Amend CSHB 789 as follows:                                                   

(1)  On page 21, lines 10 and 11, strike "was subject to this 	chapter on August 31, 2005" and substitute "is not regulated under 
Chapter 58 or 59".
	(2)  On page 31, strike lines 14-25 and substitute the 
following:            
	(c)  A municipality or municipally owned [Notwithstanding 
Subsection (b)(1), a municipal] utility may not charge any entity, 
regardless of the nature of the services provided by that entity, a 
pole attachment rate or underground conduit rate that exceeds the 
fee the municipality or municipally owned utility would be 
permitted to charge under rules adopted by the Federal 
Communications Commission under 47 U.S.C. Section 224(e) if the 
municipality's or municipally owned utility's rates were regulated 
under federal law and the rules of the Federal Communications 
Commission.  In addition, not later than September 1, 2006, a 
municipality or municipally owned utility shall charge a single, 
uniform pole attachment or underground conduit rate to all entities 
that are not affiliated with the municipality or municipally owned 
utility regardless of the services carried over the networks 
attached to the poles or underground conduit.
	(3)  On page 31, line 26, through page 32, line 27, strike 
SECTION 35 of the bill and renumber subsequent SECTIONS 
accordingly.
	(4)  On page 45, line 5, strike "provider of local exchange 
service" and substitute "provider of local exchange telephone 
service".
	(5)  On page 46, line 7, strike "[(a)]" and substitute "(a)". 
	(6)  On page 46, strike lines 24-26 and substitute the 
following:            
	(b) [(c)]  The company may impose a monthly fee against each 
of the company's local exchange service customers in this state.  
This fee is in addition to the company's local exchange rates.
	(7)  On page 54, lines 1-8, strike SECTION 66 of the bill and 
renumber subsequent SECTIONS accordingly.
	(8)  On page 55, line 6, strike "charges." and substitute 
"charges made after August 31, 2005.".
	(9)  On page 64, line 26 through page 66, line 7, strike 
SECTION 84 of the bill and renumber subsequent SECTIONS 
accordingly.
	(10)  Add the following appropriately numbered SECTION to 
read as follows and renumber subsequent SECTIONS accordingly:
	SECTION ___.  Section 58.002, Utilities Code, is amended to 
read as follows: 
	Sec. 58.002.  ELECTION [DEFINITION].  (a)  In this section, 
"good cause" includes only matters beyond the control of the 
company.
	(b)  An incumbent local exchange company may elect to be 
subject to this chapter by notifying the commission in writing of 
its election.
	(c)  The commission may allow an electing company to withdraw 
the company's election under this chapter:
		(1)  on application by the company; and                                
		(2)  only for good cause [In this chapter, "electing 
company" means an incumbent local exchange company that elects to 
be subject to incentive regulation and to make the corresponding 
infrastructure commitment under this chapter].
	(11)  On page 70, between lines 19 and 20, insert the 
following:             
		(21)  Subchapter G of this chapter;                                    
	(12)  On page 70, lines 20 and 21, renumber the subdivisions 
appropriately.  
	(13)  On page 70, lines 26 and 27, strike "was subject to this 
chapter on August 31, 2005" and substitute "is subject to this 
chapter".
	(14)  Insert the following appropriately numbered SECTION 
and renumber subsequent SECTIONS accordingly:
	SECTION ___.  Section 58.253(a), Utilities Code, as amended 
by Chapters 959, 1220, 1255, and 1350, Acts of the 77th Legislature, 
Regular Session, 2001, is reenacted and amended to read as follows:
	(a)  On customer request, an electing company shall provide 
private network services to:
		(1)  an educational institution;                                              
		(2)  a library as defined in Section 57.042(6)(A) and 
(B);                  
		(3)  a nonprofit telemedicine center;                                         
		(4)  a public or not-for-profit hospital; or                           
		(5)  [a project funded by the telecommunications 
infrastructure fund under Subchapter C, Chapter 57, except for a 
telepharmacy system; or
		[(6)]  a legally constituted consortium or group of 
entities listed in this subsection.
	(15)  On page 82, line 19, strike "minute of use" and 
substitute "minute of use, except that a company may not, in any 
event, be required to reduce its intrastate switched access rates 
on a combined originating and terminating basis by more than two 
cents for each minute of use".
	(16)  On page 82, line 24, strike "minute of use" and 
substitute "minute of use, except that a company may not, in any 
event, be required to reduce its intrastate switched access rates 
on a combined originating and terminating basis by more than four 
cents for each minute of use below the rate in effect on December 
31, 2005".
	(17)  Insert the following appropriately numbered SECTIONS 
and renumber subsequent SECTIONS accordingly:
	SECTION ___.  Section 59.002(1), Utilities Code, is amended 
to read as follows:
		(1)  "Electing company" means an incumbent local 
exchange company that elects to be subject to [for an 
infrastructure commitment and corresponding regulation under] this 
chapter.
	SECTION ___.  Section 59.021(a), Utilities Code, is amended 
to read as follows:
	(a)  An incumbent local exchange company may elect to [make 
an infrastructure commitment and to] be subject to [corresponding 
regulation under] this chapter if the company:
		(1)  serves less than five percent of the access lines 
in this state; and   
		(2)  has not elected incentive regulation under Chapter 
58.                 
	(18)  On page 84, lines 3 and 4, strike "was subject to this 
chapter on August 31, 2005" and substitute "is subject to this 
chapter".
	(19)  On page 88, line 11, after "practices.", insert the 
following:  

The code of conduct must apply to all providers on an equal and 
nondiscriminatory basis and may not address any matter that is 
contained in or relates to an agreement for interconnection.
	(20)  On page 96, line 20, strike "customer information." and 
substitute "customer information, except that the rules may not 
provide for the payment of compensation for the preparation and 
transfer of files from a service order system to be used in the 
creation of 911 call routing data and 911 automatic location 
identification data.".
	(21)  Insert the following appropriately numbered SECTIONS 
and renumber subsequent SECTIONS accordingly:
	SECTION ___.  Section 60.164, Utilities Code, is amended to 
read as follows: 
	Sec. 60.164.  PERMISSIBLE JOINT MARKETING.  The [Except as 
prescribed in Chapters 61, 62, and 63, the] commission may not adopt 
any rule or order that would prohibit a local exchange company from 
jointly marketing or selling its products and services with the 
products and services of any of its affiliates in any manner 
permitted by federal law or applicable rules or orders of the 
Federal Communications Commission.
	SECTION ___.  Section 60.165, Utilities Code, is amended to 
read as follows: 
	Sec. 60.165.  AFFILIATE RULE.  The [Except as prescribed in 
Chapters 61, 62, and 63, the] commission may not adopt any rule or 
order that would prescribe for any local exchange company any 
affiliate rule, including any accounting rule, any cost allocation 
rule, or any structural separation rule, that is more burdensome 
than federal law or applicable rules or orders of the Federal 
Communications Commission.  Notwithstanding any other provision in 
this title, the commission may not attribute or impute to a local 
exchange company a price discount offered by an affiliate of the 
local exchange company to the affiliate's customers.  This section 
does not limit the authority of the commission to consider a 
complaint brought under Subchapter A, Chapter 52, Section 53.003, 
or this chapter.
	(22)  On page 103, line 12 through page 107, line 5, strike 
SECTION 135 of the bill and renumber subsequent SECTIONS 
accordingly.
	(23)  On page 110, line 17, strike Subdivision (43) and 
renumber subsequent subdivisions accordingly.
	(24)  On page 110, line 23, strike "Sections 58.002-58.022" 
and substitute "Sections 58.003-58.022".
	(25)  On page 110, line 27, strike "Subchapters F and G" and 
substitute "Subchapter F".
	(26)  On page 110, after line 27, insert the following 
appropriately numbered subdivision:
		(  )  Section 59.023(b);                                                      
	(27)  On page 111, line 12, strike "Sections 60.162-60.165" 
and substitute "Sections 60.162 and 60.163".
	(28)  On page 111, line 21, strike "June 1" and substitute 
"September 1".