By: King of Parker, Edwards(Senate Sponsor-Fraser) H.B. No. 789
(In the Senate - Received from the House March 30, 2005;
April 5, 2005, read first time and referred to Committee on
Business and Commerce; May 21, 2005, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 9,
Nays 0; May 21, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 789 By: Fraser
A BILL TO BE ENTITLED
AN ACT
relating to furthering competition in the telecommunications
industry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 3. 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 4. 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 5. 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 6. Section 56.025, Utilities Code, is amended by
adding Subsection (g) to read as follows:
(g) This section expires August 31, 2007.
SECTION 7. 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 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 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.
(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 programming providers
regarding transmission of their signals;
(2) delete, change, or alter a copyright
identification transmitted as part of their signals; or
(3) deliver substantially similar programming from a
broadcast station or other programmer outside a subscriber's
broadcast coverage area.
(g) 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 that lists program schedules.
SECTION 17. 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;
(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 throughout the entire market;
(B) at least one is an entity providing
residential telephone service throughout 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.
[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.
(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 local reciprocal compensation rates.
(b) After reducing the rates under Subsection (a), a
deregulated company shall maintain parity with the company's local
reciprocal compensation rates. If the company's local reciprocal
compensation 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 local reciprocal
compensation rates.
Sec. 65.202. REDUCTION OF SWITCHED ACCESS RATES BY
TRANSITIONING COMPANY WITH MORE THAN THREE MILLION ACCESS LINES.
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 50 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
(2) on July 1, 2007, 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.
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.
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.
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 18. 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 19. 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 20. This Act takes effect September 1, 2005.
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