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A BILL TO BE ENTITLED
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AN ACT
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relating to deregulation of certain telecommunications markets and |
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companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 52.002, Utilities Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) The commission may not require a telecommunications |
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utility that is not a public utility, including a deregulated or |
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transitioning company, to comply with a requirement or standard |
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that is more burdensome than a requirement or standard the |
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commission imposes on a public utility. |
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SECTION 2. Subsection (b), Section 54.251, Utilities Code, |
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is amended to read as follows: |
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(b) Except as specifically determined otherwise by the |
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commission under this subchapter or Subchapter G of this chapter, |
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and except as provided by Subchapters C and D, Chapter 65, the |
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holder of a certificate of convenience and necessity[, or the
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holder of a certificate of operating authority issued under Chapter
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65,] for an area has the obligations of a provider of last resort |
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regardless of whether another provider has a certificate of |
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operating authority or service provider certificate of operating |
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authority for that area. |
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SECTION 3. Section 54.3015, Utilities Code, is amended to |
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read as follows: |
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Sec. 54.3015. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to a transitioning company [holder of a certificate of
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operating authority issued] under Chapter 65 in relation to its |
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regulated exchanges in the same manner and to the same extent this |
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subchapter applies to a holder of a certificate of convenience and |
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necessity. |
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SECTION 4. Subsection (d), Section 56.023, Utilities Code, |
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is amended to read as follows: |
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(d) The commission shall adopt rules for the administration |
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of the universal service fund and this chapter and may act as |
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necessary and convenient to administer the fund and this chapter. |
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The rules must include procedures to ensure reasonable transparency |
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and accountability in the administration of the universal service |
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fund. |
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SECTION 5. Subchapter B, Chapter 56, Utilities Code, is |
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amended by adding Section 56.032 to read as follows: |
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Sec. 56.032. SUPPORT AVAILABLE TO DEREGULATED MARKETS. |
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(a) An incumbent local exchange company may not receive support |
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from the universal service fund for a deregulated market that has a |
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population of at least 30,000. |
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(b) An incumbent local exchange company may receive support |
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from the universal service fund for a deregulated market that has a |
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population of less than 30,000 only if the company demonstrates to |
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the commission that the company needs the support to provide basic |
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local telecommunications service at reasonable rates in the |
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affected market. A company may use evidence from outside the |
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affected market to make the demonstration. |
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(c) An incumbent local exchange company may make the |
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demonstration described by Subsection (b) in relation to a market |
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before submitting a petition to deregulate the market. |
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SECTION 6. Section 65.051, Utilities Code, is amended to |
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read as follows: |
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Sec. 65.051. MARKETS DEREGULATED. A market that is |
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deregulated as of September 1, 2011, shall remain deregulated. |
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Notwithstanding any other provision of this title, the commission |
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may not reregulate a market or company that has been deregulated |
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[(a)
Except as provided by Subsection (b), all markets of all
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incumbent local exchange companies are deregulated on January 1,
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2006, unless the commission determines under Section 65.052(a) that
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a market or markets should remain regulated.
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[(b)
A market of an incumbent local exchange company in
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which the population in the area included in the market is less than
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30,000 is deregulated on January 1, 2007, unless the commission
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determines under Section 65.052(f) that the market should remain
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regulated]. |
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SECTION 7. Subsections (a), (b), and (c), Section 65.052, |
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Utilities Code, are amended to read as follows: |
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(a) An incumbent local exchange company may petition the |
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commission to deregulate a market of the company that the |
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commission previously determined should remain regulated. |
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Notwithstanding any other provision of this title, only the |
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incumbent local exchange company may initiate a proceeding to |
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deregulate one of the company's markets. Not later than the 90th |
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day after the date the commission receives the petition, [Except as
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provided by Subsection (f),] the commission shall: |
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(1) determine whether the regulated [each] market [of
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an incumbent local exchange company] should remain regulated [on
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and after January 1, 2006]; and |
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(2) issue a final order classifying the market |
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[company] in accordance with this section [effective January 1,
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2006]. |
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(b) In making a determination under Subsection (a), the |
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commission may not determine that a market should remain regulated |
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if: |
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(1) the population in the area included in the market |
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is at least 100,000; or |
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(2) the population in the area included in the market |
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is [at least 30,000 but] less than 100,000 and, in addition to the |
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incumbent local exchange company, there are at least two |
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competitors operating in all or part of the market that [three
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competitors of which]: |
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(A) are unaffiliated with the incumbent local |
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exchange company [at least one is a telecommunications provider
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that holds a certificate of operating authority or service provider
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certificate of operating authority and provides residential local
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exchange telephone service in the market]; and |
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(B) provide voice communications service without |
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regard to the delivery technology, including through: |
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(i) Internet Protocol or a successor |
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protocol; |
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(ii) satellite; or |
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(iii) a technology used by a wireless |
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provider or a commercial mobile service provider, as that term is |
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defined by Section 64.201 [at least one is an entity providing
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residential telephone service in the market using facilities that
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the entity or its affiliate owns; and
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[(C)
at least one is a provider in that market of
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commercial mobile service as defined by Section 332(d),
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Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
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Communications Commission rules, and the Omnibus Budget
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Reconciliation Act of 1993 (Pub. L. No. 103-66), that is not
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affiliated with the incumbent local exchange company]. |
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(c) If the commission deregulates a market under this |
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section and the deregulation results in a regulated or |
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transitioning company no longer meeting the definition of a |
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regulated or transitioning company, the commission shall issue an |
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order reclassifying the company as a transitioning company or |
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deregulated company, as those terms are defined by Section 65.002 |
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[The commission shall issue an order classifying an incumbent local
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exchange company as a deregulated company that is subject to
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Subchapter C if:
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[(1)
the company does not have any markets in which the
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population in the area included in the market is less than 30,000;
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and
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[(2)
the commission does not determine that a market
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of the company should remain regulated on and after January 1,
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2006]. |
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SECTION 8. Subsection (a), Section 65.102, Utilities Code, |
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is amended to read as follows: |
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(a) A deregulated company that holds a certificate of |
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operating authority issued under this subchapter: |
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(1) is a nondominant carrier governed in the same |
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manner as a holder of a certificate of operating authority issued |
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under Chapter 54; |
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(2) is not required to: |
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(A) fulfill the obligations of a provider of last |
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resort; |
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(B) comply with retail quality of service |
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standards or reporting requirements; |
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(C) file an earnings report with the commission |
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unless the company is receiving support from the Texas High Cost |
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Universal Service Plan; or |
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(D) comply with a pricing requirement other than |
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a requirement prescribed by this subchapter; and |
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(3) [, except that the deregulated company:
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[(1)
retains the obligations of a provider of last
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resort under Chapter 54;
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[(2)] is subject to the following provisions in the |
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same manner as an incumbent local exchange company that is not |
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deregulated: |
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(A) Sections 54.156, 54.158, and 54.159; |
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(B) Section 55.012; and |
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(C) Chapter 60[; and
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[(3)
may not increase the company's rates for
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stand-alone residential local exchange voice service before the
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date that the commission has the opportunity to revise the monthly
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per line support under the Texas High Cost Universal Service Plan
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pursuant to Section 56.031, regardless of whether the company is an
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electing company under Chapter 58]. |
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SECTION 9. Section 65.151, Utilities Code, is amended to |
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read as follows: |
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Sec. 65.151. PROVISIONS APPLICABLE TO TRANSITIONING |
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COMPANY. (a) Except as provided by Subsection (b), a [A] |
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transitioning company is governed by this subchapter and the |
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provisions of this title that applied to the company immediately |
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before the date the company was classified as a transitioning |
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company. If there is a conflict between this subchapter and the |
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other applicable provisions of this title, this subchapter |
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controls. |
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(b) A transitioning company is not required to fulfill the |
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obligations of a provider of last resort in a deregulated market. |
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SECTION 10. Subsection (b), Section 65.152, Utilities Code, |
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is amended to read as follows: |
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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 unless |
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the company is receiving support from the Texas High Cost Universal |
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Service Plan. |
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SECTION 11. Subchapter D, Chapter 65, Utilities Code, is |
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amended by adding Sections 65.154 and 65.155 to read as follows: |
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Sec. 65.154. RATE AND PRICE REQUIREMENTS NOT APPLICABLE. |
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(a) A transitioning company is not required to comply with the |
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following requirements prescribed by this title on submission of a |
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written notice to the commission: |
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(1) a direct or indirect requirement to price a |
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residential service at, above, or according to the long-run |
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incremental cost of the service or to otherwise use long-run |
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incremental cost in establishing prices for residential services; |
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or |
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(2) a requirement to file with the commission a |
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long-run incremental cost study for residential or business |
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services. |
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(b) Notwithstanding Subsection (a), a transitioning company |
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may not: |
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(1) establish a retail rate, price, term, or condition |
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that is anticompetitive or unreasonably preferential, prejudicial, |
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or discriminatory; |
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(2) establish a retail rate for a basic or non-basic |
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service in a deregulated market that is subsidized either directly |
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or indirectly by a basic or non-basic service provided in an |
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exchange that is not deregulated; or |
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(3) engage in predatory pricing or attempt to engage |
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in predatory pricing. |
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(c) A rate or price for a basic local telecommunications |
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service is not anticompetitive, predatory, or unreasonably |
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preferential, prejudicial, or discriminatory if the rate or price |
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is equal to or greater than the rate or price in the transitioning |
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company's tariff for that service in effect on the date the |
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transitioning company submits notice to the commission under |
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Subsection (a). |
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(d) This section, including Subsection (a)(1), does not |
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affect: |
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(1) other law or legal standards governing predatory |
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pricing or anticompetitive conduct; or |
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(2) an infrastructure commitment under Chapter 58 or |
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59. |
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Sec. 65.155. COMPLAINT BY AFFECTED PERSON. (a) An |
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affected person may file a complaint at the commission challenging |
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whether a transitioning company is complying with Section |
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65.154(b). |
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(b) Notwithstanding Section 65.154(a)(2), the commission |
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may require a transitioning company to submit a long-run |
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incremental cost study for a business service that is the subject of |
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a complaint submitted under Subsection (a). |
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SECTION 12. Subsections (d), (e), and (f), Section 65.052, |
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and Sections 65.054 and 65.055, Utilities Code, are repealed. |
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SECTION 13. (a) In this section, "commission" means the |
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Public Utility Commission of Texas. |
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(b) Not earlier than January 2, 2012, the commission shall |
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initiate one or more proceedings to review and evaluate whether the |
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universal service fund accomplishes the fund's purposes, as |
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prescribed by Section 56.021, Utilities Code, or whether changes |
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are necessary to accomplish those purposes. |
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(c) The commission has all authority necessary to conduct |
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the review, including determining issues relevant to each |
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telecommunications provider's need for universal service fund |
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support, adjusting monthly per line support amounts under Section |
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56.031, Utilities Code, and implementing any other changes it |
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determines are necessary and in the public interest. |
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(d) Notwithstanding Subsection (b), Section 56.024, |
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Utilities Code, a party to a commission proceeding examining the |
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universal service fund is entitled to access confidential |
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information provided to the commission under Subsection (a), |
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Section 56.024, Utilities Code, if a protective order is issued for |
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the confidential information in the proceeding. |
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(e) The commission shall complete the proceeding or |
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proceedings required by this section and issue any associated |
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orders not later than November 1, 2012. The commission shall |
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provide to the legislature a copy of any findings or orders issued |
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under this section. |
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SECTION 14. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2011. |
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(b) Sections 56.032, 65.154, and 65.155, Utilities Code, as |
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added by this Act, take effect January 2, 2012. |