By Danburg                                            H.B. No. 2156
         77R10984 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain utility customer discounts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subchapter A, Chapter 17, Utilities Code, is
 1-5     amended by adding Section 17.007 to read as follows:
 1-6           Sec. 17.007.  ELIGIBILITY PROCESS FOR CUSTOMER SERVICE
 1-7     DISCOUNTS. The commission by rule shall provide for an integrated
 1-8     eligibility process for customer service discounts, including
 1-9     discounts under Sections 39.903 and 55.015.
1-10           SECTION 2. Section 56.021, Utilities Code, is amended to read
1-11     as follows:
1-12           Sec. 56.021.  UNIVERSAL SERVICE FUND ESTABLISHED. The
1-13     commission shall adopt and enforce rules requiring local exchange
1-14     companies to establish a universal service fund to:
1-15                 (1)  assist telecommunications providers in providing
1-16     basic local telecommunications service at reasonable rates in high
1-17     cost rural areas;
1-18                 (2)  [reimburse telecommunications providers for
1-19     revenue lost by providing tel-assistance service under Subchapter
1-20     C;]
1-21                 [(3)]  reimburse the telecommunications carrier that
1-22     provides the statewide telecommunications relay access service
1-23     under Subchapter D;
1-24                 (3) [(4)]  finance the specialized telecommunications
 2-1     assistance program established under Subchapter E;
 2-2                 (4) [(5)]  reimburse the department, the Texas
 2-3     Commission for the Deaf and Hard of Hearing, and the commission for
 2-4     costs incurred in implementing this chapter and Chapter 57; [and]
 2-5                 (5) [(6)]  reimburse a telecommunications carrier
 2-6     providing lifeline service as provided by 47 C.F.R. Part 54,
 2-7     Subpart E, as amended; and
 2-8                 (6)  finance the implementation and administration of
 2-9     an integrated eligibility process created under Section 17.007 for
2-10     customer service discounts relating to telecommunications services,
2-11     including outreach expenses the commission determines are
2-12     reasonable and necessary.
2-13           SECTION 3. Section 39.903(e), Utilities Code, is amended to
2-14     read as follows:
2-15           (e)  The system benefit fund shall provide funding solely for
2-16     the following regulatory purposes:
2-17                 (1)  programs to assist low-income electric customers
2-18     provided by Subsections (f)-(l);
2-19                 (2)  customer education programs; [and]
2-20                 (3)  the school funding loss mechanism provided by
2-21     Section 39.901; and
2-22                 (4)  reimbursement to the commission and the Texas
2-23     Department of Human Services for expenses incurred in the
2-24     implementation and administration of an integrated eligibility
2-25     process created under Section 17.007 for customer service discounts
2-26     relating to retail electric service, including outreach expenses
2-27     the commission determines are reasonable and necessary.
 3-1           SECTION 4. (a)  Subchapter C, Chapter 56, Utilities Code, is
 3-2     repealed.
 3-3           (b)  The tel-assistance service program under Subchapter C,
 3-4     Chapter 56, Utilities Code, is discontinued.  On September 1, 2001:
 3-5                 (1)  all funds, employees, and resources of the Public
 3-6     Utility Commission of Texas and the Texas Department of Human
 3-7     Services dedicated to the tel-assistance service program become
 3-8     funds, employees, and resources dedicated to the lifeline service
 3-9     program under Section 55.015, Utilities Code; and
3-10                 (2)  all persons receiving benefits under the
3-11     tel-assistance service program shall be automatically enrolled in
3-12     the lifeline service program.
3-13           SECTION 5. If a person receiving benefits under the
3-14     tel-assistance service program immediately before the effective
3-15     date of this Act receives a greater benefit under the
3-16     tel-assistance service program than the person will receive under
3-17     the lifeline service program, the telecommunications provider shall
3-18     continue the higher benefit and may be reimbursed for the higher
3-19     benefit from the universal service fund. The provider must continue
3-20     to provide that service until the person discontinues basic local
3-21     service in the exchange in which the person is receiving service.
3-22           SECTION 6. This Act takes effect September 1, 2001.