78R8229 T

By:  Telford                                                      H.B. No. 3357



A BILL TO BE ENTITLED

AN ACT

relating to investigation by the Public Utility Commission of Texas 
of financial solvency of a privately-held incumbent local exchange 
company.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 52, Utilities Code, is 
amended by adding Section 52.061 to read as follows:
	Sec. 52.061.  FINANCIAL SOLVENCY OF A PRIVATELY-HELD 
INCUMBENT LOCAL EXCHANGE COMPANY.  (a)  This section applies only 
to an investor-owned incumbent local exchange company that is not 
owned, directly or indirectly, in whole or in part, through 
publicly-traded stock, and that has at least 300,000 access lines 
in this state.
	(b)  The commission's authority includes the power, at any 
time during usual business hours, to obtain from an incumbent local 
exchange company relevant information the commission determines is 
convenient and necessary to investigate whether the incumbent local 
exchange company is or is likely to become financially insolvent.
	(c)  In investigating whether an incumbent local exchange 
company is or is likely to become financially insolvent, the 
commission may:
		(1)  hold a hearing;                                                   
		(2)  issue a subpoena to compel the attendance of a 
witness and the production of a document;
		(3)  make findings of fact with respect to whether the 
incumbent local exchange company is or is likely to become 
financially insolvent; and
		(4)  enter any order necessary to protect the public 
interest.       
	SECTION 2.  This Act takes effect September 1, 2003.