1-1     By:  Sibley, et al.                                   S.B. No. 1783
 1-2           (In the Senate - Filed March 28, 2001; March 29, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 9, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 9, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1783                  By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the regulation of telecommunications services, fees,
1-11     and programs.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 54.202, Utilities Code, is amended to
1-14     read as follows:
1-15           Sec. 54.202.  PROHIBITED MUNICIPAL SERVICES. (a)  A
1-16     municipality or municipal electric system may not offer for sale to
1-17     the public:
1-18                 (1)  a service for which a certificate of convenience
1-19     and necessity, a certificate of operating authority, or a service
1-20     provider certificate of operating authority is required; or
1-21                 (2)  a nonswitched telecommunications service used to
1-22     connect a customer's premises with:
1-23                       (A)  another customer's premises within the
1-24     exchange; or
1-25                       (B)  a long distance provider that serves the
1-26     exchange.
1-27           (b)  Subsection (a) applies to a service offered either
1-28     directly or indirectly through a telecommunications provider.
1-29           (c)  Notwithstanding Subsections (a)  and (b), a
1-30     municipality, pursuant to commission approval under Section 55.404,
1-31     may establish and provide only advanced services upon obtaining a
1-32     certificate of operating authority or a service provider
1-33     certificate of operating authority.
1-34           (d)  Notwithstanding any other law, the commission has the
1-35     jurisdiction necessary to enforce this section.
1-36           SECTION 2.  Chapter 55, Utilities Code, is amended by adding
1-37     Subchapter L to read as follows:
1-38        SUBCHAPTER L.  DEPLOYMENT OF ADVANCED SERVICES TO RURAL AREAS
1-39           Sec. 55.401.  POLICY.  It is the policy of this state to:
1-40                 (1)  ensure the availability of  advanced services to
1-41     every residential and business customer;
1-42                 (2)  ensure that access in rural areas to  advanced
1-43     services is reasonably comparable in price, terms, conditions, and
1-44     quality as that provided in urban areas; and
1-45                 (3)  encourage the deployment of advanced services,
1-46     without regard to any specific transmission medium or technology,
1-47     to all communities of the state and to any person.
1-48           Sec. 55.402.  DEFINITIONS.  In this subchapter:
1-49                 (1)  "Advanced service" means a service that,
1-50     regardless of transmission medium or technology, is capable of
1-51     originating and receiving data with upstream and downstream speeds
1-52     of at least 128 kilobits per second.
1-53                 (2)  "Anchor tenancy" means the use, in a rural
1-54     community under this subchapter, of advanced services by large
1-55     scale consumers, including but not limited to local government,
1-56     schools, and libraries, to guarantee a certain level of demand that
1-57     is large enough to take advantage of economies of scale sufficient
1-58     to:
1-59                       (A)  mitigate the risk of making a relatively
1-60     high fixed investment in advanced services infrastructure; or
1-61                       (B)  encourage private sector investment in the
1-62     infrastructure adequate to provide state-of-the-art advanced
1-63     services to a given community.
1-64                 (3)  "Commission" means the Public Utility Commission
 2-1     of Texas.
 2-2                 (4)  "Community networks" means advanced services
 2-3     networks in a rural community under this subchapter that allow
 2-4     broad community participation and utilization of advanced services
 2-5     by private and public sector users.
 2-6                 (5)  "Community technology centers" means centers that
 2-7     provide individuals or organizations with access to computers,
 2-8     technology literacy training, the Internet, technical support, and
 2-9     staff training.
2-10                 (6)  "Company" means a local exchange company that has
2-11     a certificate of convenience and necessity.
2-12                 (7)  "Demand aggregation" means the joining together of
2-13     several small consumers who desire advanced services and hold
2-14     themselves out to a provider of advanced services as a single
2-15     consumer that is large enough to warrant private investment in
2-16     providing the requested service, thereby combining the buying power
2-17     of the small consumers.
2-18                 (8)  "Local solutions" means a documented attempt by a
2-19     local government, including but not limited to a county
2-20     commissioners court, city council, or economic development
2-21     authority, or private initiative to encourage the deployment of
2-22     advanced services to a community by the use of demand aggregation,
2-23     anchor tenancy, community networks, or any similar means approved
2-24     by the commission.
2-25                 (9)  "Market failure" means the inability of a rural
2-26     community to  obtain deployment of an advanced service through
2-27     market-based deployment, the incentive process provided under
2-28     Sections 55.4025 and 55.403, or the local solutions made available
2-29     under Section 55.404.
2-30                 (10)  "Rural community" means a home-rule or
2-31     general-law municipality with a population of less than 20,000 that
2-32     is not located in a county that has a municipality with a
2-33     population greater than 190,000.
2-34                 (11)  "Urban" means a municipality with a population of
2-35     more than 190,000.
2-36           Sec. 55.4025.  INCENTIVE ELECTION AND PROCESSES TO ASSIST IN
2-37     MAKING ADVANCED SERVICES AVAILABLE.  (a)  This section applies to a
2-38     company that has elected under Chapter 59.
2-39           (b)  Upon notification to the commission that a rural
2-40     community has 75 bona fide requests for an advanced service, the
2-41     rural community, upon commission approval, may utilize funding
2-42     sources under Section 55.404(b) to attract any provider of advanced
2-43     services in the state.
2-44           (c)  The commission shall post publicly the number of bona
2-45     fide requests for an advanced service in each rural community.
2-46           (d)  The commission shall, by rule, determine what
2-47     constitutes a bona fide request.
2-48           (e)  As an incentive to deploy advanced services in the
2-49     state, a company electing under Chapter 59, without having to elect
2-50     under Chapter 58, may, upon notification to the commission, elect
2-51     to have its services established as basic network services
2-52     according to Section 58.051, nonbasic services according to Section
2-53     58.151, and new services according to Section 58.153.  In addition,
2-54     the rate cap provision in Section 58.054, pricing and packaging
2-55     flexibility in Section 59.031, and pricing provisions in Section
2-56     58.152, applicable to basic network and nonbasic services, shall
2-57     also be applicable. A company may elect this incentive plan only if
2-58     the company is required to provide services under Subsection (f).
2-59           (f)  If, 120 days after the posting of 75 bona fide requests
2-60     for an advanced service by the commission, a rural community has
2-61     not entered into a contract with a provider of advanced services,
2-62     then a company to which this section applies shall provide an
2-63     advanced service to its landline customers within its certificated
2-64     area that is reasonably comparable to an advanced service provided
2-65     in its larger exchanges.  The company shall offer the advanced
2-66     service:
2-67                 (1)  at prices, terms, conditions, and quality that are
2-68     reasonably comparable to the prices, terms, conditions, and quality
2-69     for the similar advanced service provided by the company in its
 3-1     larger exchanges; and
 3-2                 (2)  within nine months after the requirement to
 3-3     provide an advanced service for a community within its service
 3-4     area.
 3-5           (g)  This section may not be construed to require a company
 3-6     to:
 3-7                 (1)  begin providing service in an area in which the
 3-8     company does not provide local exchange service; or
 3-9                 (2)  provide a service in an area of this state unless
3-10     the company provides the service in a larger exchange for which it
3-11     is certificated to serve.
3-12           (h)  The requirements of Subsection (f) shall be considered
3-13     met:
3-14                 (1)  if a company described under Subsection (a) has
3-15     provided or deploys advanced services in the rural community; or
3-16                 (2)  if alternative telecommunications carriers, cable
3-17     companies, wireless providers, or satellite companies provide
3-18     advanced services to the customers of the rural community.
3-19           (i)  Notwithstanding any other provision of this title, the
3-20     commission has all jurisdiction necessary to enforce this section.
3-21           (j)  Section 14.101 does not apply to a company electing to
3-22     Subsection (e) that has fulfilled the requirements of this section.
3-23           Sec. 55.403.  PROVISION OF ADVANCED SERVICES. (a)  This
3-24     section applies to a company as defined in Section 55.402.
3-25           (b)  Upon notification to the commission that a rural
3-26     community has 75 bona fide requests for an advanced service, the
3-27     rural community, upon commission approval, may utilize funding
3-28     sources under Section 55.404(b) to attract any provider of advanced
3-29     services in the state.
3-30           (c)  The commission shall post publicly the number of bona
3-31     fide requests for an advanced service in each rural community.
3-32           (d)  If, 120 days after the posting of 75 bona fide requests
3-33     for an advanced service by the commission, a community has not
3-34     entered into a contract with a provider of advanced services, then
3-35     a company to which this section applies shall provide an advanced
3-36     service to its landline customers within its certificated area that
3-37     is reasonably comparable to the advanced service provided in its
3-38     larger exchanges.  Upon such request the company shall:
3-39                 (1)  provide an advanced service; or
3-40                 (2)  enter into a partnership or joint venture with
3-41     another provider of advanced services in order to provide an
3-42     advanced service.
3-43           (e)  An advanced service shall be provided by the company:
3-44                 (1)  at prices, terms, conditions, and quality that are
3-45     reasonably comparable to the prices, terms, conditions, and quality
3-46     for the similar advanced services provided by the company in its
3-47     larger exchanges; and
3-48                 (2)  within nine months after the requirement to
3-49     provide an advanced service for a community within its service
3-50     area.
3-51           (f)  The requirements of Subsection (d) shall be considered
3-52     met:
3-53                 (1)  if a company described under Subsection (a) has
3-54     provided or deploys advanced services in the rural community; or
3-55                 (2)  if alternative telecommunications carriers, cable
3-56     companies, wireless providers, or satellite companies provide
3-57     advanced services to the customers of the rural community.
3-58           Sec. 55.404.  DEPLOYMENT OF ADVANCED SERVICES TO RURAL
3-59     COMMUNITIES.  (a)  The state believes it is important that
3-60     companies and rural communities seek local solutions to encourage
3-61     the deployment of advanced services.  The state determines that the
3-62     following local solutions are best practices for encouraging
3-63     deployment of such services in rural communities of the state:
3-64                 (1)  demand aggregation;
3-65                 (2)  anchor tenancy; and
3-66                 (3)  community networks.
3-67           (b)  In addition to the provisions of Subsection (a), and in
3-68     accordance with Sections 55.4025 and 55.403, a rural community may
3-69     seek to fund advanced services through the following means:
 4-1                 (1)  funding sources identified in the Development
 4-2     Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
 4-3     Statutes);
 4-4                 (2)  telecommunications infrastructure fund grants to
 4-5     provide community technology centers;
 4-6                 (3)  community development block grants;
 4-7                 (4)  Texas Agricultural Finance Authority financing; or
 4-8                 (5)  other business incentives within the jurisdiction
 4-9     of the local government's authority.
4-10           (c)  Upon a showing to the commission that market failure has
4-11     occurred, and that the incentive and local solutions processes
4-12     under this subchapter have been unsuccessful in encouraging the
4-13     deployment of advanced services in a rural community, the
4-14     appropriate local governmental body or residents on petition of 25
4-15     percent of the residents may request of the commission permission
4-16     to:
4-17                 (1)  allow private entities within the jurisdictional
4-18     boundaries of the local government to use the state's consolidated
4-19     telecommunications system only for purposes of providing an
4-20     advanced service;
4-21                 (2)  seek telecommunications infrastructure fund grants
4-22     to provide advanced services infrastructure; and
4-23                 (3)  provide an advanced service to the rural community
4-24     under Section 54.202(c).
4-25           Sec. 55.405.  STATEWIDE ADVANCED SERVICES STRATEGIC PLANNING.
4-26     (a)  The commission is responsible for strategic planning for the
4-27     deployment of advanced services to end use customers in rural
4-28     communities.
4-29           (b)  The commission shall coordinate with and provide
4-30     direction to other agencies regarding the deployment of advanced
4-31     services or issues that may affect the deployment of advanced
4-32     services throughout the state.
4-33           (c)  In order to perform strategic planning, the commission
4-34     may collect and make use of data and information considered
4-35     reasonably necessary to verify efficient deployment of advanced
4-36     services throughout the state.
4-37           (d)  Information obtained pursuant to this subchapter is
4-38     confidential, shall not be disclosed, and is excepted from public
4-39     disclosure under Chapter 552, Government Code.
4-40           Sec. 55.406.  COMMISSION AUTHORITY.  Notwithstanding any
4-41     other provision of this title, the commission has all jurisdiction
4-42     necessary to enforce this subchapter.
4-43           SECTION 3.  Section 57.042, Utilities Code, is amended to
4-44     read as follows:
4-45           Sec. 57.042.  DEFINITIONS.  In this subchapter:
4-46                 (1)  "Advanced service" has the meaning assigned by
4-47     Section 55.402.
4-48                 (2)  "Ambulatory health care center" means a health
4-49     care clinic or an association of such a clinic that is:
4-50                       (A)  exempt from federal income taxation under
4-51     Section 501(a), Internal Revenue Code of 1986, as amended, as an
4-52     organization described by Section 501(c)(3), as amended; and
4-53                       (B)  funded wholly or partly by a grant under 42
4-54     U.S.C. Section 254b, 254c, or 256, as amended.
4-55                 (3) [(2)]  "Board" means the telecommunications
4-56     infrastructure fund board.
4-57                 (4) [(3)]  "Commercial mobile service provider" means a
4-58     provider of commercial mobile service as defined by Section 332(d),
4-59     Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
4-60     Communications Commission rules, and the Omnibus Budget
4-61     Reconciliation Act of 1993 (Pub. L. No. 103-66).
4-62                 (5)  "Community technology centers" has the meaning
4-63     assigned by Section 55.402.
4-64                 (6) [(4)]  "Fund" means the telecommunications
4-65     infrastructure fund.
4-66                 (7) [(5)]  "Institution of higher education" means:
4-67                       (A)  an institution of higher education as
4-68     defined by Section 61.003, Education Code; or
4-69                       (B)  a private or independent institution of
 5-1     higher education as defined by Section 61.003, Education Code.
 5-2                 (8) [(6)]  "Library" means:
 5-3                       (A)  a public library or regional library system
 5-4     as those terms are defined by Section 441.122, Government Code; or
 5-5                       (B)  a library operated by an institution of
 5-6     higher education or a school district.
 5-7                 (9) [(7)]  "Public not-for-profit health care facility"
 5-8     means a rural or regional hospital or other entity such as a rural
 5-9     health clinic that:
5-10                       (A)  is supported by local or regional tax
5-11     revenue;
5-12                       (B)  is a certified not-for-profit health
5-13     corporation, under federal law; or
5-14                       (C)  is an ambulatory health care center.
5-15                 (10) [(8)]  "School district" includes an independent
5-16     school district, a common school district, and a rural high school
5-17     district.
5-18                 (11) [(9)]  "Public school" means a public elementary
5-19     or secondary school, including an open-enrollment charter school, a
5-20     home-rule school district school, and a school with a campus or
5-21     campus program charter.
5-22                 (12)  "Rural community" has the meaning assigned by
5-23     Section 55.402.
5-24                 (13) [(10)]  "Taxable telecommunications receipts"
5-25     means taxable telecommunications receipts reported under Chapter
5-26     151, Tax Code.
5-27                 (14) [(11)]  "Telemedicine":
5-28                       (A)  means medical services delivered by
5-29     telecommunications technologies to rural or underserved public
5-30     not-for-profit health care facilities or primary health care
5-31     facilities in collaboration with an academic health center and an
5-32     associated teaching hospital or tertiary center or with another
5-33     public not-for-profit health care facility; and
5-34                       (B)  includes consultive services, diagnostic
5-35     services, interactive video consultation, teleradiology,
5-36     telepathology, and distance education for working health care
5-37     professionals.
5-38           SECTION 4.  Section 57.046, Utilities Code, is amended to
5-39     read as follows:
5-40           Sec. 57.046.  USE OF ACCOUNTS.  (a)  The board shall use
5-41     money in the public schools account to award grants and loans in
5-42     accordance with this subchapter to fund:
5-43                 (1)  equipment for public schools, including computers,
5-44     printers, computer labs, and video equipment; and
5-45                 (2)  intracampus and intercampus wiring to enable those
5-46     public schools to use the equipment.
5-47           (b)  The board shall use money in the qualifying entities
5-48     account for any purpose authorized by this subchapter, including:
5-49                 (1)  equipment;
5-50                 (2)  wiring;
5-51                 (3)  material;
5-52                 (4)  program development;
5-53                 (5)  training;
5-54                 (6)  installation costs; [and]
5-55                 (7)  a statewide telecommunications network; and
5-56                 (8)  infrastructure and related costs for the provision
5-57     of community technology centers or an advanced service to a rural
5-58     community under Sections 55.4025, 55.403, and 55.404.
5-59           SECTION 5.  Section 57.047, Utilities Code, is amended to
5-60     read as follows:
5-61           Sec. 57.047.  GRANT AND LOAN PROGRAM.  (a)  The board may
5-62     award a grant to a project or proposal that:
5-63                 (1)  provides equipment and infrastructure necessary
5-64     for:
5-65                       (A)  distance learning;
5-66                       (B)  an information sharing program of a library;
5-67     [or]
5-68                       (C)  telemedicine services; or
5-69                       (D)  the provision of community technology
 6-1     centers or an advanced service in a rural community under Sections
 6-2     55.4025, 55.403, and 55.404;
 6-3                 (2)  develops and implements the initial or
 6-4     prototypical delivery of a course or other distance learning
 6-5     material;
 6-6                 (3)  trains teachers, faculty, librarians, or
 6-7     technicians in the use of distance learning or information sharing
 6-8     materials and equipment;
 6-9                 (4)  develops a curriculum or instructional material
6-10     specially suited for telecommunications delivery;
6-11                 (5)  provides electronic information; or
6-12                 (6)  establishes or carries out an information sharing
6-13     program.
6-14           (b)  The board may award a loan to a project or proposal to
6-15     acquire equipment needed for distance learning and telemedicine
6-16     projects.
6-17           (c)  In awarding a grant or loan under this subchapter, the
6-18     board shall give priority to a project or proposal that:
6-19                 (1)  represents collaborative efforts involving more
6-20     than one school, university, or library;
6-21                 (2)  contributes matching funds from another source;
6-22                 (3)  shows promise of becoming self-sustaining;
6-23                 (4)  helps users of information learn new ways to
6-24     acquire and use information through telecommunications;
6-25                 (5)  extends specific educational information and
6-26     knowledge services to a group not previously served, especially a
6-27     group in a rural or remote area;
6-28                 (6)  results in more efficient or effective learning
6-29     than through conventional teaching;
6-30                 (7)  improves the effectiveness and efficiency of
6-31     health care delivery; [or]
6-32                 (8)  takes advantage of distance learning opportunities
6-33     in a rural or urban school district with a:
6-34                       (A)  disproportionate number of at-risk youths;
6-35     or
6-36                       (B)  high dropout rate; or
6-37                 (9)  will establish or enhance the provision of an
6-38     advanced service to a rural community.
6-39           (d)  In distributing money to public schools, the board
6-40     shall:
6-41                 (1)  consider the relative property wealth per student
6-42     of the school districts that receive the money; and
6-43                 (2)  recognize the unique needs of rural communities.
6-44           (e)  If a board member is an employee of an entity that
6-45     applies for a grant or loan under this subchapter, the board
6-46     member, before a vote on the grant or loan, shall disclose the fact
6-47     of the member's employment.  The disclosure must be entered into
6-48     the minutes of the meeting.  The board member may not vote on or
6-49     otherwise participate in the awarding of the grant or loan. If the
6-50     board member does not comply with this subsection, the entity is
6-51     not eligible for the grant or loan.
6-52           (f)  A grant or loan awarded under this section is subject to
6-53     the limitations prescribed by Sections [Section] 57.046 and
6-54     57.0475.
6-55           SECTION 6.  Subchapter C, Chapter 57, Utilities Code, is
6-56     amended by adding Section 57.0475 to read as follows:
6-57           Sec. 57.0475.  GRANTS TO RURAL COMMUNITIES FOR ADVANCED
6-58     SERVICES.  (a)  In consideration of the duties and responsibilities
6-59     given the board under this chapter, it is the policy of this state
6-60     that rural communities have access to advanced services.  The board
6-61     shall coordinate its duties and responsibilities with the
6-62     commission and any other entity to encourage the ubiquitous access
6-63     of advanced services in rural communities.
6-64           (b)  Any public or governmental entity or political
6-65     subdivision within a rural community may:
6-66                 (1)  seek funds under this chapter for the development
6-67     of community technology centers under Sections 55.4025, 55.403, and
6-68     55.404; and
6-69                 (2)  seek funds under this chapter for the provision of
 7-1     advanced services, pursuant to commission approval under Sections
 7-2     55.4025, 55.403, and 55.404.
 7-3           (c)  The board shall adopt rules to implement this section in
 7-4     cooperation with the commission and the Department of Information
 7-5     Resources.  The rules shall include the coordination of requests
 7-6     for access under this section from different parties in the same
 7-7     rural community.
 7-8           SECTION 7.  Sections 57.048, 57.050, and 57.051, Utilities
 7-9     Code, are amended to read as follows:
7-10           Sec. 57.048.  ASSESSMENTS AND COLLECTIONS.  (a)  An annual
7-11     assessment is imposed on each telecommunications utility and each
7-12     commercial mobile service provider doing business in this state.
7-13           (b)  The assessment is imposed at the rate of .625 [1.25]
7-14     percent of the taxable telecommunications receipts of the
7-15     telecommunications utility or commercial mobile service provider,
7-16     subject to this section.
7-17           (c)  [The total amount deposited to the credit of the fund,
7-18     excluding interest and loan repayments, may not exceed $1.5
7-19     billion.  Not later than August 31 of each year, the comptroller
7-20     shall determine the total amount, excluding interest and loan
7-21     repayments, that has been deposited to the credit of the fund
7-22     during that fiscal year and the preceding fiscal years.  If the
7-23     comptroller determines that a total of $1.2 billion or more,
7-24     excluding interest and loan repayments, has been deposited to the
7-25     credit of the fund, the comptroller shall impose the assessment
7-26     during the next fiscal year at a rate that the comptroller
7-27     estimates is sufficient to produce the amount necessary to result
7-28     in the deposit in the fund of a total of not more than $1.5
7-29     billion, excluding interest and loan repayments.]
7-30           [(d)  The comptroller may not collect the assessment during a
7-31     fiscal year if the comptroller determines after the yearly review
7-32     that the total amount deposited to the credit of the fund during
7-33     that fiscal year and the preceding fiscal years is $1.49 billion or
7-34     more, excluding interest and loan repayments, and it is not
7-35     possible to impose the assessment during the next fiscal year at a
7-36     practical rate without collecting more than a total of $1.5
7-37     billion, excluding interest and loan repayments.]
7-38           [(e)]  The comptroller may require a telecommunications
7-39     utility or commercial mobile service provider to provide any report
7-40     or information necessary to fulfill the comptroller's duties under
7-41     this section.  Information provided to the comptroller under this
7-42     section is confidential and exempt from disclosure under Chapter
7-43     552, Government Code.
7-44           Sec. 57.050.  ASSISTANCE OF OTHER AGENCIES.  The following
7-45     agencies, in consultation with the board, shall adopt policies and
7-46     procedures that are designed to aid the board in achieving the
7-47     purposes of this subchapter:
7-48                 (1)  the Texas Higher Education Coordinating Board;
7-49                 (2)  the Texas Education Agency; [and]
7-50                 (3)  the Texas State Library and Archives Commission;
7-51                 (4)  the Public Utility Commission of Texas; and
7-52                 (5)  the Department of Information Resources.
7-53           Sec. 57.051.  SUNSET PROVISION.  The Telecommunications
7-54     Infrastructure Fund Board is subject to Chapter 325, Government
7-55     Code (Texas Sunset Act).  Unless continued in existence as provided
7-56     by that chapter, the board is abolished and this subchapter expires
7-57     September 1, 2010 [2005].
7-58           SECTION 8.  Section 58.253, Utilities Code, is amended to
7-59     read as follows:
7-60           Sec. 58.253.  PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES.
7-61     (a)  On customer request, an electing company shall provide private
7-62     network services to:
7-63                 (1)  an educational institution;
7-64                 (2)  a library;
7-65                 (3)  a nonprofit telemedicine center;
7-66                 (4)  a public or not-for-profit hospital;
7-67                 (5)  a project funded by the telecommunications
7-68     infrastructure fund under Subchapter C, Chapter 57, except for
7-69     projects authorized or permitted under Subchapter L, Chapter 55; or
 8-1                 (6)  a legally constituted consortium or group of
 8-2     entities listed in this subsection.
 8-3           (b)  Except as provided by Section 58.266, the electing
 8-4     company shall provide the private network services for the private
 8-5     and sole use of the receiving entity.
 8-6           SECTION 9.  Section 2054.206, Government Code, is amended to
 8-7     read as follows:
 8-8           Sec. 2054.206.  ADVISORY AGENCIES.  The following state
 8-9     agencies shall formally advise the telecommunications planning
8-10     group and send representatives to meetings of the group:
8-11                 (1)  the Texas Education Agency;
8-12                 (2)  the Texas Higher Education Coordinating Board;
8-13                 (3)  The Texas A&M University System;
8-14                 (4)  The University of Texas System;
8-15                 (5)  the Telecommunications Infrastructure Fund Board;
8-16     [and]
8-17                 (6)  the Texas State Library and Archives Commission;
8-18                 (7)  the Public Utility Commission of Texas;
8-19                 (8)  the General Services Commission;
8-20                 (9)  the Department of Information Resources;
8-21                 (10)  the Commission on State Emergency Communications;
8-22     and
8-23                 (11)  the Texas Department of Economic Development.
8-24           SECTION 10.  Section 2170.004, Government Code, is amended to
8-25     read as follows:
8-26           Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
8-27     AGENCIES.  The commission may contract for use of the consolidated
8-28     telecommunications system with:
8-29                 (1)  each house of the legislature;
8-30                 (2)  a legislative agency;
8-31                 (3)  an agency that is not a state agency as defined by
8-32     Section 2151.002; [and]
8-33                 (4)  a political subdivision, including a county,
8-34     municipality, or district; and
8-35                 (5)  any person or entity the Public Utility Commission
8-36     of Texas approves for use that resides within a rural community of
8-37     this state as provided by Section 2170.060.
8-38           SECTION 11.  Subchapter A, Chapter 2170, Government Code, is
8-39     amended by adding Section 2170.0045 to read as follows:
8-40           Sec. 2170.0045.  PUBLIC ENTITY ACCESS TO CONSOLIDATED
8-41     TELECOMMUNICATIONS SYSTEM.  Upon approval by the Public Utility
8-42     Commission of Texas, the commission shall allow access to, and
8-43     contract the use of, the consolidated telecommunications system to
8-44     an approved public or governmental entity or political subdivision
8-45     of this state as provided by Section 2170.060.  The commission may
8-46     require the public or governmental entity or political subdivision
8-47     to contract with the commission pursuant to the Interlocal
8-48     Cooperation Act, Chapter 791.
8-49           SECTION 12.  Section 2170.058, Government Code, is amended to
8-50     read as follows:
8-51           Sec. 2170.058.  USE OF SYSTEM BY CERTAIN STUDENTS.  (a)  An
8-52     institution of higher education under Section 61.003, Education
8-53     Code, that is authorized to use the system of telecommunications
8-54     services established under this chapter may allow students of the
8-55     institution who reside in housing for which the institution
8-56     provides telephone service to use the system of telecommunications
8-57     services.  An institution shall recover from a student who chooses
8-58     to use the system the full pro rata cost attributable to that
8-59     student's use, including costs identifiable for interconnection to
8-60     and use of the local publicly switched network.
8-61           (b)  The commission shall adopt rules that govern student
8-62     access to the system, including:
8-63                 (1)  times of access to the system; and
8-64                 (2)  the full recovery of actual costs from each
8-65     student who uses the system.
8-66           (c)  In consideration of the duties and responsibilities
8-67     given the commission under this subtitle, it is the policy of this
8-68     state that a state agency or unit of state government may not
8-69     provide telecommunications products or services to the general
 9-1     public in competition with private enterprise unless there is a
 9-2     finding that providing the products or services is in the public
 9-3     interest or as provided by law.  This subsection does not prohibit
 9-4     students who reside in housing for which institutions of higher
 9-5     education provide telephone service from using service provided
 9-6     under this section.
 9-7           SECTION 13.  Subchapter B, Chapter 2170, Government Code, is
 9-8     amended by adding Section 2170.060 to read as follows:
 9-9           Sec. 2170.060.  RURAL COMMUNITY ACCESS TO CONSOLIDATED
9-10     TELECOMMUNICATIONS SYSTEM.  (a)  In this section, "rural community"
9-11     has the meaning assigned by Section 55.402, Utilities Code.
9-12           (b)  In consideration of the duties and responsibilities
9-13     given to the commission under this subtitle and to the Public
9-14     Utility Commission of Texas under the Utilities Code, it is the
9-15     policy of this state that a rural community that is unable to
9-16     obtain advanced services have access to such services through the
9-17     consolidated telecommunications system.
9-18           (c)  The commission shall coordinate its duties and
9-19     responsibilities with the telecommunications infrastructure fund
9-20     board and permit access, pursuant to Public Utility Commission of
9-21     Texas approval under Section 55.404, Utilities Code.
9-22           (d)  The Public Utility Commission of Texas shall adopt rules
9-23     to implement this section in cooperation with the
9-24     telecommunications planning group and the commission.  The rules
9-25     shall include the coordination of requests for access under this
9-26     section from different parties in the same rural community.
9-27           SECTION 14.  Paragraph (A), Subdivision (11), Section 2,
9-28     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
9-29     Civil Statutes), is amended to read as follows:
9-30                       (A)  "Project" shall mean the land, buildings,
9-31     equipment, facilities, targeted infrastructure, and improvements
9-32     (one or more) to promote new and expanded business development or
9-33     found by the board of directors to be required or suitable for the
9-34     promotion of development and expansion of manufacturing and
9-35     industrial facilities, job creation and retention, job training,
9-36     educational facilities, transportation facilities (including but
9-37     not limited to airports, ports, mass commuting facilities, and
9-38     parking facilities), facilities or infrastructure used to support
9-39     or provide advanced services as defined by Section 55.402,
9-40     Utilities Code, sewage or solid waste disposal facilities,
9-41     recycling facilities, air or water pollution control facilities,
9-42     facilities for the furnishing of water to the general public,
9-43     distribution centers, small warehouse facilities capable of serving
9-44     as decentralized storage and distribution centers, and facilities
9-45     for use by institutions of higher education, and for the promotion
9-46     of development or redevelopment and expansion, including costs of
9-47     administration and operation, of a military base closed or
9-48     realigned pursuant to recommendation of the Defense Closure and
9-49     Realignment Commission pursuant to the Defense Base Closure and
9-50     Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
9-51     and of facilities which are related to any of the foregoing, and in
9-52     furtherance of the public purposes of this Act, all as defined in
9-53     the rules of the department, irrespective of whether in existence
9-54     or required to be identified, acquired, or constructed thereafter.
9-55           "Project" also includes job training required or suitable for
9-56     the promotion of development and expansion of business enterprises
9-57     and other enterprises described by this Act, as provided by Section
9-58     38 of this Act.
9-59           SECTION 15.  Chapter 51, Local Government Code, is amended by
9-60     adding Sections 51.019, 51.036, 51.053, and 51.080 to read as
9-61     follows:
9-62           Sec. 51.019.  PROVISION OF ADVANCED SERVICES.  A Type-A
9-63     general-law municipality may buy, own, construct inside or outside
9-64     the municipal limits, and maintain and operate a certificated
9-65     facility designed to provide reasonably comparable access to
9-66     advanced services for its residents pursuant to Section 55.404,
9-67     Utilities Code.  The municipality may require and receive
9-68     compensation for such services furnished for private purposes or
9-69     otherwise.  In its charter, the municipality may adopt rules, not
 10-1    inconsistent with existing state law, it considers advisable for
 10-2    the provisioning of advanced services.
 10-3          Sec. 51.036.  PROVISION OF ADVANCED SERVICES.  A Type-B
 10-4    general-law municipality may buy, own, construct inside or outside
 10-5    the municipal limits, and maintain and operate a certificated
 10-6    facility designed to provide reasonably comparable access to
 10-7    advanced services for its residents pursuant to Section 55.404,
 10-8    Utilities Code.  The municipality may require and receive
 10-9    compensation for such services furnished for private purposes or
10-10    otherwise. In its charter, the municipality may adopt rules, not
10-11    inconsistent with existing state law, it considers advisable for
10-12    the provisioning of advanced services.
10-13          Sec. 51.053.  PROVISION OF ADVANCED SERVICES.  A Type-C
10-14    general-law municipality may buy, own, construct inside or outside
10-15    the municipal limits, and maintain and operate a certificated
10-16    facility designed to provide reasonably comparable access to
10-17    advanced services for its residents pursuant to Section 55.404,
10-18    Utilities Code.  The municipality may require and receive
10-19    compensation for such services furnished for private purposes or
10-20    otherwise. In its charter, the municipality may adopt rules, not
10-21    inconsistent with existing state law, it considers advisable for
10-22    the provisioning of advanced services.
10-23          Sec. 51.080.  PROVISION OF ADVANCED SERVICES.  A home-rule
10-24    municipality may buy, own, construct inside or outside the
10-25    municipal limits, and maintain and operate a certificated facility
10-26    designed to provide reasonably comparable access to advanced
10-27    services for its residents pursuant to Section 55.404, Utilities
10-28    Code.  The municipality may require and receive compensation for
10-29    such services furnished for private purposes or otherwise. In its
10-30    charter, the municipality may adopt rules, not inconsistent with
10-31    existing state law, it considers advisable for the provisioning of
10-32    advanced services.
10-33          SECTION 16.  Section 55.014, Utilities Code, is repealed.
10-34          SECTION 17.  This Act takes effect September 1, 2001.
10-35                                 * * * * *