1-1     By:  Danburg (Senate Sponsor - Van de Putte)          H.B. No. 2156
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 11, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to certain utility customer discounts.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Subchapter A, Chapter 17, Utilities Code, is
1-11     amended by adding Section 17.007 to read as follows:
1-12           Sec. 17.007.  ELIGIBILITY PROCESS FOR CUSTOMER SERVICE
1-13     DISCOUNTS. The commission by rule shall provide for an integrated
1-14     eligibility process for customer service discounts, including
1-15     discounts under Sections 39.903 and 55.015.
1-16           SECTION 2. Section 56.021, Utilities Code, is amended to read
1-17     as follows:
1-18           Sec. 56.021.  UNIVERSAL SERVICE FUND ESTABLISHED. The
1-19     commission shall adopt and enforce rules requiring local exchange
1-20     companies to establish a universal service fund to:
1-21                 (1)  assist telecommunications providers in providing
1-22     basic local telecommunications service at reasonable rates in high
1-23     cost rural areas;
1-24                 (2)  [reimburse telecommunications providers for
1-25     revenue lost by providing tel-assistance service under Subchapter
1-26     C;]
1-27                 [(3)]  reimburse the telecommunications carrier that
1-28     provides the statewide telecommunications relay access service
1-29     under Subchapter D;
1-30                 (3) [(4)]  finance the specialized telecommunications
1-31     assistance program established under Subchapter E;
1-32                 (4) [(5)]  reimburse the department, the Texas
1-33     Commission for the Deaf and Hard of Hearing, and the commission for
1-34     costs incurred in implementing this chapter and Chapter 57; [and]
1-35                 (5) [(6)]  reimburse a telecommunications carrier
1-36     providing lifeline service as provided by 47 C.F.R. Part 54,
1-37     Subpart E, as amended; and
1-38                 (6)  finance the implementation and administration of
1-39     an integrated eligibility process created under Section 17.007 for
1-40     customer service discounts relating to telecommunications services,
1-41     including outreach expenses the commission determines are
1-42     reasonable and necessary.
1-43           SECTION 3. Section 39.903(e), Utilities Code, is amended to
1-44     read as follows:
1-45           (e)  The system benefit fund shall provide funding solely for
1-46     the following regulatory purposes:
1-47                 (1)  programs to assist low-income electric customers
1-48     provided by Subsections (f)-(l);
1-49                 (2)  customer education programs; [and]
1-50                 (3)  the school funding loss mechanism provided by
1-51     Section 39.901; and
1-52                 (4)  reimbursement to the commission and the Texas
1-53     Department of Human Services for expenses incurred in the
1-54     implementation and administration of an integrated eligibility
1-55     process created under Section 17.007 for customer service discounts
1-56     relating to retail electric service, including outreach expenses
1-57     the commission determines are reasonable and necessary.
1-58           SECTION 4. (a)  Subchapter C, Chapter 56, Utilities Code, is
1-59     repealed.
1-60           (b)  The tel-assistance service program under Subchapter C,
1-61     Chapter 56, Utilities Code, is discontinued.  On September 1, 2001:
1-62                 (1)  all funds, employees, and resources of the Public
1-63     Utility Commission of Texas and the Texas Department of Human
1-64     Services dedicated to the tel-assistance service program become
 2-1     funds, employees, and resources dedicated to the lifeline service
 2-2     program under Section 55.015, Utilities Code; and
 2-3                 (2)  all persons receiving benefits under the
 2-4     tel-assistance service program shall be automatically enrolled in
 2-5     the lifeline service program.
 2-6           SECTION 5. If a person receiving benefits under the
 2-7     tel-assistance service program immediately before the effective
 2-8     date of this Act receives a greater benefit under the
 2-9     tel-assistance service program than the person will receive under
2-10     the lifeline service program, the telecommunications provider shall
2-11     continue the higher benefit and may be reimbursed for the higher
2-12     benefit from the universal service fund. The provider must continue
2-13     to provide that service until the person discontinues basic local
2-14     service in the exchange in which the person is receiving service.
2-15           SECTION 6. This Act takes effect September 1, 2001.
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