By Flores H.B. No. 649
77R2229 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reduced rates for certain telecommunications services
1-3 for nonprofit organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Subchapter B, Chapter 57,
1-6 Utilities Code, is amended to read as follows:
1-7 SUBCHAPTER B. DISTANCE LEARNING, [AND] INFORMATION SHARING,
1-8 AND OTHER RELATED SERVICES
1-9 SECTION 2. Section 57.021, Utilities Code, is amended by
1-10 adding Subdivision (4) to read as follows:
1-11 (4) "Nonprofit organization" means an organization
1-12 that is exempt from federal income tax under Section 501(a),
1-13 Internal Revenue Code of 1986, as amended, by being listed as an
1-14 exempt organization in Section 501(c) of the code.
1-15 SECTION 3. Section 57.022, Utilities Code, is amended to
1-16 read as follows:
1-17 Sec. 57.022. REDUCED RATES [FOR DISTANCE LEARNING OR
1-18 INFORMATION SHARING SERVICES]. (a) The commission by rule shall
1-19 require a dominant carrier to file a tariff that includes a reduced
1-20 rate for a telecommunications service the commission finds is
1-21 directly related to:
1-22 (1) a distance learning activity that is or could be
1-23 conducted by an educational institution in this state; or
1-24 (2) an information sharing program that is or could be
2-1 conducted by a library in this state.
2-2 (b) The commission by rule shall require a dominant carrier
2-3 to file a tariff that includes a reduced rate for a
2-4 telecommunications service that a nonprofit organization requires
2-5 to access the Internet if the organization uses or plans to use the
2-6 Internet to assist the organization in providing services or
2-7 achieving its purposes.
2-8 (c) The commission rules shall specify:
2-9 (1) each telecommunications service to which
2-10 Subsection (a) or (b) applies;
2-11 (2) the process for an educational institution, [or]
2-12 library, or nonprofit organization to qualify for a reduced rate;
2-13 (3) the date by which a dominant carrier is required
2-14 to file a tariff;
2-15 (4) guidelines and criteria that require the services
2-16 and reduced rates to further the goals prescribed by Section
2-17 57.023; and
2-18 (5) any other requirement or term that the commission
2-19 determines to be in the public interest.
2-20 (d) [(c)] The commission is not required to determine the
2-21 long run incremental cost of providing a service before approving a
2-22 reduced rate for the service.
2-23 (e) [(d)] Until cost determination rules are developed and
2-24 the rates established under this section are changed as necessary
2-25 to ensure proper cost recovery, the reduced rates established by
2-26 the commission shall be equal to 75 percent of the otherwise
2-27 applicable rate.
3-1 (f) [(e)] After the commission develops cost determination
3-2 rules for telecommunications services generally, the commission
3-3 shall ensure that a reduced rate approved under this section:
3-4 (1) recovers service-specific long run incremental
3-5 costs; and
3-6 (2) avoids subsidizing an educational institution,
3-7 [or] a library, or a nonprofit organization.
3-8 SECTION 4. Section 57.023, Utilities Code, is amended to
3-9 read as follows:
3-10 Sec. 57.023. SERVICE AND RATE REQUIREMENTS. (a) The
3-11 services and reduced rates for educational institutions and
3-12 libraries must be designed to:
3-13 (1) encourage the development and offering of:
3-14 (A) distance learning activities by educational
3-15 institutions; and
3-16 (B) information sharing programs of libraries;
3-17 and
3-18 (2) meet the:
3-19 (A) distance learning needs identified by the
3-20 educational community; and
3-21 (B) information sharing needs identified by
3-22 libraries.
3-23 (b) The services and reduced rates for nonprofit
3-24 organizations must be designed to assist the organization in using
3-25 the Internet to provide services or achieve its purposes.
3-26 (c) The services and reduced rates required by this section
3-27 must be designed to[; and]
4-1 [(3)] recover the long run incremental costs of
4-2 providing the services, to the extent those costs can be
4-3 identified, to avoid subsidizing an educational institution, [or] a
4-4 library, or a nonprofit organization.
4-5 SECTION 5. Section 57.025(a), Utilities Code, is amended to
4-6 read as follows:
4-7 (a) An educational institution, library, nonprofit
4-8 organization, or dominant carrier may request the commission to:
4-9 (1) provide for a reduced rate for a service that:
4-10 (A) is directly related to furthering a goal
4-11 prescribed by Section 57.023 [a distance learning activity or an
4-12 information sharing program]; and
4-13 (B) is not covered by commission rules;
4-14 (2) change a rate;
4-15 (3) amend a tariff; or
4-16 (4) amend a commission rule.
4-17 SECTION 6. This Act takes effect September 1, 2001. The
4-18 Public Utility Commission of Texas shall adopt rules providing a
4-19 reduced rate for nonprofit organizations not later than January 1,
4-20 2002.