Amend CSHB 789 by striking SECTION 32 of the bill (page 29, 
lines 1-13) and substituting the following:
	SECTION 32.  Section 54.202,  Utilities Code, is amended to 
read as follows: 
	Sec. 54.202. PROHIBITED MUNICIPAL SERVICES.  (a)  A 
municipality or municipally owned utility may not, directly or 
indirectly, on its own or with another entity, [municipal electric 
system may not] offer [for sale] to the public:
		(1)  a service for which a new certificate [of 
convenience and necessity, a certificate of operating authority, or 
a service provider certificate of operating authority] is required; 
[or]
		(2)  a service as a network provider;                                  
		(3)  a telecommunications service or information 
service, without regard to the technology platform used to provide 
the service; or
		(4)  a video or broadband service, including a service 
described by Section 51.003 (a)(4), provided that this section does 
not affect the authority of a municipality or municipally owned 
utility to continue to offer a video or broadband service it was 
providing on January 1, 2005.
	(b)  Subsection (a) does not prevent a municipality or 
municipally owned utility from:
		(1)  offering a broadband network that provides 
Internet access in a municipally owned building, library, or public 
park;
		(2)  operating a broadband network that is not available 
to the public to provide telecommunications services and advanced 
services between municipal and other governmental facilities for 
governmental purposes;
		(3)  providing a governmental function or service that 
is enabled, enhanced, delivered to, or available to the public 
using the Internet, including:
			(A)  a bill paying service;                                           
			(B)  an emergency service;                                            
			(C)  a constituent service;                                           
			(D)  utility meter reading; and                                       
			(E)  permitting; and                                                  
		(4)  providing access to its transmission and 
distribution facilities under a contract with another entity that 
allows the entity to offer the municipality's customers high speed 
data services using broadband over power line technology if:
			(A)  the municipality has a population of not more 
than 30,000; and 
			(B)  the contract is entered into on or before 
January 1, 2006.     
	(c)  This section may not be construed to limit:                        
		(1)  a municipality's or municipally owned utility's 
ability to engage in economic development activities as expressly 
authorized by statute;
		(2)  a municipality's or municipally owned utility's 
ability to enter into nonexclusive, nondiscriminatory agreements 
with private entities for the use of rights-of-way, pole 
attachments, or other municipal or utility property for the 
placement of an antenna or receiving equipment by those entities to 
provide services in the municipality, to the extent expressly 
provided by statute; or
		(3)  the authority of a municipality or municipally 
with:
			[(A)  another customer's premises within the 
exchange, or 
			[(B)  a long distance provider that serves the 
exchange.  
	[(b)  Subsection (a)  applies to a service offered either 
directly or indirectly through a telecommunications provider].