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78R5032 MTB-F

By:  Brimer                                                       S.B. No. 732



A BILL TO BE ENTITLED

AN ACT

relating to discounts or other forms of pricing flexibility for 
telecommunications services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 51.004, Utilities Code, is amended by 
amending Subsection (a) and adding Subsections (c) and (d) to read 
as follows:
	(a)  A discount or other form of pricing flexibility may not 
be:      
		(1)  unreasonably preferential, prejudicial, or
discriminatory; or
		(2)  [,] predatory[,] or anticompetitive.
	(c)  This title does not prohibit an offer based on a 
reasonable business purpose, including an offer made to a selected 
customer or a group of customers in response to a competitor's offer 
or a former customer's acceptance of a competitor's offer. A price 
that is set at or above the long run incremental cost of a service is 
presumed not to be a predatory price.
	(d)  An offer made under Subsection (c) must be made in 
compliance with Chapter 43, Business & Commerce Code, as added by 
Chapter 1429, Acts of the 77th Legislature, Regular Session, 2001.
	SECTION 2.  This Act takes effect September 1, 2003.