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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to communications services and markets. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Sections 51.001(a) and (g), Utilities Code, are  | 
      
      
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        amended to read as follows: | 
      
      
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               (a)  Significant changes have occurred in telecommunications  | 
      
      
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        since the law from which this title is derived was originally  | 
      
      
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        adopted. Communications providers not subject to state regulation,  | 
      
      
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        such as wireless communications providers and Voice over Internet  | 
      
      
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        Protocol providers, have made investments in this state and  | 
      
      
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        broadened the range of communications choices available to  | 
      
      
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        consumers. To encourage and accelerate the development of a  | 
      
      
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        competitive and advanced telecommunications environment and  | 
      
      
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        infrastructure, [new] rules, policies, and principles must be  | 
      
      
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        reformulated [formulated and applied] to reduce regulation of  | 
      
      
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        incumbent local exchange companies, ensure fair business  | 
      
      
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        practices, and protect the public interest.  [Changes in technology 
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          and market structure have increased the need for minimum standards 
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          of service quality, customer service, and fair business practices 
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          to ensure high-quality service to customers and a healthy 
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          marketplace where competition is permitted by law.  It is the 
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          purpose of this subtitle to grant the commission authority to make 
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          and enforce rules necessary to protect customers of 
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          telecommunications services consistent with the public interest.] | 
      
      
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               (g)  It is the policy of this state to ensure that customers  | 
      
      
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        in all regions of this state, including low-income customers and  | 
      
      
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        customers in rural and high cost areas, have access to  | 
      
      
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        telecommunications and information services, including  | 
      
      
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        interexchange services, cable services, wireless services, and  | 
      
      
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        advanced telecommunications and information services, that are  | 
      
      
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        reasonably comparable to those services provided in urban areas and  | 
      
      
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        that are available at prices that are reasonably comparable to  | 
      
      
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        prices charged for similar services in urban areas.  [Not later than 
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          November 1, 1999, the commission shall begin a review and 
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          evaluation of the availability and the pricing of 
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          telecommunications and information services, including 
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          interexchange services, cable services, wireless services, and 
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          advanced telecommunications and information services, in rural and 
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          high cost areas, as well as the convergence of telecommunications 
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          services.  The commission shall file a report with the legislature 
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          not later than January 1, 2001.  The report must include the 
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          commission's recommendations on the issues reviewed and 
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          evaluated.] | 
      
      
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               SECTION 2.  Section 51.002, Utilities Code, is amended by  | 
      
      
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        adding Subdivisions (3-a) and (13) to read as follows: | 
      
      
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                     (3-a)  "Internet Protocol enabled service" means a  | 
      
      
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        service, capability, functionality, or application that uses  | 
      
      
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        Internet Protocol or a successor protocol to allow an end user to  | 
      
      
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        send or receive a data, video, or voice communication in Internet  | 
      
      
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        Protocol or a successor protocol. | 
      
      
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                     (13)  "Voice over Internet Protocol service" means a  | 
      
      
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        service that: | 
      
      
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                           (A)  uses Internet Protocol or a successor  | 
      
      
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        protocol to enable a real-time, two-way voice communication that  | 
      
      
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        originates from or terminates to the user's location in Internet  | 
      
      
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        Protocol or a successor protocol; | 
      
      
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                           (B)  requires the use of a broadband connection  | 
      
      
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        from the user's location; and | 
      
      
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                           (C)  permits a user generally to receive a call  | 
      
      
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        that originates on the public switched telephone network and to  | 
      
      
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        terminate a call to the public switched telephone network. | 
      
      
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               SECTION 3.  Section 52.002, Utilities Code, is amended by  | 
      
      
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        adding Subsections (c) and (d) to read as follows: | 
      
      
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               (c)  Notwithstanding any other law, a department, agency, or  | 
      
      
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        political subdivision of this state may not by rule, order, or other  | 
      
      
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        means directly or indirectly regulate rates charged for, service or  | 
      
      
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        contract terms for, conditions for, or requirements for entry into  | 
      
      
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        the market for Voice over Internet Protocol services or other  | 
      
      
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        Internet Protocol enabled services. This subsection does not: | 
      
      
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                     (1)  affect payment of right-of-way fees applicable to  | 
      
      
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        Voice over Internet Protocol services under Chapter 283, Local  | 
      
      
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        Government Code; | 
      
      
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                     (2)  affect any person's obligation to provide video  | 
      
      
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        service, as defined by Section 66.002, under any applicable state  | 
      
      
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        or federal law; or | 
      
      
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                     (3)  require or prohibit assessment of enhanced 9-1-1,  | 
      
      
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        relay access service, or universal service fund fees on Voice over  | 
      
      
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        Internet Protocol service. | 
      
      
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               (d)  Payment of switched access rates or other intercarrier  | 
      
      
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        compensation rates, as applicable, with respect to Voice over  | 
      
      
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        Internet Protocol services or other Internet Protocol enabled  | 
      
      
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        services, shall be as determined through commercial agreements or  | 
      
      
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        by the Federal Communications Commission. | 
      
      
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               SECTION 4.  Subchapter A, Chapter 52, Utilities Code, is  | 
      
      
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        amended by adding Section 52.007 to read as follows: | 
      
      
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               Sec. 52.007.  TARIFF REQUIREMENTS RELATING TO PROVIDERS NOT  | 
      
      
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        SUBJECT TO RATE OF RETURN REGULATION.  (a) This section applies only  | 
      
      
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        to a telecommunications provider that is not subject to rate of  | 
      
      
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        return regulation under Chapter 53. | 
      
      
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               (b)  A telecommunications provider: | 
      
      
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                     (1)  is not required to maintain on file with the  | 
      
      
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        commission tariffs, price lists, or customer service agreements  | 
      
      
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        governing the terms of providing service; | 
      
      
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                     (2)  may make changes in its tariffs, price lists, and  | 
      
      
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        customer service agreements without commission approval; and | 
      
      
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                     (3)  may cross-reference its federal tariff in its  | 
      
      
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        state tariff if the provider's intrastate switched access rates are  | 
      
      
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        the same as the provider's interstate switched access rates. | 
      
      
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               (c)  A telecommunications provider may withdraw a tariff,  | 
      
      
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        price list, or customer service agreement not required to be filed  | 
      
      
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        or maintained with the commission under this section if the  | 
      
      
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        telecommunications provider: | 
      
      
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                     (1)  files written notice of the withdrawal with the  | 
      
      
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        commission; and | 
      
      
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                     (2)  provides written notice to its customers of the  | 
      
      
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        rates, terms, and conditions of the services affected by the  | 
      
      
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        withdrawn tariff, price list, or agreement or posts the rates,  | 
      
      
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        terms, and conditions on the telecommunications provider's  | 
      
      
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        Internet website. | 
      
      
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               (d)  This section does not affect the authority of the  | 
      
      
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        commission to administer or enforce Chapter 56 or any other  | 
      
      
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        applicable price regulation permitted or required under this title. | 
      
      
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               SECTION 5.  Section 52.056, Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 52.056.  SPECIFICALLY AUTHORIZED REGULATORY  | 
      
      
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        TREATMENTS.  The regulatory treatments the commission may implement  | 
      
      
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        under Section 52.054 include: | 
      
      
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                     (1)  approval of a range of rates for a specific  | 
      
      
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        service; and | 
      
      
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                     (2)  [approval of a customer-specific contract for a 
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          specific service; and
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                     [(3)]  the detariffing of rates. | 
      
      
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               SECTION 6.  Subchapter B, Chapter 55, Utilities Code, is  | 
      
      
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        amended by adding Section 55.026 to read as follows: | 
      
      
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               Sec. 55.026.  NEW ORDERS PROHIBITED AFTER CERTAIN DATE.  On  | 
      
      
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        or after September 1, 2011, the commission may not order a  | 
      
      
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        telecommunications provider to provide mandatory or optional  | 
      
      
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        extended area service to additional metropolitan areas or calling  | 
      
      
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        areas. | 
      
      
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               SECTION 7.  Subchapter C, Chapter 55, Utilities Code, is  | 
      
      
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        amended by adding Section 55.049 to read as follows: | 
      
      
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               Sec. 55.049.  EXPANSION PROHIBITED AFTER CERTAIN DATE.  On  | 
      
      
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        or after September 1, 2011, the commission may not order an  | 
      
      
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        expansion of a toll-free local calling area. | 
      
      
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               SECTION 8.  Section 58.255(c), Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               (c)  [Each contract shall be filed with the commission.]  | 
      
      
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        Commission approval of a contract is not required. | 
      
      
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               SECTION 9.  Section 59.074(c), Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               (c)  [Each contract shall be filed with the commission.]  | 
      
      
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        Commission approval of a contract is not required. | 
      
      
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               SECTION 10.  Section 65.102, Utilities Code, is amended by  | 
      
      
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        adding Subsection (c) to read as follows: | 
      
      
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               (c)  A deregulated company may not be required to: | 
      
      
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                     (1)  comply with retail quality of service standards or  | 
      
      
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        reporting requirements; or | 
      
      
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                     (2)  file an earnings report with the commission. | 
      
      
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               SECTION 11.  Section 65.152, Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 65.152.  GENERAL REQUIREMENTS.  (a)  A transitioning  | 
      
      
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        company may: | 
      
      
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                     (1)  exercise pricing flexibility in a market subject  | 
      
      
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        only to the price and rate standards prescribed by [in the manner 
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          provided by] Section 58.063 [one day after providing an 
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          informational notice as required by that section]; and | 
      
      
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                     (2)  introduce a new service in a market subject only to  | 
      
      
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        the price and rate standards prescribed by [in the manner provided 
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          by] Section 58.153 [one day after providing an informational notice 
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          as required by that section]. | 
      
      
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               (b)  A transitioning company may not be required to: | 
      
      
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                     (1)  comply with [exchange-specific] retail quality of  | 
      
      
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        service standards or reporting requirements in a market that is  | 
      
      
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        deregulated; or | 
      
      
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                     (2)  file an earnings report with the commission. | 
      
      
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               SECTION 12.  Sections 52.057 and 53.065(b), Utilities Code,  | 
      
      
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        are repealed. | 
      
      
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               SECTION 13.  This Act takes effect September 1, 2011. |