By Lucio S.B. No. 1700
77R9248 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the support and improvement of strategic investment
1-3 areas and rural areas through the deployment of high-speed and
1-4 advanced services.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The Legislature through the Appropriations Bill
1-7 shall establish priorities for the funding of projects for which a
1-8 loan or grant from the strategic investment area infrastructure
1-9 development account is requested, with special priority to be given
1-10 to projects designed to expand and improve the availability of
1-11 telemedicine services and to expand and improve the availability of
1-12 enhanced educational opportunities utilizing high-speed or advanced
1-13 services.
1-14 SECTION 2. Subchapter B, Chapter 52, Utilities Code, is
1-15 amendment by adding section 52.061 to read as follows:
1-16 Sec. 52.061. COMMISSION AUTHORITY TO ORDER REDUCTION OF
1-17 SWITCHED ACCESS RATES. (a) Not later than October 1, 2001, the
1-18 commission shall order every incumbent local exchange company,
1-19 including all electing companies, to reduce their rates for
1-20 intrastate switched access service by eliminating common carrier
1-21 line charges without increasing other switched access charges.
1-22 (b) For companies serving fewer than five million access
1-23 lines, the commission may implement a mechanism through the
1-24 universal service fund to replace the reasonably projected
2-1 reduction in revenues caused by a commission order issued pursuant
2-2 to subsection (a).
2-3 (c) Not later than December 31, 2002, the commission shall
2-4 determine for each incumbent local exchange company, including all
2-5 electing companies, whether additional reductions in switched
2-6 access charges are in the public interest and shall issue any order
2-7 the commission determines is necessary to require the
2-8 implementation not later than January 1, 2003 of the reductions the
2-9 commission determines to be in the public interest.
2-10 (d) For purposes of subsection (c), a reduction necessary to
2-11 eliminate a disparity in a company's intrastate and interstate
2-12 rates for switched access service is presumed to be in the public
2-13 interest.
2-14 SECTION 3. Subdivision (5), subsection (a), section 52.102,
2-15 Utilities Code, is amended to read as follows:
2-16 (5) to require a telecommunications utility that had
2-17 more than six percent of the total intrastate access minutes of use
2-18 as measured for the most recent 12-month period to pass switched
2-19 access rate reductions under this title, including access rate
2-20 reductions ordered in response to a complaint, hearing, or
2-21 determination on an electing company's implementation and
2-22 enforcement of a competitive safeguard required by Chapter 60, to
2-23 customers as required by Section 52.112;
2-24 SECTION 4. Subsection (c), section 52.112, Utilities Code, is
2-25 amended to read as follows:
2-26 (c) This section expires on the fourth [second] anniversary
2-27 of the date incumbent local exchange companies doing business in
3-1 the state are no longer prohibited by federal law from offering
3-2 interLATA and interstate long distance service.
3-3 SECTION 5. Section 57.042, Utilities Code, is amended to read
3-4 as follows:
3-5 Sec. 57.042. DEFINITIONS. In this subchapter:
3-6 (1) "Advanced service" means a high-speed service that
3-7 is capable of providing a data transmission speed of 200 kilobits
3-8 per second or more in both the provider-to-customer (downstream)
3-9 and customer-to-provider (upstream) directions for purposes of
3-10 accessing the Internet.
3-11 (2) "Ambulatory health care center" means a health
3-12 care clinic or an association of such a clinic that is:
3-13 (A) exempt from federal income taxation under
3-14 Section 501(a), Internal Revenue Code of 1986, as amended, as an
3-15 organization described by Section 501(c)(3), as amended; and
3-16 (B) funded wholly or partly by a grant under 42
3-17 U.S.C. Section 254b, 254c, or 256, as amended.
3-18 (3) [(2)] "Board" means the telecommunications
3-19 infrastructure fund board.
3-20 (4) [(3)] "Commercial mobile service provider" means a
3-21 provider of commercial mobile service as defined by Section 332(d),
3-22 Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
3-23 Communications Commission rules, and the Omnibus Budget
3-24 Reconciliation Act of 1993 (Pub. L. No. 103-66).
3-25 (5) [(4)] "Fund" means the telecommunications
3-26 infrastructure fund.
3-27 (6) "High-speed service" means a telecommunications,
4-1 cable, or other comparable service, such as satellite or wireless,
4-2 that is capable of providing a data transmission speed of 200
4-3 kilobits per second or more in at least one direction for purposes
4-4 of accessing the Internet.
4-5 (7) [(5)] "Institution of higher education" means:
4-6 (A) an institution of higher education as
4-7 defined by Section 61.003, Education Code; or
4-8 (B) a private or independent institution of
4-9 higher education as defined by Section 61.003, Education Code.
4-10 (8) [(6)] "Library" means:
4-11 (A) a public library or regional library system
4-12 as those terms are defined by Section 441.122, Government Code; or
4-13 (B) a library operated by an institution of
4-14 higher education or a school district.
4-15 (9) [(7)] "Public not-for-profit health care facility"
4-16 means a rural or regional hospital or other entity such as a rural
4-17 health clinic that:
4-18 (A) is supported by local or regional tax
4-19 revenue;
4-20 (B) is a certified not-for-profit health
4-21 corporation, under federal law; or
4-22 (C) is an ambulatory health care center.
4-23 (10) "Rural area" means:
4-24 (A) a county with a population of less than
4-25 50,000; or
4-26 (B) a contiguous area having a population
4-27 density of not more than 1,000 persons per square mile and is
5-1 either:
5-2 (i) outside the boundaries of a
5-3 metropolitan statistical area as designated by the United States
5-4 Office of Management and Budget; or
5-5 (ii) within the boundaries of a
5-6 metropolitan statistical area but has a population of not more than
5-7 20,000 and does not share boundaries within an urbanized area.
5-8 (11) [(8)] "School district" includes an independent
5-9 school district, a common school district, and a rural high school
5-10 district.
5-11 (12) [(9)] "Public school" means a public elementary
5-12 or secondary school, including an open-enrollment charter school, a
5-13 home-rule school district school, and a school with a campus or
5-14 campus program charter.
5-15 (13) "Strategic investment area" means an area that is
5-16 determined by the controller under Section 171.726, Tax Code, that
5-17 is:
5-18 (A) a county within this state with above state
5-19 average unemployment and below state average per capita income; or
5-20 (B) an area within this state that is a
5-21 federally designated urban enterprise community or an urban
5-22 enhanced enterprise community.
5-23 (14) [(10)] "Taxable telecommunications receipts"
5-24 means taxable telecommunications receipts reported under Chapter
5-25 151, Tax Code.
5-26 (15) [(11)] "Telemedicine":
5-27 (A) means medical services delivered by
6-1 telecommunications technologies to rural or underserved public
6-2 not-for-profit health care facilities or primary health care
6-3 facilities in collaboration with an academic health center and an
6-4 associated teaching hospital or tertiary center or with another
6-5 public not-for-profit health care facility; and
6-6 (B) includes consultive services, diagnostic
6-7 services, interactive video consultation, teleradiology,
6-8 telepathology, and distance education for working health care
6-9 professionals.
6-10 (16) "Urbanized area" includes a contiguous area
6-11 having a population density of not less than 1,000 persons per
6-12 square mile.
6-13 SECTION 6. Section 57.043, Utilities Code, is amended to read
6-14 as follows:
6-15 Sec. 57.043. TELECOMMUNICATIONS INFRASTRUCTURE FUND AND
6-16 ACCOUNTS. (a) The telecommunications infrastructure fund is
6-17 composed of the strategic investment area infrastructure
6-18 development account, the public schools account, [and] the
6-19 qualifying entities account, the rural infrastructure development
6-20 account.
6-21 (b) The strategic investment area infrastructure development
6-22 account, the public schools account, the [and] qualifying entities
6-23 account, and the rural infrastructure development account are
6-24 financed by an annual assessment imposed as prescribed by Section
6-25 57.048 on each telecommunications utility and commercial mobile
6-26 service provider doing business in this state.
6-27 (c) Money in the fund may be appropriated only for a use
7-1 consistent with the purposes of this subchapter.
7-2 SECTION 7. Subsection (c), section 57.044, Utilities Code, is
7-3 amended to read as follows:
7-4 (c) The governor and the lieutenant governor, in making
7-5 appointments to the board, and the speaker of the house of
7-6 representatives, in compiling a list of recommended person, shall
7-7 attempt to select members who are representative of, but not
7-8 limited to:
7-9 (1) urban and rural school districts;
7-10 (2) institutions of higher education;
7-11 (3) libraries; [and]
7-12 (4) strategic investment areas;
7-13 (5) rural areas in the state; and
7-14 (6) the public.
7-15 SECTION 8. Section 57.045, Utilities Code, is amended to read
7-16 as follows:
7-17 (a) The board shall administer the fund and the four [two]
7-18 accounts in the fund.
7-19 (b) The board shall prepare an annual report that:
7-20 (1) details the revenues deposited to the credit of
7-21 the fund, including each account; and
7-22 (2) summarizes the grants and loans made from each
7-23 account.
7-24 (c) Not later than January 15 of each year, the board shall
7-25 submit the report for the preceding year to the governor and to
7-26 each standing committee in the senate and house of representatives
7-27 that has jurisdiction over public or higher education.
8-1 (d) The board may:
8-2 (1) enter into contracts with state agencies or
8-3 private entities necessary to perform the board's duties;
8-4 (2) adopt rules as necessary to administer this
8-5 chapter;
8-6 (3) employ personnel reasonably necessary to perform
8-7 duties delegated to the board;
8-8 (4) appoint one or more committees to assist the board
8-9 in performing the board's duties; [and]
8-10 (5) accept a gift or grant and use it for the purposes
8-11 of this subchapter; and
8-12 (6) prepare information of public interest describing
8-13 the functions of the board. The board shall make the information
8-14 available to the public and appropriate state agencies.
8-15 (e) The board shall utilize the priorities established by
8-16 the Legislature when considering applications for grants and loans
8-17 from the strategic investment area infrastructure development
8-18 account.
8-19 SECTION 9. Subsection (b), section 57.046, Utilities Code, is
8-20 amended to read as follows:
8-21 (b) The board shall use money in the strategic investment
8-22 area infrastructure development account, the qualifying entities
8-23 account, and the rural infrastructure development account for any
8-24 purpose authorized by this subchapter, including:
8-25 (1) community planning and determination of high-speed
8-26 and/or advanced services resource requirements;
8-27 (2) equipment;
9-1 (3) [(2)] wiring;
9-2 (4) [(3)] material;
9-3 (5) [(4)] program development;
9-4 (6) [(5)] training;
9-5 (7) technical assistance;
9-6 (8) engineering and consulting;
9-7 (9) [(6)] installation costs; [and]
9-8 (10) development and operation of community networks;
9-9 (11) development and operation of community technology
9-10 centers;
9-11 (12) [(7)] development and operation of any other [a]
9-12 statewide and/or regional telecommunications networks [network].
9-13 SECTION 10. Section 57.047, Utilities Code, is amended to
9-14 read as follows:
9-15 Sec. 57.047. GRANT AND LOAN PROGRAM. (a) The board may
9-16 award a grant to a project or proposal that:
9-17 (1) provides equipment and infrastructure necessary
9-18 for:
9-19 (A) distance learning;
9-20 (B) an information sharing program of a library;
9-21 [or]
9-22 (C) telemedicine services; or
9-23 (D) the provision of community networks and
9-24 community technology centers.
9-25 (2) develops and implements the initial or
9-26 prototypical delivery of a course or other distance learning
9-27 material;
10-1 (3) trains teachers, faculty, librarians, or
10-2 technicians in the use of distance learning or information sharing
10-3 materials and equipment;
10-4 (4) develops a curriculum or instructional material
10-5 specially suited for telecommunications delivery;
10-6 (5) provides electronic information; or
10-7 (6) establishes or carries out an information sharing
10-8 program.
10-9 (b) The board may award a loan to a project or proposal to
10-10 acquire equipment needed for distance learning, the use of
10-11 electronic textbooks and Internet-based educational materials,
10-12 [and] telemedicine projects, high-speed service projects and
10-13 advanced service projects.
10-14 (c) In awarding a grant or loan under this subchapter, the
10-15 board shall give priority to a project or proposal that:
10-16 (1) represents collaborative efforts [involving more
10-17 than one school, university, or library];
10-18 (2) satisfies one or more priorities established by
10-19 the legislature through the appropriations bill;
10-20 (3) will incent or improve the deployment of
10-21 facilities for providing high-speed and/or advanced services in
10-22 strategic investment areas;
10-23 (4) contributes matching funds from another source;
10-24 (5) [(3)] shows promise of becoming self-sustaining;
10-25 (6) [(4)] helps users of information learn new ways to
10-26 acquire and use information through telecommunications;
10-27 (7) [(5)] extends specific educational information and
11-1 knowledge services to a group not previously served, especially a
11-2 group in a rural or remote area;
11-3 (8) [(6)] results in more efficient or effective
11-4 learning than through conventional teaching;
11-5 (9) [(7)] improves the effectiveness and efficiency of
11-6 health care delivery; [or]
11-7 (10) will establish or enhance the provision of
11-8 high-speed or advanced services to rural areas of this state; or
11-9 (11) [(8)] takes advantage of distance learning
11-10 opportunities in a rural or urban school district with a:
11-11 (A) disproportionate number of at-risk youths;
11-12 or
11-13 (B) high dropout rate.
11-14 (d) In distributing money to public schools, the board
11-15 shall:
11-16 (1) consider the relative property wealth per student
11-17 of the school districts that receive the money; and
11-18 (2) recognize the unique needs of rural and
11-19 disadvantaged communities.
11-20 (e) A grant or loan awarded under this section is subject to
11-21 the limitations prescribed by Section 57.046.
11-22 SECTION 11. Section 57.048, Utilities Code, is amended to
11-23 read as follows:
11-24 Sec. 57.048. ASSESSMENTS AND COLLECTIONS. (a) An annual
11-25 assessment is imposed on each telecommunications utility and each
11-26 commercial mobile service provider doing business in this state.
11-27 (b) The assessment for the financing of the public schools
12-1 account and qualifying entities account of the fund is imposed at
12-2 the rate of 1.25 percent of the taxable telecommunications receipts
12-3 of the telecommunications utility or commercial mobile service
12-4 provider, subject to this section. However, as provided by
12-5 subsection (c), the commission may increase the total level of the
12-6 assessment rate, with the portion of the rate exceeding 1.25
12-7 percent to be used to finance the strategic investment area
12-8 infrastructure development account and the rural infrastructure
12-9 account.
12-10 (c) The commission may increase the total level of the
12-11 assessment rate in conjunction with an order granted pursuant to
12-12 section 52.061 or relief granted by the commission in response to a
12-13 complaint, hearing, or determination on an electing company's
12-14 implementation and enforcement of a competitive safeguard required
12-15 by Chapter 60. If the commission orders an increase in the total
12-16 level of the assessment rate, the amount by which the assessment
12-17 rate is increased above 1.25 percent shall not be greater than a
12-18 level that will result in the collection of money that is the same
12-19 as the amount the Commission orders one or more electing or
12-20 non-electing companies to reduce their rates for switched access
12-21 service on a combined originating and terminating basis.
12-22 (d) The total amount deposited to the credit of the public
12-23 schools account and qualifying entities account of the fund,
12-24 excluding interest and loan repayments, may not exceed $1.5
12-25 billion. Not later than August 31 of each year, the comptroller
12-26 shall determine the total amount, excluding interest and loan
12-27 repayments, that has been deposited to the credit of the public
13-1 schools account and qualifying entities account of the fund during
13-2 that fiscal year and the preceding fiscal years. If the
13-3 comptroller determines that a total of $1.2 billion or more,
13-4 excluding interest and loan repayments, has been deposited to the
13-5 credit of the public schools account and qualifying entities
13-6 account of the fund, the comptroller shall impose the portion of
13-7 the total assessment during the next fiscal year at a rate that the
13-8 comptroller estimates is sufficient to produce the amount necessary
13-9 to result in the deposit in the public schools account and
13-10 qualifying entities account of the fund of a total of not more than
13-11 $1.5 billion, excluding interest and loan repayments.
13-12 (e) [(d)] The comptroller may not collect the assessment for
13-13 the financing of the public schools account and qualifying entities
13-14 account of the fund during a fiscal year if the comptroller
13-15 determines after the yearly review that the total amount deposited
13-16 to the credit of the public schools account and qualifying entities
13-17 account of the fund during that fiscal year and the preceding
13-18 fiscal years is $1.49 billion or more, excluding interest and loan
13-19 repayments, and it is not possible to impose the assessment during
13-20 the next fiscal year at a practical rate without collecting more
13-21 than a total of $1.5 billion, excluding interest and loan
13-22 repayments.
13-23 (f) [(e)] The comptroller may require a telecommunications
13-24 utility or commercial mobile service provider to provide any report
13-25 or information necessary to fulfill the comptroller's duties under
13-26 this section. Information provided to the comptroller under this
13-27 section is confidential and exempt from disclosure under Chapter
14-1 552, Government Code.
14-2 SECTION 12. Section 57.0485, Utilities Code, is amended to
14-3 read as follows:
14-4 (a) The comptroller shall deposit 50 percent of the money
14-5 collected by the comptroller under Section 58.048(b) [57.048] to
14-6 the credit of the public schools account in the fund.
14-7 (b) The controller shall deposit 50 percent of the money
14-8 collected by the comptroller under Section 58.048(c) to the credit
14-9 of the strategic investment area infrastructure development
14-10 account.
14-11 (c) Interest earned on money in an account shall be
14-12 deposited to the credit of that account.
14-13 SECTION 13. Section 58.022, Utilities Code, is amended to
14-14 read as follows:
14-15 Except as provided by section 58.304, this [This] chapter
14-16 governs the regulation of an electing company's telecommunications
14-17 services regardless of whether the company is a dominant carrier.
14-18 SECTION 14. Subchapter H, Chapter 58, Utilities Code, is
14-19 amended by adding section 58.304 to read as follows:
14-20 Sec. 58.304. COMMISSION JURISDICTION TO ORDER REDUCTION OF
14-21 SWITCHED ACCESS RATES. Notwithstanding any other provision of this
14-22 chapter, the commission may order a reduction of an electing
14-23 company's rates for switched access service pursuant to section
14-24 52.061.
14-25 SECTION 15. Section 59.025, Utilities Code, is amended to
14-26 read as follows:
14-27 Except as provided by Sec. 52.061 [Notwithstanding any other
15-1 provision of this title], the commission may not, on the
15-2 commission's own motion, reduce an electing company's rates for
15-3 switched access services before the expiration of the election
15-4 period prescribed by Section 59.024 but may approve a reduction
15-5 proposed by the electing company.
15-6 SECTION 16. This Act takes effect immediately if it receives
15-7 a vote of two-thirds of all the members elected to each house, as
15-8 provided in Section 39, Article III, Texas Constitution. If this
15-9 Act does not receive the vote necessary for immediate effect, this
15-10 Act takes effect September 1, 2001.