77R15353 CBH-F                          
         By Sibley, et al.                                     S.B. No. 1783
         Substitute the following for S.B. No. 1783:
         By Wolens                                         C.S.S.B. No. 1783
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to enhanced availability of advanced telecommunications
 1-3     service.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. This Act may be cited as the Texas Universal
 1-6     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 SERVICE
1-10           Sec. 55.401.  POLICY. (a)  It is the policy of this state to
1-11     ensure that all residents of this state have access to an advanced
1-12     service at prices and terms reasonably comparable to those of an
1-13     advanced service provided in large exchanges.  An advanced service
1-14     should be reliable, secure, and easy to use and should be robust
1-15     enough to provide expected levels of service, handle peak loads, be
1-16     scalable to growing needs and uses, and be flexible in operation.
1-17           (b)  It is the policy of this state to ensure that all
1-18     residents of this state have the availability of an advanced
1-19     service to be electronically connected to each other and to the
1-20     world.  Access to an advanced service statewide and a continuing
1-21     ability to take advantage of emerging technologies will move this
1-22     state to the forefront in education, e-commerce, e-government,
1-23     teleworking, telemedicine, community development, and other new
1-24     fields and revitalize the economy of this state.
 2-1           (c)  It is the policy of this state to ensure an environment
 2-2     for the deployment of an advanced service that:
 2-3                 (1)  is technology-neutral with respect to the advanced
 2-4     service technology that is used;
 2-5                 (2)  prefers local control over solutions to address
 2-6     the provisioning of an advanced service to a particular community;
 2-7     and
 2-8                 (3)  prefers competition for deployment of an advanced
 2-9     service rather than governmental mandates.
2-10           Sec. 55.402.  DEFINITIONS. In this subchapter:
2-11                 (1)  "Advanced service" means a service that delivers
2-12     an information carrying capacity, in either the downstream or
2-13     upstream direction, with a speed of at least 200 kilobits a second
2-14     in one direction in the last mile and with a speed of at least 128
2-15     kilobits a second in the alternative direction in the last mile.
2-16                 (2)  "Community" means a geographically contiguous and
2-17     distinct population.  A community must be included wholly in one
2-18     exchange unless all or part of the community is not included in any
2-19     exchange.
2-20                 (3)  "Company" means a local exchange company that has
2-21     a certificate of convenience and necessity.
2-22           Sec. 55.403.  REQUEST FOR ADVANCED SERVICE. (a)  A community
2-23     may submit to a company providing local exchange service to the
2-24     community a request for the provision of an advanced service.  If
2-25     the community is not a municipality or county, it must be sponsored
2-26     by a municipality or county in which all or part of the community
2-27     is located. The request must include:
 3-1                 (1)  the boundaries of the community, which may not
 3-2     include an area that is receiving an advanced service from the
 3-3     company or from another provider of an advanced service under a
 3-4     business arrangement with the company; and
 3-5                 (2)  the name, address, and telephone number of a
 3-6     person the company must contact under Section 55.404.
 3-7           (b)  A retail request for an advanced service is considered a
 3-8     bona fide retail request if it is a written request for an advanced
 3-9     service that:
3-10                 (1)  is signed by, and includes the addresses and
3-11     telephone numbers of, at least:
3-12                       (A)  75 telephone subscribers in the community if
3-13     the community is located in an exchange that has more than 1,000
3-14     access lines; or
3-15                       (B)  a number of subscribers, which may not be
3-16     less than 25 or more than 75, in a community located in an exchange
3-17     that has 1,000 or fewer access lines, as determined in accordance
3-18     with rules adopted by the commission, which rules must require
3-19     consideration of population density, distance, terrain, and the
3-20     size of the exchange, except as provided by Subdivision (2); or
3-21                 (2)  complies with rules adopted by the commission
3-22     relating to requirements for a bona fide retail request from an
3-23     uncertificated area or from an exchange with fewer than 25
3-24     subscribers.
3-25           Sec. 55.404.  RECEIPT OF REQUEST AND PROVISION OF AN ADVANCED
3-26     SERVICE. (a)  A company that receives, on or after September 1,
3-27     2002,  a bona fide retail request under Section 55.403 shall, not
 4-1     later than the 30th day after the date the company receives the
 4-2     request, notify in writing the community contact person named in
 4-3     the request as to whether the company intends to:
 4-4                 (1)  provide an advanced service;
 4-5                 (2)  enter into a business arrangement with another
 4-6     provider of an advanced service, such as a cable company, fixed
 4-7     wireless company, satellite company, electric cooperative
 4-8     corporation, or holder of a certificate of operating authority or
 4-9     service provider certificate of operating authority to provide an
4-10     advanced service; or
4-11                 (3)  not provide an advanced service.
4-12           (b)  Except as provided by Subsection (c), if the company
4-13     notifies the contact person that the company intends to provide an
4-14     advanced service under Subsection (a)(1) or (2), the company shall
4-15     provide an advanced service not later than the 150th day after the
4-16     date the company notifies the contact person of the company's
4-17     intent.
4-18           (c)  If the company notifies the contact person that the
4-19     company cannot provide an advanced service within the period
4-20     prescribed by Subsection (b), the company may delay providing the
4-21     service for an additional 30 days.  If the company cannot provide
4-22     an advanced service by the end of that 30-day period because of
4-23     circumstances beyond the company's control, the company may request
4-24     that the commission authorize an additional extension.  The
4-25     commission may authorize the additional extension only on a showing
4-26     of the circumstances that are beyond the company's control.
4-27           (d)  The company shall ensure that an advanced service
 5-1     provided under Subsection (a)(1) or (2) is provided:
 5-2                 (1)  at terms reasonably comparable to the terms for an
 5-3     advanced service provided in the company's exchange in this state
 5-4     with the greatest number of access lines and in which the company
 5-5     offers an advanced service; and
 5-6                 (2)  at prices reasonably comparable to the prices for
 5-7     an advanced service provided in the company's exchange in this
 5-8     state with the greatest number of access lines and in which the
 5-9     company offers an advanced service, subject to Subsection (e).
5-10           (e)  A company may charge a higher price for an advanced
5-11     service than is charged for an advanced service in the company's
5-12     exchange in this state with the greatest number of access lines and
5-13     in which the company offers an advanced service if the higher price
5-14     is necessary to recover costs relating to population density,
5-15     distance, or terrain.  However, the price may not exceed an amount
5-16     determined reasonable by the commission, which may not exceed 140
5-17     percent of the price charged for an advanced service in the
5-18     company's exchange in this state with the greatest number of access
5-19     lines and in which the company offers an advanced service.
5-20           (f)  A company may require each person who signed the request
5-21     for service to commit to receiving an advanced service from the
5-22     company for one year.  The company may offer, but not require, a
5-23     commitment of more than one year.  If the company requires a
5-24     one-year commitment, a number of subscribers equal to the number of
5-25     subscribers necessary to satisfy the requirements of a bona fide
5-26     request must make that commitment.
5-27           (g)  Not later than the fifth business day after the date the
 6-1     company receives a request to provide an advanced service, the
 6-2     company shall notify the commission of the request and state
 6-3     whether the request is a bona fide retail request that meets the
 6-4     requirements prescribed by Section 55.403.  The commission shall
 6-5     publish notice of the receipt of a bona fide retail request in the
 6-6     Texas Register and post a similar notice on the commission's
 6-7     website.
 6-8           (h)  Not later than the fifth business day after the date the
 6-9     company notifies the community contact person of the company's
6-10     response to the request, the company shall provide a copy of that
6-11     response to the commission.  If the company intends to provide an
6-12     advanced service, the company shall promptly notify the commission
6-13     of the date an advanced service is provided.
6-14           Sec. 55.405.  COMMUNITY OPTIONS IF COMPANY DECLINES TO
6-15     PROVIDE AN ADVANCED SERVICE. (a)  If the company notifies the
6-16     community contact person under Section 55.404 that the company does
6-17     not intend to provide an advanced service, and if another provider
6-18     is not providing or specifically offering an advanced service to
6-19     the community as determined by the commission, the community or the
6-20     sponsoring municipality or county may attempt to obtain funding
6-21     from any applicable source, including any source described by
6-22     Subsection (b), to:
6-23                 (1)  directly provide an advanced service to the
6-24     community; or
6-25                 (2)  enter into a business arrangement to receive an
6-26     advanced service from the company or a cable company, fixed
6-27     wireless company, satellite company, electric cooperative
 7-1     corporation, holder of a certificate of operating authority or
 7-2     service provider certificate of operating authority, or other
 7-3     provider of an advanced service.
 7-4           (b)  A community or sponsoring municipality or county
 7-5     described by Subsection (a) may attempt to obtain funding from:
 7-6                 (1)  a development corporation created under the
 7-7     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
 7-8     Civil Statutes);
 7-9                 (2)  a grant or loan from the telecommunications
7-10     infrastructure fund under Subchapter C, Chapter 57;
7-11                 (3)  a program of the Texas Agricultural Finance
7-12     Authority;
7-13                 (4)  a community development block grant; or
7-14                 (5)  other business incentives the community or
7-15     sponsoring municipality or county may use or for which the
7-16     community, municipality, or county is eligible.
7-17           (c)  Subsection (b) does not affect the authority that a
7-18     community or sponsoring municipality or county has under other law
7-19     to obtain funding for any purpose from a source described by
7-20     Subsection (b).
7-21           (d)  Notwithstanding any other law, including Sections 54.201
7-22     and 54.202, a community or sponsoring municipality or county may
7-23     support and provide an advanced service under this subchapter.
7-24           Sec. 55.406.  FACILITY MAPS AND DATABASE; AGENCY COOPERATION
7-25     AND PLANNING. (a)  The commission shall create and maintain a
7-26     database that is capable of graphic representation of the location
7-27     and inventory of all public and private sector advanced service
 8-1     facilities.
 8-2           (b)  The commission shall participate in policy dialogue and
 8-3     coordinate, cooperate, and mutually agree on policies with the
 8-4     Telecommunications Infrastructure Fund Board, the Department of
 8-5     Agriculture, or other state agencies or groups, as the commission
 8-6     considers necessary, regarding the availability of funding or the
 8-7     establishment of priorities to accelerate the deployment of an
 8-8     advanced service to all areas of this state.
 8-9           (c)  The commission shall:
8-10                 (1)  collect and maintain the information necessary to
8-11     create and maintain the database under Subsection (a); and
8-12                 (2)  submit a biennial report to the legislature on the
8-13     deployment of advanced services.
8-14           (d)  The commission shall maintain the confidentiality of any
8-15     proprietary information obtained under this subchapter, and that
8-16     information is not subject to disclosure under Chapter 552,
8-17     Government Code.  In addition, the commission may not disclose
8-18     information in a manner that identifies the entity from which the
8-19     commission obtained the information.
8-20           Sec. 55.407.  COMMISSION AUTHORITY. (a)  This subchapter
8-21     establishes the state's uniform policy for the deployment of an
8-22     advanced service.
8-23           (b)  This subchapter supersedes any final order of the
8-24     commission entered under Section 14.101 or 54.054 to the extent
8-25     that the order may require a company to deploy a specific advanced
8-26     service:
8-27                 (1)  to end users; or
 9-1                 (2)  on receipt of a specific number of bona fide
 9-2     requests.
 9-3           (c)  Notwithstanding any other provision of this title, the
 9-4     commission has all jurisdiction necessary to enforce this
 9-5     subchapter.
 9-6           SECTION 3. Section 57.042, Utilities Code, is amended to read
 9-7     as follows:
 9-8           Sec. 57.042.  DEFINITIONS. In this subchapter:
 9-9                 (1)  "Advanced service" and "community" have the
9-10     meanings assigned by Section 55.402.
9-11                 (2)  "Ambulatory health care center" means a health
9-12     care clinic or an association of such a clinic that is:
9-13                       (A)  exempt from federal income taxation under
9-14     Section 501(a), Internal Revenue Code of 1986, as amended, as an
9-15     organization described by Section 501(c)(3), as amended; and
9-16                       (B)  funded wholly or partly by a grant under 42
9-17     U.S.C. Section 254b, 254c, or 256, as amended.
9-18                 (3) [(2)]  "Board" means the telecommunications
9-19     infrastructure fund board.
9-20                 (4) [(3)]  "Commercial mobile service provider" means a
9-21     provider of commercial mobile service as defined by Section 332(d),
9-22     Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
9-23     Communications Commission rules, and the Omnibus Budget
9-24     Reconciliation Act of 1993 (Pub. L. No. 103-66).
9-25                 (5)  "Community technology center" means a center that
9-26     provides individuals or organizations with access to computers,
9-27     technology literacy training, the Internet, technical support, and
 10-1    staff training.
 10-2                (6) [(4)]  "Fund" means the telecommunications
 10-3    infrastructure fund.
 10-4                (7) [(5)]  "Institution of higher education" means:
 10-5                      (A)  an institution of higher education as
 10-6    defined by Section 61.003, Education Code; or
 10-7                      (B)  a private or independent institution of
 10-8    higher education as defined by Section 61.003, Education Code.
 10-9                (8) [(6)]  "Library" means:
10-10                      (A)  a public library or regional library system
10-11    as those terms are defined by Section 441.122, Government Code; or
10-12                      (B)  a library operated by an institution of
10-13    higher education or a school district.
10-14                (9) [(7)]  "Public not-for-profit health care facility"
10-15    means a rural or regional hospital or other entity such as a rural
10-16    health clinic that:
10-17                      (A)  is supported by local or regional tax
10-18    revenue;
10-19                      (B)  is a certified not-for-profit health
10-20    corporation, under federal law; or
10-21                      (C)  is an ambulatory health care center.
10-22                (10) [(8)]  "School district" includes an independent
10-23    school district, a common school district, and a rural high school
10-24    district.
10-25                (11) [(9)]  "Public school" means a public elementary
10-26    or secondary school, including an open-enrollment charter school, a
10-27    home-rule school district school, and a school with a campus or
 11-1    campus program charter.
 11-2                (12) [(10)]  "Taxable telecommunications receipts"
 11-3    means taxable telecommunications receipts reported under Chapter
 11-4    151, Tax Code.
 11-5                (13) [(11)]  "Telemedicine":
 11-6                      (A)  means medical services delivered by
 11-7    telecommunications technologies to rural or underserved public
 11-8    not-for-profit health care facilities or primary health care
 11-9    facilities in collaboration with an academic health center and an
11-10    associated teaching hospital or tertiary center or with another
11-11    public not-for-profit health care facility; and
11-12                      (B)  includes consultive services, diagnostic
11-13    services, interactive video consultation, teleradiology,
11-14    telepathology, and distance education for working health care
11-15    professionals.
11-16          SECTION 4. Section 57.046(b), Utilities Code, is amended to
11-17    read as follows:
11-18          (b)  The board shall use money in the qualifying entities
11-19    account for any purpose authorized by this subchapter, including:
11-20                (1)  equipment;
11-21                (2)  wiring;
11-22                (3)  material;
11-23                (4)  program development;
11-24                (5)  training;
11-25                (6)  installation costs; [and]
11-26                (7)  a statewide telecommunications network;
11-27                (8)  community planning and determination of advanced
 12-1    service requirements;
 12-2                (9)  the development and provisioning of a community
 12-3    technology center with the exclusion of costs associated with
 12-4    building, renting, leasing, or otherwise acquiring a location for
 12-5    the center; and
 12-6                (10)  an advanced service for a community or sponsoring
 12-7    municipality or county as prescribed by Section 55.405(a).
 12-8          SECTION 5. Sections 57.047(a), (b), and (c), Utilities Code,
 12-9    are amended to read as follows:
12-10          (a)  The board may award a grant to a project or proposal
12-11    that:
12-12                (1)  provides equipment and infrastructure necessary
12-13    for:
12-14                      (A)  distance learning;
12-15                      (B)  an information sharing program of a library;
12-16    [or]
12-17                      (C)  telemedicine services;
12-18                      (D)  community technology centers; or
12-19                      (E)  an advanced service for a community or
12-20    sponsoring municipality or county that will use the grant for a
12-21    purpose prescribed by Section 55.405(a);
12-22                (2)  develops and implements the initial or
12-23    prototypical delivery of a course or other distance learning
12-24    material;
12-25                (3)  trains teachers, faculty, librarians, or
12-26    technicians in the use of distance learning or information sharing
12-27    materials and equipment;
 13-1                (4)  develops a curriculum or instructional material
 13-2    specially suited for telecommunications delivery;
 13-3                (5)  provides electronic information; or
 13-4                (6)  establishes or carries out an information sharing
 13-5    program.
 13-6          (b)  The board may award a loan to a project or proposal to
 13-7    acquire equipment needed for distance learning, [and] telemedicine,
 13-8    or community technology center projects.  The board may award a
 13-9    loan to a project or proposal submitted by a community or
13-10    sponsoring municipality or county to acquire equipment needed for
13-11    an advanced service project under Section 55.405(a).
13-12          (c)  In awarding a grant or loan under this subchapter, the
13-13    board shall give priority to a project or proposal that:
13-14                (1)  represents collaborative efforts [involving more
13-15    than one school, university, or library];
13-16                (2)  contributes matching funds from another source;
13-17                (3)  shows promise of becoming self-sustaining;
13-18                (4)  helps users of information learn new ways to
13-19    acquire and use information through telecommunications or an
13-20    advanced service;
13-21                (5)  extends specific educational information and
13-22    knowledge services to a group not previously served, especially a
13-23    group in a rural or remote area;
13-24                (6)  results in more efficient or effective learning
13-25    than through conventional teaching;
13-26                (7)  improves the effectiveness and efficiency of
13-27    health care delivery; [or]
 14-1                (8)  takes advantage of distance learning opportunities
 14-2    in a rural or urban school district with a:
 14-3                      (A)  disproportionate number of at-risk youths;
 14-4    or
 14-5                      (B)  high dropout rate; or
 14-6                (9)  will establish or enhance the provision of an
 14-7    advanced service to rural or low-income communities of this state.
 14-8          SECTION 6. Subchapter C, Chapter 57, Utilities Code, is
 14-9    amended by adding Section 57.0475 to read as follows:
14-10          Sec. 57.0475.  COMMUNITY DEVELOPMENT GRANT AND LOAN
14-11    REQUIREMENTS. (a)  The board shall coordinate the board's duties
14-12    and responsibilities with the commission and any other state or
14-13    local government entity as necessary to encourage ubiquitous access
14-14    to an advanced service in all areas of this state.
14-15          (b)  An entity requesting a grant or loan to establish a
14-16    community technology center must, at a minimum, include in the
14-17    request:
14-18                (1)  a cost estimate; and
14-19                (2)  a list of efforts to use other public or private
14-20    resources and the amount of matching funds to be provided by the
14-21    entity.
14-22          (c)  A community or sponsoring municipality or county
14-23    requesting a grant or loan relating to an advanced service project
14-24    under Section 55.405(a) must, at a minimum, include in the request:
14-25                (1)  a network design and cost estimate;
14-26                (2)  a list of efforts to use other public or private
14-27    resources and the amount of matching funds to be provided by the
 15-1    community or sponsoring municipality or county; and
 15-2                (3)  a list of all public offices and private sector
 15-3    and nonprofit sector customers that could be connected or receive
 15-4    an advanced service under the proposed project.
 15-5          SECTION 7. Section 57.048, Utilities Code, is amended to read
 15-6    as follows:
 15-7          Sec. 57.048.  ASSESSMENTS AND COLLECTIONS. (a)  An annual
 15-8    assessment is imposed on each telecommunications utility and each
 15-9    commercial mobile service provider doing business in this state.
15-10          (b)  The assessment is imposed at the rate of 0.76 [1.25]
15-11    percent of the taxable telecommunications receipts of the
15-12    telecommunications utility or commercial mobile service provider,
15-13    subject to this section.
15-14          (c)  [The total amount deposited to the credit of the fund,
15-15    excluding interest and loan repayments, may not exceed $1.5
15-16    billion.  Not later than August 31 of each year, the comptroller
15-17    shall determine the total amount, excluding interest and loan
15-18    repayments, that has been deposited to the credit of the fund
15-19    during that fiscal year and the preceding fiscal years.  If the
15-20    comptroller determines that a total of $1.2 billion or more,
15-21    excluding interest and loan repayments, has been deposited to the
15-22    credit of the fund, the comptroller shall impose the assessment
15-23    during the next fiscal year at a rate that the comptroller
15-24    estimates is sufficient to produce the amount necessary to result
15-25    in the deposit in the fund of a total of not more than $1.5
15-26    billion, excluding interest and loan repayments.]
15-27          [(d)  The comptroller may not collect the assessment during a
 16-1    fiscal year if the comptroller determines after the yearly review
 16-2    that the total amount deposited to the credit of the fund during
 16-3    that fiscal year and the preceding fiscal years is $1.49 billion or
 16-4    more, excluding interest and loan repayments, and it is not
 16-5    possible to impose the assessment during the next fiscal year at a
 16-6    practical rate without collecting more than a total of $1.5
 16-7    billion, excluding interest and loan repayments.]
 16-8          [(e)]  The comptroller may require a telecommunications
 16-9    utility or commercial mobile service provider to provide any report
16-10    or information necessary to fulfill the comptroller's duties under
16-11    this section.  Information provided to the comptroller under this
16-12    section is confidential and exempt from disclosure under Chapter
16-13    552, Government Code.
16-14          SECTION 8. Section 54.202, Utilities Code, is amended by
16-15    adding Subsection (c) to read as follows:
16-16          (c)  This section does not apply to a municipal electric
16-17    system owned, operated, and controlled by a municipality with a
16-18    population of not more than 25,000 with respect to the system's
16-19    provision of an advanced service as defined by Section 55.402.
16-20          SECTION 9. Section 55.014(c), Utilities Code, is amended to
16-21    read as follows:
16-22          (c)  Notwithstanding any other provision of this title,
16-23    beginning September 1, 2005 [2001], a company to which this section
16-24    applies that provides advanced telecommunications services within
16-25    the company's urban service areas, shall, on a bona fide retail
16-26    request for those services, provide in rural areas of this state
16-27    served by the company advanced telecommunications services that are
 17-1    reasonably comparable to the advanced services provided in urban
 17-2    areas.  The company shall offer the advanced telecommunications
 17-3    services:
 17-4                (1)  at prices, terms, and conditions that are
 17-5    reasonably comparable to the prices, terms, and conditions for
 17-6    similar advanced services provided by the company in urban areas;
 17-7    and
 17-8                (2)  within 15 months after the bona fide request for
 17-9    those advanced services.
17-10          SECTION 10.  Subchapter E, Chapter 54, Utilities Code, is
17-11    amended by adding Section 54.2045 to read as follows:
17-12          Sec. 54.2045.  LIMITATIONS ON PROVISION OF CABLE SERVICE BY
17-13    MUNICIPALITY. (a)  In this section, "cable service" means, jointly
17-14    or singly, cable video services or access to the Internet that is
17-15    provided through a cable system.  The term does not include any
17-16    service that is related to an energy service, municipal utility
17-17    service, or the provision of a general municipal or governmental
17-18    service.  For purposes of this subsection, cable video programming
17-19    services or access to the Internet provided to the public generally
17-20    through a cable system, as defined by Section 522(7),
17-21    Communications Act of 1934 (47 U.S.C. Section 151 et seq.), as
17-22    amended, are not within the scope of or related to an energy
17-23    service, municipal utility service, or  general municipal or
17-24    governmental service.
17-25          (b)  This section applies to a municipality that is otherwise
17-26    authorized by law to provide cable services and offers or wants to
17-27    offer those services to the public:
 18-1                (1)  directly, through an entity created by the
 18-2    municipality, or through an electric system that the municipality
 18-3    directly or indirectly owns, operates, and controls; and
 18-4                (2)  in competition with a private provider of those
 18-5    services.
 18-6          (c)  The municipality may provide cable services only in
 18-7    compliance with this section.  The municipality must conduct the
 18-8    municipality's activities in providing cable services and in its
 18-9    regulation of competing private providers that offer cable services
18-10    so as to avoid discriminatory practices that could limit
18-11    competition and shall specifically ensure nondiscriminatory and
18-12    reasonably comparable treatment between the municipality's own
18-13    provision of cable services and that of competing providers with
18-14    respect to:
18-15                (1)  all financial and operational requirements imposed
18-16    by the municipality on providers of cable services;
18-17                (2)  any requirement that a franchise, license, or
18-18    other authorization be obtained before cable services may be
18-19    offered within the municipality as provided by Subsection (d);
18-20                (3)  compliance with and enforcement of municipal
18-21    regulations and requirements governing the construction, operation,
18-22    and maintenance of facilities used in the provision of cable
18-23    services; and
18-24                (4)  access to the municipality's or municipal electric
18-25    system's utility poles and conduits at terms comparable to those
18-26    provided to other third-party users by the municipality or
18-27    municipal electric system and rates that would apply if the
 19-1    municipality or municipal electric system were subject to the
 19-2    provision of Section 224, Communications Act of 1934 (47 U.S.C.
 19-3    Section 151 et seq.), as amended, except that, with respect to its
 19-4    municipal electric system, that system may, on a nondiscriminatory
 19-5    basis, deny a provider of cable services access to its poles,
 19-6    ducts, conduits, or rights-of-way if there is insufficient capacity
 19-7    or for reasons of safety, reliability, or generally applicable
 19-8    engineering purposes.
 19-9          (d)  A municipal franchise, license, or other authorization
19-10    may not impose on the municipality or municipal electric system any
19-11    requirement that is less burdensome with respect to technical
19-12    design performance or public, institutional, educational, and
19-13    governmental access provisions than the requirements imposed on
19-14    competing private providers.
19-15          (e)  Tying arrangements and price discrimination, to the
19-16    extent proscribed by state and federal antitrust law applicable to
19-17    municipalities and municipal electric systems, are prohibited in
19-18    conjunction with an offering of cable services by a municipality or
19-19    municipal electric system.
19-20          (f)  A municipality or municipal electric system shall
19-21    include in its charges for cable services an in-lieu-of-fee or
19-22    other component that is reasonably equivalent to local property
19-23    taxes, franchise fees, pole attachment fees, and other fees levied
19-24    by the municipality on providers of cable services that the
19-25    business unit of the municipality or municipal electric system
19-26    providing cable services would have to pay if the unit was a
19-27    private provider.
 20-1          (g)  A municipality may not begin offering cable services
 20-2    directly, through an electric system that the municipality owns,
 20-3    operates, and controls, or otherwise, unless:
 20-4                (1)  a majority of the voters of the municipality
 20-5    voting in an election called and held by the municipality for that
 20-6    purpose approves the provision of that service; or
 20-7                (2)  the governing body of the municipality conducts a
 20-8    public hearing and adopts a resolution declaring its intent to
 20-9    offer the services as provided by Subsection (h).
20-10          (h)  Before a public hearing on the issue of offering cable
20-11    services, the municipality shall make information concerning the
20-12    anticipated offering, including  technical, financial, and business
20-13    aspects, available to the public.  The municipality shall provide
20-14    notice of the public hearing and of the location of the public
20-15    information by sending the notice by regular mail to incumbent
20-16    cable operators and by publishing the notice once in a newspaper of
20-17    general circulation in the county in which the municipality or
20-18    municipal electric system is located not earlier than the 30th day
20-19    or later than the 10th day before the date of the hearing.  The
20-20    governing body shall consider the public comments received at the
20-21    hearing and may modify the resolution.  The municipality may adopt
20-22    the resolution at a regular or special meeting.  The municipality
20-23    may not adopt the resolution before the 30th day after the date of
20-24    the public hearing.
20-25          (i)  In the event of a dispute between a municipality and a
20-26    provider of cable services under this section, the parties shall
20-27    explore and attempt to implement available procedures for
 21-1    alternative dispute resolution listed in Section 154.021(a), Civil
 21-2    Practice and Remedies Code, before instituting litigation.  This
 21-3    subsection may not be interpreted to require the parties to engage
 21-4    in binding arbitration.
 21-5          (j)  The commission may not adopt any rule related to this
 21-6    section.
 21-7          SECTION 11.  Section 58.253(a), Utilities Code, is amended to
 21-8    read as follows:
 21-9          (a)  On customer request, an electing company shall provide
21-10    private network services to:
21-11                (1)  an educational institution;
21-12                (2)  a library;
21-13                (3)  a nonprofit telemedicine center;
21-14                (4)  a public or not-for-profit hospital;
21-15                (5)  a project funded by the telecommunications
21-16    infrastructure fund under Subchapter C, Chapter 57, except for a
21-17    project authorized or permitted by Subchapter L, Chapter 55; or
21-18                (6)  a legally constituted consortium or group of
21-19    entities listed in this subsection.
21-20          SECTION 12.  Subchapter D, Chapter 59, Utilities Code, is
21-21    amended by adding Section 59.083 to read as follows:
21-22          Sec. 59.083.  INCENTIVE TO PROVIDE AN ADVANCED SERVICE.  (a)
21-23    In this section, "advanced service" has the meaning assigned by
21-24    Section 55.402.
21-25          (b)  As an incentive to deploy an advanced service in this
21-26    state, a company electing under this chapter may, on notification
21-27    to the commission and without having to elect under Chapter 58,
 22-1    elect to have the company's services established as:
 22-2                (1)  basic network services according to Section
 22-3    58.051;
 22-4                (2)  nonbasic services according to Section 58.151; and
 22-5                (3)  new services according to Section 58.153.
 22-6          (c)  The rate cap provision of Section 58.054 and the pricing
 22-7    provisions of Section 58.152 applicable to basic network services
 22-8    and nonbasic services apply to a company electing under this
 22-9    section.
22-10          (d)  An election made under this section supersedes any final
22-11    order of the commission entered under Section 14.101 or 54.054 to
22-12    the extent that the order limits the rates charged for nonbasic
22-13    services specific to the electing company.
22-14          (e)  A company may elect under this section only if the
22-15    company commits to provide an advanced service beginning on
22-16    September 1, 2001, to any community that submits a bona fide
22-17    request under Section 55.403 signed by at least 75 subscribers.
22-18          SECTION 13. Section 2(11)(A), Development Corporation Act of
22-19    1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
22-20    read as follows:
22-21                      (A)  "Project" shall mean the land, buildings,
22-22    equipment, facilities, targeted infrastructure, and improvements
22-23    (one or more) to promote new and expanded business development or
22-24    found by the board of directors to be required or suitable for the
22-25    promotion of development and expansion of manufacturing and
22-26    industrial facilities, job creation and retention, job training,
22-27    educational facilities, transportation facilities (including but
 23-1    not limited to airports, ports, mass commuting facilities, and
 23-2    parking facilities), facilities or infrastructure used to support
 23-3    or provide an advanced service, as defined by Section 55.402,
 23-4    Utilities Code, sewage or solid waste disposal facilities,
 23-5    recycling facilities, air or water pollution control facilities,
 23-6    facilities for the furnishing of water to the general public,
 23-7    distribution centers, small warehouse facilities capable of serving
 23-8    as decentralized storage and distribution centers, and facilities
 23-9    for use by institutions of higher education, and for the promotion
23-10    of development or redevelopment and expansion, including costs of
23-11    administration and operation, of a military base closed or
23-12    realigned pursuant to recommendation of the Defense Closure and
23-13    Realignment Commission pursuant to the Defense Base Closure and
23-14    Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
23-15    and of facilities which are related to any of the foregoing, and in
23-16    furtherance of the public purposes of this Act, all as defined in
23-17    the rules of the department, irrespective of whether in existence
23-18    or required to be identified, acquired, or constructed thereafter.
23-19                "Project" also includes job training required or
23-20    suitable for the promotion of development and expansion of business
23-21    enterprises and other enterprises described by this Act, as
23-22    provided by Section 38 of this Act.
23-23          SECTION 14.  With the exception of Section 54.2045, Utilities
23-24    Code, as added by this Act, a provision of this Act may not be
23-25    construed to limit or restrict the provision of a service by a
23-26    municipality or a municipal electric system that the municipality
23-27    or system could lawfully provide before the effective date of this
 24-1    Act.  Nothing in this Act is intended to expand or change the
 24-2    definition of a public utility under the Utilities Code.
 24-3          SECTION 15. (a)  This Act takes effect September 1, 2001.
 24-4          (b)  The Public Utility Commission of Texas shall submit the
 24-5    first report required by Section 55.406(c)(2), Utilities Code, as
 24-6    added by this Act, not later than January 15, 2003.