By Merritt                                            H.B. No. 3435
         77R8274 CBH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to mandatory extended area service in certain exchanges.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 55.021, Utilities Code, is amended to read
 1-5     as follows:
 1-6           Sec. 55.021.  EXTENDED AREA SERVICE. After notice and a
 1-7     hearing, the commission may order one or more local exchange
 1-8     companies that are dominant carriers to provide:
 1-9                 (1)  mandatory extended area service in a metropolitan
1-10     area in accordance with Section 55.022; [or]
1-11                 (2)  mandatory extended area service in certain
1-12     exchanges in accordance with Section 55.0225; or
1-13                 (3)  optional extended area service in accordance with
1-14     Section 55.023.
1-15           SECTION 2. The heading to Section 55.022, Utilities Code, is
1-16     amended to read as follows:
1-17           Sec. 55.022.  MANDATORY EXTENDED AREA SERVICE IN A
1-18     METROPOLITAN AREA.
1-19           SECTION 3. Subchapter B, Chapter 55, Utilities Code, is
1-20     amended by adding Section 55.0225 to read as follows:
1-21           Sec. 55.0225.  MANDATORY EXTENDED AREA SERVICE IN CERTAIN
1-22     EXCHANGES. (a)  This section applies only to an exchange that has
1-23     more than 10,000 access lines but fewer than 20,000 access lines.
1-24           (b)  The commission may order mandatory extended area service
 2-1     in specific exchanges if:
 2-2                 (1)  the commission receives a petition or resolution
 2-3     under Subsection (c);
 2-4                 (2)  there is a sufficient community of interest
 2-5     between the petitioning and requested exchanges;
 2-6                 (3)  the incumbent local exchange company can
 2-7     reasonably provide the service; and
 2-8                 (4)  the proposed calling area has a single, continuous
 2-9     boundary and includes not more than four exchanges.
2-10           (c)  The commission may order mandatory extended area service
2-11     under this section only if the commission receives:
2-12                 (1)  a petition signed by at least 50 percent of the
2-13     subscribers in the petitioning exchange indicating that they want
2-14     the service and are willing to pay the charge provided by Section
2-15     55.024; or
2-16                 (2)  a resolution requesting the service that is signed
2-17     by:
2-18                       (A)  at least one member of the governing body of
2-19     each municipality in each exchange requesting the service; and
2-20                       (B)  each member of the commissioners court of
2-21     each county included in each exchange requesting the service.
2-22           (d)  A petition or resolution must include provisions that
2-23     demonstrate that each petitioning exchange shares a community of
2-24     interest with each requested exchange.
2-25           SECTION 4. This Act takes effect September 1, 2001.