By Wolens                                             H.B. No. 1736
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the enhanced availability of advanced
 1-3     telecommunications services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  SHORT TITLE. This Act may be cited as the Texas
 1-6     Universal Broadband Access Act of 2001.
 1-7           SECTION 2.  Chapter 55, Utilities Code is amended by adding
 1-8     Subchapter L to read as follows:
 1-9               SUBCHAPTER L.  DEPLOYMENT OF ADVANCED SERVICES
1-10                               TO RURAL AREAS
1-11           Sec. 55.401.  POLICY. (a)  It is the policy of this state to
1-12     ensure that all Texans in urban and rural areas have access to
1-13     advanced services that are appropriate to their needs at reasonably
1-14     comparable prices, terms, and quality as those provided in urban
1-15     areas.  Services should be reliable, secure and easy to use, and
1-16     should be robust enough to provide expected levels of service,
1-17     handle peak loads, be scalable to growing needs and uses and be
1-18     flexible in operation.
1-19           (b)  It is the policy of this state to ensure that all Texans
1-20     are electronically connected to each other and to the world.
1-21     Access to advanced services statewide and a continuing ability to
1-22     take advantage of emerging technologies will move Texas to the
 2-1     forefront in education, e-commerce, e-government, teleworking,
 2-2     telemedicine, community development and other new fields, and
 2-3     revitalize rural economies.
 2-4           (c)  It is the policy of this state to ensure an environment
 2-5     for the deployment of advanced services that:
 2-6                 (1)  is technology-neutral with respect to the advanced
 2-7     services technology that is utilized;
 2-8                 (2)  prefers local control over solutions to address
 2-9     the provisioning of advanced services to a particular locality; and
2-10                 (3)  prefers competition and governmental incentives
2-11     for deployment of advanced services rather than governmental
2-12     mandates.
2-13           (d)  Therefore, it is the policy of this state to measure
2-14     progress toward these goals by evaluating the following indicators:
2-15                 (1)  the percent of communities with access to
2-16     affordable advanced services;
2-17                 (2)  the percent of businesses with access to
2-18     affordable advanced services;
2-19                 (3)  the percent of homes with access to affordable
2-20     advanced services;
2-21                 (4)  the number of public locations that offer public
2-22     access to advanced services.
2-23           Sec. 55.402.  DEFINITIONS. In this subchapter:
2-24                 (1)  "advanced service" means, without regard to any
2-25     transmission media or technology, a service that enables users to
2-26     originate and receive high-quality voice, data, graphics, and video
 3-1     using any technology, including both current generation and future
 3-2     generation technology, as determined by the Commission.
 3-3                 (2)  "Anchor tenant" means a consortium of governmental
 3-4     or non-profit entities that aggregate sufficient advanced services
 3-5     requirements to attain economies of scale sufficient to encourage
 3-6     private sector investment in the infrastructure adequate to provide
 3-7     state-of-the-art advanced services to a given community.
 3-8                 (3)  "Commission" means the Public Utility Commission
 3-9     of Texas.
3-10                 (4)  "Community" means a geographically contiguous and
3-11     distinct population, self-defined for the purposes of applying for
3-12     the grant resources described in this section, and having a
3-13     sponsoring local governmental entity.
3-14                 (5)  "Community network" means a locally-based,
3-15     locally-driven communication and information system that involves
3-16     multiple organizations wanting to link services, expand user
3-17     access, provide common training resources, organize local Internet
3-18     content, allow users to contribute to said content, improve
3-19     community communications, promote community economic development,
3-20     and include individuals traditionally unable to access advanced
3-21     services.
3-22                 (6)  "Community technology centers" means centers to
3-23     provide individuals and/or organizations with access to computers,
3-24     technology literacy training, the Internet, technical support, and
3-25     staff training.
3-26                 (7)  "Company" means a local exchange company that has
 4-1     a certificate of convenience and necessity (CCN);
 4-2                 (8)  "Demand aggregation" means several customers who
 4-3     desire advanced services joining together and holding themselves
 4-4     out to a provider of advanced services as a single customer that is
 4-5     large enough to warrant private investment in providing the
 4-6     requested service thereby maximizing economies of scale and
 4-7     combining the buying power of the entities or individuals joining
 4-8     together.
 4-9                 (9)  "Local solutions" means documented attempts by a
4-10     community to encourage the deployment of advanced services by the
4-11     use of demand aggregation, anchor tenancy, community networks, or
4-12     any similar means approved by the Commission.
4-13                 (10)  "Market failure" means the lack of sufficient
4-14     bona fide requests adequate to show demand for advanced services.
4-15                 (11)  "Rural" means a home rule or general law
4-16     municipality with a population of less than 20,000 that is not
4-17     located in a county which has a municipality with a population
4-18     greater than 190,000.
4-19                 (12)  "Urban" means a municipality with a population of
4-20     more than 190,000.
4-21           Sec. 55.403.  PROVISION OF ADVANCED SERVICES. (a)  This
4-22     subchapter applies to a company as defined in section 55.402(7) of
4-23     this title.
4-24           (b)  The company is responsible, beginning September 1, 2002,
4-25     to see that customers within its certificated area have access to
4-26     advanced services upon a bona fide retail request.  Upon such
 5-1     request the company shall:
 5-2                 (1)  provide the requested service or
 5-3                 (2)  enter into a partnership or joint venture with
 5-4     another provider of advanced services in order to provide the
 5-5     requested service.
 5-6           (c)  Advanced services shall be provided:
 5-7                 (1)  at prices, terms, conditions, and quality that are
 5-8     reasonably comparable to the prices, terms, conditions, and quality
 5-9     for similar services provided in urban areas of the state; and
5-10                 (2)  within 3 months after the bona fide request for
5-11     those services.
5-12           Sec. 55.404.  DEPLOYMENT OF ADVANCED SERVICES. (a)  all
5-13     communities.
5-14                 (1)  The state believes it important that companies and
5-15     communities seek local solutions to encourage the deployment of
5-16     high speed or advanced services.  The state determines that the
5-17     following local solutions are best practices and should be employed
5-18     to encourage the deployment of advanced services in any area of the
5-19     state where deployment of such services has yet to occur:
5-20                       (A)  demand aggregation;
5-21                       (B)  anchor tenancy; and
5-22                       (C)  community networks.
5-23                 (2)  These local solutions require a coordinated and
5-24     rational network plan adopted by State and local governmental
5-25     authorities in coordination with other public and private entities.
5-26                 (3)  Notwithstanding section 2170.051(d) of the
 6-1     Government Code, in order to encourage the use of anchor tenancy
 6-2     and community networks in this state, if a company agrees to
 6-3     provide the necessary advanced services facilities to a state or
 6-4     local government on price, terms, and conditions more favorable
 6-5     than that offered by the consolidated telecommunications system,
 6-6     the state or local governmental authority may:
 6-7                       (A)  cease to participate in the consolidated
 6-8     telecommunications system and
 6-9                       (B)  enter into a contract with the company to
6-10     provide said services.
6-11           (b)  Rural Communities less than 20,000.  In addition to the
6-12     provisions of subsection (a), rural communities with populations
6-13     less than 20,000 may:
6-14                 (1)  seek to fund advanced services projects utilizing:
6-15                       (A)  funding sources identified in the
6-16     Development Corporation Act, article 5190.6 of the Texas Civil
6-17     Statutes;
6-18                       (B)  Texas Infrastructure Fund grants and loans
6-19     under Chapter 57 of this title;
6-20                       (C)  Texas Agricultural Finance Authority
6-21     financing;
6-22                       (D)  community development block grants; or
6-23                       (E)  other business incentives within the
6-24     jurisdiction of the community's authority.
6-25                 (2)  Upon a showing to the Commission that market
6-26     failure has occurred and that local solutions have been
 7-1     unsuccessful in encouraging the deployment of advanced services in
 7-2     a rural community the appropriate local governmental body or
 7-3     residents of the community may petition the Commission to:
 7-4                       (A)  allow private entities within the
 7-5     jurisdictional boundaries of the community to use any state
 7-6     provisioned telecommunications system, including but not limited
 7-7     to, the state's consolidated telecommunications system and/or Texas
 7-8     Telecommunications Infrastructure Gateway or;
 7-9                       (B)  provide advanced services to their community
7-10     pursuant to section 54.202(c) of this title relating to municipal
7-11     provision of advanced services.
7-12           (c)  Rural Communities less than 2,000.  In addition to the
7-13     provisions of subsections(a) and (b)(1), in rural communities with
7-14     populations of less than 2,000, beginning September 1, 2002, the
7-15     appropriate local governmental body or residents of the community
7-16     may petition the Commission to:
7-17                 (1)  allow private entities within the jurisdictional
7-18     boundaries of the community to use any state provisioned
7-19     telecommunications system, including but not limited to, the
7-20     state's consolidated telecommunications system and/or Texas
7-21     Telecommunications Infrastructure Gateway or;
7-22                 (2)  provide advanced services to their community
7-23     pursuant to section 54.202(c) of this title relating to municipal
7-24     provision of advanced services.
7-25           Sec. 55.405.  FACILITY MAPS AND DATABASE. The Commission
7-26     shall use its best efforts to create and maintain a database
 8-1     capable of graphic representation that is available for public use
 8-2     that contains the location and inventory of all public and private
 8-3     sector telecommunications and advanced services facilities.
 8-4           Sec. 55.406.  STATEWIDE ADVANCED SERVICES STRATEGIC PLANNING.
 8-5     (a)  The Commission is responsible for strategic planning for the
 8-6     deployment of advanced services to end-use customers.
 8-7           (b)  The Commission shall participate in policy dialogue,
 8-8     coordinate, cooperate, and mutually agree on policies with the
 8-9     Telecommunications Infrastructure Fund Board, General Services
8-10     Commission, Department of Information Resources, Telecommunications
8-11     Planning Group, or other state agencies, as deemed necessary,
8-12     regarding the availability of funding, use of state infrastructure
8-13     assets, or to establish priorities that will speed the deployment
8-14     of advanced services to all areas of the state.
8-15           (c)  In order to perform strategic planning the Commission
8-16     has authority to collect and make use of any data and information
8-17     deemed necessary to ensure the most efficient deployment of
8-18     advanced services throughout the state.
8-19           (d)  In order to perform strategic planning the Commission
8-20     shall:
8-21                 (1)  collect and maintain the information required in
8-22     section 55.405;
8-23                 (2)  make use of any data and information deemed
8-24     necessary to ensure the most efficient deployment of advanced
8-25     services throughout the state; and
8-26                 (3)  report to the Legislature biennially, beginning
 9-1     January 15, 2003, on the deployment of advanced services, including
 9-2     but not limited to, the indicators identified in section 55.401(d)
 9-3     and any other indicators determined appropriate by the Commission.
 9-4           (e)  Information obtained pursuant to this subchapter is
 9-5     confidential, shall not be disclosed, and is excepted from public
 9-6     disclosure under Chapter 552, Government Code.
 9-7           Sec. 55.407.  COMMISSION AUTHORITY. Notwithstanding any other
 9-8     provision of this title, the commission has all jurisdiction
 9-9     necessary to enforce this subchapter.
9-10           SECTION 3.  Section 54.202, Utilities Code is amended to read
9-11     as follows:
9-12           Sec. 54.202.  PROHIBITED MUNICIPAL ACTIVITIES. (a)  A
9-13     municipality or municipal electric system may not offer for sale to
9-14     the public:
9-15                 (1)  a service for which a certificate of convenience
9-16     and necessity, a certificate of operating authority, or a service
9-17     provider certificate of operating authority is required; or
9-18                 (2)  a nonswitched telecommunications service used to
9-19     connect a customer's premises with:
9-20                       (A)  another customer's premises within the
9-21     exchange; or
9-22                       (B)  a long distance provider that serves the
9-23     exchange.
9-24           (b)  Subsection (a)  applies to a service offered either
9-25     directly or indirectly through a telecommunications provider.
9-26           (c)  Notwithstanding subsections (a) and (b) a municipality,
 10-1    pursuant to Commission approval under section 55.404 of this title,
 10-2    may establish and provide advanced services.
 10-3          SECTION 4.  Chapter 55, Utilities Code, is amended to read as
 10-4    follows:
 10-5          Sec. 55.014.  PROVISION OF ADVANCED TELECOMMUNICATIONS
 10-6    SERVICES. (a)  In this section, "advanced service" means any
 10-7    telecommunications service other than residential or business basic
 10-8    local exchange telephone service, caller identification service,
 10-9    and customer calling features.
10-10          (b)  This section applies to a company electing under Chapter
10-11    58 or a company that holds a certificate of operating authority or
10-12    service provider certificate of operating authority.
10-13          (c)  Notwithstanding any other provision of this title,
10-14    beginning September 1, 200[1]3, a company to which this section
10-15    applies that provides advanced telecommunications services within
10-16    the company's urban service areas, shall, on a bona fide retail
10-17    request for those services, provide in rural areas of this state
10-18    served by the company advanced telecommunications services that are
10-19    reasonably comparable to the advanced services provided in urban
10-20    areas.  The company shall offer the advanced telecommunications
10-21    services:
10-22                (1)  at prices, terms, and conditions that are
10-23    reasonably comparable to the prices, terms, and conditions for
10-24    similar advanced services provided by the company in urban areas;
10-25    and
10-26                (2)  within [15] 3 months after the bona fide request
 11-1    for those advanced services.
 11-2          (d)  Notwithstanding any other provision of this title, a
 11-3    company to which this section applies shall, on a bona fide retail
 11-4    request for those services, offer caller identification service and
 11-5    custom calling features in rural areas served by the company.  The
 11-6    company shall offer the services:
 11-7                (1)  at prices, terms, and conditions reasonably
 11-8    comparable to the company's prices, terms, and conditions for
 11-9    similar services in urban areas; and
11-10                (2)  within [15] 3 months after the bona fide request
11-11    for those services.
11-12          (e)  This section may not be construed to require a company
11-13    to:
11-14                (1)  begin providing services in a rural area in which
11-15    the company does not provide local exchange telephone service; or
11-16                (2)  provide a service in a rural area of this state
11-17    unless the company provides the service in urban areas of this
11-18    state.
11-19          (f)  For purposes of this section, a company to which this
11-20    section applies is considered to provide services in urban areas of
11-21    this state if the company provides services in a municipality with
11-22    a population of more than 190,000.
11-23          (g)  Notwithstanding any other provision of this title, the
11-24    commission has all jurisdiction necessary to enforce this section.
11-25          SECTION 5.  Subchapter A, Chapter 57, Utilities Code, is
11-26    amended to read as follows:
 12-1          Sec. 57.042.  Definitions. In this subchapter:
 12-2                (1)  "Advanced services" means without regard to any
 12-3    transmission media or technology that enables users to originate
 12-4    and receive high-quality voice, data, graphics, and video using any
 12-5    technology, including both current generation and future generation
 12-6    technology.
 12-7                (2)  "Ambulatory health care center" means a health
 12-8    care clinic or an association of such a clinic that is:
 12-9                      (A)  exempt from federal income taxation under
12-10    Section 501(a), Internal Revenue Code of 1986, as amended, as an
12-11    organization described by Section 501(c)(3), as amended; and
12-12                      (B)  funded wholly or partly by a grant under 42
12-13    U.S.C. Section 254b, 254c, or 256, as amended.
12-14                (3)  "Board" means the telecommunications
12-15    infrastructure fund board.
12-16                (4)  "Commercial mobile service provider" means a
12-17    provider of commercial mobile service as defined by Section 332(d),
12-18    Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
12-19    Communications Commission rules, and the Omnibus Budget
12-20    Reconciliation Act of 1993 (Pub. L. No. 103-66).
12-21                (5)  "Community network" means a locally-based,
12-22    locally-driven communication and information system that involves
12-23    multiple organizations wanting to link services, expand user
12-24    access, provide common training resources, organize local Internet
12-25    content, allow users to contribute to said content, improve
12-26    community communications, promote community economic development,
 13-1    and include individuals traditionally unable to access advanced
 13-2    services.
 13-3                (6)  "Community technology centers" are defined as
 13-4    centers to provide individuals and/or organizations with access to
 13-5    computers, technology literacy training, the Internet, technical
 13-6    support, and staff training.
 13-7                (7)  "Fund" means the telecommunications infrastructure
 13-8    fund.
 13-9                (8)  "Institution of higher education" means:
13-10                      (A)  an institution of higher education as
13-11    defined by Section 61.003, Education Code; or
13-12                      (B)  a private or independent institution of
13-13    higher education as defined by Section 61.003, Education Code.
13-14                (9)  "Library" means:
13-15                      (A)  a public library or regional library system
13-16    as those terms are defined by Section 441.122, Government Code; or
13-17                      (B)  a library operated by an institution of
13-18    higher education or a school district.
13-19                (10)  "Public not-for-profit health care facility"
13-20    means a rural or regional hospital or other entity such as a rural
13-21    health clinic that:
13-22                      (A)  is supported by local or regional tax
13-23    revenue;
13-24                      (B)  is a certified not-for-profit health
13-25    corporation, under federal law; or
13-26                      (C)  is an ambulatory health care center.
 14-1                (11)  "School district" includes an independent school
 14-2    district, a common school district, and a rural high school
 14-3    district.
 14-4                (12)  "Public school" means a public elementary or
 14-5    secondary school, including an open-enrollment charter school, a
 14-6    home-rule school district school, and a school with a campus or
 14-7    campus program charter.
 14-8                (13)  "Taxable telecommunications receipts" means
 14-9    taxable telecommunications receipts reported under Chapter 151, Tax
14-10    Code.
14-11                (14)  "Telemedicine":
14-12                      (A)  means medical services delivered by
14-13    telecommunications technologies to rural or underserved public
14-14    not-for-profit health care facilities or primary health care
14-15    facilities in collaboration with an academic health center and an
14-16    associated teaching hospital or tertiary center or with another
14-17    public not-for-profit health care facility; and
14-18                      (B)  includes consultive services, diagnostic
14-19    services, interactive video consultation, teleradiology,
14-20    telepathology, and distance education for working health care
14-21    professionals.
14-22          Sec. 57.043.  Telecommunications Infrastructure Fund and
14-23    Accounts. (a)  The telecommunications infrastructure fund is
14-24    composed of the public schools account, [and] the qualifying
14-25    entities account, and the rural economic development account.
14-26          (b)  The public schools account, [and] qualifying entities
 15-1    account, and the rural economic development account are financed by
 15-2    an annual assessment imposed as prescribed by Section 57.048 on
 15-3    each telecommunications utility and commercial mobile service
 15-4    provider doing business in this state.
 15-5          (c)  Money in the fund may be appropriated only for a use
 15-6    consistent with the purposes of this subchapter.
 15-7          Sec. 57.046.  Use of Accounts. (a)  The board shall use money
 15-8    in the public schools account to award grants and loans in
 15-9    accordance with this subchapter to fund:
15-10                (1)  equipment for public schools, including computers,
15-11    printers, computer labs, and video equipment; and
15-12                (2)  intracampus and intercampus wiring to enable those
15-13    public schools to use the equipment.
15-14          (b)  The board shall use money in the qualifying entities
15-15    account for any purpose authorized by this subchapter, including:
15-16                (1)  equipment;
15-17                (2)  wiring;
15-18                (3)  material;
15-19                (4)  program development;
15-20                (5)  training;
15-21                (6)  installation costs; [and]
15-22                (7)  a statewide telecommunications network; and
15-23                (8)  the development, provisioning, and continuing
15-24    operation costs associated with the operation of community
15-25    technology centers.
15-26          Sec. 57.0465.  USE OF RURAL ECONOMIC DEVELOPMENT ACCOUNT. The
 16-1    board shall use money in the rural economic development account for
 16-2    any purpose authorized by this subchapter and consistent with
 16-3    section 55.404 of this title, including:
 16-4          (a)  community planning and determination of advanced
 16-5    services resource requirements;
 16-6          (b)  the development, provisioning, and continuing operation
 16-7    costs associated with the operation of community networks;
 16-8          (c)  the development, provisioning, and continuing operation
 16-9    costs associated with the operation of community technology
16-10    centers; and
16-11          (d)  access to any statewide telecommunications network,
16-12    including but not limited to, the state's consolidated
16-13    telecommunications system and/or Texas Telecommunications
16-14    Infrastructure Gateway.
16-15          Sec. 57.047.  Grant and Loan Program. (a)  The board may
16-16    award a grant to a project or proposal that:
16-17                (1)  provides equipment and infrastructure necessary
16-18    for:
16-19                      (A)  distance learning;
16-20                      (B)  an information sharing program of a library;
16-21    [or]
16-22                      (C)  telemedicine services; or
16-23                      (D)  the provision of community networks and
16-24    community technology centers.
16-25                (2)  develops and implements the initial or
16-26    prototypical delivery of a course or other distance learning
 17-1    material;
 17-2                (3)  trains teachers, faculty, librarians, or
 17-3    technicians in the use of distance learning or information sharing
 17-4    materials and equipment;
 17-5                (4)  develops a curriculum or instructional material
 17-6    specially suited for telecommunications delivery;
 17-7                (5)  provides electronic information; or
 17-8                (6)  establishes or carries out an information sharing
 17-9    program.
17-10          (b)  The board may award a loan to a project or proposal to
17-11    acquire equipment needed for distance learning, [and] telemedicine,
17-12    or advanced services projects.
17-13          (c)  In awarding a grant or loan under this subchapter, the
17-14    board shall give priority to a project or proposal that:
17-15                (1)  represents collaborative efforts [involving more
17-16    than one school, university, or library];
17-17                (2)  contributes matching funds from another source;
17-18                (3)  shows promise of becoming self-sustaining;
17-19                (4)  helps users of information learn new ways to
17-20    acquire and use information through telecommunications or advanced
17-21    services;
17-22                (5)  extends specific educational information and
17-23    knowledge services to a group not previously served, especially a
17-24    group in a rural or remote area;
17-25                (6)  results in more efficient or effective learning
17-26    than through conventional teaching;
 18-1                (7)  improves the effectiveness and efficiency of
 18-2    health care delivery; [or]
 18-3                (8)  takes advantage of distance learning opportunities
 18-4    in a rural or urban school district with a:
 18-5                      (A)  disproportionate number of at-risk youths;
 18-6    or
 18-7                      (B)  high dropout rate; or
 18-8                (9)  will establish or enhance the provision of
 18-9    advanced services to rural areas of this state.
18-10          (d)  In distributing money to public schools, the board
18-11    shall:
18-12                (1)  consider the relative property wealth per student
18-13    of the school districts that receive the money; and
18-14                (2)  recognize the unique needs of rural communities.
18-15          (e)  If a board member is an employee of an entity that
18-16    applies for a grant or loan under this subchapter, the board
18-17    member, before a vote on the grant or loan, shall disclose the fact
18-18    of the member's employment.  The disclosure must be entered into
18-19    the minutes of the meeting.  The board member may not vote on or
18-20    otherwise participate in the awarding of the grant or loan.  If the
18-21    board member does not comply with this subsection, the entity is
18-22    not eligible for the grant or loan.
18-23          (f)  A grant or loan awarded under this section is subject to
18-24    the limitations prescribed by Sections 57.046, 57.0475 and 57.465.
18-25          SECTION 6.  Subchapter A, Chapter 57, Utilities Code is
18-26    amended by adding Section 57.0475 to read as follows:
 19-1          Sec. 57.0475.  RURAL ECONOMIC DEVELOPMENT GRANT AND LOAN
 19-2    PROGRAM. (a)  In consideration of the duties and responsibilities
 19-3    given the board under this chapter, it is the policy of this state
 19-4    that all rural areas of this state have access to advanced
 19-5    services.  The board shall coordinate its duties and
 19-6    responsibilities with the Commission and any other state or local
 19-7    governmental entity necessary to encourage the ubiquitous access of
 19-8    advanced services in rural areas of the state.
 19-9          (b)  Any public or governmental entity or political
19-10    subdivision or person, association, or entity within a rural area,
19-11    as defined by section 55.402 of this title may seek funds under
19-12    this chapter:
19-13                (1)  to conduct planning for assessing community needs
19-14    and the aggregation of demand;
19-15                (2)  for the development of a community network,
19-16    community technology centers, or access to any statewide
19-17    telecommunications network, including but not limited to, the
19-18    state's consolidated telecommunications system and/or Texas
19-19    Telecommunications Infrastructure Gateway.
19-20          (c)  When attempting to aggregate demand, establish an anchor
19-21    tenant arrangement, or develop a community network, communities
19-22    should consider the following guidelines, including but not limited
19-23    to, developing:
19-24                (1)  a network facilities requirements estimate;
19-25                (2)  a plan to use access afforded by a state
19-26    telecommunications network, including but not limited to, the
 20-1    consolidated telecommunications system and/or Texas
 20-2    Telecommunications Information Gateway;
 20-3                (3)  a list of all public offices in the community and
 20-4    whether or not the public office should be connected under a
 20-5    proposal;
 20-6                (4)  a list of private and nonprofit-sector customers
 20-7    that could be connected under a proposal; and
 20-8                (5)  a list of community efforts to utilize other
 20-9    public or private resources, to include, the degree of matching
20-10    funds to be provided by the community.
20-11          (d)  The Board shall adopt rules to implement this section in
20-12    cooperation with the Public Utility Commission of Texas, the
20-13    General Services Commission, the Department of Information
20-14    Resources, and other State agencies as it deems appropriate.  The
20-15    rules shall include the coordination of requests for access under
20-16    this section from different parties in the same rural area.
20-17          SECTION 7.  Section 2054, Government Code, is amended to read
20-18    as follows:
20-19          Sec. 2054.206.  Advisory Agencies. The following state
20-20    agencies shall formally advise the telecommunications planning
20-21    group and send representatives to meetings of the group:
20-22                (1)  the Texas Education Agency;
20-23                (2)  the Texas Higher Education Coordinating Board;
20-24                (3)  The Texas A&M University System;
20-25                (4)  The University of Texas System;
20-26                (5)  the Telecommunications Infrastructure Fund Board;
 21-1    [and]
 21-2                (6)  the Texas State Library and Archives Commission;
 21-3                (7)  the Public Utility Commission of Texas;
 21-4                (8)  the General Services Commission;
 21-5                (9)  the Commission on State Emergency Communications;
 21-6    and
 21-7                (10)  the Texas Department of Economic Development.
 21-8          SECTION 8.  Section 2170, Government Code is amended to read
 21-9    as follows:
21-10          Sec. 2170.004.  Contracts With Entities Other Than State
21-11    Agencies. The commission may contract for use of the consolidated
21-12    telecommunications system with:
21-13                (1)  each house of the legislature;
21-14                (2)  a legislative agency;
21-15                (3)  an agency that is not a state agency as defined by
21-16    Section 2151.002; [and]
21-17                (4)  a political subdivision, including a county,
21-18    municipality, or district; and
21-19                (5)  any person or entity within a rural area of this
21-20    state as provided by Section 2170.060.
21-21          Sec. 2170.0045.  ACCESS TO CONSOLIDATED TELECOMMUNICATIONS
21-22    SYSTEM BY ANCHOR TENANTS. (a)  The commission shall allow access to
21-23    and contract the use of the consolidated telecommunications system
21-24    to any anchor tenant as provided by Section 2170.060 of this title
21-25    and Section 55.404 of the utilities code.
21-26          (b)  The commission shall develop procedures for the
 22-1    provisioning and granting of access to the Texas Telecommunications
 22-2    Information Gateway as network integration points for communities
 22-3    or anchor tenants.
 22-4          (c)  The commission may require the public or governmental
 22-5    entity or political subdivision to contract with the commission
 22-6    pursuant to the Interlocal Cooperation Act, Chapter 791, Government
 22-7    Code.
 22-8          Sec. 2170.0055.  POLICIES, GUIDELINES, AND OPERATING
 22-9    PROCEDURES FOR ANCHOR TENANT ACCESS. (a)  The commission shall
22-10    receive and evaluate proposals for funding under this section,
22-11    subject to the following guidelines:
22-12                (1)  The proposal process shall be conducted with the
22-13    overall goal of providing access to every community whose proposal
22-14    offers a coordinated and rational network plan, including but not
22-15    limited to:
22-16                      (A)  a network facilities requirements estimate;
22-17                      (B)  the communities plan to use the access
22-18    afforded the consolidated telecommunications system and/or Texas
22-19    Telecommunications Information Gateway;
22-20                      (C)  a list of all public offices in the
22-21    community and whether or not the public office is to be connected
22-22    under the proposal;
22-23                      (D)  a list of private and nonprofit-sector
22-24    customers to be connected under the proposal; and
22-25                      (E)  community efforts to utilize other public or
22-26    private resources, to include, the degree of matching funds to be
 23-1    provided by the community, consistent with the community's
 23-2    resources.
 23-3                (2)  Priority shall be given to those communities
 23-4    proposing to aggregate the traffic of, and obtain participation
 23-5    from the greatest proportion of:
 23-6                      (A)  the public offices within the community and
 23-7                      (B)  private- and nonprofit-sector customers
 23-8    within the community.
 23-9          (b)  The commission may allocate up to ten percent of the
23-10    cost of the  proposal for technical assistance, training,
23-11    engineering, and consulting to prepare plans, program documents,
23-12    life-cycle cost studies, requests for proposals and other studies,
23-13    and documents associated with and necessary for the development of
23-14    proposals under this section.
23-15          (c)  The commission shall coordinate the allocation of funds
23-16    with the schedule of deployment for the consolidated
23-17    telecommunications system and/or Texas Telecomunications
23-18    Information Gateway.
23-19          (d)  The commission may allocate funds as part of a community
23-20    proposal to:
23-21                (1)  establish a network integration point with the
23-22    consolidated telecommunications system;
23-23                (2)  establish or upgrade facilities to transport
23-24    traffic from the network integration point to the community point
23-25    of aggregation; and/or
23-26                (3)  develop, provision, and provide for the continuing
 24-1    operational costs associated with subsections (1) and (2), or a
 24-2    community network.
 24-3          Sec. 2170.058.  Use of System by Certain Students. (a)  An
 24-4    institution of higher education under Section 61.003, Education
 24-5    Code, that is authorized to use the system of telecommunications
 24-6    services established under this chapter may allow students of the
 24-7    institution who reside in housing for which the institution
 24-8    provides telephone service to use the system of telecommunications
 24-9    services.  An institution shall recover from a student who chooses
24-10    to use the system the full pro rata cost attributable to that
24-11    student's use, including costs identifiable for interconnection to
24-12    and use of the local publicly switched network.
24-13          (b)  The commission shall adopt rules that govern student
24-14    access to the system, including:
24-15                (1)  times of access to the system; and
24-16                (2)  the full recovery of actual costs from each
24-17    student who uses the system.
24-18          [(c)  In consideration of the duties and responsibilities
24-19    given the commission under this subtitle, it is the policy of this
24-20    state that a state agency or unit of state government may not
24-21    provide telecommunications products or services to the general
24-22    public in competition with private enterprise unless there is a
24-23    finding that providing the products or services is in the public
24-24    interest.  This subsection does not prohibit students who reside in
24-25    housing for which institutions of higher education provide
24-26    telephone service from using service provided under this section.]
 25-1          Sec. 2170.060.  ACCESS TO CONSOLIDATED TELECOMMUNICATIONS
 25-2    SYSTEM IN CERTAIN RURAL AREAS. (a)  In consideration of the duties
 25-3    and responsibilities given the commission under this subtitle, and
 25-4    the Public Utility Commission of Texas under the Utility Code, it
 25-5    is the policy of this state that all rural areas of this state,
 25-6    which are unable to obtain advanced services, have access to such
 25-7    services through the consolidated telecommunications system.
 25-8          (b)  The commission shall coordinate its duties and
 25-9    responsibilities with the Telecommunications Infrastructure Fund
25-10    and permit access, pursuant to Public Utility Commission of Texas
25-11    approval under section 55.404, Utility Code.
25-12          (c)  The commission shall adopt rules to implement this
25-13    section in cooperation with the telecommunications planning group
25-14    and the Public Utility Commission of Texas.  The rules shall
25-15    include the coordination of requests for access under this section
25-16    from different parties in the same rural area.
25-17          SECTION 9.  Subsection 11(a) of Section 2, Title 83, Chapter
25-18    10, Art. 5190.6, Revised statutes is amended to read as follows:
25-19                (11)(A)  "Project" shall mean the land, buildings,
25-20    equipment, facilities, targeted infrastructure, and improvements
25-21    (one or more) to promote new and expanded business development or
25-22    found by the board of directors to be required or suitable for the
25-23    promotion of development and expansion of manufacturing and
25-24    industrial facilities, job creation and retention, job training,
25-25    educational facilities, transportation facilities (including but
25-26    not limited to airports, ports, mass commuting facilities, and
 26-1    parking facilities), facilities or infrastructure used to support
 26-2    or provision advanced services, sewage or solid waste disposal
 26-3    facilities, recycling facilities, air or water pollution control
 26-4    facilities, facilities for the furnishing of water to the general
 26-5    public, distribution centers, small warehouse facilities capable of
 26-6    serving as decentralized storage and distribution centers, and
 26-7    facilities for use by institutions of higher education, and for the
 26-8    promotion of development or redevelopment and expansion, including
 26-9    costs of administration and operation, of a military base closed or
26-10    realigned pursuant to recommendation of the Defense Closure and
26-11    Realignment Commission pursuant to the Defense Base Closure and
26-12    Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
26-13    and of facilities which are related to any of the foregoing, and in
26-14    furtherance of the public purposes of this Act, all as defined in
26-15    the rules of the department, irrespective of whether in existence
26-16    or required to be identified, acquired, or constructed thereafter.
26-17          SECTION 10.  Section 402.002, Local Government Code is
26-18    amended to read as follows:
26-19          Sec. 402.002.  Certain Public Services and Utility Systems in
26-20    Home-Rule Municipality. (a)  In this section, "public service"
26-21    includes a public telephone system, advanced services system,
26-22    street railway system, fertilizing plant, slaughterhouse, municipal
26-23    railway terminal, dock, wharf, ferry, ferry landing, or shipping
26-24    facility, including loading and unloading devices.
26-25          (b)  A home-rule municipality may buy, own, construct inside
26-26    or outside the municipal limits, and maintain and operate a gas
 27-1    system, electric lighting plant, sewage plant, or other public
 27-2    service or public utility and may require and receive compensation
 27-3    for services furnished for private purposes or otherwise.  The
 27-4    municipality may use eminent domain authority to appropriate real
 27-5    property, rights-of-way, or other property as necessary to
 27-6    efficiently carry out those objects.  The municipality may condemn
 27-7    the property of any person that conducts such a business or utility
 27-8    service for the purpose of operating and maintaining the public
 27-9    service or public utility and distributing the utility services in
27-10    the municipality.  In its charter, the municipality may adopt rules
27-11    it considers advisable for the acquisition or operation of the
27-12    public service or public utility.
27-13          (c)  The municipality may manufacture its own electricity,
27-14    gas, or anything else needed or used by the public.  It may
27-15    purchase, and make contracts for the purchase of, gas, electricity,
27-16    oil, or any other commodity or article used by the public and may
27-17    sell it to the public on terms as provided by the municipal
27-18    charter, ordinance, or resolution of the governing body of the
27-19    municipally owned utility.
27-20          (d)  The municipality may require water works corporations,
27-21    gas companies, street car companies, telephone companies, telegraph
27-22    companies, electric companies, or other persons who hold a
27-23    franchise from the municipality to extend their services to
27-24    territory as required by the municipal charter.
27-25          SECTION 11.  Subchapter A, Chapter 224, Transportation Code
27-26    is amended by adding section 224.009 to read as follows:
 28-1          Sec. 224.009.  USE OF STATE RIGHTS-OF-WAY FOR FIBER OPTIC
 28-2    FACILITIES. Notwithstanding any other section of this title, in
 28-3    granting permission to a person for the use of state rights-of-way,
 28-4    the Department may require such person to allow the state to deploy
 28-5    fiber optic facilities or cause fiber optic facilities to be
 28-6    deployed during such person's construction in the state
 28-7    right-of-way.
 28-8          SECTION 12.  This Act takes effect September 1, 2001.