By:  Sibley                                           S.R. No. 1181
                                  SENATE RESOLUTION
 1-1           BE IT RESOLVED by the Senate of the State of Texas, 76th
 1-2     Legislature, Regular Session, 1999, That Senate Rule 12.03 be
 1-3     suspended in part as provided by Senate Rule 12.08 to enable the
 1-4     conference committee appointed to resolve the differences on Senate
 1-5     Bill No. 560, relating to the regulation of telecommunications
 1-6     utilities by the Public Utility Commission of Texas and the
 1-7     provision of telecommunications services, to consider and take
 1-8     action on the following matters:
 1-9           (1)  Senate Rules 12.03(3) and (4) are suspended to permit
1-10     the committee to add additional text not included in either the
1-11     house or senate version of the bill, in SECTION 5 of the bill, in
1-12     amended Section 51.002, Utilities Code, so that SECTION 5 reads as
1-13     follows:
1-14           SECTION 5.  Subdivisions (6), (7), and (10), Section 51.002,
1-15     Utilities Code, are amended to read as follows:
1-16                 (6)  "Long run incremental cost" has the meaning
1-17     assigned by 16 T.A.C. Section 23.91 or its successor.
1-18                 (7)  "Pricing flexibility" includes:
1-19                       (A)  customer specific contracts;
1-20                       (B)  packaging of services;
1-21                       (C)  volume, term, and discount pricing;
1-22                       (D)  zone density pricing, with a zone to be
1-23     defined as an exchange; and
1-24                       (E)  other promotional pricing.
 2-1                 (10)  "Telecommunications provider":
 2-2                       (A)  means:
 2-3                             (i)  a certificated telecommunications
 2-4     utility;
 2-5                             (ii)  a shared tenant service provider;
 2-6                             (iii)  a nondominant carrier of
 2-7     telecommunications services;
 2-8                             (iv)  a provider of commercial mobile
 2-9     service as defined by Section 332(d), Communications Act of 1934
2-10     (47 U.S.C.  Section 151 et seq.), Federal Communications Commission
2-11     rules, and the Omnibus Budget Reconciliation Act of 1993 (Public
2-12     Law 103-66), except that the term does not include these entities
2-13     for the purposes of Chapter 55 or 64;
2-14                             (v)  a telecommunications entity that
2-15     provides central office based PBX-type sharing or resale
2-16     arrangements;
2-17                             (vi)  an interexchange telecommunications
2-18     carrier;
2-19                             (vii)  a specialized common carrier;
2-20                             (viii)  a reseller of communications;
2-21                             (ix)  a provider of operator services;
2-22                             (x)  a provider of customer-owned pay
2-23     telephone service; or
2-24                             (xi)  another person or entity determined
2-25     by the commission to provide telecommunications services to
2-26     customers in this state; and
 3-1                       (B)  does not mean:
 3-2                             (i)  a provider of enhanced or information
 3-3     services, or another user of telecommunications services, who does
 3-4     not also provide telecommunications services; or
 3-5                             (ii)  a state agency or state institution
 3-6     of higher education, or a service provided by a state agency or
 3-7     state institution of higher education.
 3-8           Explanation:  This change is needed to specify provisions for
 3-9     zone density pricing.
3-10           (2)  Senate Rules 12.03(3) and (4) are suspended to permit
3-11     the committee to add additional text not included in either the
3-12     house or senate version of the bill, to read as follows:
3-13           SECTION 34.  Subchapter A, Chapter 58, Utilities Code, is
3-14     amended by adding Section 58.004 to read as follows:
3-15           Sec. 58.004.  PACKAGING, TERM AND VOLUME DISCOUNTS, AND
3-16     PROMOTIONAL OFFERINGS.  (a)  Notwithstanding any other provision of
3-17     this chapter, an electing company that has more than five million
3-18     access lines in this state may not offer in an exchange a service
3-19     listed in Sections 58.151(1)-(4) as a component of a package of
3-20     services or as a promotional offering until the company makes the
3-21     reduction in switched access service rates required by Section
3-22     58.301(2) unless the customer of one of the pricing flexibility
3-23     offerings described in this subsection is a federal, state, or
3-24     local governmental entity.
3-25           (b)  Notwithstanding any other provision of this chapter, an
3-26     electing company that has more than five million access lines in
 4-1     this state may not offer a volume or term discount on any service
 4-2     listed in Sections 58.151(1)-(4) until September 1, 2000, unless
 4-3     the customer of one of the pricing flexibility offerings described
 4-4     in this subsection is a federal, state, or local governmental
 4-5     entity.
 4-6           (c)  Notwithstanding any other provision of this chapter, an
 4-7     electing company that has more than five million access lines in
 4-8     this state may offer in an exchange a service listed in Sections
 4-9     58.051(a)(1)-(4) as a component of a package of services, as a
4-10     promotional offering, or with a volume or term discount on and
4-11     after September 1, 1999.
4-12           Explanation:  This change is necessary to provide
4-13     restrictions on offering certain nonbasic services as a component
4-14     of a package of services, as a promotional offering, or with a
4-15     volume or term discount.
4-16                                  ______________________________________
4-17                                          President of the Senate
4-18                                       I hereby certify that the above
4-19                                  Resolution was adopted by the Senate
4-20                                  on May 29, 1999, by the following vote:
4-21                                  Yeas 30, Nays 0.
4-22                                  ______________________________________
4-23                                          Secretary of the Senate