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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to telecommunications service discounts for educational  | 
      
      
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        institutions, libraries, hospitals, and telemedicine centers. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 58.252, Utilities Code, is amended by  | 
      
      
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        adding Subdivision (1-a) to read as follows: | 
      
      
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                     (1-a)  "Health center" means a federally qualified  | 
      
      
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        health center service delivery site. | 
      
      
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               SECTION 2.  Subsection (a), Section 58.253, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (a)  On customer request, an electing company shall provide  | 
      
      
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        private network services to: | 
      
      
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                     (1)  an educational institution; | 
      
      
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                     (2)  a library as defined in Section 57.021; | 
      
      
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                     (3)  a nonprofit telemedicine center; | 
      
      
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                     (4)  a public or not-for-profit hospital; [or] | 
      
      
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                     (5)  a legally constituted consortium or group of  | 
      
      
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        entities listed in this subsection; or | 
      
      
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                     (6)  a health center. | 
      
      
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               SECTION 3.  Subsection (b), Section 58.255, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (b)  An electing company shall offer private network service  | 
      
      
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        contracts under this subchapter at 110 [105] percent of the long run  | 
      
      
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        incremental cost of providing the private network service,  | 
      
      
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        including installation. | 
      
      
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               SECTION 4.  Subsection (a), Section 58.258, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (a)  Notwithstanding the pricing flexibility authorized by  | 
      
      
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        this subtitle, an electing company's rates for private network  | 
      
      
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        services may not be increased before January 1, 2016 [2012].   | 
      
      
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        However, an electing company may increase a rate in accordance with  | 
      
      
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        the provisions of a customer specific contract. | 
      
      
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               SECTION 5.  Subsection (b), Section 58.259, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (b)  The tariff rate may not be: | 
      
      
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                     (1)  distance sensitive; or | 
      
      
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                     (2)  higher than 110 [105] percent of the service's  | 
      
      
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        statewide average long run incremental cost, including  | 
      
      
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        installation. | 
      
      
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               SECTION 6.  Subsection (c), Section 58.260, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (c)  The rate for the service may not be higher than 110 [105]  | 
      
      
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        percent of the service's long run incremental cost, including  | 
      
      
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        installation. | 
      
      
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               SECTION 7.  Subsection (b), Section 58.261, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (b)  The rate for the service may not be higher than 110 [105]  | 
      
      
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        percent of the service's long run incremental cost, including  | 
      
      
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        installation. | 
      
      
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               SECTION 8.  Section 58.268, Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 58.268.  CONTINUATION OF OBLIGATION.  Notwithstanding  | 
      
      
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        any other provision of this title, an electing company shall  | 
      
      
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        continue to comply with this subchapter until January 1, 2016  | 
      
      
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        [2012], regardless of: | 
      
      
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                     (1)  the date the company elected under this chapter;  | 
      
      
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        or | 
      
      
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                     (2)  any action taken in relation to that company under  | 
      
      
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        Chapter 65. | 
      
      
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               SECTION 9.  Subsection (a), Section 59.077, Utilities Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               (a)  Notwithstanding the pricing flexibility authorized by  | 
      
      
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        this subtitle, an electing company's rates for private network  | 
      
      
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        services may not be increased before January 1, 2016 [2012]. | 
      
      
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               SECTION 10.  Section 59.083, Utilities Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 59.083.  CONTINUATION OF OBLIGATION.  Notwithstanding  | 
      
      
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        any other provision of this title, an electing company shall  | 
      
      
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        continue to comply with this subchapter until January 1, 2016  | 
      
      
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        [2012], regardless of: | 
      
      
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                     (1)  the date the company elected under this chapter;  | 
      
      
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        or | 
      
      
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                     (2)  any action taken in relation to that company under  | 
      
      
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        Chapter 65. | 
      
      
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               SECTION 11.  This Act takes effect September 1, 2011. |