By Sibley                                             S.B. No. 1783
         77R11322 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of telecommunications services, fees,
 1-3     and programs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 54.202, Utilities Code, is amended to read
 1-6     as follows:
 1-7           Sec. 54.202.  PROHIBITED MUNICIPAL SERVICES. (a)  A
 1-8     municipality or municipal electric system may not offer for sale to
 1-9     the public:
1-10                 (1)  a service for which a certificate of convenience
1-11     and necessity, a certificate of operating authority, or a service
1-12     provider certificate of operating authority is required; or
1-13                 (2)  a nonswitched telecommunications service used to
1-14     connect a customer's premises with:
1-15                       (A)  another customer's premises within the
1-16     exchange; or
1-17                       (B)  a long distance provider that serves the
1-18     exchange.
1-19           (b)  Subsection (a)  applies to a service offered either
1-20     directly or indirectly through a telecommunications provider.
1-21           (c)  Notwithstanding Subsections (a)  and (b), a
1-22     municipality, pursuant to commission approval under Section 55.404,
1-23     may establish and provide advanced services upon obtaining a
1-24     certificate of operating authority or a service provider
 2-1     certificate of operating authority.
 2-2           (d)  Notwithstanding any other law, the commission has the
 2-3     jurisdiction necessary to enforce this section.
 2-4           SECTION 2.  Section 55.014, Utilities Code, is amended to
 2-5     read as follows:
 2-6           Sec. 55.014.  PROVISION OF ADVANCED TELECOMMUNICATIONS
 2-7     SERVICES. (a)  [In this section, "advanced service" means any
 2-8     telecommunications service other than residential or business basic
 2-9     local exchange telephone service, caller identification service,
2-10     and customer calling features.]
2-11           [(b)]  This section applies to a company electing under
2-12     Chapter 58, Chapter 59, or a company that holds a certificate of
2-13     operating authority or service provider certificate of operating
2-14     authority.
2-15           [(c)  Notwithstanding any other provision of this title,
2-16     beginning September 1, 2001, a company to which this section
2-17     applies that provides advanced telecommunications services within
2-18     the company's urban service areas, shall, on a bona fide retail
2-19     request for those services, provide in rural areas of this state
2-20     served by the company  advanced telecommunications services that
2-21     are reasonably comparable to the advanced services provided in
2-22     urban areas.  The company shall offer the advanced
2-23     telecommunications services:]
2-24                 [(1)  at prices, terms, and conditions that are
2-25     reasonably comparable to the prices, terms, and conditions for
2-26     similar advanced services provided by the company in urban areas;
2-27     and]
 3-1                 [(2)  within 15 months after the bona fide request for
 3-2     those advanced services.]
 3-3           [(d)  Notwithstanding any other provision of this title, a
 3-4     company to which this section applies shall, on a bona fide retail
 3-5     request for those services, offer caller identification service and
 3-6     custom calling features in rural areas served by the company.  The
 3-7     company shall offer the services:]
 3-8                 [(1)  at prices, terms, and conditions reasonably
 3-9     comparable to the company's prices, terms, and conditions for
3-10     similar services in urban areas; and]
3-11                 [(2)  within 15 months after the bona fide request for
3-12     those services.]
3-13           [(e)  This section may not be construed to require a company
3-14     to:]
3-15                 [(1)  begin providing services in a rural area in which
3-16     the company does not provide local exchange telephone service; or]
3-17                 [(2)  provide a service in a rural area of this state
3-18     unless the company provides the service in urban areas of this
3-19     state.]
3-20           (b) [(f)]  For purposes of this section, a company to which
3-21     this section applies is considered to provide services in urban
3-22     areas of this state if the company provides services in a
3-23     municipality with a population of more than 190,000.
3-24           (c)  As an incentive to deploy advanced services in the
3-25     state, a company electing to Chapter 59, without having to elect to
3-26     Chapter 58, may, upon notification to the commission, elect to have
3-27     its services established as basic network services according to
 4-1     Section 58.051, nonbasic services according to Section 58.151, and
 4-2     new services according to Section 58.153.  In addition, the rate
 4-3     cap provision in Section 58.054, pricing and packaging flexibility
 4-4     in Section 59.031, pricing provisions in Section 58.152, applicable
 4-5     to basic network and nonbasic services shall also be applicable. A
 4-6     company may elect into this incentive plan only if the company is
 4-7     required to provide services under Subsection (d).
 4-8           (d)  If 120 days after the posting of 50 bona fide requests
 4-9     by the commission a community is unsuccessful in attracting a
4-10     provider of advanced services, then a company to which this section
4-11     applies shall provide advanced services to its landline customers
4-12     that are reasonably comparable to the advanced services provided in
4-13     their larger exchanges.  The company shall offer the advanced
4-14     services:
4-15                 (1)  at prices, terms, and conditions that are
4-16     reasonably comparable to the prices, terms, and conditions for the
4-17     similar advanced services provided by the company in their larger
4-18     exchanges; and
4-19                 (2)  within nine months after the requirement to
4-20     provide those advanced services for a community within their
4-21     service area.
4-22           (e)  This section may not be construed to require a company
4-23     to:
4-24                 (1)  begin providing services in an area in which the
4-25     company does not provide local exchange service; or
4-26                 (2)  provide a service in an area of this state unless
4-27     the company provides the service in a larger exchange for which it
 5-1     is certificated to serve.
 5-2           (f)  The commission shall, by rule, determine what
 5-3     constitutes a bona fide request.
 5-4           (g)  The requirements of Subsection (d) shall be considered
 5-5     met:
 5-6                 (1)  if the electing company has provided or deploys
 5-7     advanced services in such communities; or
 5-8                 (2)  if alternative telecommunications carriers, cable
 5-9     companies, wireless providers, or satellite companies provide
5-10     advanced services, as defined by Section 55.402, to the customers
5-11     of Chapter 59 companies.
5-12           (h)  Notwithstanding any other provisions of this title, the
5-13     commission has all jurisdiction necessary to enforce this section.
5-14           (i)  In this section, "advanced services" has the same
5-15     meaning as provided in Section 55.402.
5-16           (j)  Section 14.101 does not apply to a company electing to
5-17     this subsection.
5-18           [(g)  Notwithstanding any other provision of this title, the
5-19     commission has all jurisdiction necessary to enforce this section.]
5-20           SECTION 3. Chapter 55, Utilities Code, is amended by adding
5-21     Subchapter L to read as follows:
5-22        SUBCHAPTER L.  DEPLOYMENT OF ADVANCED SERVICES TO RURAL AREAS
5-23           Sec. 55.401.  POLICY. It is the policy of this state to:
5-24                 (1)  ensure the availability of  advanced services to
5-25     every residential and business customer;
5-26                 (2)  ensure that access in rural areas for  advanced
5-27     services is reasonably comparable in price, terms, and quality as
 6-1     that provided in urban areas; and
 6-2                 (3)  encourage the deployment of advanced services,
 6-3     without regard to any specific transmission media or technology, to
 6-4     all communities of the state and to any person.
 6-5           Sec. 55.402.  DEFINITIONS. In this subchapter:
 6-6                 (1)  "Advanced services" means a service that,
 6-7     regardless of transmission media or technology, enables users to
 6-8     originate and receive voice, data, graphics, and video with
 6-9     upstream and downstream speeds in excess of 128 kilobits per
6-10     second.
6-11                 (2)  "Anchor tenancy" means the use of advanced
6-12     services by large scale consumers of advanced services, including
6-13     but not limited to local government, schools, and libraries, to
6-14     guarantee a certain level of demand that is large enough to take
6-15     advantage of economies of scale sufficient to:
6-16                       (A)  mitigate the risk of making a relatively
6-17     high fixed investment in advanced services infrastructure; or
6-18                       (B)  encourage private sector investment in the
6-19     infrastructure adequate to provide state-of-the-art advanced
6-20     services to a given community.
6-21                 (3)  "Commission" means the Public Utility Commission
6-22     of Texas.
6-23                 (4)  "Community networks" means advanced services
6-24     networks that allow broad community participation and utilization
6-25     of advanced services by private and public sector users.
6-26                 (5)  "Community technology centers" means centers that
6-27     provide individuals or organizations with access to computers,
 7-1     technology literacy training, the Internet, technical support, and
 7-2     staff training.
 7-3                 (6)  "Company" means a local exchange company that has
 7-4     a certificate of convenience and necessity (CCN).
 7-5                 (7)  "Demand aggregation" means the joining together of
 7-6     several small consumers who desire advanced services and hold
 7-7     themselves out to a provider of advanced services as a single
 7-8     consumer that is large enough to warrant private investment in
 7-9     providing the requested service, thereby combining the buying power
7-10     of the consumers.
7-11                 (8)  "Local solutions" means a documented attempt by a
7-12     local government, including but not limited to a county
7-13     commissioners court, city council, or economic development
7-14     authority, or private initiative to encourage the deployment of
7-15     advanced services to a community by the use of demand aggregation,
7-16     anchor tenancy, community networks, or any similar means approved
7-17     by the commission.
7-18                 (9)  "Market failure" means the inability of a rural
7-19     community to accumulate 50 bona fide requests over a 90-day period.
7-20     The 90-day period begins when the rural community notifies the
7-21     commission of its effort to accumulate the bona fide requests.
7-22                 (10)  "Rural" means a home-rule or general-law
7-23     municipality with a population of less than 20,000 that is not
7-24     located in a county that has a municipality with a population
7-25     greater than 190,000.
7-26                 (11)  "Urban" means a municipality with a population of
7-27     more than 190,000.
 8-1           Sec. 55.4025.  COMMUNITY INCENTIVES. (a)  Upon notification
 8-2     by the commission that a rural community has 50 bona fide requests
 8-3     for advanced services, the rural community, upon commission
 8-4     approval, may utilize funding sources under Section 55.404(b) to
 8-5     attract any provider of advanced services in the state.
 8-6           (b)  The commission shall post publicly the number of bona
 8-7     fide requests for advanced services in rural communities.
 8-8           Sec. 55.403.  PROVISION OF ADVANCED SERVICES. (a)  This
 8-9     subchapter applies to a company as defined in Section 55.402(6).
8-10           (b)  If 120 days after the posting of 50 bona fide requests
8-11     for advanced services by the commission a community is unsuccessful
8-12     in attracting a provider of advanced services, then the company
8-13     shall provide advanced services to landline customers in  the
8-14     community within its certificated area that are reasonably
8-15     comparable to the advanced services provided in their larger
8-16     exchanges.  Upon such request the company shall:
8-17                 (1)  provide the requested service; or
8-18                 (2)  enter into a partnership or joint venture with
8-19     another provider of advanced services in order to provide the
8-20     requested service.
8-21           (c)  Advanced services shall be provided by the company:
8-22                 (1)  at prices, terms, conditions, and quality that are
8-23     reasonably comparable to the prices, terms, conditions, and quality
8-24     for similar services provided in urban areas of the state; and
8-25                 (2)  within nine months after the requirement to
8-26     provide those advanced services for a community within their
8-27     service area.
 9-1           Sec. 55.404.  DEPLOYMENT OF ADVANCED SERVICES TO RURAL AREAS.
 9-2     (a)  The state believes it is important that companies and
 9-3     communities seek local solutions to encourage the deployment of
 9-4     advanced services.  The state determines that the following local
 9-5     solutions are best practices for encouraging deployment of such
 9-6     services in all areas of the state:
 9-7                 (1)  demand aggregation;
 9-8                 (2)  anchor tenancy; and
 9-9                 (3)  community networks.
9-10           (b)  In accordance with Section 55.4025 and in addition to
9-11     the provisions of Subsection (a), rural communities with
9-12     populations less than 20,000 may seek to fund advanced services
9-13     through the following means:
9-14                 (1)  projects utilizing funding sources identified in
9-15     the Development Corporation Act of 1979 (Article 5190.6, Vernon's
9-16     Texas Civil Statutes) (4A/4B projects);
9-17                 (2)  telecommunications infrastructure fund grants to
9-18     provide community technology centers;
9-19                 (3)  community development block grants;
9-20                 (4)  Texas Agricultural Finance Authority financing; or
9-21                 (5)  other business incentives within the jurisdiction
9-22     of the local government's authority.
9-23           (c)  Upon a showing to the commission that market failure has
9-24     occurred and that local solutions have been unsuccessful in
9-25     encouraging the deployment of advanced services in a rural
9-26     community, the appropriate local governmental body or residents,
9-27     upon petition of 25 percent of the residents, may request of the
 10-1    commission permission to:
 10-2                (1)  allow private entities within the jurisdictional
 10-3    boundaries of the local government to use the state's consolidated
 10-4    telecommunications system;
 10-5                (2)  seek telecommunications infrastructure fund grants
 10-6    to provide advanced services infrastructure; or
 10-7                (3)  provide advanced services to their community
 10-8    pursuant to Section 54.202(c).
 10-9          (d)  In rural communities with populations less than 2,000,
10-10    beginning January 1, 2002, the appropriate local governmental body
10-11    or residents, upon petition of 25 percent of the residents,  may
10-12    request of the commission permission to:
10-13                (1)  allow private entities within the jurisdictional
10-14    boundaries of the local government to use the state's consolidated
10-15    telecommunications system;
10-16                (2)  seek telecommunications infrastructure fund grants
10-17    to provide advanced services infrastructure; or
10-18                (3)  provide advanced services to their community
10-19    pursuant to Section 54.202(c).
10-20          (e)  Rural communities under Subsection (d) are not required
10-21    to demonstrate market failure to the commission prior to requesting
10-22    the provisions under Subsection (d).
10-23          Sec. 55.405.  STATEWIDE ADVANCED SERVICES STRATEGIC PLANNING.
10-24    (a)  The commission is responsible for strategic planning for the
10-25    deployment of advanced services to end use customers in rural
10-26    areas.
10-27          (b)  The commission shall coordinate with and provide
 11-1    direction to other agencies regarding the deployment of advanced
 11-2    services or issues that may affect the deployment of advanced
 11-3    services throughout the state.
 11-4          (c)  In order to perform strategic planning, the commission
 11-5    shall collect and make use of data and information deemed necessary
 11-6    to ensure the most efficient deployment of advanced services
 11-7    throughout the state.
 11-8          (d)  Information obtained pursuant to this subchapter is
 11-9    confidential, shall not be disclosed, and is excepted from public
11-10    disclosure under Chapter 552, Government Code.
11-11          Sec. 55.406.  COMMISSION AUTHORITY. Notwithstanding any other
11-12    provision of this title, the commission has all jurisdiction
11-13    necessary to enforce this subchapter.
11-14          SECTION 4.  Section 57.042, Utilities Code, is amended to
11-15    read as follows:
11-16          Sec. 57.042. DEFINITIONS. In this subchapter:
11-17                (1)  "Advanced services" has the same meaning as
11-18    provided in Section 55.402.
11-19                (2) [(1)]  "Ambulatory health care center" means a
11-20    health care clinic or an association of such a clinic that is:
11-21                      (A)  exempt from federal income taxation under
11-22    Section 501(a), Internal Revenue Code of 1986, as amended, as an
11-23    organization described by Section 501(c)(3), as amended; and
11-24                      (B)  funded wholly or partly by a grant under 42
11-25    U.S.C. Section 254b, 254c, or 256, as amended.
11-26                (3) [(2)]  "Board" means the telecommunications
11-27    infrastructure fund board.
 12-1                (4) [(3)]  "Commercial mobile service provider" means a
 12-2    provider of commercial mobile service as defined by Section 332(d),
 12-3    Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
 12-4    Communications Commission rules, and the Omnibus Budget
 12-5    Reconciliation Act of 1993 (Pub. L. No. 103-66).
 12-6                (5)  "Community technology centers" has the same
 12-7    meaning as provided in Section 55.402.
 12-8                (6) [(4)]  "Fund" means the telecommunications
 12-9    infrastructure fund.
12-10                (7) [(5)]  "Institution of higher education" means:
12-11                      (A)  an institution of higher education as
12-12    defined by Section 61.003, Education Code; or
12-13                      (B)  a private or independent institution of
12-14    higher education as defined by Section 61.003, Education Code.
12-15                (8) [(6)]  "Library" means:
12-16                      (A)  a public library or regional library system
12-17    as those terms are defined by Section 441.122, Government Code; or
12-18                      (B)  a library operated by an institution of
12-19    higher education or a school district.
12-20                (9) [(7)]  "Public not-for-profit health care facility"
12-21    means a rural or regional hospital or other entity such as a rural
12-22    health clinic that:
12-23                      (A)  is supported by local or regional tax
12-24    revenue;
12-25                      (B)  is a certified not-for-profit health
12-26    corporation, under federal law; or
12-27                      (C)  is an ambulatory health care center.
 13-1                (10) [(8)]  "School district" includes an independent
 13-2    school district, a common school district, and a rural high school
 13-3    district.
 13-4                (11) [(9)]  "Public school" means a public elementary
 13-5    or secondary school, including an open-enrollment charter school, a
 13-6    home-rule school district school, and a school with a campus or
 13-7    campus program charter.
 13-8                (12) [(10)]  "Taxable telecommunications receipts"
 13-9    means taxable telecommunications receipts reported under Chapter
13-10    151, Tax Code.
13-11                (13) [(11)]  "Telemedicine":
13-12                      (A)  means medical services delivered by
13-13    telecommunications technologies to rural or underserved public
13-14    not-for-profit health care facilities or primary health care
13-15    facilities in collaboration with an academic health center and an
13-16    associated teaching hospital or tertiary center or with another
13-17    public not-for-profit health care facility; and
13-18                      (B)  includes consultive services, diagnostic
13-19    services, interactive video consultation, teleradiology,
13-20    telepathology, and distance education for working health care
13-21    professionals.
13-22          SECTION 5. Section 57.046, Utilities Code, is amended to read
13-23    as follows:
13-24          Sec. 57.046.  USE OF ACCOUNTS. (a)  The board shall use money
13-25    in the public schools account to award grants and loans in
13-26    accordance with this subchapter to fund:
13-27                (1)  equipment for public schools, including computers,
 14-1    printers, computer labs, and video equipment; and
 14-2                (2)  intracampus and intercampus wiring to enable those
 14-3    public schools to use the equipment.
 14-4          (b)  The board shall use money in the qualifying entities
 14-5    account for any purpose authorized by this subchapter, including:
 14-6                (1)  equipment;
 14-7                (2)  wiring;
 14-8                (3)  material;
 14-9                (4)  program development;
14-10                (5)  training;
14-11                (6)  installation costs; [and]
14-12                (7)  a statewide telecommunications network; and
14-13                (8)  infrastructure and related costs for the provision
14-14    of community technology centers or advanced services to rural areas
14-15    of this state pursuant to Sections 55.4025 and 55.404.
14-16          SECTION 6. Section 57.047, Utilities Code, is amended to read
14-17    as follows:
14-18          Sec. 57.047.  GRANT AND LOAN PROGRAM. (a)  The board may
14-19    award a grant to a project or proposal that:
14-20                (1)  provides equipment and infrastructure necessary
14-21    for:
14-22                      (A)  distance learning;
14-23                      (B)  an information sharing program of a library;
14-24    [or]
14-25                      (C)  telemedicine services; or
14-26                      (D)  the provision of community technology
14-27    centers or advanced services in rural areas of the state pursuant
 15-1    to Sections 55.4025 and 55.404;
 15-2                (2)  develops and implements the initial or
 15-3    prototypical delivery of a course or other distance learning
 15-4    material;
 15-5                (3)  trains teachers, faculty, librarians, or
 15-6    technicians in the use of distance learning or information sharing
 15-7    materials and equipment;
 15-8                (4)  develops a curriculum or instructional material
 15-9    specially suited for telecommunications delivery;
15-10                (5)  provides electronic information; or
15-11                (6)  establishes or carries out an information sharing
15-12    program.
15-13          (b)  The board may award a loan to a project or proposal to
15-14    acquire equipment needed for distance learning and telemedicine
15-15    projects.
15-16          (c)  In awarding a grant or loan under this subchapter, the
15-17    board shall give priority to a project or proposal that:
15-18                (1)  represents collaborative efforts involving more
15-19    than one school, university, or library;
15-20                (2)  contributes matching funds from another source;
15-21                (3)  shows promise of becoming self-sustaining;
15-22                (4)  helps users of information learn new ways to
15-23    acquire and use information through telecommunications;
15-24                (5)  extends specific educational information and
15-25    knowledge services to a group not previously served, especially a
15-26    group in a rural or remote area;
15-27                (6)  results in more efficient or effective learning
 16-1    than through conventional teaching;
 16-2                (7)  improves the effectiveness and efficiency of
 16-3    health care delivery; [or]
 16-4                (8)  takes advantage of distance learning opportunities
 16-5    in a rural or urban school district with a:
 16-6                      (A)  disproportionate number of at-risk youths;
 16-7    or
 16-8                      (B)  high dropout rate; or
 16-9                (9)  will establish or enhance the provision of
16-10    advanced services to rural areas of this state.
16-11          (d)  In distributing money to public schools, the board
16-12    shall:
16-13                (1)  consider the relative property wealth per student
16-14    of the school districts that receive the money; and
16-15                (2)  recognize the unique needs of rural communities.
16-16          (e)  [If a board member is an employee of an entity that
16-17    applies for a grant or loan under this subchapter, the board
16-18    member, before a vote on the grant or loan, shall disclose the fact
16-19    of the member's employment.  The disclosure must be entered into
16-20    the minutes of the meeting.  The board member may not vote on or
16-21    otherwise participate in the awarding of the grant or loan. If the
16-22    board member does not comply with this subsection, the entity is
16-23    not eligible for the grant or loan.]
16-24          [(f)]  A grant or loan awarded under this section is subject
16-25    to the limitations prescribed by Sections [Section] 57.046 and
16-26    57.0475.
16-27          SECTION 7. Subchapter C, Chapter 57, Utilities Code, is
 17-1    amended by adding Section 57.0475 to read as follows:
 17-2          Sec. 57.0475.  GRANTS TO RURAL AREAS FOR ADVANCED
 17-3    TELECOMMUNICATIONS  SERVICES. (a)  In consideration of the duties
 17-4    and responsibilities given the board under this chapter, it is the
 17-5    policy of this state that all rural areas of this state have access
 17-6    to advanced services.  The board shall coordinate its duties and
 17-7    responsibilities with the commission and any other entity to
 17-8    encourage the ubiquitous access of advanced services in rural areas
 17-9    of the state.
17-10          (b)  Any public or governmental entity or political
17-11    subdivision, or person, association, or entity, within a rural
17-12    area, as defined by Section 55.402, may:
17-13                (1)  seek funds under this chapter for the development
17-14    of community technology centers; and
17-15                (2)  seek funds under this chapter for the provision of
17-16    advanced services, pursuant to commission approval under Sections
17-17    55.4025 and 55.404.
17-18          (c)  The board shall adopt rules to implement this section in
17-19    cooperation with the Public Utility Commission of Texas and the
17-20    Department of Information Resources.  The rules shall include the
17-21    coordination of requests for access under this section from
17-22    different parties in the same rural area.
17-23          SECTION 8. Sections 57.048, 57.050, and 57.051, Utilities
17-24    Code, are amended to read as follows:
17-25          Sec. 57.048.  ASSESSMENTS AND COLLECTIONS. (a)  An annual
17-26    assessment is imposed on each telecommunications utility and each
17-27    commercial mobile service provider doing business in this state.
 18-1          (b)  The assessment is imposed at the rate of .625 [1.25]
 18-2    percent of the taxable telecommunications receipts of the
 18-3    telecommunications utility or commercial mobile service provider,
 18-4    subject to this section.
 18-5          (c)  [The total amount deposited to the credit of the fund,
 18-6    excluding interest and loan repayments, may not exceed $1.5
 18-7    billion.  Not later than August 31 of each year, the comptroller
 18-8    shall determine the total amount, excluding interest and loan
 18-9    repayments, that has been deposited to the credit of the fund
18-10    during that fiscal year and the preceding fiscal years.  If the
18-11    comptroller determines that a total of $1.2 billion or more,
18-12    excluding interest and loan repayments, has been deposited to the
18-13    credit of the fund, the comptroller shall impose the assessment
18-14    during the next fiscal year at a rate that the comptroller
18-15    estimates is sufficient to produce the amount necessary to result
18-16    in the deposit in the fund of a total of not more than $1.5
18-17    billion, excluding interest and loan repayments.]
18-18          [(d)  The comptroller may not collect the assessment during a
18-19    fiscal year if the comptroller determines after the yearly review
18-20    that the total amount deposited to the credit of the fund during
18-21    that fiscal year and the preceding fiscal years is $1.49 billion or
18-22    more, excluding interest and loan repayments, and it is not
18-23    possible to impose the assessment during the next fiscal year at a
18-24    practical rate without collecting more than a total of $1.5
18-25    billion, excluding interest and loan repayments.]
18-26          [(e)]  The comptroller may require a telecommunications
18-27    utility or commercial mobile service provider to provide any report
 19-1    or information necessary to fulfill the comptroller's duties under
 19-2    this section.  Information provided to the comptroller under this
 19-3    section is confidential and exempt from disclosure under Chapter
 19-4    552, Government Code.
 19-5          Sec. 57.050.  ASSISTANCE OF OTHER AGENCIES. The following
 19-6    agencies, in consultation with the board, shall adopt policies and
 19-7    procedures that are designed to aid the board in achieving the
 19-8    purposes of this subchapter:
 19-9                (1)  the Texas Higher Education Coordinating Board;
19-10                (2)  the Texas Education Agency; [and]
19-11                (3)  the Texas State Library and Archives Commission;
19-12                (4)  the Public Utility Commission of Texas; and
19-13                (5)  the Department of Information Resources.
19-14          Sec. 57.051.  SUNSET PROVISION. The Telecommunications
19-15    Infrastructure Fund Board is subject to Chapter 325, Government
19-16    Code (Texas Sunset Act). Unless continued in existence as provided
19-17    by that chapter, the board is abolished and this subchapter expires
19-18    September 1, 2010 [2005].
19-19          SECTION 9.  Section 2054.206, Government Code, is amended to
19-20    read as follows:
19-21          Sec. 2054.206.  ADVISORY AGENCIES. The following state
19-22    agencies shall formally advise the telecommunications planning
19-23    group and send representatives to meetings of the group:
19-24                (1)  the Texas Education Agency;
19-25                (2)  the Texas Higher Education Coordinating Board;
19-26                (3)  The Texas A&M University System;
19-27                (4)  The University of Texas System;
 20-1                (5)  the Telecommunications Infrastructure Fund Board;
 20-2    [and]
 20-3                (6)  the Texas State Library and Archives Commission;
 20-4                (7)  the Public Utility Commission of Texas;
 20-5                (8)  the General Services Commission;
 20-6                (9)  the Department of Information Resources;
 20-7                (10)  the Commission on State Emergency Communications;
 20-8    and
 20-9                (11)  the Texas Department of Economic Development.
20-10          SECTION 10. Section 2170.004, Government Code, is amended to
20-11    read as follows:
20-12          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
20-13    AGENCIES. The commission may contract for use of the consolidated
20-14    telecommunications system with:
20-15                (1)  each house of the legislature;
20-16                (2)  a legislative agency;
20-17                (3)  an agency that is not a state agency as defined by
20-18    Section 2151.002; [and]
20-19                (4)  a political subdivision, including a county,
20-20    municipality, or district; and
20-21                (5)  any person or entity the Public Utility Commission
20-22    of Texas approves for use that resides within a rural area of this
20-23    state as provided by Section 2170.060.
20-24          SECTION 11. Subchapter A, Chapter 2170, Government Code, is
20-25    amended by adding Section 2170.0045 to read as follows:
20-26          Sec. 2170.0045.  PUBLIC ENTITY ACCESS TO CONSOLIDATED
20-27    TELECOMMUNICATIONS SYSTEM. Upon approval by the Public Utility
 21-1    Commission of Texas, the commission shall allow access to and
 21-2    contract the use of the consolidated telecommunications system to
 21-3    any public or governmental entity or political subdivision of this
 21-4    state as provided by Section 2170.060.  The commission may require
 21-5    the public or governmental entity or political subdivision to
 21-6    contract with the commission pursuant to the Interlocal Cooperation
 21-7    Act, Chapter 791, Government Code.
 21-8          SECTION 12. Section 2170.058, Government Code, is amended to
 21-9    read as follows:
21-10          Sec. 2170.058.  USE OF SYSTEM BY CERTAIN STUDENTS. (a)  An
21-11    institution of higher education under Section 61.003, Education
21-12    Code, that is authorized to use the system of telecommunications
21-13    services established under this chapter may allow students of the
21-14    institution who reside in housing for which the institution
21-15    provides telephone service to use the system of telecommunications
21-16    services. An institution shall recover from a student who chooses
21-17    to use the system the full pro rata cost attributable to that
21-18    student's use, including costs identifiable for interconnection to
21-19    and use of the local publicly switched network.
21-20          (b)  The commission shall adopt rules that govern student
21-21    access to the system, including:
21-22                (1)  times of access to the system; and
21-23                (2)  the full recovery of actual costs from each
21-24    student who uses the system.
21-25          [(c)  In consideration of the duties and responsibilities
21-26    given the commission under this subtitle, it is the policy of this
21-27    state that a state agency or unit of state government may not
 22-1    provide telecommunications products or services to the general
 22-2    public in competition with private enterprise unless there is a
 22-3    finding that providing the products or services is in the public
 22-4    interest. This subsection does not prohibit students who reside in
 22-5    housing for which institutions of higher education provide
 22-6    telephone service from using service provided under this section.]
 22-7          SECTION 13. Subchapter B, Chapter 2170, Government Code, is
 22-8    amended by adding Section 2170.060 to read as follows:
 22-9          Sec. 2170.060.  RURAL AREA ACCESS TO CONSOLIDATED
22-10    TELECOMMUNICATIONS SYSTEM. (a)  In consideration of the duties and
22-11    responsibilities given to the commission under this subtitle, and
22-12    to the Public Utility Commission of Texas under the Utilities Code,
22-13    it is the policy of this state that all rural areas of this state
22-14    that are unable to obtain advanced services have access to such
22-15    services through the consolidated telecommunications system.
22-16          (b)  The commission shall coordinate its duties and
22-17    responsibilities with the telecommunications infrastructure fund
22-18    and permit access, pursuant to Public Utility Commission of Texas
22-19    approval under Section 55.404, Utilities Code.
22-20          (c)  The Public Utility Commission of Texas shall adopt rules
22-21    to implement this section in cooperation with the
22-22    telecommunications planning group and the commission.  The rules
22-23    shall include the coordination of requests for access under this
22-24    section from different parties in the same rural area.
22-25          SECTION 14. Section 2(11)(A), Development Corporation Act of
22-26    1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
22-27    read as follows:
 23-1                      (A)  "Project" shall mean the land, buildings,
 23-2    equipment, facilities, targeted infrastructure, and improvements
 23-3    (one or more) to promote new and expanded business development or
 23-4    found by the board of directors to be required or suitable for the
 23-5    promotion of development and expansion of manufacturing and
 23-6    industrial facilities, job creation and retention, job training,
 23-7    educational facilities, transportation facilities (including but
 23-8    not limited to airports, ports, mass commuting facilities, and
 23-9    parking facilities), facilities or infrastructure used to support
23-10    or provide advanced services, sewage or solid waste disposal
23-11    facilities, recycling facilities, air or water pollution control
23-12    facilities, facilities for the furnishing of water to the general
23-13    public, distribution centers, small warehouse facilities capable of
23-14    serving as decentralized storage and distribution centers, and
23-15    facilities for use by institutions of higher education, and for the
23-16    promotion of development or redevelopment and expansion, including
23-17    costs of administration and operation, of a military base closed or
23-18    realigned pursuant to recommendation of the Defense Closure and
23-19    Realignment Commission pursuant to the Defense Base Closure and
23-20    Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
23-21    and of facilities which are related to any of the foregoing, and in
23-22    furtherance of the public purposes of this Act, all as defined in
23-23    the rules of the department, irrespective of whether in existence
23-24    or required to be identified, acquired, or constructed thereafter.
23-25          ["Project" also includes job training required or suitable
23-26    for the promotion of development and expansion of business
23-27    enterprises and other enterprises described by this Act, as
 24-1    provided by Section 38 of this Act.]
 24-2          SECTION 15.  Chapter 51, Local Government Code, is amended by
 24-3    adding Sections 51.019, 51.036, 51.053, and 51.080 to read as
 24-4    follows:
 24-5          Sec. 51.019.  PROVISION OF ADVANCED SERVICES.  A Type-A
 24-6    municipality may buy, own, construct inside or outside the
 24-7    municipal limits, and maintain and operate a certificated facility
 24-8    designed to provide reasonably comparable access to advanced
 24-9    services for its residents pursuant to Section 55.404, Utilities
24-10    Code.  The municipality may require and receive compensation for
24-11    such services furnished for private purposes or otherwise. The
24-12    municipality may use eminent domain authority to appropriate real
24-13    property, rights-of-way, or other property as necessary to
24-14    efficiently carry out those objects. In its charter, the
24-15    municipality may adopt rules, not inconsistent with existing state
24-16    law, it considers advisable for the provisioning of advanced
24-17    services.
24-18          Sec. 51.036.  PROVISION OF ADVANCED SERVICES.  A Type-B
24-19    municipality may buy, own, construct inside or outside the
24-20    municipal limits, and maintain and operate a certificated facility
24-21    designed to provide reasonably comparable access to advanced
24-22    services for its residents pursuant to Section 55.404, Utilities
24-23    Code.  The municipality may require and receive compensation for
24-24    such services furnished for private purposes or otherwise. The
24-25    municipality may use eminent domain authority to appropriate real
24-26    property, rights-of-way, or other property as necessary to
24-27    efficiently carry out those objects. In its charter, the
 25-1    municipality may adopt rules, not inconsistent with existing state
 25-2    law, it considers advisable for the provisioning of advanced
 25-3    services.
 25-4          Sec. 51.053.  PROVISION OF ADVANCED SERVICES.  A Type-C
 25-5    municipality may buy, own, construct inside or outside the
 25-6    municipal limits, and maintain and operate a certificated facility
 25-7    designed to provide reasonably comparable access to advanced
 25-8    services for its residents pursuant to Section 55.404, Utilities
 25-9    Code.  The municipality may require and receive compensation for
25-10    such services furnished for private purposes or otherwise. The
25-11    municipality may use eminent domain authority to appropriate real
25-12    property, rights-of-way, or other property as necessary to
25-13    efficiently carry out those objects. In its charter, the
25-14    municipality may adopt rules, not inconsistent with existing state
25-15    law, it considers advisable for the provisioning of advanced
25-16    services.
25-17          Sec. 51.080.  PROVISION OF ADVANCED SERVICES.  A home-rule
25-18    municipality may buy, own, construct inside or outside the
25-19    municipal limits, and maintain and operate a certificated facility
25-20    designed to provide reasonably comparable access to advanced
25-21    services for its residents pursuant to Section 55.404, Utilities
25-22    Code.  The municipality may require and receive compensation for
25-23    such services furnished for private purposes or otherwise. The
25-24    municipality may use eminent domain authority to appropriate real
25-25    property, rights-of-way, or other property as necessary to
25-26    efficiently carry out those objects. In its charter, the
25-27    municipality may adopt rules, not inconsistent with existing state
 26-1    law, it considers advisable for the provisioning of advanced
 26-2    services.
 26-3          SECTION 16.  This Act takes effect September 1, 2001.