By: Fraser S.B. No. 21
A BILL TO BE ENTITLED
AN ACT
relating to furthering competition in the communications industry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 33.001, Utilities Code, is amended to
read as follows:
Sec. 33.001. MUNICIPAL JURISDICTION. (a) To provide fair,
just, and reasonable rates and adequate and efficient services, the
governing body of a municipality has exclusive original
jurisdiction over the rates, operations, and services of an
electric utility in areas in the municipality, subject to the
limitations imposed by this title.
(b) Notwithstanding Subsection (a), the governing body of a
municipality shall not have jurisdiction over the BPL system, BPL
services, telecommunications using BPL services, or the rates,
operations, or services of the electric utility or transmission and
distribution utility to the extent that such rates, operations, or
services are related, wholly or partly, to the construction,
maintenance, or operation of a BPL system used to provide BPL
services to affiliated or unaffiliated entities.
SECTION 2. Subtitle B, Title 2, Utilities Code, is amended
by adding Chapter 43 to read as follows:
CHAPTER 43. USE OF ELECTRIC DELIVERY SYSTEM FOR ACCESS TO BROADBAND
AND OTHER ENHANCED SERVICES, INCLUDING COMMUNICATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 43.001. LEGISLATIVE FINDINGS. (a) The legislature
finds that broadband over power lines, also known as BPL, is an
emerging technology platform that offers a means of providing
broadband services to reach homes and businesses. BPL services can
also be used to enhance existing electric delivery systems, which
can result in improved service and reliability for electric
customers.
(b) The legislature finds that access to broadband services
is important to this state. BPL deployment in Texas has the
potential to extend broadband service to customers where broadband
access is currently not available and may provide an additional
option for existing broadband consumers in Texas, resulting in a
more competitive market for broadband services. The legislature
further finds that BPL development in Texas is fully dependent upon
the participation of electric utilities in this state that own and
operate power lines and related facilities that are necessary for
the construction of BPL systems and the provision of BPL services.
(c) Consistent with the goal of increasing options for
telecommunications in this state, the legislature finds that it is
in the public interest to encourage the deployment of BPL by
permitting affiliates of the electric utility, or permitting
unaffiliated entities, to own or operate all or a portion of such
BPL systems. The purpose of this chapter is to provide the
appropriate framework to support the deployment of BPL.
(d) The legislature finds that an electric utility may
choose to implement BPL under the procedures set forth in this
section, but is not required to do so. The electric utility shall
have the right to decide, in its sole discretion, whether to
implement BPL and may not be penalized for deciding to implement or
not to implement BPL.
Sec. 43.002. APPLICABILITY. (a) This chapter applies to
an electric utility whether or not the electric utility is offering
customer choice under Chapter 39.
(b) If there is a conflict between the specific provisions
of this chapter and any other provisions of this title, the
provisions of this chapter control.
(c) No provision of this title shall impose an obligation on
an electric utility to implement BPL, to provide broadband
services, or to allow others to install BPL facilities or use the
electric utility's facilities for the provision of broadband
services.
Sec. 43.003. DEFINITIONS. In this chapter:
(1) "BPL," "broadband over power lines," and "BPL
services" mean the provision of broadband services over electric
power lines and related facilities, whether above ground or in
underground conduit.
(2) "BPL access" means the ability to access broadband
services via a BPL operator or BPL Internet service provider.
(3) "BPL operator" means an entity that owns or
operates a BPL system on the electric power lines and related
facilities of an electric utility.
(4) "BPL Internet service provider" and "BPL ISP" mean
an entity that provides Internet services to others on a wholesale
basis or to end-use customers on a retail basis.
(5) "BPL system" means the materials, equipment, and
other facilities installed on electric utility property to
facilitate the provision of BPL services.
(6) "BPL electric utility applications" means
services and technologies that are used and useful and designed to
improve the operational performance and service reliability of an
electric utility including, but not limited to, automated meter
reading, real time system monitoring and meter control, remote
service control, outage detection and restoration, predictive
maintenance and diagnostics, and monitoring and enhancement of
power quality.
(7) "Electric delivery system" means the power lines
and related transmission and distribution facilities used by an
electric utility to deliver electric energy.
(8) "Electric utility" shall include an electric
utility and a transmission and distribution utility as defined in
Section 31.002(6) or (19).
[Sections 43.004-43.050 reserved for expansion]
SUBCHAPTER B. DEVELOPMENT OF BPL SYSTEMS
Sec. 43.051. AUTHORIZATION FOR BPL SYSTEM. An affiliate of
an electric utility or a person unaffiliated with an electric
utility may own, construct, maintain, and operate a BPL system and
provide BPL services on an electric utility's electric delivery
system consistent with the requirements of this chapter. Nothing
in this chapter shall prohibit an entity defined in Section
11.003(9) from providing BPL service or owning and operating a BPL
system. Nothing in this chapter shall prohibit an electric utility
from providing construction or maintenance services to a BPL
operator or BPL ISP provided that the costs of these services are
properly accounted for between the electric utility and the BPL
operator or BPL ISP.
Sec. 43.052. OWNERSHIP AND OPERATION OF BPL SYSTEM.
(a) An electric utility may elect to:
(1) allow an affiliate to own or operate a BPL system
on the utility's electric delivery system;
(2) allow an unaffiliated entity to own or operate a
BPL system on the electric utility's electric delivery system; or
(3) allow an affiliate or unaffiliated entity to
provide Internet service over a BPL system.
(b) The BPL operator and the electric utility shall
determine what BPL Internet service providers may have access to
broadband capacity on the BPL system.
Sec. 43.053. FEES AND CHARGES. (a) An electric utility
that allows an affiliate or an unaffiliated entity to own a BPL
system on the electric utility's electric delivery system shall
charge the owner of the BPL system for the use of the electric
utility's electric delivery system.
(b) An electric utility may pay a BPL owner, a BPL operator,
or a BPL ISP for the use of the BPL system required to operate BPL
utility applications.
(c) If all or part of a BPL system is installed on poles or
other structures of a telecommunications utility as that term is
defined in Section 51.002, the owner of the BPL system shall be
required to pay the telecommunications utility an annual fee
consistent with the usual and customary charges for access to the
space occupied by that portion of the BPL system so installed.
(d) Notwithstanding Subsections (a)-(c):
(1) an electric utility may not charge an affiliate
under this section an amount less than the electric utility would
charge an unaffiliated entity for the same item or class of items;
(2) an electric utility may not pay an affiliate under
this section an amount more than the affiliate would charge an
unaffiliated entity for the same item or class of items; and
(3) an electric utility or an affiliate of an electric
utility may not discriminate against a retail electric provider
that is not affiliated with the utility in the terms or availability
of BPL services.
Sec. 43.054. NO ADDITIONAL EASEMENTS OR CONSIDERATION
REQUIRED. Because BPL systems provide benefits to electric
delivery systems, the installation of a BPL system on an electric
delivery system shall not require the electric utility or the owner
of the BPL system or an entity defined in Section 11.003(9) to
obtain or expand easements or other rights-of-way for the BPL
system or to give additional consideration as a result of the
installation or the operation of a BPL system. For purposes of this
section, installation of a BPL system shall be deemed to be
consistent with installation of an electric delivery system.
Sec. 43.055. RELIABILITY OF ELECTRIC SYSTEMS MAINTAINED.
An electric utility that allows the installation and operation of a
BPL system on its electric delivery system shall employ all
reasonable measures to ensure that the operation of the BPL system
does not interfere with or diminish the reliability of the
utility's electric delivery system. Should a disruption in the
provision of electric service occur, the electric utility shall be
governed by the terms and conditions of the retail electric
delivery service tariff. At all times, the provision of broadband
services shall be secondary to the reliable provision of electric
delivery services.
[Sections 43.056-43.100 reserved for expansion]
SUBCHAPTER C. IMPLEMENTATION OF BPL SYSTEM BY
ELECTRIC UTILITY
Sec. 43.101. PARTICIPATION BY ELECTRIC UTILITY. (a) An
electric utility through an affiliate, or through an unaffiliated
entity, may elect to install and operate a BPL system on some or all
of its electric delivery system in any part or all of its
certificated service area.
(b) The installation, operation, and use of a BPL system and
the provision of BPL services shall not be regulated by the state, a
municipality, or local government other than as provided for in
this chapter.
(c) The commission or a state or local government or a
regulatory or quasi-governmental or a quasi-regulatory authority
may not:
(1) require an electric utility, either through an
affiliate or an unaffiliated entity, to install a BPL system on its
power lines or offer BPL services in all or any part of the electric
utility's certificated service area;
(2) require an electric utility to allow others to
install a BPL system on the utility's electric delivery system in
any part or all of the electric utility's certificated service
area; or
(3) prohibit an electric utility from having an
affiliate or unaffiliated entity install a BPL system or offering
BPL services in any part or all of the electric utility's
certificated service area.
(d) If a municipality or local government is already
collecting a charge or fee from the electric utility for the use of
the public rights-of-way for the delivery of electricity to retail
electric customers, the municipality or local government is
prohibited from requiring a franchise or an amendment to a
franchise or from requiring a charge, fee, or tax from any entity
for use of the public rights-of-way for a BPL system.
(e) The state or a municipality may impose a charge on the
provision of BPL services, but the charge may not be greater than
the lowest charge that the state or municipality imposes on other
providers of broadband services for use of the public rights-of-way
in its respective jurisdiction.
Sec. 43.102. COST RECOVERY FOR DEPLOYMENT OF BPL AND
UTILITY APPLICATIONS. (a) Where an electric utility permits the
installation of a BPL system on its electric delivery system under
Section 43.052(a), the electric utility's investment in that BPL
system to directly support the BPL electric utility applications
and other BPL services consumed by the electric utility that are
used and useful in providing electric utility service shall be
eligible for inclusion in the electric utility's invested capital,
and any fees or operating expenses that are reasonable and
necessary shall be eligible for inclusion as operating expenses for
purposes of any proceeding under Chapter 36. The invested capital
and expenses described in this section must be allocated to the
customer classes directly receiving the services.
(b) In any proceeding under Chapter 36, just and reasonable
charges for the use of the electric utility's electric delivery
system by a BPL owner or operator shall be limited to the usual and
customary pole attachment charges paid to the electric utility for
comparable space by cable television operators.
(c) The revenues of an affiliated BPL operator or an
affiliated BPL ISP shall not be deemed the revenues of an electric
utility for purposes of setting rates under Chapter 36.
[Sections 43.103-43.150 reserved for expansion]
SUBCHAPTER D. MISCELLANEOUS PROVISIONS
Sec. 43.151. AFFILIATES OF ELECTRIC UTILITY. (a) Subject
to the limitations of this chapter, an electric utility may have a
full or partial ownership interest in a BPL operator or a BPL ISP.
Whether a BPL operator or a BPL ISP is an affiliate of the electric
utility shall be determined under Section 11.003(2) or Section
11.006.
(b) Neither a BPL operator nor a BPL ISP shall be considered
a "competitive affiliate" of an electric utility as that term is
defined in Section 39.157.
Sec. 43.152. COMPLIANCE WITH FEDERAL LAW. BPL
operators shall comply with all applicable federal laws, including
those protecting licensed spectrum users from interference by BPL
systems. The operator of a radio frequency device shall be required
to cease operating the device upon notification by a Federal
Communications Commission representative that the device is
causing harmful interference. Operation shall not resume until the
condition causing the harmful interference has been corrected.
SECTION 3. Section 52.155, Utilities Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) A telecommunications utility that holds a certificate
of operating authority or a service provider certificate of
operating authority may not charge a higher amount for originating
or terminating intrastate switched access than the prevailing rates
charged by the holder of the certificate of convenience and
necessity or the holder of a certificate of operating authority
issued under Chapter 65 in whose territory the call originated or
terminated unless:
(1) the commission specifically approves the higher
rate; or
(2) subject to commission review, the
telecommunications utility establishes statewide average composite
originating and terminating intrastate switched access rates based
on a reasonable approximation of traffic originating and
terminating between all holders of certificates of convenience and
necessity in this state.
(c) Notwithstanding Subsection (a), Chapter 65 governs the
switched access rates of a company that holds a certificate of
operating authority issued under Chapter 65.
SECTION 4. Subchapter D, Chapter 52, Utilities Code, is
amended by adding Section 52.156 to read as follows:
Sec. 52.156. RETAIL RATES, TERMS, AND CONDITIONS. A
telecommunications utility may not:
(1) establish a retail rate, term, or condition that
is anticompetitive or unreasonably preferential, prejudicial, or
discriminatory; or
(2) engage in predatory pricing or attempt to engage
in predatory pricing.
SECTION 5. Section 54.202, Utilities Code, is amended by
adding new Subsection (c) to read as follows:
(c) This section may not be construed to prevent a
municipally owned utility from providing to its energy customers,
either directly or indirectly, any energy related service involving
the transfer or receipt of information or data concerning the use,
measurement, monitoring, or management of energy utility services
provided by the municipally owned utility, including services such
as load management or automated meter reading.
SECTION 6. Section 54.251, Utilities Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Except as specifically determined otherwise by the
commission under this subchapter or Subchapter G, the holder of a
certificate of convenience and necessity, or the holder of a
certificate of operating authority issued under Chapter 65, for an
area has the obligations of a provider of last resort regardless of
whether another provider has a certificate of operating authority
or service provider certificate of operating authority for that
area.
(c) A certificate holder may meet the holder's provider of
last resort obligations using any available technology.
Notwithstanding any provision of Chapter 56, the commission may
adjust disbursements from the universal service fund to companies
using technologies other than traditional wireline or landline
technologies to meet provider of last resort obligations. As
determined by the commission, the certificate holder shall meet
minimum quality of service standards comparable to those
established for traditional wireline or landline technologies.
SECTION 7. Subchapter G, Chapter 54, Utilities Code, is
amended by adding Section 54.3015 to read as follows:
Sec. 54.3015. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to a holder of a certificate of operating authority issued
under Chapter 65 in the same manner and to the same extent this
subchapter applies to a holder of a certificate of convenience and
necessity.
SECTION 8. Subchapter H, Chapter 55, Utilities Code, is
amended by adding Section 55.1735 to read as follows:
Sec. 55.1735. CHARGE FOR PAY PHONE ACCESS LINE. The charge
or surcharge a local exchange company imposes for an access line
used to provide pay telephone service in an exchange may not exceed
the amount of the charge or surcharge the company imposes for an
access line used for regular business purposes in that exchange.
SECTION 9. Section 56.021, Utilities Code, is amended to
read as follows:
Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
commission shall adopt and enforce rules requiring local exchange
companies to establish a universal service fund to:
(1) assist telecommunications providers in providing
basic local telecommunications service at reasonable rates in high
cost rural areas;
(2) reimburse the telecommunications carrier that
provides the statewide telecommunications relay access service
under Subchapter D;
(3) finance the specialized telecommunications
assistance program established under Subchapter E;
(4) reimburse the department, the Texas Commission for
the Deaf and Hard of Hearing, and the commission for costs incurred
in implementing this chapter and Chapter 57;
(5) reimburse a telecommunications carrier providing
lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
amended;
(6) finance the implementation and administration of
an integrated eligibility process created under Section 17.007 for
customer service discounts relating to telecommunications
services, including outreach expenses the commission determines
are reasonable and necessary;
(7) reimburse a designated provider under Subchapter
F; [and]
(8) reimburse a successor utility under Subchapter G;
and
(9) finance the program established under Subchapter
H.
SECTION 10. Section 56.025, Utilities Code, is amended by
adding Subsection (g) to read as follows:
(g) This section expires August 31, 2007.
SECTION 11. Section 56.026, Utilities Code, is amended by
adding Subsection (e) to read as follows:
(e) This subsection and Subsections (c) and (d) expire
August 31, 2007.
SECTION 12. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Sections 56.029 and 56.030 to read as follows:
Sec. 56.029. COMMISSION REVIEW AND EVALUATION OF SUPPORT
AMOUNTS; ORDER. (a) On or before October 1, 2005, the commission
shall initiate a review and evaluation of the monthly per line
support amounts available from the Texas High Cost Universal
Service Plan and from the Small and Rural Incumbent Local Exchange
Company Universal Service Plan.
(b) The review and evaluation must include the commission's
determination of appropriate monthly per line support amounts to be
made available from the Texas High Cost Universal Service Plan and
from the Small and Rural Incumbent Local Exchange Company Universal
Service Plan. The commission shall conduct necessary proceedings
to determine the appropriate monthly per line support amounts to be
made available from those plans and the appropriate costs and
revenues to be used to compute those amounts.
(c) On or before November 15, 2006, the commission shall
issue an order establishing the appropriate monthly per line
support amounts to be made available from the Texas High Cost
Universal Service Plan and from the Small and Rural Incumbent Local
Exchange Company Universal Service Plan. The order takes effect
September 1, 2007. The commission shall deliver the order to the
lieutenant governor and the speaker of the house of representatives
on the date the commission issues the order.
(d) The commission may revise the monthly per line support
amounts to be made available from the Texas High Cost Universal
Service Plan and from the Small and Rural Incumbent Local Exchange
Company Universal Service Plan at any time after September 1, 2007,
after notice and an opportunity for hearing.
(e) This subsection and Subsections (a), (b), and (c) expire
September 1, 2007.
Sec. 56.030. AFFIDAVITS OF COMPLIANCE. On or before
September 1 of each year, a telecommunications provider that
receives disbursements from the universal service fund shall file
with the commission an affidavit certifying that the
telecommunications provider is in compliance with the requirements
for receiving money from the universal service fund and
requirements regarding the use of money from each universal service
fund program for which the telecommunications provider receives
disbursements.
SECTION 13. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Section 56.031 to read as follows:
Sec. 56.031. COMMISSION REVIEW AND EVALUATION OF DISTANCE
LEARNING DISCOUNTS AND PRIVATE NETWORK SERVICES FOR CERTAIN
ENTITIES. (a) On or before October 1, 2005, the commission shall
initiate a study for the purpose of evaluating a new funding
mechanism to provide financial support to all telecommunications
utilities that provide discounts or private network services at
prescribed rates to the entities identified in Subchapter B,
Chapter 57, Subchapter G, Chapter 58, and Subchapter D, Chapter 59.
(b) The study must include an evaluation of alternative
sources of funding such support, including utilizing federal E-rate
funding, and an evaluation of alternative funding mechanisms that
would result in support being made available to all
telecommunications utilities on a nondiscriminatory basis and on a
technology neutral basis in exchange for providing services at
rates comparable to those preferred rates being paid by the
entities identified under Subchapter B, Chapter 57, Subchapter G,
Chapter 58, and Subchapter D, Chapter 59, provisions.
(c) The commission shall conduct necessary proceedings to
evaluate the appropriate funding mechanism and the appropriate
method for determining the amount of support to be made available to
telecommunications utilities that provide discounts to entities
listed in Subsection (b).
(d) On or before November 15, 2006, the commission shall
issue a report to the speaker of the house of representatives and
the lieutenant governor on the viability of establishing a new
program or funding mechanism through which support shall be funded
and disbursed in exchange for providing discounts to the entities
listed in Subsection (b). The commission shall include in the
report its findings regarding the cost of any new funding
mechanism, the benefit of establishing a new program or funding
mechanism, and any other relevant information the commission deems
appropriate to assist the legislature in its review of discounts
for distance learning and private network services. This section
expires September 1, 2007.
SECTION 14. Chapter 56, Utilities Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. AUDIO NEWSPAPER PROGRAM
Sec. 56.301. AUDIO NEWSPAPER ASSISTANCE PROGRAM. The
commission by rule shall establish a program to provide from the
universal service fund financial assistance for a free telephone
service for blind and visually impaired persons that offers the
text of newspapers using synthetic speech. The commission may
adopt rules to implement the program.
SECTION 15. Section 57.048, Utilities Code, is amended by
adding Subsections (f)-(i) to read as follows:
(f) Notwithstanding any other provision of this title, a
certificated telecommunications utility may recover from the
utility's customers an assessment imposed on the utility under this
subchapter after the total amount deposited to the credit of the
fund, excluding interest and loan repayments, is equal to $1.5
billion, as determined by the comptroller. A certificated
telecommunications utility may recover only the amount of the
assessment imposed after the total amount deposited to the credit
of the fund, excluding interest and loan repayments, is equal to
$1.5 billion, as determined by the comptroller. The utility may
recover the assessment through a monthly billing process.
(g) The comptroller shall publish in the Texas Register the
date on which the total amount deposited to the credit of the fund,
excluding interest and loan repayments, is equal to $1.5 billion.
(h) Not later than February 15 of each year, a certificated
telecommunications utility that wants to recover the assessment
under Subsection (f) shall file with the commission an affidavit or
affirmation stating the amount that the utility paid to the
comptroller under this section during the previous calendar year
and the amount the utility recovered from its customers in
cumulative payments during that year.
(i) The commission shall maintain the confidentiality of
information the commission receives under this section that is
claimed to be confidential for competitive purposes. The
confidential information is exempt from disclosure under Chapter
552, Government Code.
SECTION 16. Section 57.051, Utilities Code, is amended to
read as follows:
Sec. 57.051. SUNSET PROVISION. The Telecommunications
Intrastructure Fund [Board] is subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, [the board is abolished and] this subchapter
expires September 1, 2011 [2005].
SECTION 17. Section 58.258(a), Utilities Code, is amended
to read as follows:
(a) Notwithstanding the pricing flexibility authorized by
this subtitle, an electing company's rates for private network
services may not be increased [on or] before January 1, 2012 [the
sixth anniversary of the company's date of election]. However, an
electing company may increase a rate in accordance with the
provisions of a customer specific contract.
SECTION 18. Section 58.051(a), Utilities Code, is amended
to read as follows:
(a) Unless reclassified under Section 58.024, the following
services are basic network services:
(1) flat rate residential local exchange telephone
service, including primary directory listings and the receipt of a
directory and any applicable mileage or zone charges;
(2) residential tone dialing service;
(3) lifeline and tel-assistance service;
(4) service connection for basic residential
services;
(5) direct inward dialing service for basic
residential services;
(6) private pay telephone access service;
(7) call trap and trace service;
(8) access for all residential and business end users
to 911 service provided by a local authority and access to dual
party relay service;
(9) mandatory residential extended area service
arrangements; and
(10) mandatory residential extended metropolitan
service or other mandatory residential toll-free calling
arrangements[; and
(11) residential call waiting service].
SECTION 19. Section 58.151, Utilities Code, is amended to
read as follows:
Sec. 58.151. SERVICES INCLUDED. The following services are
classified as nonbasic services:
(1) flat rate business local exchange telephone
service, including primary directory listings and the receipt of a
directory, and any applicable mileage or zone charges, except that
the prices for this service shall be capped until September 1, 2005,
at the prices in effect on September 1, 1999;
(2) business tone dialing service, except that the
prices for this service shall be capped until September 1, 2005, at
the prices in effect on September 1, 1999;
(3) service connection for all business services,
except that the prices for this service shall be capped until
September 1, 2005, at the prices in effect on September 1, 1999;
(4) direct inward dialing for basic business services,
except that the prices for this service shall be capped until
September 1, 2005, at the prices in effect on September 1, 1999;
(5) "1-plus" intraLATA message toll services;
(6) 0+ and 0- operator services;
(7) call waiting, call forwarding, and custom calling,
except that:
(A) residential call waiting service shall be
classified as a basic network service until July 1, 2006; and
(B) for an electing company subject to Section
58.301, prices for residential call forwarding and other custom
calling services shall be capped at the prices in effect on
September 1, 1999, until the electing company implements the
reduction in switched access rates described by Section 58.301(2);
(8) call return, caller identification, and call
control options, except that, for an electing company subject to
Section 58.301, prices for residential call return, caller
identification, and call control options shall be capped at the
prices in effect on September 1, 1999, until the electing company
implements the reduction in switched access rates described by
Section 58.301(2);
(9) central office based PBX-type services;
(10) billing and collection services, including
installment billing and late payment charges for customers of the
electing company;
(11) integrated services digital network (ISDN)
services, except that prices for Basic Rate Interface (BRI) ISDN
services, which comprise up to two 64 Kbps B-channels and one 16
Kbps D-channel, shall be capped until September 1, 2005, at the
prices in effect on September 1, 1999;
(12) new services;
(13) directory assistance services, except that an
electing company shall provide to a residential customer the first
three directory assistance inquiries in a monthly billing cycle at
no charge until January 1, 2007;
(14) services described in the WATS tariff as the
tariff existed on January 1, 1995;
(15) 800 and foreign exchange services;
(16) private line service;
(17) special access service;
(18) services from public pay telephones;
(19) paging services and mobile services (IMTS);
(20) 911 services provided to a local authority that
are available from another provider;
(21) speed dialing;
(22) three-way calling; and
(23) all other services subject to the commission's
jurisdiction that are not specifically classified as basic network
services in Section 58.051, except that nothing in this section
shall preclude a customer from subscribing to a local flat rate
residential or business line for a computer modem or a facsimile
machine.
SECTION 20. Subchapter G, Chapter 58, Utilities Code, is
amended by adding Section 58.268 to read as follows:
Sec. 58.268. CONTINUATION OF OBLIGATION. Notwithstanding
any other provision of this title, an electing company shall
continue to comply with this subchapter until January 1, 2012,
regardless of:
(1) the date the company elected under this chapter;
or
(2) any action taken in relation to that company under
Chapter 65.
SECTION 21. Section 59.077(a), Utilities Code, is amended
to read as follows:
(a) Notwithstanding the pricing flexibility authorized by
this subtitle, an electing company's rates for private network
services may not be increased [on or] before January 1, 2012 [the
sixth anniversary of the company's election date].
SECTION 22. Subchapter D, Chapter 59, Utilities Code, is
amended by adding Section 59.083 to read as follows:
Sec. 59.083. CONTINUATION OF OBLIGATION. Notwithstanding
any other provision of this title, an electing company shall
continue to comply with this subchapter until January 1, 2012,
regardless of:
(1) the date the company elected under this chapter;
or
(2) any action taken in relation to that company under
Chapter 65.
SECTION 23. Chapter 60, Utilities Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. WHOLESALE CODE OF CONDUCT
Sec. 60.201. STATEMENT OF POLICY. It is the policy of this
state that providers of telecommunications services operate in a
manner that is consistent with minimum standards to provide
customers with continued competitive choices.
Sec. 60.202. APPLICABILITY OF SUBCHAPTER. A provision of
this subchapter applies only to the extent the provision has not
been preempted by federal law or a rule, regulation, or order of the
Federal Communications Commission.
Sec. 60.203. MINIMUM SERVICE REQUIREMENTS. A
telecommunications provider may not unreasonably:
(1) discriminate against another provider by refusing
access to an exchange;
(2) refuse or delay an interconnection to another
provider;
(3) degrade the quality of access the
telecommunications provider provides to another provider;
(4) impair the speed, quality, or efficiency of a line
used by another provider;
(5) fail to fully disclose in a timely manner on
request all available information necessary to design equipment
that will meet the specifications of the network; or
(6) refuse or delay access by a person to another
provider.
Sec. 60.204. INTERCONNECTION. (a) A telecommunications
provider shall provide interconnection with other
telecommunications providers' networks for the transmission and
routing of telephone exchange service and exchange access.
(b) A telecommunications provider shall provide the
interconnection at any technically feasible point within the
provider's network and at rates, terms, and conditions that are
just, reasonable, and nondiscriminatory. The quality of the
interconnection must be at least equal to the quality of the
interconnection provided to itself, a subsidiary or affiliate of
the provider, or any other party to which the provider provides
interconnection.
Sec. 60.205. NUMBER PORTABILITY. A telecommunications
provider shall provide number portability in accordance with
federal requirements.
Sec. 60.206. DUTY TO NEGOTIATE. A telecommunications
provider shall negotiate in good faith the terms and conditions of
any agreement.
Sec. 60.207. DIALING PARITY. (a) A telecommunications
provider shall provide dialing parity to competing
telecommunications providers of telephone exchange service and
telephone toll service.
(b) A telecommunications provider shall provide
nondiscriminatory access to telephone numbers, operator services,
directory assistance, and directory listings and may not delay that
access unreasonably.
Sec. 60.208. ACCESS TO RIGHTS-OF-WAY. A telecommunications
provider shall provide access to poles, ducts, conduits, and
rights-of-way to competing providers of telecommunications service
on rates, terms, and conditions that are just, reasonable, and
nondiscriminatory.
Sec. 60.209. RECIPROCAL COMPENSATION. A
telecommunications provider shall establish reciprocal
compensation arrangements for the transport and termination of
telecommunications.
Sec. 60.210. ACCESS TO SERVICES. A telecommunications
provider shall provide access to:
(1) 911 and E-911 service;
(2) directory assistance service to allow other
telecommunications providers' customers to obtain telephone
numbers; and
(3) operator call completion service.
SECTION 24. Subchapter A, Chapter 62, Utilities Code, is
amended by adding Section 62.003 to read as follows:
Sec. 62.003. REQUIREMENTS RELATING TO AUDIO AND VIDEO
PROGRAMMING. (a) This section applies only to a provider of
advanced services or local exchange telephone service that has more
than 500,000 access lines in service in this state and that delivers
audio programming with localized content or video programming to
its subscribers.
(b) Notwithstanding any other provision of this title, a
provider of advanced services or local exchange telephone service
shall provide subscribers access to the signals of the local
broadcast television and radio stations licensed by the Federal
Communications Commission to serve those subscribers over the air;
provided with respect to low power television stations, this
Section shall only apply to those low power television stations
that are "qualified low power stations" as defined in 47 U.S.C. §
534(h)(2).
(c) To facilitate access by subscribers of a provider of
advanced services or local exchange telephone service to the
signals of local broadcast stations, a station either shall be
granted mandatory carriage or may request retransmission consent
with the provider.
(d) This title does not require a provider of advanced
services or local exchange telephone service to provide a
television or radio station valuable consideration in exchange for
carriage.
(e) A provider of advanced services or local exchange
telephone service shall transmit without degradation the signals a
local broadcast station delivers to the provider. The transmission
quality offered a broadcast station may not be lower than the
quality made available to another broadcast station or video or
audio programming source.
(f) A provider of advanced services or local exchange
telephone service that delivers audio or video programming to its
subscribers may not:
(1) discriminate among broadcast stations or between
broadcast stations on the one hand and programming providers on the
other with respect to transmission of their signals, taking into
account any consideration afforded a provider of advanced services
or local exchange telephone service by any such programming
provider or broadcast station; or
(2) delete, change, or alter a copyright
identification transmitted as part of a broadcast station's signal.
(g) A provider of advanced services or local exchange
telephone service that delivers audio or video programming shall be
subject to any applicable network non-duplication or syndicated
exclusivity rules promulgated by the Federal Communications
Commission to the extent applicable to cable systems as defined by
the commission.
(h) A provider of advanced services or local exchange
telephone service that delivers audio or video programming to its
subscribers shall include all programming providers in a subscriber
programming guide, if any, that lists program schedules.
SECTION 25. (a) Chapter 64, Utilities Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. PROTECTIONS RELATED TO BROADBAND
NETWORKS AND ADVANCED SERVICES
Sec. 64.201. POLICY. It is the policy of this state to
foster free market intermodal communications competition,
including providing incentives to invest in advanced
communications infrastructure, while still maintaining the "end to
end" concept that facilitated the creation and growth of the
Internet and still preserving customer choice in the
Internet-enabled applications customers employ in association with
broadband service.
Sec. 64.202. PROHIBITION ON PREVENTION OR INHIBITION. A
network provider that deploys broadband networks and provides
advanced services may not prevent or inhibit the use of any
application or product by customers in association with the use of
an advanced service by blocking transmission and delivery of
traffic to and from a particular port, Internet address, or
Internet site, by limiting the speed available for use by any
particular application, or by instituting technical limitations on
the use of any Internet-enabled application. However, a network
provider may take reasonable and necessary actions to protect the
network from harm and to prevent degradation of service to its
general body of customers. This section does not prohibit a network
provider from offering or supporting a service or application,
including adware, spyware, malware, antivirus, antispam, content
filtering, or parental controls or protections, if the customer has
a choice between the network provider's service or application and
those of an unaffiliated vendor.
Sec. 64.203. PROHIBITION ON BLOCKING AND REDIRECTING. A
network provider that deploys broadband networks and provides
advanced services or an Internet service may not knowingly or
intentionally block or redirect a customer's attempt to access an
Internet application or advanced service without notice to the
customer unless the:
(1) blocking or redirecting is necessary to comply
with the Digital Millennium Copyright Act (Pub. L. No. 105-304),
any other federal or state law, a court order, a request from a law
enforcement official, or a lawful process or is necessary for
reasons of national security;
(2) owner or others in control of the application or
advanced service request the blocking or redirecting of traffic;
(3) blocking or redirecting is necessary for the
protection of the advanced services provider's or Internet service
provider's customers, network, facilities, or business reputation
or is the consequence of the advanced services provider's or
Internet service provider's activities with respect to
maintenance, monitoring, repair, network, reconfiguration,
software or hardware changes, or network outages;
(4) blocking or redirecting occurs as a result of
software changes, incompatibility of software used by the customer,
or any other reason attributable to a third party or not within the
reasonable control of the advanced services provider or Internet
service provider;
(5) blocking or redirecting is done to provide notice
to the customer of:
(A) network conditions;
(B) conditions pertaining to the customer's
system or software; or
(C) changes to prices, features, functions,
operations, or terms of service; or
(6) action taken is incident to the enforcement of, or
allowed by, the posted terms of service, privacy policy or
acceptable use policies, or conditions that apply to use of the
service.
Sec. 64.204. JURISDICTION. The commission has jurisdiction
to enforce this subchapter.
(b) The Public Utility Commission of Texas shall conduct a
study to determine whether Title 2, Utilities Code, adequately
preserves customer choice in the Internet-enabled applications
employed in association with broadband service and report its
conclusions and recommendations to the legislature not later than
January 1, 2007. The study must include consultation with and
comment from all interested parties.
SECTION 26. Subtitle C, Title 2, Utilities Code, is amended
by adding Chapter 65 to read as follows:
CHAPTER 65. DEREGULATION OF CERTAIN INCUMBENT LOCAL EXCHANGE
COMPANY MARKETS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 65.001. STATEMENT OF POLICY. It is the policy of this
state to provide for full rate and service competition in the
telecommunications market of this state so that customers may
benefit from innovations in service quality and market-based
pricing.
Sec. 65.002. DEFINITIONS. In this chapter:
(1) "Deregulated company" means an incumbent local
exchange company for which all of the company's markets have been
deregulated.
(2) "Market" means an exchange in which an incumbent
local exchange company provides residential local exchange
telephone service.
(3) "Regulated company" means an incumbent local
exchange company for which none of the company's markets have been
deregulated.
(4) "Stand-alone residential local exchange voice
service" means:
(A) residential tone dialing service;
(B) services and functionalities supported under
the lifeline program;
(C) access for all residential end users to 911
service provided by a local authority and access to dual party relay
service;
(D) at the election of the incumbent local
exchange company, mandatory residential extended area service
arrangements, mandatory residential extended metropolitan service
or other mandatory residential toll-free calling arrangements,
mandatory expanded local calling service arrangements, or another
service that a company is required under a tariff to provide to a
customer who subscribes or may subscribe to basic network services;
and
(E) flat rate residential local exchange
telephone service delivered by landline, but only if the service is
ordered and received independent of:
(i) a service classified as a nonbasic
service under Section 58.151 or residential call waiting service;
(ii) a package of services that includes a
service classified as a nonbasic service under Section 58.151; or
(iii) another flat rate residential local
exchange service delivered by landline.
(5) "Transitioning company" means an incumbent local
exchange company for which at least one, but not all, of the
company's markets has been deregulated.
Sec. 65.003. COMMISSION AUTHORITY. (a) Notwithstanding
any other provisions of this title, the commission has authority to
implement and enforce this chapter.
(b) The commission may adopt rules and conduct proceedings
necessary to administer and enforce this chapter, including rules
to determine whether a market should remain regulated, should be
deregulated, or should be reregulated.
Sec. 65.004. INFORMATION. (a) The commission may collect
and compile information from all telecommunications providers as
necessary to implement and enforce this chapter.
(b) The commission shall maintain the confidentiality of
information collected under this chapter that is claimed to be
confidential for competitive purposes. Information that is claimed
to be confidential is exempt from disclosure under Chapter 552,
Government Code.
Sec. 65.005. CUSTOMER PROTECTION. This chapter does not
affect a customer's right to complain to the commission regarding a
telecommunications provider.
[Sections 65.006-65.050 reserved for expansion]
SUBCHAPTER B. DETERMINATION OF WHETHER MARKET SHOULD BE REGULATED
Sec. 65.051. MARKETS DEREGULATED. (a) Except as provided
by Subsection (b), all markets of all incumbent local exchange
companies are deregulated on January 1, 2006, unless the commission
determines under Section 65.052(a) that a market or markets should
remain regulated.
(b) A market of an incumbent local exchange company in which
the population in the area included in the market is less than
30,000 is deregulated on January 1, 2007, unless the commission
determines under Section 65.052(f) that the market should remain
regulated.
Sec. 65.052. DETERMINATION OF WHETHER A MARKET SHOULD
REMAIN REGULATED. (a) Except as provided by Subsection (f), the
commission shall:
(1) determine whether each market of an incumbent
local exchange company should remain regulated on and after January
1, 2006; and
(2) issue a final order classifying the company in
accordance with this section effective January 1, 2006.
(b) In making a determination under Subsection (a), the
commission may not determine that a market should remain regulated
if:
(1) the population in the area included in the market
is at least 100,000; or
(2) the population in the area included in the market
is at least 30,000 but less than 100,000 and, in addition to the
incumbent local exchange company, there are at least three
competitors of which:
(A) at least one is a telecommunications provider
that holds a certificate of operating authority or service provider
certificate of operating authority and provides residential local
exchange telephone service in the market;
(B) at least one is an entity providing
residential telephone service in the market using facilities that
the entity owns; and
(C) at least one is a provider in that market of
commercial mobile service as defined by Section 332(d),
Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
Communications Commission rules, and the Omnibus Budget
Reconciliation Act of 1993 (Pub. L. No. 103-66), that is not
affiliated with the incumbent local exchange company.
(c) The commission shall issue an order classifying an
incumbent local exchange company as a deregulated company that is
subject to Subchapter C if:
(1) the company does not have any markets in which the
population in the area included in the market is less than 30,000;
and
(2) the commission does not determine that a market of
the company should remain regulated on and after January 1, 2006.
(d) Regardless of the population in the area included in an
incumbent local exchange company's markets, the commission shall
issue an order classifying the company as a transitioning company
that is subject to Subchapter D if the commission determines that
one or more, but not all, of the markets of the company should
remain regulated on and after January 1, 2006.
(e) The commission shall issue an order classifying the
company as a regulated company that is subject to the provisions of
this title that applied to the company on September 1, 2005, if the
commission determines that all of the markets of the company in
which the population in each area included in the markets is at
least 30,000 should remain regulated on and after January 1, 2006.
This subsection does not affect the authority of a regulated
company to elect under Chapter 58 or 59 after January 1, 2005, and
to be regulated under the chapter under which the company elected.
(f) Not later than November 30, 2006, the commission shall
determine whether a market of an incumbent local exchange company
in which the population in the area included in the market is less
than 30,000 should remain regulated on or after January 1, 2007.
The commission by rule shall determine the market test to be applied
in determining whether the market should remain regulated. If the
commission does not determine that the market should remain
regulated on or after January 1, 2007, and the deregulation of that
market results in a transitioning or regulated company no longer
meeting the definition of a transitioning or regulated company, as
appropriate, the commission shall issue an order reclassifying the
company appropriately.
Sec. 65.053. INCUMBENT LOCAL EXCHANGE COMPANY MARKETS.
(a) Notwithstanding Section 65.052, an incumbent local exchange
company may elect to have all of the company's markets remain
regulated on and after January 1, 2006.
(b) To make an election under Subsection (a), an incumbent
local exchange company must file an affidavit with the commission
making that election not later than December 1, 2005.
(c) If an incumbent local exchange company makes an election
under this section, the commission shall issue an order classifying
the company as a regulated company that is subject to the provisions
of this title that applied to the company on September 1, 2005.
This subsection does not affect the authority of a regulated
company to elect under Chapter 58 or 59 after January 1, 2005, and
to be regulated under the chapter under which the company elected.
Sec. 65.054. PETITION FOR DEREGULATION. (a) After July 1,
2007, a transitioning or regulated company may petition the
commission to deregulate a market that the commission previously
determined should remain regulated.
(b) If the commission deregulates a market under this
section and the deregulation results in the transitioning or
regulated company no longer meeting the definition of a
transitioning or regulated company, as appropriate, the commission
shall issue an order reclassifying the company appropriately.
Sec. 65.055. COMMISSION AUTHORITY TO REREGULATE CERTAIN
MARKETS. (a) This section applies only to a market of an incumbent
local exchange company in which the population in the area included
in the market is less than 100,000.
(b) The commission, on its own motion or on a complaint that
the commission considers to have merit, may determine that a market
that was previously deregulated should again be subject to
regulation.
(c) The commission by rule shall prescribe the procedures
and standards applicable to a determination under this section.
[Sections 65.056-65.100 reserved for expansion]
SUBCHAPTER C. DEREGULATED COMPANY
Sec. 65.101. ISSUANCE OF CERTIFICATE OF OPERATING
AUTHORITY. (a) A deregulated company may petition the commission
to relinquish the company's certificate of convenience and
necessity and receive a certificate of operating authority.
(b) The commission shall issue the deregulated company a
certificate of operating authority and rescind the deregulated
company's certificate of convenience and necessity if the
commission finds that all of the company's markets have been
deregulated under Subchapter B.
Sec. 65.102. REQUIREMENTS. (a) A deregulated company that
holds a certificate of operating authority issued under this
subchapter is a nondominant carrier governed in the same manner as a
holder of a certificate of operating authority issued under Chapter
54, except that the deregulated company:
(1) retains the obligations of a provider of last
resort under Chapter 54;
(2) is subject to the following provisions in the same
manner as an incumbent local exchange company that is not
deregulated:
(A) Sections 54.156, 54.158, and 54.159;
(B) Section 55.012; and
(C) Chapter 60; and
(3) may not increase the company's rates for
stand-alone residential local exchange voice service before the
date the commission order issued under Section 56.029(c) takes
effect, regardless of whether the company is an electing company
under Chapter 58.
(b) In each market, a deregulated company shall make
available to all customers uniformly throughout that market the
same price for all services and products. For the purposes of this
subsection, the requirement for the same price for all services and
products excludes promotional offers made to former customers in
which the promotional price and terms have a duration of 6 months or
less.
[Sections 65.103-65.150 reserved for expansion]
SUBCHAPTER D. TRANSITIONING COMPANY
Sec. 65.151. PROVISIONS APPLICABLE TO TRANSITIONING
COMPANY. A transitioning company is governed by this subchapter
and the provisions of this title that applied to the company
immediately before the date the company was classified as a
transitioning company. If there is a conflict between this chapter
and the other applicable provisions of this title, this chapter
controls.
Sec. 65.152. GENERAL REQUIREMENTS. (a) A transitioning
company may:
(1) exercise pricing flexibility in a market in the
manner provided by Section 58.063 one day after providing an
informational notice as required by that section; and
(2) introduce a new service in a market in the manner
provided by Section 58.153 one day after providing an informational
notice as required by that section.
(b) A transitioning company may not be required to comply
with exchange-specific retail quality of service standards or
reporting requirements in a market that is deregulated.
Sec. 65.153. RATE REQUIREMENTS. (a) In a market that
remains regulated, a transitioning company shall price the
company's retail services in accordance with the provisions that
applied to that company immediately before the date the company was
classified as a transitioning company.
(b) In a market that is deregulated, a transitioning company
shall price the company's retail services as follows:
(1) for all services, other than basic local
telecommunications service, at any price higher than the service's
long run incremental cost; and
(2) for basic local telecommunications service, at any
price higher than the lesser of the service's long run incremental
cost or the tariffed price on the date that market was deregulated,
provided that the company may not increase the company's rates for
stand-alone residential local exchange voice service before the
date the commission order issued under Section 56.029(c) takes
effect, regardless of whether the company is an electing company
under Chapter 58.
(c) In each deregulated market, a transitioning company
shall make available to all customers uniformly throughout that
market the same price for all services and products. For the
purposes of this subsection, the requirement for the same price for
all services and products excludes promotional offers made to
former customers in which the promotional price and terms have a
duration of 6 months or less.
(d) In any market, regardless of whether regulated or
deregulated, the transitioning company may not:
(1) establish a retail rate, term, or condition that
is anticompetitive or unreasonably preferential, prejudicial, or
discriminatory;
(2) establish a retail rate that is subsidized either
directly or indirectly by a regulated monopoly service or a service
provided in an exchange that is not deregulated; or
(3) engage in predatory pricing or attempt to engage
in predatory pricing.
[Sections 65.154-65.200 reserved for expansion]
SUBCHAPTER E. REDUCTION OF SWITCHED ACCESS RATES
Sec. 65.201. REDUCTION OF SWITCHED ACCESS RATES BY
DEREGULATED COMPANY. (a) On the date the last market of an
incumbent local exchange company is deregulated, the company shall
reduce both the company's originating and terminating per minute of
use switched access rates in each market to parity with the
company's respective federal originating and terminating per
minute of use switched access rates.
(b) After reducing the rates under Subsection (a), a
deregulated company shall maintain parity with the company's
federal originating and terminating per minute of use switched
access rates. If the company's federal originating and terminating
per minute of use switched access rates are changed, the company
shall change the company's per minute of use switched access rates
in each market as necessary to re-achieve parity with the company's
federal originating and terminating per minute of use switched
access rates.
Sec. 65.202. REDUCTION OF SWITCHED ACCESS RATES BY
TRANSITIONING COMPANY WITH MORE THAN THREE MILLION ACCESS LINES.
(a) Notwithstanding any other provision of this title, a
transitioning company that has more than three million access lines
in service in this state on January 1, 2006, shall:
(1) on July 1, 2006, reduce both the company's
originating and terminating per minute of use switched access rates
in each market by an amount equal to 33 percent of the difference in
the rates in effect on June 30, 2006, and the company's respective
federal originating and terminating per minute of use switched
access rates;
(2) on July 1, 2007, reduce both the company's
originating and terminating per minute of use switched access rates
in each market by an amount equal to 33 percent of the difference in
the rates in effect on June 30, 2006, and the company's respective
federal originating and terminating per minute of use switched
access rates; and
(3) on July 1, 2008, reduce both the company's
originating and terminating per minute of use switched access rates
in each market to parity with the company's respective federal
originating and terminating per minute of use switched access
rates.
(b) After reducing the rates under Subsection (a), a
transitioning company shall maintain parity with the company's
federal originating and terminating per minute of use switched
access rates. If the company's federal originating and terminating
per minute of use switched access rates are changed, the company
shall change the company's per minute of use switched access rates
in each market as necessary to re-achieve parity with the company's
federal originating and terminating per minute of use switched
access rates.
Sec. 65.203. REDUCTION OF SWITCHED ACCESS RATES BY CERTAIN
TRANSITIONING COMPANIES WITH NOT MORE THAN THREE MILLION ACCESS
LINES. (a) Notwithstanding any other provision of this title, a
company that is classified as a transitioning company effective
January 1, 2006, and that has not more than three million access
lines in service in this state on that date shall reduce both the
company's originating and terminating per minute of use switched
access rates in each market in accordance with this section.
(b) On July 1, 2006, the transitioning company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market by an amount equal to the
lesser of:
(1) 25 percent of the difference in the company's rates
in effect on June 30, 2006, and the company's respective federal
originating and terminating per minute of use switched access rates
in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on July 1, 2006, by the total number
of the company's markets on December 30, 2005.
(c) On July 1, 2007, the transitioning company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market by an amount equal to the
lesser of:
(1) 25 percent of the difference in the company's rates
in effect on June 30, 2006, and the company's respective federal
originating and terminating per minute of use switched access rates
in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on July 1, 2007, by the total number
of the company's markets on December 30, 2005.
(d) On July 1, 2008, the transitioning company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market by an amount equal to the
lesser of:
(1) 25 percent of the difference in the company's rates
in effect on June 30, 2006, and the company's respective federal
originating and terminating per minute of use switched access rates
in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on July 1, 2008, by the total number
of the company's markets on December 30, 2005.
(e) On July 1, 2009, the transitioning company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market to parity with the company's
respective federal originating and terminating per minute of use
switched access rates.
(f) After reducing the rates under Subsection (e), a
transitioning company shall maintain parity with the company's
federal originating and terminating per minute of use switched
access rates. If the company's federal originating and terminating
per minute of use switched access rates are changed, the company
shall change the company's per minute of use switched access rates
in each market as necessary to re-achieve parity with the company's
federal originating and terminating per minute of use switched
access rates.
Sec. 65.204. REDUCTION OF SWITCHED ACCESS RATES BY NEWLY
DESIGNATED TRANSITIONING COMPANY. (a) Notwithstanding any other
provision of this title, a company that is classified as a
transitioning company after January 1, 2006, shall reduce both the
company's originating and terminating per minute of use switched
access rates in each market in accordance with this section.
(b) On the date the company is classified as a transitioning
company, the company shall reduce both the company's originating
and terminating per minute of use switched access rates in each
market by an amount equal to the lesser of:
(1) 25 percent of the difference in the company's rates
in effect on the day before the date the company was classified, and
the company's respective federal originating and terminating per
minute of use switched access rates in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on the date the company is classified
as a transitioning company by the total number of the company's
markets on December 30, 2005.
(c) On the first anniversary of the date the company is
classified as a transitioning company, the company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market by an amount equal to the
lesser of:
(1) 25 percent of the difference in the company's rates
in effect on the day before the date the company was classified, and
the company's respective federal originating and terminating per
minute of use switched access rates in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on the first anniversary of the date
the company is classified as a transitioning company by the total
number of the company's markets on December 30, 2005.
(d) On the second anniversary of the date the company is
classified as a transitioning company, the company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market by an amount equal to the
lesser of:
(1) 25 percent of the difference in the company's rates
in effect on the day before the date the company was classified, and
the company's respective federal originating and terminating per
minute of use switched access rates in effect on that date; or
(2) an amount derived by multiplying that difference
by a percentage derived by dividing the number of the company's
markets that are not regulated on the second anniversary of the date
the company is classified as a transitioning company by the total
number of the company's markets on December 30, 2005.
(e) On the third anniversary of the date the company is
classified as a transitioning company, the company shall reduce
both the company's originating and terminating per minute of use
switched access rates in each market to parity with the company's
respective federal originating and terminating per minute of use
switched access rates.
(f) After reducing the rates under Subsection (e), a
transitioning company shall maintain parity with the company's
federal originating and terminating per minute of use switched
access rates. If the company's federal originating and terminating
per minute of use switched access rates are changed, the company
shall change the company's per minute of use switched access rates
in each market as necessary to re-achieve parity with the company's
federal originating and terminating per minute of use switched
access rates.
Sec. 65.205. MAINTENANCE OF REDUCTION OR PARITY.
(a) After a deregulated or transitioning company reduces the
company's rates under this subchapter, the company may not increase
those rates above the applicable rates prescribed by this
subchapter.
(b) If a transitioning company's federal per minute of use
switched access rates are reduced, the company shall reduce the
company's per minute of use switched access rates to not more than
the applicable rates prescribed by this subchapter.
(c) Notwithstanding Subsections (a) and (b), a deregulated
or transitioning company may decrease the company's per minute of
use switched access rates to amounts that are less than the
applicable rates prescribed by this subchapter.
[Sections 65.206-65.250 reserved for expansion]
SUBCHAPTER F. LEGISLATIVE OVERSIGHT COMMITTEE
Sec. 65.251. OVERSIGHT COMMITTEE. (a) In this subchapter,
"committee" means the telecommunications competitiveness
legislative oversight committee.
(b) The committee is composed of nine members as follows:
(1) the chair of the Senate Committee on Business and
Commerce;
(2) the chair of the House Committee on Regulated
Industries;
(3) three members of the senate appointed by the
lieutenant governor;
(4) three members of the house of representatives
appointed by the speaker of the house of representatives; and
(5) the chief executive of the Office of Public
Utility Counsel.
(c) An appointed member of the committee serves at the
pleasure of the appointing official.
Sec. 65.252. COMMITTEE DUTIES. (a) The committee shall
conduct joint public hearings with the commission at least annually
regarding the introduction of full competition to
telecommunications services in this state.
(b) The commission shall:
(1) collect and compile information from all
telecommunications providers as necessary to conduct a hearing
under this section; and
(2) maintain the confidentiality of information
collected under this section that is claimed to be confidential for
competitive purposes.
(c) Information that is claimed to be confidential under
Subsection (b) is exempt from disclosure under Chapter 552,
Government Code.
(d) The commission shall provide to the committee
information regarding rules relating to telecommunications
deregulation proposed by the commission. The committee may submit
comments to the commission on those proposed rules.
(e) The committee shall monitor the effectiveness of
telecommunications deregulation, including the fairness of rates,
the quality of service, and the effect of regulation on the normal
forces of competition.
(f) The committee may request reports and other information
from the commission as necessary to carry out this subchapter.
(g) Not later than November 15 of each even-numbered year,
the committee shall report to the governor, lieutenant governor,
and speaker of the house of representatives on the committee's
activities under this subchapter. The report must include:
(1) an analysis of any problems caused by
telecommunications deregulation; and
(2) recommendations for any legislative action
necessary to address those problems and to further competition
within the telecommunications industry.
SECTION 27. Subtitle C, Title 2, Utilities Code, is amended
by adding Chapter 66 to read as follows:
CHAPTER 66. STATEWIDE CABLE AND VIDEO FRANCHISE
Sec. 66.001. STATEMENT OF STATE POLICY. (a) It is the
policy of this state to promote competition among providers of
cable and video services so that customers may benefit from
innovations in service quality and market-based pricing.
(b) The legislature finds that the Public Utility
Commission shall be designated as the franchising authority for a
statewide franchise.
SECTION 28. The following provisions of the Utilities Code
are repealed:
(1) Sections 57.048(c) and (d);
(2) Subchapters B-F, Chapter 62; and
(3) Chapters 61 and 63.
SECTION 29. If on August 31, 2005, the assessment
prescribed by Section 57.048, Utilities Code, is imposed at a rate
of less than 1.25 percent, the comptroller shall, on September 1,
2005, reset the rate of the assessment to 1.25 percent.
SECTION 30. This Act takes effect September 1, 2005, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect on the 91st day after the last day of the
legislative session.