications services are entitled to:
63-1 (1) protection from fraudulent, unfair, misleading,
63-2 deceptive, or anticompetitive practices, including protection from
63-3 being billed for services that were not authorized or provided;
63-4 (2) choice of a telecommunications service provider
63-5 and to have that choice honored;
63-6 (3) information in English and Spanish and any other
63-7 language as the commission deems necessary concerning rates, key
63-8 terms, and conditions;
63-9 (4) protection from discrimination on the basis of
63-10 race, color, sex, nationality, religion, marital status, income
63-11 level, or source of income and from unreasonable discrimination on
63-12 the basis of geographic location;
63-13 (5) impartial and prompt resolution of disputes with a
63-14 certificated telecommunications utility and disputes with a
63-15 telecommunications service provider related to unauthorized charges
63-16 and switching of service;
63-17 (6) privacy of customer consumption and credit
63-18 information;
63-19 (7) accuracy of billing;
63-20 (8) bills presented in a clear, readable format and
63-21 easy-to-understand language;
63-22 (9) information in English and Spanish and any other
63-23 language as the commission deems necessary concerning low-income
63-24 assistance programs and deferred payment plans;
63-25 (10) all consumer protections and disclosures
63-26 established by the Fair Credit Reporting Act (15 U.S.C. Section
63-27 1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601
64-1 et seq.); and
64-2 (11) programs that offer eligible low-income customers
64-3 an affordable rate package and bill payment assistance programs
64-4 designed to reduce uncollectible accounts.
64-5 (b) The commission may adopt and enforce rules as necessary
64-6 or appropriate to carry out this section, including rules for
64-7 minimum service standards for a certificated telecommunications
64-8 utility relating to customer deposits and the extension of credit,
64-9 switching fees, termination of service, an affordable rate package,
64-10 and bill payment assistance programs for low-income customers. The
64-11 commission may waive language requirements for good cause.
64-12 (c) The commission shall request the comments of the office
64-13 of the attorney general in developing the rules that may be
64-14 necessary or appropriate to carry out this section.
64-15 (d) The commission shall coordinate its enforcement efforts
64-16 regarding the prosecution of fraudulent, misleading, deceptive, and
64-17 anticompetitive business practices with the office of the attorney
64-18 general in order to ensure consistent treatment of specific alleged
64-19 violations.
64-20 (e) Nothing in this section shall be construed to abridge
64-21 customer rights set forth in commission rules in effect at the time
64-22 of the enactment of this chapter.
64-23 SUBCHAPTER B. CERTIFICATION, REGISTRATION,
64-24 AND REPORTING REQUIREMENTS
64-25 Sec. 64.051. ADOPTION OF RULES. (a) The commission shall
64-26 adopt rules relating to certification, registration, and reporting
64-27 requirements for a certificated telecommunications utility, all
65-1 telecommunications utilities that are not dominant carriers, and
65-2 pay telephone providers.
65-3 (b) The rules adopted under Subsection (a) shall be
65-4 consistent with and no less effective than federal law and may not
65-5 require the disclosure of highly sensitive competitive or trade
65-6 secret information.
65-7 Sec. 64.052. SCOPE OF RULES. The commission may adopt and
65-8 enforce rules to:
65-9 (1) require certification or registration with the
65-10 commission as a condition of doing business in this state;
65-11 (2) amend certificates or registrations to reflect
65-12 changed ownership and control;
65-13 (3) establish rules for customer service and
65-14 protection;
65-15 (4) suspend or revoke certificates or registrations
65-16 for repeated violations of this chapter or commission rules, except
65-17 that the commission may not revoke a certificate of convenience and
65-18 necessity of a telecommunications utility except as provided by
65-19 Section 54.008; and
65-20 (5) order disconnection of a pay telephone service
65-21 provider's pay telephones or revocation of certification or
65-22 registration for repeated violations of this chapter or commission
65-23 rules.
65-24 Sec. 64.053. REPORTS. The commission may require a
65-25 telecommunications service provider to submit reports to the
65-26 commission concerning any matter over which it has authority under
65-27 this chapter.
66-1 SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
66-2 Sec. 64.101. POLICY. It is the policy of this state that
66-3 all customers be protected from the unauthorized switching of a
66-4 telecommunications service provider selected by the customer to
66-5 provide service.
66-6 Sec. 64.102. RULES RELATING TO CHOICE. The commission shall
66-7 adopt and enforce rules that:
66-8 (1) ensure that customers are protected from deceptive
66-9 practices employed in obtaining authorizations of service and in
66-10 the verification of change orders, including negative option
66-11 marketing, sweepstakes, and contests that cause customers to
66-12 unknowingly change their telecommunications service provider;
66-13 (2) provide for clear, easily understandable
66-14 identification, in each bill sent to a customer, of all
66-15 telecommunications service providers submitting charges on the
66-16 bill;
66-17 (3) ensure that every service provider submitting
66-18 charges on the bill is clearly and easily identified on the bill
66-19 along with its services, products, and charges;
66-20 (4) provide that unauthorized changes in service be
66-21 remedied at no cost to the customer within a period established by
66-22 the commission;
66-23 (5) require refunds or credits to the customer in the
66-24 event of an unauthorized change; and
66-25 (6) provide for penalties for violations of commission
66-26 rules adopted under this section, including fines and revocation of
66-27 certificates or registrations, by this action denying the
67-1 certificated telecommunications utility the right to provide
67-2 service in this state, except that the commission may not revoke a
67-3 certificate of convenience and necessity of a telecommunications
67-4 utility except as provided by Section 54.008.
67-5 SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
67-6 Sec. 64.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
67-7 service provider or billing agent may submit charges for a new
67-8 product or service to be billed on a customer's telephone bill on
67-9 or after the effective date of this section only if:
67-10 (1) the service provider offering the product or
67-11 service has thoroughly informed the customer of the product or
67-12 service being offered, including all associated charges, and has
67-13 explicitly informed the customer that the associated charges for
67-14 the product or service will appear on the customer's telephone
67-15 bill;
67-16 (2) the customer has clearly and explicitly consented
67-17 to obtain the product or service offered and to have the associated
67-18 charges appear on the customer's telephone bill and the consent has
67-19 been verified as provided by Subsection (b); and
67-20 (3) the service provider offering the product or
67-21 service and any billing agent for the service provider:
67-22 (A) has provided the customer with a toll-free
67-23 telephone number the customer may call and an address to which the
67-24 customer may write to resolve any billing dispute and to answer
67-25 questions; and
67-26 (B) has contracted with the billing utility to
67-27 bill for products and services on the billing utility's bill as
68-1 provided by Subsection (c).
68-2 (b) The customer consent required by Subsection (a)(2) must
68-3 be verified by the service provider offering the product or service
68-4 by authorization from the customer. A record of the customer
68-5 consent, including verification, must be maintained by the service
68-6 provider offering the product or service for a period of at least
68-7 24 months immediately after the consent and verification have been
68-8 obtained. The method of obtaining customer consent and
68-9 verification must include one or more of the following:
68-10 (1) written authorization from the customer;
68-11 (2) toll-free electronic authorization placed from the
68-12 telephone number that is the subject of the product or service;
68-13 (3) oral authorization obtained by an independent
68-14 third party; or
68-15 (4) any other method of authorization approved by the
68-16 commission or the Federal Communications Commission.
68-17 (c) The contract required by Subsection (a)(3)(B) must
68-18 include the service provider's name, business address, and business
68-19 telephone number and shall be maintained by the billing utility for
68-20 as long as the billing for the products and services continues and
68-21 for the 24 months immediately following the permanent
68-22 discontinuation of the billing.
68-23 (d) A service provider offering a product or service to be
68-24 charged on a customer's telephone bill and any billing agent for
68-25 the service provider may not use any fraudulent, unfair,
68-26 misleading, deceptive, or anticompetitive marketing practice to
68-27 obtain customers, including the use of negative option marketing,
69-1 sweepstakes, and contests.
69-2 (e) Unless verification is required by federal law or rules
69-3 implementing federal law, Subsection (b) does not apply to
69-4 customer-initiated transactions with a certificated
69-5 telecommunications provider for which the service provider has the
69-6 appropriate documentation.
69-7 (f) If a service provider is notified by a billing utility
69-8 that a customer has reported to the billing utility that a charge
69-9 made by the service provider is unauthorized, the service provider
69-10 shall cease to charge the customer for the unauthorized product or
69-11 service.
69-12 (g) This section does not apply to message
69-13 telecommunications services charges that are initiated by dialing
69-14 1+, 0+, 0-, 1010XXX, or collect calls and charges for video
69-15 services if the service provider has the necessary call detail
69-16 record to establish the billing for the call or service.
69-17 Sec. 64.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a
69-18 customer's telephone bill is charged for any product or service
69-19 without proper customer consent or verification, the billing
69-20 utility, on its knowledge or notification of any unauthorized
69-21 charge, shall promptly, not later than 45 days after the date of
69-22 knowledge or notification of the charge:
69-23 (1) notify the service provider to cease charging the
69-24 customer for the unauthorized product or service;
69-25 (2) remove any unauthorized charge from the customer's
69-26 bill;
69-27 (3) refund or credit to the customer all money that
70-1 has been paid by the customer for any unauthorized charge, and if
70-2 the unauthorized charge is not adjusted within three billing
70-3 cycles, shall pay interest on the amount of the unauthorized
70-4 charge;
70-5 (4) on the customer's request, provide the customer
70-6 with all billing records under its control related to any
70-7 unauthorized charge within 15 business days after the date of the
70-8 removal of the unauthorized charge from the customer's bill; and
70-9 (5) maintain for at least 24 months a record of every
70-10 customer who has experienced any unauthorized charge for a product
70-11 or service on the customer's telephone bill and who has notified
70-12 the billing utility of the unauthorized charge.
70-13 (b) A record required by Subsection (a)(5) shall contain for
70-14 each unauthorized charge:
70-15 (1) the name of the service provider that offered the
70-16 product or service;
70-17 (2) any affected telephone numbers or addresses;
70-18 (3) the date the customer requested that the billing
70-19 utility remove the unauthorized charge;
70-20 (4) the date the unauthorized charge was removed from
70-21 the customer's telephone bill; and
70-22 (5) the date any money that the customer paid for the
70-23 unauthorized charges was refunded or credited to the customer.
70-24 (c) A billing utility may not:
70-25 (1) disconnect or terminate telecommunications service
70-26 to any customer for nonpayment of an unauthorized charge;
70-27 (2) file an unfavorable credit report against a
71-1 customer who has not paid charges the customer has alleged were
71-2 unauthorized unless the dispute regarding the unauthorized charge
71-3 is ultimately resolved against the customer, except that the
71-4 customer shall remain obligated to pay any charges that are not in
71-5 dispute, and this subsection does not apply to those undisputed
71-6 charges; or
71-7 (3) interrupt or terminate local exchange service if
71-8 charges for local exchange service are paid, unless the customer's
71-9 local exchange service provider:
71-10 (A) offers to the customer prepaid local
71-11 telephone service in accordance with terms and conditions
71-12 established by the commission; and
71-13 (B) provides eligible customers with notice of
71-14 their eligibility for this service in accordance with commission
71-15 rules.
71-16 Sec. 64.153. RECORDS OF DISPUTED CHARGES. (a) Every
71-17 service provider shall maintain a record of every disputed charge
71-18 for a product or service placed on a customer's bill.
71-19 (b) The record required under Subsection (a) shall contain
71-20 for every disputed charge:
71-21 (1) any affected telephone numbers or addresses;
71-22 (2) the date the customer requested that the billing
71-23 utility remove the unauthorized charge;
71-24 (3) the date the unauthorized charge was removed from
71-25 the customer's telephone bill; and
71-26 (4) the date action was taken to refund or credit to
71-27 the customer any money that the customer paid for the unauthorized
72-1 charges.
72-2 (c) The record required by Subsection (a) shall be
72-3 maintained for at least 24 months following the completion of all
72-4 steps required by Section 64.152(a).
72-5 Sec. 64.154. NOTICE. (a) A billing utility shall provide
72-6 notice of a customer's rights under this section in the manner
72-7 prescribed by the commission.
72-8 (b) Notice of a customer's rights must be provided by mail
72-9 to each residential and retail business customer within 60 days of
72-10 the effective date of this section or by inclusion in the
72-11 publication of the telephone directory next following the effective
72-12 date of this section. In addition, each billing utility shall send
72-13 the notice to new customers at the time service is initiated or to
72-14 any customer at that customer's request.
72-15 Sec. 64.155. PROVIDING COPY OF RECORDS. A billing utility
72-16 shall provide a copy of records maintained under Sections
72-17 64.151(c), 64.152, and 64.154 to the commission staff on request.
72-18 A service provider shall provide a copy of records maintained under
72-19 Sections 64.151(b) and 64.153 to the commission on request.
72-20 Sec. 64.156. VIOLATIONS. (a) If the commission finds that
72-21 a billing utility violated this subchapter, the commission may
72-22 implement penalties and other enforcement actions under Chapter 15.
72-23 (b) If the commission finds that any other service provider
72-24 or billing agent subject to this subchapter has violated this
72-25 subchapter or has knowingly provided false information to the
72-26 commission on matters subject to this subchapter, the commission
72-27 may enforce the provisions of Chapter 15 against the service
73-1 provider or billing agent as if it were regulated by the
73-2 commission.
73-3 (c) Neither the authority granted under this section nor any
73-4 other provision of this subchapter shall be construed to grant the
73-5 commission jurisdiction to regulate service providers or billing
73-6 agents who are not otherwise subject to commission regulation,
73-7 other than as specifically provided by this chapter.
73-8 (d) If the commission finds that a billing utility or
73-9 service provider repeatedly violates this subchapter, the
73-10 commission may, if the action is consistent with the public
73-11 interest, suspend, restrict, or revoke the registration or
73-12 certificate of the telecommunications service provider, by this
73-13 action denying the telecommunications service provider the right to
73-14 provide service in this state, except that the commission may not
73-15 revoke a certificate of convenience and necessity of a
73-16 telecommunications utility except as provided by Section 54.008.
73-17 (e) If the commission finds that a service provider or
73-18 billing agent has repeatedly violated any provision of this
73-19 subchapter, the commission may order the billing utility to
73-20 terminate billing and collection services for that service provider
73-21 or billing agent.
73-22 (f) Nothing in this subchapter shall be construed to
73-23 preclude a billing utility from taking action on its own to
73-24 terminate or restrict its billing and collection services.
73-25 Sec. 64.157. DISPUTES. (a) The commission may resolve
73-26 disputes between a retail customer and a billing utility, service
73-27 provider, or telecommunications utility.
74-1 (b) In exercising its authority under Subsection (a), the
74-2 commission may:
74-3 (1) order a billing utility or service provider to
74-4 produce information or records;
74-5 (2) require that all contracts, bills, and other
74-6 communications from a billing utility or service provider display a
74-7 working toll-free telephone number that customers may call with
74-8 complaints and inquiries;
74-9 (3) require a billing utility or service provider to
74-10 refund or credit overcharges or unauthorized charges with interest
74-11 if the billing utility or service provider has failed to comply
74-12 with commission rules or a contract with the customer;
74-13 (4) order appropriate relief to ensure that a
74-14 customer's choice of a telecommunications service provider is
74-15 honored;
74-16 (5) require the continuation of service to a
74-17 residential or small commercial customer while a dispute is pending
74-18 regarding charges the customer has alleged were unauthorized; and
74-19 (6) investigate an alleged violation.
74-20 (c) The commission shall adopt procedures for the resolution
74-21 of disputes in a timely manner, which in no event shall exceed 60
74-22 days.
74-23 Sec. 64.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by
74-24 the commission under this subchapter shall be consistent with and
74-25 not more burdensome than applicable federal laws and rules.
74-26 SECTION 51. Section 55.012, Utilities Code, as added by this
74-27 Act, takes effect March 1, 2000.
75-1 SECTION 52. The following provisions of the Utilities Code
75-2 are repealed:
75-3 (1) Section 58.062; and
75-4 (2) Subchapter D, Chapter 58.
75-5 SECTION 53. The importance of this legislation and the
75-6 crowded condition of the calendars in both houses create an
75-7 emergency and an imperative public necessity that the
75-8 constitutional rule requiring bills to be read on three several
75-9 days in each house be suspended, and this rule is hereby suspended,
75-10 and that this Act take effect and be in force according to its
75-11 terms, and it is so enacted.