SRC-ARR, DBM S.B. 560 76(R)BILL ANALYSIS


Senate Research CenterS.B. 560
By: Sibley
Economic Development
7/28/1999
Enrolled


DIGEST 

In 1995, the 74th Legislature enacted H.B. 2128 to change the
telecommunications market from a highly regulated industry to a less
regulated industry, and eventually to a competitive industry.  Since 1995,
the telecommunications industry market has changed considerably.  With the
development of alternative telecommunications providers, the growing
marketplace for telecommunications, and the end of certain commitments made
under H.B. 2128, the regulatory framework now requires some adjustment.
S.B. 560 will regulate the telecommunications utilities and the provision
of telecommunication services. 

PURPOSE

As enrolled, S.B. 560 regulates the telecommunications utilities and the
provision of telecommunications services. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Public Utility Commission in SECTION
4 (Section 51.001(a), Chapter 52C, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 12.005, Utilities Code, to provide that the
Public Utility Commission of Texas (commission) is abolished and this
chapter expires on September 1, 2005, rather than September 1, 2001, unless
continued as provided by Chapter 325, Government Code. 

SECTION 2. Amends Section 13.002, Utilities Code, to provide that the
Office of Public Utility Counsel is abolished and this chapter expires
September 1, 2005, rather than September 1, 2001. 

SECTION 3. Amends Section 15.024, Utilities Code, to provide that this
subsection does not apply to a violation of Chapter 55 or 6.  

SECTION 4. Amends Section 51.001, Utilities Code, by amending Subsection
(a) and adding Subsection (g), to provide that changes in technology and
market structure have increased the need for minimum standards of  certain
services  and a healthy marketplace where competition is permitted by law.
Provides that it is the purpose of this subtitle to grant the commission
authority to make and enforce rules necessary  to protect customers of
telecommunications services consistent with the public interest. Provides
that it is the policy of this state to ensure that customers in all regions
of this state including low-income  and rural customers to a have access to
telecommunications and information services reasonably comparable to those
services provided in urban areas. Requires the commission to begin a review
and evaluation of the availability and pricing of telecommunication and
information services, not later than November 1, 1999.  Requires the
commission to file a report with the legislature not later than January 1,
2001. Requires the report to include the commission's recommendations on
the issues reviewed and evaluated.  

SECTION 5. Amends Section 51.002, Utilities Code, to redefine "long run
incremental cost," and "telecommunications provider." 

SECTION 6. Amends Section 51.004, Utilities Code, to prohibit a discount or
other form of pricing  flexibility from being preferential, prejudicial,
discriminatory, predatory, or anticompetitive. Provides that a price that
is set at or above the long run incremental cost of a service is presumed
not to be a predatory price.  

SECTION 7. Amends Section 52.058, Utilities Code, as follows:

Sec. 52.058. New heading: GENERAL PROVISIONS RELATING TO NEW OR
EXPERIMENTAL SERVICES OR PROMOTIONAL RATES.  

SECTION 8. Amends Chapter 52B, Utilities Code, by adding Sections 52.0583,
52.0584, and 52.0585, as follows: 

Sec. 52.0583. NEW SERVICES.  Set forth provisions regarding new services by
an incumbent local exchange companies.  

Sec. 52.0584. PRICING AND PACKAGING FLEXIBILITY; CUSTOMER PROMOTIONAL
OFFERINGS. Sets forth provisions regarding pricing and packaging
flexibility. 

Sec. 52.0585.  CUSTOMER PROMOTIONAL OFFERINGS.  Sets forth provisions
regarding customer promotional offerings.  

SECTION 9.  Amends Section 52.102, Utilities Code, to provide that the
commission has only certain jurisdiction over a telecommunications utility
subject to this subchapter. Provides that the authority provided by
Subsection (a)(5) expires on the date on which Section 52.112 expires.
Provides that a telecommunications utility subject to this subchapter has
jurisdiction to require a telecommunications utility that, together with
affiliates, had more than six percent of the total intrastate access
minutes of use as measured for the most recent 12-month period, to pass
switched access rate reductions under this title to customers as required
under Section 52.112.  Makes a conforming change.  

SECTION 10.  Amends Section 52.108, Utilities Code, to authorize the
commission to enter any order necessary to protect the public interest if
the commission finds after notice and hearing that a telecommunications
utility has failed to pass switched access rate reductions to customers
under Chapter 56 or other law, as required under Section 52.112. 

SECTION 11.  Amends Section 52.110, Utilities Code, to provide that in a
proceeding before the commission in which it is alleged that a
telecommunications utility engaged in conduct in violation of Section
52.107, 52.108, 52.109, or 52.112, the burden of proof is on a
telecommunications utility complaining of conduct committed against it in
violation of this subchapter, or except as provided by Subsection (b), the
responding telecommunications utility if the proceedings are brought by a
customer or initiated by the commission. 

SECTION 12.  Amends Chapter 52C, Utilities Code, by adding Section 52.112,
as follows: 

Sec. 52.112.  REDUCTION PASS-THROUGH REQUIRED.   Requires each
telecommunications utility that had more than six percent of the total
intrastate access minutes of use as measured for the most recent 12-month
period,  to pass through to customers switched access rate reductions under
this title.  Requires the residential customer class to receive no less
than a proportionate share of the reductions.  Requires each
telecommunications utility subject to this section, within six months
following each reduction in intrastate switched access charges under this
title, to file a report with the commission demonstrating its compliance on
an average revenue per minute basis with Subsection (a).  Requires this
subsection to expire two years after the date incumbent local exchange
companies doing business in the state are no longer prohibited by federal
law from offering interLATA and interstate long distance service. 

SECTION 13. Amends Chapter 52D, Utilities Code, by adding Section 52.155,
as follows:  

 Sec. 52.155. PROHIBITION OF EXCESSIVE ACCESS CHARGES. Sets forth a
prohibition of excessive access charges.  

SECTION 14. Amends Chapter 52F, Utilities Code, by adding Section 52.256,
as follows: 

Sec. 52.256. PLAN AND REPORT OF WORKFORCE DIVERSITY AND OTHER BUSINESS
PRACTICES. Sets forth provisions regarding plans and reports or workforce
diversity and other business practices.  

SECTION 15.  Amends Section 54.007, Utilities Code, to delete existing
Subdivisions (b)(2) and (3) regarding certain instances in which a basic
telecommunications service price may be increased. Makes a conforming
change.  

SECTION 16.  Amends Chapter 54C, Utilities Code, as follows:

SUBCHAPTER C.  CERTIFICATE OF OPERATING AUTHORITY

 Sec.  54.101.  DEFINITION.  Makes no change. 

Sec. 54.102.  APPLICATION FOR CERTIFICATE. Authorizes an affiliate of a
person holding a certificate of convenience and necessity to hold a
certificate of operating authority if the holder of the certificate of
convenience and necessity is in compliance with federal law and Federal
Communications Commission rules governing affiliates and structural
separation.  Prohibits an affiliate of a person holding a certificate of
convenience and necessity from directly or indirectly selling to a
non-affiliate any regulated product or service purchased from the person
holding a certificate of convenience and necessity at any rate or price
less than the price paid to the person holding a certificate of convenience
and necessity. Authorizes a person to hold a certificate for all or any
portion of a service area for which one or more affiliates of the person
holds a certificate of operating authority, a service provider certificate
of operating authority, or a certificate of convenience and necessity.
Authorizes a person to hold a certain certificate for all portions of a
service area. Provides that the commission has authority to enforce this
section.  

Sec.  54.103.  GRANT OR DENIAL OF CERTIFICATE.  Deletes text regarding the
adequacy of an applicant's build-out plan as one of the commissioner's
required consideration factors in granting a certificate on a
nondiscriminatory basis.   Deletes existing Section 54.104 regarding
build-out plan requirements and existing Section 54.105 regarding six-year
limitation on resale of services.  Makes conforming changes. 

Sec. 54.104.  New heading:  TIME OF SERVICE REQUIREMENTS.  Requires a
certificate holder, notwithstanding Subsection (a), to serve a customer,
rather than in the build-out area, not later than the 30th day after the
date the customer requests service.  Redesignated from existing Section
54.106.  Deletes existing Section 54.107 regarding requirements to certain
facilities; Section 54.108 regarding build-out compliance; Section 54.109
regarding elimination of build-out requirements for certain providers; and
Section 54.110 regarding hearing on build-out and resale requirements. 

Sec.  54.105.  New heading:  PENALTY FOR VIOLATION OF TITLE.  Redesignated
from existing Section 54.111. 

SECTION 17. Amends Chapter 54E, Utilities Code, by adding Section 54.2025,
as follows: 

Sec. 54.2025. LEASE OF FIBER OPTIC CABLE FACILITIES. Requires nothing in
this subchapter to prevent a municipality from leasing any of the excess
capacity of its fiber optic cable facilities, so long as certain conditions
are met.  

SECTION 18. Amends Chapter 55A, Utilities Code, by adding Section 55.012,
as follows: 

Sec. 55.012. TELECOMMUNICATIONS BILLING. Sets forth certain provisions
regarding  billing for telecommunications.  

SECTION 19. Amends Chapter 55A, Utilities Code, by adding Section 55.013,
as follows: 

Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL
TELECOMMUNICATIONS SERVICES. Sets forth certain limitations on the
discontinuance of basic local telecommunications services.  

SECTION 20. Amends Chapter 55A, Utilities Code, by adding Section 55.014,
as follows: 

Sec. 55.014. PROVISIONS OF ADVANCED TELECOMMUNICATIONS SERVICES. Sets forth
provisions for advanced telecommunications services.  

SECTION 21. Amends Chapter 55A, Utilities Code, by adding Section 55.015,
as follows: 

 Sec. 55.015. LIFELINE SERVICE. Sets forth provisions regarding lifeline
service. 

SECTION 22. Amends Section 3.312, Article 1446c-0, V.T.C.S, to be codified
as Chapter 55K, Utilities Code, as follows: 

Sec.  55.301.  STATE POLICY.  Makes no change.

Sec.  55.302.  COMMISSIONER RULES.  Makes conforming changes.

Sec.  55.303.  New heading: VERIFICATION OF CHANGE.  Deletes existing
provision regarding verification of a carrier.  Deletes existing Section
55.304, regarding customer initiated change. 

Sec. 55.304. New heading: UNAUTHORIZED CHANGE. Provides that a customer is
not liable for charges incurred during the first 30 days after the date of
an unauthorized carrier change.   

Sec. 55.307. DECEPTIVE OR FRAUDULENT PRACTICE. Authorizes the commission to
prohibit a utility from engaging in a deceptive or fraudulent practice 

Sec. 55.308. CONSISTENCY WITH FEDERAL LAW. Requires the commission under
this subchapter to be consistent with applicable federal laws and rules.  

SECTION 23.  Amends Section 56.021, Utilities Code, to require the
commission to adopt and enforce rules requiring local exchange companies to
establish a universal service fund to assist telecommunications providers,
rather than local exchange companies, in providing basic local
telecommunications service at reasonable rates in high cost or rural areas
and reimburse a telecommunications carriers providing lifeline service.
Makes a conforming change. 

SECTION 24.  Amends Sections 56.023 and 56.024, Utilities Code, as follows:

Sec. 56.023.  COMMISSION POWERS AND DUTIES.  Requires the commission to
establish and implement the universal service fund provisions required by
Section 56.021(1) for all eligible telecommunications providers not later
than August 1, 1999.  Makes conforming changes. 

Sec. 56.024.  REPORTS; CONFIDENTIALITY.  Authorizes the commission to
require a telecommunications provider to provide a report or information
necessary to assess contributions and disbursements to the universal
service fund.  

SECTION 25.  Amends Section 56.026, Utilities Code, to prohibit the
commission from reducing the amount of certain disbursements. Sets forth
certain provisions regarding reductions in switched access service rates.
Makes a conforming change. 

 SECTION 26.  Amends Chapter 56B, Utilities Code, by adding Section 56.028,
as follows: 

Sec.  56.028.  UNIVERSAL SERVICE FUND REIMBURSEMENT FOR CERTAIN INTRALATA
SERVICE. Requires the commission to provide reimbursement through the
universal service fund for reduced rates for intraLATA interexchange high
capacity (1.544 M6ps) service for entities described in Section 58.253(a)
upon request of a local exchange company that is not an electing company
under Chapters 58 and 59.  Requires the amount of reimbursement to be the
difference between the company's tariffed rate for such service as of
January 1, 1998,  and the lowest rate offered for such service by any local
exchange company electing incentive regulation under Chapter 58.  

SECTION 27.  Amends Section 56.071, Utilities Code, to provide that in
addition to local exchange companies, this subchapter applies to
telecommunications providers that receive universal service fund support
pursuant to the commission's universal service fund rules, and any
reference to or requirement imposed on local exchange companies in this
subchapter shall also apply to such telecommunications providers.  Makes
conforming changes. 

SECTION 28. Amends Section 56.072(b), Utilities Code, to require an
applicant to be 65 years of age or older, to be eligible for the
tel-assistance service programs. 

SECTION 29. Amends Section 56.072, Utilities Code, by adding Subsection
(d), to require the commission to adopt rules providing for automatic
enrollment to receive tel-assistance service for eligible consumers.  

SECTION 30. Amends Section 56.073(a), Utilities Code, to require the
department to provide to each local exchange company a list of all persons
eligible for the tel-assistance service program. 

SECTION 31. Amends Chapter 56C, Utilities Code, by adding Section 56.079,
as follows: 

Sec. 56.079.  RELATIONSHIP TO OTHER SERVICES.  Requires the commission to
adopt rules prohibiting a telecommunications provider from discontinuing
local exchange telephone service to a consumer who receives tel-assistance
service because of nonpayment by the consumer of charges for other services
billed by the provider, including long distance service.  Authorizes a
telecommunications provider to block a tel-assistance service participant's
access to all along distance service except toll-free numbers when the
participant owes an outstanding amount for that service.  Requires the
telecommunications provider to remove the block without additional cost the
participant on payment of the outstanding amount.  Requires a
telecommunications provider to offer a consumer who applies for or receives
tel-assistance service the option of blocking all toll calls.  Prohibits
the provider from charging the consumer an administrative charge or other
additional amount for the blocking service. 

SECTION 32. Amends Section 57.042, Utilities Code, to define "ambulatory
health care center." Redefines "public not-for-profit health care
facility," and "telemedicine." Makes conforming changes.  

SECTION 33. Amends Chapter 58A, Utilities Code, by adding Section 58.003,
as follows:  

Sec. 58.003.  CUSTOMER-SPECIFIC CONTRACTS.  Sets forth provisions regarding
customer-specific contracts.  

SECTION 34. Amends Chapter 58A, Utilities Code, by adding Section 58.004,
as follows: 

Sec. 58.004. PACKAGING, TERM AND VOLUME DISCOUNTS, AND PROMOTIONAL
OFFERINGS. Sets forth provisions regarding packaging, term and volume
discounts, and promotional offering.  

SECTION 35.  Amends Section 58.021, Utilities Code, to require notice to
include a statement that the company agrees to limit until September 1,
2005, any increase in a rate the company charges for  basic network
services.  Provides that except as provided in Subsection (d), an election
under this chapter remains in effect until the legislature eliminates the
incentive regulation authorized by this chapter and Chapter 59.  Authorizes
the commission to allow an electing company serving fewer than five million
access lines to withdraw the company's election under this chapter under
certain circumstances.  Defines "good cause."        

SECTION 36. Amends Section 58.023, Utilities Code, to provide that the
services provided by an electing company are classified into two, rather
than three, certain categories, on election. Makes conforming changes.  
 
SECTION 37. Amends Section 58.024, Utilities Code, to prohibit the
commission from reclassifying a service until, for a company that serves
more than five million access lines in this state, the date on which the
FCC determines in accordance with 47 U.S.C. Section 271 that the company
may enter the interLATA telecommunications market in this state.
Authorizes the commission, for an electing company having greater than five
million lines, to reclassify a service subject to certain conditions. Makes
conforming changes.  

SECTION 38.  Amends Section 58.028, Utilities Code, to require the
commission to begin a review and evaluation of each company that elects
under this chapter or Chapter 59 no later than January 1, 2004, rather than
January 1, 2000.  Requires the commission to file a report with the
legislature no later than January 1, 2005, rather than January 1, 2001.
Provides that this section expires on September 1, 2003, rather than
September 1, 2001. 

SECTION 39. Amends Section 58.051, Utilities Code, to provides that certain
services are basic network services, including residential tone dial
service. Requires electric companies to offer each basic network service as
a separately tariffed service in addition to any packages or other
flexibility offerings that includes those basic network services. Makes
conforming changes.   

SECTION 40.  Amends Sections 58.054 and 58.055, Utilities Code, as follows:

Sec. 58.054. RATES CAPPED. Requires an electing company to commit to not
increasing a rate for a basic network service on or before the fourth
anniversary of its election date. Provides that the rates an electing
company may charge on or before that fourth anniversary are the rates
charged by the company on June 1, 1995, or for a company that elects under
this chapter after September 1, 1999, the rates charged on the date of its
election.  Prohibits, notwithstanding Subsections (a) and (b), the cap on
the rates for basic network services for a company electing under this
subchapter from expiring before September 1, 2005. 

Sec.  58.055.  RATE ADJUSTMENT BY COMPANY.  Authorizes an electing company
notwithstanding Chapter 60F, on its own initiative, to decrease a rate for
a basic network service during the electing period, rather than four-year
period.  Authorizes a company to decrease the rate for a basic local
telecommunications service to an amount above the service's appropriate
cost.  Deletes text regarding a company's ability to decrease the rate for
switched access service to an amount above the service's long run
incremental cost.  Makes a conforming change.  

SECTION 41.  Amends Section 58.060, Utilities Code, to authorize an
electing company to increase a rate for a basic network service only with
the commission's approval subject to this title and to the extent
consistent with achieving universal affordable service, after the
expiration of the period during which the rates for basic network services
are capped as prescribed by Section 58.054, rather than after the four-year
electing period expires.  

SECTION 42.  Amends Chapter 58C, Utilities Code, by adding Sections 58.063,
as follows: 

Sec. 58.063. PRICING AND PACKING FLEXIBILITY. Sets forth certain provisions
regarding pricing and packing flexibility.  

SECTION 43. Amends Chapter 58E, Utilities Code, as follows:

 SUBCHAPTER E. New heading: NONBASIC SERVICES

Sec. 58.151. SERVICES INCLUDED. Sets forth certain services that are
classified as nonbasic services.   

Sec. 58.152. PRICES. Authorizes an electing company to set the price for
any nonbasic, rather than competitive, service at any level above the
lesser of the price for the service in effect on September 1, 1999.
Provides that flexibility includes all pricing arrangements included in the
definition of "pricing flexibility" prescribed by Section 51.004 and
includes packages that include basic network services. Deletes text
regarding the price of a competitive service.  

 Sec. 58.153. NEW SERVICES. Sets forth provisions regarding new services. 

SECTION 44.  Amends Chapter 58E, Utilities Code, by adding Section 58.155,
as follows: 

Sec. 58.155.  INTERCONNECTION.  Provides that because interconnection to
competitive providers and interconnection for commercial mobile service
providers are subject to the requirements of Sections 251 and 252,
Communications Act of 1934, as amended (47 U.S.C. Section 151 et seq.) and
FCC rules, they are not addressed in this subchapter or Subchapter B. 

SECTION 45.  Amends Chapter 58, Utilities Code, by adding Subchapter H, as
follows: 

SUBCHAPTER H.  SWITCHED ACCESS SERVICES

Sec. 58.301.  SWITCHED ACCESS RATE REDUCTION.  Sets forth the required
methods in which an electing company with greater than five million lines
reduces its switched access rates on a combined operating and terminating
basis. 

Sec. 58.302.  SWITCHED ACCESS RATE CAP. Prohibits an electing company from
increasing the per minute rates for switched access services on a combined
originating and terminating basis above the lesser of the rates for
switched access services charged by that electing company on September 1,
1999, as may be further reduced upon implementation of the universal
service fund pursuant to Chapter 56; and the applicable rate described by
Section 58.301 as may be further reduced upon implementation of the
universal service fund pursuant to Chapter 56. 

Sec. 58.303.  SWITCHED ACCESS CHARGE STUDY.  Requires the commission, not
later than November 1, 1999, to begin a review and evaluation of the rates
for intrastate switched access service.  Sets forth the required issues to
be evaluated.  Requires the commission to file a report with the
legislature no later than January 1, 2001.  Requires the report to include
the commission's recommendations as to the issues reviewed and evaluated.
Provides that this section expires on September 1, 2001.  

SECTION 46.  Amends Section 59.021, Utilities Code, by adding Subsection
(c), to authorize a company electing under this chapter to renew the
election for successive two-year periods.  Provides that an election that
is renewed under this subsection remains in effect until the earlier of
certain dates. 

SECTION 47.  Amends Section 59.024(a), Utilities Code, to prohibit an
electing company, before the end of the company's election period under
this chapter, rather than during the election period, from increasing a
rate previously established for that company.  Requires the commission, on
motion of the electing company or on its own motion, to adjust prices for
services to reflect changes in FCC separations that affect the intrastate
net income by at least 10 percent.  Requires the commission,
notwithstanding Subsection (a), on request of the electing company, to
allow a rate group reclassification that results from access line growth. 

SECTION 48.  Amends Section 59.025, Utilities Code, to prohibit the
commission, notwithstanding  any other provision of this title, on the
commission's own motion, to reduce an electing company's rate for switched
access services before the expiration of the election period prescribed by
Section 59.024, but may approve a reduction proposed by the electing
company. 

SECTION 49.  Amends Section 59.026(a), Utilities Code, to provide that on
or before the end of the company's election period, an electing company is
not, under any circumstances, subject to certain complaints.  Deletes text
regarding the sixth anniversary of the company's election date. 

SECTION 50.  Amends Chapter 59B, Utilities Code, by adding Sections 59.030
through 59.032, as follows: 

Sec. 59.030.  NEW SERVICES. Prohibits an electing company from introducing
a new service 10 days after providing an informational notice to the
commission and to any person who holds a certificate of operating authority
in the electing company's certificated area or areas or who has an
effective interconnection agreement with the electing company. Requires an
electing company to price each new service at or above the service's long
run incremental cost.  Requires the commission to allow a company serving
fewer than one million access lines to establish a service's long run
incremental cost by adopting, at the company's option, the cost studies of
a large company for that service that has been accepted by the commission.
Authorizes only an affected person to file a complaint with the commission
challenging whether the pricing by an electing company of a new service is
in compliance with Subsection (b).  Provides that if an affected person
files a complaint under Subsection (c), the electing company has the burden
of proving that the company set the price for the new service in accordance
with  the applicable provisions of this subchapter. Requires the company
not later than the 10th day after the date the complaint is finally
resolved, to amend the price of the service as necessary to comply with a
final resolution or authorizes the company, at the company's option, to
discontinue the service, if a complaint is finally resolved in the favor of
the complainant.   

Sec. 59.031.  PRICING AND PACKAGING FLEXIBILITY.  Authorizes a company,
notwithstanding Section 59.027(b) or Chapter 60F, to exercise pricing
flexibility in accordance with this section.  Authorizes a company to
exercise pricing flexibility 10 days after providing an informational
notice to the commission and to any person who holds a certificate of
operating authority in the electing company's certificated area or areas or
who has an affective interconnection agreement with the electing company.
Provides that pricing flexibility includes all pricing arrangements
included in the definition of "pricing flexibility" and includes packaging
of regulated services with non-regulated services or services of an
affiliate, except that such a package may not be offered in a manner that
results in a customer-specific contract.  Requires an electing company, at
the company's option, to price each regulated service offered separately or
as part of a package under Subsection (a) at either the service's tariffed
rate or at a rate not lower than the service's long run incremental cost.
Requires the commissioner to allow a company serving fewer than one million
access lines to establish a service's long run incremental cost by
adopting, at the company's option, the cost studies of a larger company for
that service that have been accepted by the commission.  Authorizes only an
affected person to file a complaint alleging that an electing company has
priced a regulated service in a manner that does not meet the pricing
standards of this subchapter.  Requires the complaint to be filed before
the 31st day after the company implements the rate. 

Sec. 59.032.  CUSTOMER PROMOTIONAL OFFERINGS.  Authorizes an electing
company to offer a promotion for a regulated service for not more than 90
days in any 12month period.  Sets forth the required information to be
included in a company's promotional offering to be submitted to the
commission.  Provides that an electing company is not required to obtain
commission approval to make a promotional offering described by Subsection
(b).  Authorizes an electing company to offer a promotion of any regulated
service as part of a package of services consisting of any regulated
service with any other regulated or unregulated service or any service or
affiliate. 

SECTION 51. Amends Section 60.042, Utilities Code, to set forth provisions
regarding resale or  sharing of certain services.  

SECTION 52.  Amends Chapter 60I,, Utilities Code, by adding Sections 60.164
and 60.165, as follows: 

Sec.  60.164.  PERMISSIBLE JOINT MARKETING. Sets forth provisions regarding
permissible joint marketing. 

Sec.  60.165.  AFFILIATE RULE.  Sets forth provisions regarding affiliate
rule. 

SECTION 53. Amends Section 62.108, Utilities Code, to provide that this
chapter expires August 31, 2005, rather than 1999. 

SECTION 54. Amends Section 62.136, Utilities Code, to provide that this
chapter expires August 31, 2005, rather than 1999. 

SECTION 55. Amends Title 2C, Utilities Code, by adding Chapter 64, as
follows:  

CHAPTER 64. CUSTOMER PROTECTION
 
SUBCHAPTER A. GENERAL PROVISIONS 

 Sec. 64.001. CUSTOMER PROTECTION POLICY.  Sets forth a customer protection
policy. 

Sec. 64.002. DEFINITIONS. Defines "billing agent," "billing utility,"
"certificated telecommunications utility," "customer," "service provider,"
and "telecommunication utility." 

Sec. 64.003. CUSTOMER AWARENESS. Sets forth provisions regarding customer
awareness of market changes in the industry in both English and Spanish.  

Sec. 64.004. CUSTOMER PROTECTION STANDARDS. Sets forth certain
telecommunications standards regarding potential fraudulent practices. 

SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING REQUIREMENTS

 Sec. 64.051. ADOPTION OF RULES. Sets forth certain rules. 

 Sec. 64.052. SCOPE OF RULES. Sets forth the scope of the rules.

Sec. 64.053. REPORTS. Authorizes the commission to require a
telecommunications service provider to submit reports to the commission
concerning any matter over which it has authority under this chapter.  

SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE 

Sec. 64.101. POLICY. Provides that it is the policy of this state that all
customers be protected from the unauthorized switching of a
telecommunications services provider selected by the customer to provide
service.  

Sec. 64.102. RULES RELATING TO CHOICE. Sets forth certain rules relating to
choice and customer protection. 

SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES 

Sec. 64.151. REQUIREMENTS FOR SUBMITTING CHARGES. Sets forth certain
requirements for submitting charges.  

 Sec. 64.152. RESPONSIBILITIES OF BILLING UTILITY. Sets forth the
responsibilities of a billing utility.  

Sec. 64.153. RECORDS OF DISPUTED CHARGES. Sets forth certain provisions
regarding records of disputed charges. 

 Sec. 64.154. NOTICE. Sets forth provisions for a notice of customer
rights.  

Sec. 64.155. PROVIDING COPY OF RECORDS. Requires a billing utility to
provide a copy of records to the commission upon request.  

 Sec. 64.156. VIOLATIONS. Sets forth certain provisions regarding
violations.  

 Sec. 64.157. DISPUTES. Sets forth provisions regarding disputes. 

Sec. 64.158. CONSISTENCY WITH FEDERAL LAW. Requires rules adopted under
this chapter to be consistent with and not more burdensome than applicable
federal law and rules. 

SECTION 56. Provides that  Section 55.012, Utilities Code, as added by this
Act, takes effect March 1, 2000. 

SECTION 57. Repealer: Section 58.062 and Chapter 58D, Utilities Code
(Switched Access Rates and Discretionary Services).  

SECTION 58. Effective date: September 1, 1999.

SECTION 59. Emergency clause.