SRC-AMY S.B. 732 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 732
78R5032 MTB-FBy: Brimer
Business & Commerce
4/2/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Public Utility Commission (PUC) has a proposed rule that
would require certain telecommunications providers to wait a specified
period of time before making a win-back or retention offer to a customer
that is switching to a new provider.  As proposed, S.B. 732 amends the
requirement that a discount, or other form of pricing flexibility, not be
preferential, prejudicial, or discriminatory by adding the modifier
"unreasonably," and  specifies that there is no prohibition against an
offer made to a selected customer, or group, in response to a competitor's
offer.  This bill also specifies that a price set at or above the long run
incremental cost of a service is not considered predatory.  S.B. 732
requires that any offer be made in compliance with the Uniform Electronic
Transactions Act. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 51.004, Utilities Code, by amending Subsection
(a) and adding Subsections (c) and (d), as follows: 

(a) Amends the requirement that a discount or other form of pricing
flexibility not be preferential, prejudicial, or discriminatory by adding
the modifier "unreasonably."  Makes nonsubstantive changes. 

(c) Provides that this title does not prohibit an offer based on a
reasonable business purpose, including an offer made to a selected
customer, or group thereof, in response to a competitor's offer.  Provides
that a price set at or above the long run incremental cost of a service is
presumed not to be predatory. 

(d) Requires that an offer made under Subsection (c) be made in compliance
with Chapter 43 (Uniform Electronic Transactions Act), Business & Commerce
Code. 

SECTION 2.  Effective date: September 1, 2003.