Amend CSHB 789 by adding a new SECTION 9 as follows and 
renumbering the SECTIONS of the bill appropriately:
	SECTION 9.  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 Chapter 57, 
Subchapter B, Chapter 58, Subchapter G and Chapter 59, Subchapter 
D.
	(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 non-discriminatory 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 Chapter 57, Subsection B, Chapter 58, 
Subsection G and Chapter 59, Subsection D 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 or representatives and 
the lieutenant governor on the viability of establishing a new 
program or funding mechanism through which support shall be funded 
and support 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 
expire September 1, 2007.