By:  Chavez                                                       H.B. No. 3296



A BILL TO BE ENTITLED

AN ACT

relating to telephone prepaid calling card services.                          
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 55.253, Utilities Code, is amended to 
read as follows:   
	Sec. 55.253.  TELEPHONE PREPAID CALLING SERVICES.  (a)  In 
this section:     
		(1)  "Prepaid calling card company" means a company 
that provides a prepaid calling service to the public using its own 
network or resold services.
		(2)  "Prepaid calling service" means a prepaid 
telecommunications service that allows an end user to originate a 
call using an access number and authorization code.
	(b)  A person may not operate as a prepaid calling card 
company in this state unless the company is registered with the 
commission in accordance with Section 52.103.
	(c)  The commission by rule may prescribe standards 
regarding the information a prepaid calling card company shall 
disclose to customers in relation to the rates and terms of service 
for prepaid calling services offered in this state.
	(d)  In addition to information required by Subsection (c), 
the commission by rule shall require a prepaid calling card company 
to print on each prepaid calling card the commission's toll-free 
customer hotline.
	(e) [(c)]  The commission is granted all necessary 
jurisdiction to adopt rules under this section, to require 
registration, and to enforce those rules, that registration, and 
this section.
	(f) [(d)]  A violation of a rule adopted under this section 
or failure to register under this section is subject to enforcement 
under Subchapter B, Chapter 15.
	SECTION 2.  Section 57.041(b), Utilities Code, is amended to 
read as follows:
	(b)  It is the policy of this state that commercial mobile 
service and telephone prepaid calling card providers contribute an 
appropriate amount to the telecommunications infrastructure fund.
	SECTION 3.  Section 57.042, Utilities Code, is amended by 
adding Subsection (13) to read as follows:
		(13)  Telephone prepaid calling card has the meaning 
assigned by Section 151.01832, Tax Code.
	SECTION 4.  (a)  This Act takes effect September 1, 2003.                      
	(b)  A prepaid calling card company doing business in this 
state on or after September 1, 2003, shall register with the Public 
Utility Commission of Texas as required by Section 55.253, 
Utilities Code, as amended by this Act, not later than January 1, 
2004.