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	Amend SB 21 (house committee printing) as follows:                           

	(1)  Strike SECTION 11 of the bill (page 16, lines 1-3), and 

substitute the following:

	SECTION 11.  Section 56.025(a), Utilities Code, is amended to 

read as follows:

	(a)  In addition to the authority provided by Section 56.021, 

for each local exchange company that serves fewer than 31,000 [five 

million] access lines and each cooperative, the commission:

		(1)  may adopt a mechanism necessary to maintain 

reasonable rates for local exchange telephone service; and

		(2)  shall adopt rules to expand the universal service 

fund in the circumstances prescribed by this section.

	(2)  In SECTION 13 of the bill, in added Section 56.029(h), 

Utilities Code (page 18, line 25), between the period and "Not", 

insert "The commission shall also review and make recommendations 

on any mechanisms adopted under Section 56.025.

	(3)  In SECTION 13 of the bill, in added Section 56.029(h), 

Utilities Code (page 18, line 26), strike "this issue" and 

substitute "these issues".

	(4)  In SECTION 25 of the bill, in added Section 

66.002(6)(B)(iv), Utilities Code (page 53, line 16), strike 

"non-cable service" and substitute "non-cable service or non-video 

service".

	(5)  In SECTION 25 of the bill, in added Section 

66.002(6)(B)(iv), Utilities Code (page 53, lines 18-19), strike 

"(but not excluding Internet protocol cable services or Internet 

protocol video services)" and substitute "(but not excluding cable 

services or video services)".

	(6)  In SECTION 25 of the bill, in added Section 

66.002(6)(B)(iv), Utilities Code (page 53, line 21), between 

"service" and "in", insert "or non-video service".

	(7)  In SECTION 25 of the bill, in added Section 66.002(7), 

Utilities Code (page 56, lines 2-3), strike "subscribers in a 

particular municipality" and substitute "cable subscribers in a 

particular municipal franchise area".

	(8)  In SECTION 25 of the bill, in added Section 66.003(a), 

Utilities Code (page 57, line 4), between "expires" and the period, 

insert ", except as provided by Section 66.004".

	(9)  In SECTION 25 of the bill, in added Section 66.004(a), 

Utilities Code (page 59, line 3), between "chapter" and "until", 

insert "as to those municipalities", and strike "the later of 

January 1, 2008, or".

	(10)  In SECTION 25 of the bill, in added Section 66.004(a), 

Utilities Code (page 59, line 4), between "agreement" and the 

period, insert ", except as provided by Subsections (b) and (c).

	(11)  In SECTION 25 of the bill, in added Section 66.004, 

Utilities Code (page 59, between lines 4 and 5), between added 

Subsections (a) and (b), insert the following and reletter added 

Subsections (b)-(d) as (d)-(f) respectively:

	(b)  Beginning September 1, 2005, a cable service provider or 

video service provider that is not the incumbent cable service 

provider and serves fewer than 40 percent of the total cable 

customers in a particular municipal franchise area may elect to 

terminate that municipal franchise and seek a state-issued 

certificate of franchise authority by providing written notice to 

the commission and the affected municipality before January 1, 

2006.  The municipal franchise is terminated on the date the 

commission issues the state-issued certificate of franchise 

authority.

	(c)  A cable service provider that serves fewer than 40 

percent of the total cable customers in a municipal franchise area 

and that elects under Subsection (b) to terminate an existing 

municipal franchise is responsible for remitting to the affected 

municipality before the 91st day after the date the municipal 

franchise is terminated any accrued buy unpaid franchise fees due 

under the terminated franchise.  If the cable service has credit 

remaining from prepaid franchise fees, the provider may deduct the 

amount of the remaining credit from any future fees or taxes it must 

pay to the municipality, either directly or through the 

comptroller.

	(12)  In SECTION 25 of the bill, in added Section 66.005(b), 

Utilities Code (page 61 line 9), strike "or the state".

	(13)  In SECTION 25 of the bill, in added Section 66.006(a), 

Utilities Code (page 61, line 17), strike "or January 1, 2008, 

whichever is later".

	(14)  In SECTION 25 of the bill, in added Section 66.006(b), 

Utilities Code (page 62, line 8), strike "or January 1, 2008, 

whichever is later".

	(15)  In SECTION 25 of the bill, in added Section 66.008, 

Utilities Code, on page 63, line 21, strike "(a)", and on page 63, 

line 27 through page 64, line 44, strike all of Subsection (b).

	(16)  Add the following appropriately numbered SECTION to the 

bill and renumber subsequent SECTIONS accordingly:

	SECTION__.  Section 55.015, Utilities Code, is amended by 

amending Subsections (a), (c), and (d) and adding Subsections 

(b-1), (d-1), and (d-2) to read as follows:

	(a)  The commission shall adopt rules prohibiting a 

certificated provider of local exchange telephone service 

[telecommunications provider] from discontinuing basic network 

services listed in Section 58.051 [local exchange telephone 

service] to a consumer who receives lifeline service because of 

nonpayment by the consumer of charges for other services billed by 

the provider, including interexchange telecommunications [long 

distance] service.

	(b-1)  The commission shall adopt rules requiring 

certificated providers of local exchange telephone service to 

implement procedures to ensure that all consumers are clearly 

informed both orally and in writing of the existence of the lifeline 

service program when they request or initiate service or change 

service locations or providers.  On or before June 1, 2006, the 

commission shall enter into a memorandum of understanding with the 

Health and Human Services Commission and, to the maximum extent 

feasible, housing authorities in the principal cities of each 

metropolitan statistical area, to improve enrollment rates in the 

lifeline service program.

	(c)  A certificated provider of local exchange telephone 

service [telecommunications provider] may block a lifeline service 

participant's access to all interchange telecommunications [long 

distance] service except toll-free numbers when the participant 

owes an outstanding amount for that service.  The provider 

[telecommunications provider] shall remove the block without 

additional cost to the participant on payment of the outstanding 

amount.

	(d)  A certificated provider of local exchange telephone 

service [telecommunications provider] shall offer a consumer who 

applies for or receives lifeline service the option of blocking all 

toll calls or, if technically capable, placing a limit on the amount 

of toll calls.  The provider may not charge the consumer an 

administrative charge or other additional amount for the blocking 

service.

	(d-1)  A certificated provider of local exchange telephone 

service shall provide access to lifeline service to a customer 

whose income is not more than 150 percent of the applicable income 

level established by the federal poverty guidelines or in whose 

household resides a person who receives or has a child who receives:

		(1)  Medicaid;                                                         

		(2)  food stamps;                                                      

		(3)  Supplemental Security Income;                                     

		(4)  federal public housing assistance;                                

		(5)  Low Income Home Energy Assitance Program (LIHEAP) 

assistance; or

		(6)  health benefits coverage under the state child 

health plan under Chapter 62, Health and Safety Code.

	(d-2)  A certificated provider of local exchange telephone 

service shall provide consumers who apply for or receive lifeline 

service access to available vertical services or custom calling 

features, including caller ID, call waiting, and call blocking, at 

the same price as other consumers.  Lifeline discounts shall only 

apply to that portion of the bill that is for basic network service.