Texas 2011 - 82nd Regular

Texas House Bill HB2620 Compare Versions

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1	1	82R19705 JXC-D
2	2	By: Hancock H.B. No. 2620
3	3	Substitute the following for H.B. No. 2620:
4	4	By: Frullo C.S.H.B. No. 2620
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to communications services and markets.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 51.001(a) and (g), Utilities Code, are
12	12	amended to read as follows:
13	13	(a) Significant changes have occurred in telecommunications
14	14	since the law from which this title is derived was originally
15	15	adopted. Communications providers, including providers not subject
16	16	to state regulation, such as wireless communications providers and
17	17	Voice over Internet Protocol providers, have made investments in
18	18	this state and broadened the range of communications choices
19	19	available to consumers. To encourage and accelerate the development
20	20	of a competitive and advanced telecommunications environment and
21	21	infrastructure, [new] rules, policies, and principles must be
22	22	reformulated [formulated and applied] to reduce regulation of
23	23	incumbent local exchange companies, ensure fair business
24	24	practices, and protect the public interest. [Changes in technology
25	25	and market structure have increased the need for minimum standards
26	26	of service quality, customer service, and fair business practices
27	27	to ensure high-quality service to customers and a healthy
28	28	marketplace where competition is permitted by law. It is the
29	29	purpose of this subtitle to grant the commission authority to make
30	30	and enforce rules necessary to protect customers of
31	31	telecommunications services consistent with the public interest.]
32	32	(g) It is the policy of this state to ensure that customers
33	33	in all regions of this state, including low-income customers and
34	34	customers in rural and high cost areas, have access to
35	35	telecommunications and information services, including
36	36	interexchange services, cable services, wireless services, and
37	37	advanced telecommunications and information services, that are
38	38	reasonably comparable to those services provided in urban areas and
39	39	that are available at prices that are reasonably comparable to
40	40	prices charged for similar services in urban areas. [Not later than
41	41	November 1, 1999, the commission shall begin a review and
42	42	evaluation of the availability and the pricing of
43	43	telecommunications and information services, including
44	44	interexchange services, cable services, wireless services, and
45	45	advanced telecommunications and information services, in rural and
46	46	high cost areas, as well as the convergence of telecommunications
47	47	services. The commission shall file a report with the legislature
48	48	not later than January 1, 2001. The report must include the
49	49	commission's recommendations on the issues reviewed and
50	50	evaluated.]
51	51	SECTION 2. Section 51.002, Utilities Code, is amended by
52	52	adding Subdivisions (3-a) and (13) to read as follows:
53	53	(3-a) "Internet Protocol enabled service" means a
54	54	service, capability, functionality, or application that uses
55	55	Internet Protocol or a successor protocol to allow an end user to
56	56	send or receive a data, video, or voice communication in Internet
57	57	Protocol or a successor protocol.
58	58	(13) "Voice over Internet Protocol service" means a
59	59	service that:
60	60	(A) uses Internet Protocol or a successor
61	61	protocol to enable a real-time, two-way voice communication that
62	62	originates from or terminates to the user's location in Internet
63	63	Protocol or a successor protocol;
64	64	(B) requires a broadband connection from the
65	65	user's location; and
66	66	(C) permits a user generally to receive a call
67	67	that originates on the public switched telephone network and to
68	68	terminate a call to the public switched telephone network.
69	69	SECTION 3. Section 52.002, Utilities Code, is amended by
70	70	adding Subsections (c) and (d) to read as follows:
71	71	(c) The commission may not require a telecommunications
72	72	utility that is not a public utility, including a deregulated or
73	73	transitioning company, to comply with a requirement or standard
74	74	that is more burdensome than a requirement or standard the
75	75	commission imposes on a public utility.
76	76	(d) Notwithstanding any other law, a department, agency, or
77	77	political subdivision of this state may not by rule, order, or other
78	78	means directly or indirectly regulate rates charged for, service or
79	79	contract terms for, conditions for, or requirements for entry into
80	80	the market for Voice over Internet Protocol services or other
81	81	Internet Protocol enabled services. This subsection does not:
82	82	(1) affect requirements pertaining to use of a
83	83	right-of-way or payment of right-of-way fees applicable to Voice
84	84	over Internet Protocol services under Chapter 283, Local Government
85	85	Code;
86	86	(2) affect any person's obligation to provide video or
87	87	cable service, as defined under applicable state or federal law;
88	88	(3) require or prohibit assessment of enhanced 9-1-1,
89	89	relay access service, or universal service fund fees on Voice over
90	90	Internet Protocol service;
91	91	(4) affect any entity's obligations under Sections 251
92	92	and 252, Communications Act of 1934 (47 U.S.C. Sections 251 and
93	93	252), or a right granted to an entity by those sections;
94	94	(5) affect any applicable wholesale tariff;
95	95	(6) grant, modify, or affect the authority of the
96	96	commission to implement, carry out, or enforce the rights or
97	97	obligations provided by Sections 251 and 252, Communications Act of
98	98	1934 (47 U.S.C. Sections 251 and 252), or of an applicable wholesale
99	99	tariff through arbitration proceedings or other available
100	100	mechanisms and procedures;
101	101	(7) require or prohibit payment of switched network
102	102	access rates or other intercarrier compensation rates, as
103	103	applicable;
104	104	(8) limit any commission authority over the subjects
105	105	listed in Subdivisions (1)-(7) or grant the commission any
106	106	authority over those subjects; or
107	107	(9) affect the assessment, administration,
108	108	collection, or enforcement of a tax or fee over which the
109	109	comptroller has authority.
110	110	SECTION 4. Subchapter A, Chapter 52, Utilities Code, is
111	111	amended by adding Section 52.007 to read as follows:
112	112	Sec. 52.007. TARIFF REQUIREMENTS RELATING TO PROVIDERS NOT
113	113	SUBJECT TO RATE OF RETURN REGULATION. (a) This section applies
114	114	only to a telecommunications provider that is not subject to rate of
115	115	return regulation under Chapter 53.
116	116	(b) A telecommunications provider:
117	117	(1) may, but is not required to, maintain on file with
118	118	the commission tariffs, price lists, or customer service agreements
119	119	governing the terms of providing service;
120	120	(2) may make changes in its tariffs, price lists, and
121	121	customer service agreements in relation to services that are not
122	122	subject to regulation without commission approval; and
123	123	(3) may cross-reference its federal tariff in its
124	124	state tariff if the provider's intrastate switched access rates are
125	125	the same as the provider's interstate switched access rates.
126	126	(c) A telecommunications provider may withdraw a tariff,
127	127	price list, or customer service agreement not required to be filed
128	128	or maintained with the commission under this section if the
129	129	telecommunications provider:
130	130	(1) files written notice of the withdrawal with the
131	131	commission; and
132	132	(2) notifies its customers of the withdrawal and posts
133	133	the current tariffs, price lists, or generic customer service
134	134	agreements on the telecommunications provider's Internet website.
135	135	(d) The commission may not require a telecommunications
136	136	provider to withdraw a tariff, price list, or customer service
137	137	agreement.
138	138	(e) This section does not affect the authority of the
139	139	commission to regulate wholesale services, or administer or enforce
140	140	Chapter 56 or any other applicable regulation permitted or required
141	141	under this title.
142	142	SECTION 5. Section 52.056, Utilities Code, is amended to
143	143	read as follows:
144	144	Sec. 52.056. SPECIFICALLY AUTHORIZED REGULATORY
145	145	TREATMENTS. The regulatory treatments the commission may implement
146	146	under Section 52.054 include:
147	147	(1) approval of a range of rates for a specific
148	148	service; and
149	149	(2) [approval of a customer-specific contract for a
150	150	specific service; and
151	151	[(3)] the detariffing of rates.
152	152	SECTION 6. Section 54.251(b), Utilities Code, is amended to
153	153	read as follows:
154	154	(b) Except as specifically determined otherwise by the
155	155	commission under this subchapter or Subchapter G of this chapter,
156	156	and except as provided by Subchapters C and D, Chapter 65, the
157	157	holder of a certificate of convenience and necessity[, or the
158	158	holder of a certificate of operating authority issued under Chapter
159	159	65,] for an area has the obligations of a provider of last resort
160	160	regardless of whether another provider has a certificate of
161	161	operating authority or service provider certificate of operating
162	162	authority for that area.
163	163	SECTION 7. Section 54.3015, Utilities Code, is amended to
164	164	read as follows:
165	165	Sec. 54.3015. APPLICABILITY OF SUBCHAPTER. This subchapter
166	166	applies to a transitioning company [holder of a certificate of
167	167	operating authority issued] under Chapter 65 in relation to its
168	168	regulated exchanges in the same manner and to the same extent this
169	169	subchapter applies to a holder of a certificate of convenience and
170	170	necessity.
171	171	SECTION 8. Subchapter B, Chapter 55, Utilities Code, is
172	172	amended by adding Section 55.026 to read as follows:
173	173	Sec. 55.026. NEW ORDERS PROHIBITED AFTER CERTAIN DATE. On
174	174	or after September 1, 2011, the commission may not require a
175	175	telecommunications provider to provide mandatory or optional
176	176	extended area service to additional metropolitan areas or calling
177	177	areas.
178	178	SECTION 9. Subchapter C, Chapter 55, Utilities Code, is
179	179	amended by adding Section 55.049 to read as follows:
180	180	Sec. 55.049. EXPANSION PROHIBITED AFTER CERTAIN DATE. On
181	181	or after September 1, 2011, the commission may not order an
182	182	expansion of a toll-free local calling area.
183	183	SECTION 10. Section 56.023(d), Utilities Code, is amended
184	184	to read as follows:
185	185	(d) The commission shall adopt rules for the administration
186	186	of the universal service fund and this chapter and may act as
187	187	necessary and convenient to administer the fund and this chapter.
188	188	The rules must include procedures to ensure reasonable transparency
189	189	and accountability in the administration of the universal service
190	190	fund.
191	191	SECTION 11. Subchapter B, Chapter 56, Utilities Code, is
192	192	amended by adding Section 56.032 to read as follows:
193	193	Sec. 56.032. SUPPORT AVAILABLE TO DEREGULATED MARKETS. (a)
194	194	An incumbent local exchange company may not receive support from
195	195	the universal service fund for a deregulated market that has a
196	196	population of at least 30,000.
197	197	(b) An incumbent local exchange company may receive support
198	198	from the universal service fund for a deregulated market that has a
199	199	population of less than 30,000 only if the company demonstrates to
200	200	the commission that the company needs the support to provide basic
201	201	local telecommunications service at reasonable rates in the
202	202	affected market. A company may use evidence from outside the
203	203	affected market to make the demonstration.
204	204	(c) An incumbent local exchange company may make the
205	205	demonstration described by Subsection (b) in relation to a market
206	206	before submitting a petition to deregulate the market.
207	207	SECTION 12. Section 58.255(c), Utilities Code, is amended
208	208	to read as follows:
209	209	(c) [Each contract shall be filed with the commission.]
210	210	Commission approval of a contract is not required.
211	211	SECTION 13. Section 59.074(c), Utilities Code, is amended
212	212	to read as follows:
213	213	(c) [Each contract shall be filed with the commission.]
214	214	Commission approval of a contract is not required.
215	215	SECTION 14. Section 65.051, Utilities Code, is amended to
216	216	read as follows:
217	217	Sec. 65.051. MARKETS DEREGULATED. A market that is
218	218	deregulated as of September 1, 2011, shall remain deregulated.
219	219	Notwithstanding any other provision of this title, the commission
220	220	may not reregulate a market or company that has been deregulated.
221	221	[(a) Except as provided by Subsection (b), all markets of all
222	222	incumbent local exchange companies are deregulated on January 1,
223	223	2006, unless the commission determines under Section 65.052(a) that
224	224	a market or markets should remain regulated.
225	225	[(b) A market of an incumbent local exchange company in
226	226	which the population in the area included in the market is less than
227	227	30,000 is deregulated on January 1, 2007, unless the commission
228	228	determines under Section 65.052(f) that the market should remain
229	229	regulated.]
230	230	SECTION 15. Sections 65.052(a), (b), and (c), Utilities
231	231	Code, are amended to read as follows:
232	232	(a) An incumbent local exchange company may petition the
233	233	commission to deregulate a market of the company that the
234	234	commission previously determined should remain regulated.
235	235	Notwithstanding any other provision of this title, only the
236	236	incumbent local exchange company may initiate a proceeding to
237	237	deregulate one of the company's markets. Not later than the 90th day
238	238	after the date the commission receives the petition, [Except as
239	239	provided by Subsection (f),] the commission shall:
240	240	(1) determine whether the regulated [each] market [of
241	241	an incumbent local exchange company] should remain regulated [on
242	242	and after January 1, 2006]; and
243	243	(2) issue a final order classifying the market
244	244	[company] in accordance with this section [effective January 1,
245	245	2006].
246	246	(b) In making a determination under Subsection (a), the
247	247	commission may not determine that a market should remain regulated
248	248	if:
249	249	(1) the population in the area included in the market
250	250	is at least 100,000; or
251	251	(2) the population in the area included in the market
252	252	is [at least 30,000 but] less than 100,000 and, in addition to the
253	253	incumbent local exchange company, there are at least two
254	254	competitors operating in all or part of the market that [three
255	255	competitors of which]:
256	256	(A) are unaffiliated with the incumbent local
257	257	exchange company [at least one is a telecommunications provider
258	258	that holds a certificate of operating authority or service provider
259	259	certificate of operating authority and provides residential local
260	260	exchange telephone service in the market]; and
261	261	(B) provide voice communications service without
262	262	regard to the delivery technology, including through:
263	263	(i) Internet Protocol or a successor
264	264	protocol;
265	265	(ii) satellite; or
266	266	(iii) a technology used by a wireless
267	267	provider or a commercial mobile service provider, as that term is
268	268	defined by Section 64.201 [at least one is an entity providing
269	269	residential telephone service in the market using facilities that
270	270	the entity or its affiliate owns; and
271	271	[(C) at least one is a provider in that market of
272	272	commercial mobile service as defined by Section 332(d),
273	273	Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal
274	274	Communications Commission rules, and the Omnibus Budget
275	275	Reconciliation Act of 1993 (Pub. L. No. 103-66), that is not
276	276	affiliated with the incumbent local exchange company].
277	277	(c) If the commission deregulates a market under this
278	278	section and the deregulation results in a regulated or
279	279	transitioning company no longer meeting the definition of a
280	280	regulated or transitioning company, the commission shall issue an
281	281	order reclassifying the company as a transitioning company or
282	282	deregulated company, as those terms are defined by Section 65.002.
283	283	[The commission shall issue an order classifying an incumbent local
284	284	exchange company as a deregulated company that is subject to
285	285	Subchapter C if:
286	286	[(1) the company does not have any markets in which the
287	287	population in the area included in the market is less than 30,000;
288	288	and
289	289	[(2) the commission does not determine that a market
290	290	of the company should remain regulated on and after January 1,
291	291	2006.]
292	292	SECTION 16. Section 65.102, Utilities Code, is amended to
293	293	read as follows:
294	294	Sec. 65.102. REQUIREMENTS. (a) A deregulated company that
295	295	holds a certificate of operating authority issued under this
296	296	subchapter:
297	297	(1) is a nondominant carrier governed in the same
298	298	manner as a holder of a certificate of operating authority issued
299	299	under Chapter 54;
300	300	(2) is not required to:
301	301	(A) fulfill the obligations of a provider of last
302	302	resort;
303	303	(B) comply with retail quality of service
304	304	standards or reporting requirements;
305	305	(C) file an earnings report with the commission
306	306	unless the company is receiving support from the Texas High Cost
307	307	Universal Service Plan; or
308	308	(D) comply with a pricing requirement other than
309	309	a requirement prescribed by this subchapter; and
310	310	(3) [, except that the deregulated company:
311	311	[(1) retains the obligations of a provider of last
312	312	resort under Chapter 54;
313	313	[(2)] is subject to the following provisions in the
314	314	same manner as an incumbent local exchange company that is not
315	315	deregulated:
316	316	(A) Sections 54.156, 54.158, and 54.159;
317	317	(B) Section 55.012; and
318	318	(C) Chapter 60[; and
319	319	[(3) may not increase the company's rates for
320	320	stand-alone residential local exchange voice service before the
321	321	date that the commission has the opportunity to revise the monthly
322	322	per line support under the Texas High Cost Universal Service Plan
323	323	pursuant to Section 56.031, regardless of whether the company is an
324	324	electing company under Chapter 58].
325	325	(b) Except as provided by Subsection (c), in [In] each
326	326	deregulated market, a deregulated company shall make available to
327	327	all residential customers uniformly throughout that market the same
328	328	price, terms, and conditions for all basic and non-basic services,
329	329	consistent with any pricing flexibility available to such company
330	330	[on or before August 31, 2005].
331	331	(c) A deregulated company may offer to an individual
332	332	residential customer a promotional offer that is not available
333	333	uniformly throughout the market if the company makes the offer
334	334	through a medium other than direct mail or mass electronic media and
335	335	the offer is intended to retain or obtain a customer.
336	336	SECTION 17. Section 65.151, Utilities Code, is amended to
337	337	read as follows:
338	338	Sec. 65.151. PROVISIONS APPLICABLE TO TRANSITIONING
339	339	COMPANY. (a) Except as provided by Subsection (b), a [A]
340	340	transitioning company is governed by this subchapter and the
341	341	provisions of this title that applied to the company immediately
342	342	before the date the company was classified as a transitioning
343	343	company. If there is a conflict between this subchapter and the
344	344	other applicable provisions of this title, this subchapter
345	345	controls.
346	346	(b) A transitioning company is not required to fulfill the
347	347	obligations of a provider of last resort in a deregulated market.
348	348	SECTION 18. Section 65.152, Utilities Code, is amended to
349	349	read as follows:
350	350	Sec. 65.152. GENERAL REQUIREMENTS. (a) A transitioning
351	351	company may:
352	352	(1) exercise pricing flexibility in a market subject
353	353	only to the price and rate standards prescribed by Sections 65.153
354	354	and 65.154 [in the manner provided by Section 58.063 one day after
355	355	providing an informational notice as required by that section]; and
356	356	(2) introduce a new service in a market subject only to
357	357	the price and rate standards prescribed by Sections 65.153 and
358	358	65.154 [in the manner provided by Section 58.153 one day after
359	359	providing an informational notice as required by that section].
360	360	(b) A transitioning company may not be required to:
361	361	(1) comply with [exchange-specific] retail quality of
362	362	service standards or reporting requirements in a market that is
363	363	deregulated; or
364	364	(2) file an earnings report with the commission unless
365	365	the company is receiving support from the Texas High Cost Universal
366	366	Service Plan.
367	367	SECTION 19. Section 65.153, Utilities Code, is amended by
368	368	amending Subsection (c) and adding Subsection (c-1) to read as
369	369	follows:
370	370	(c) Except as provided by Subsection (c-1), in [In] each
371	371	deregulated market, a transitioning company shall make available to
372	372	all residential customers uniformly throughout that market the same
373	373	price, terms, and conditions for all basic and non-basic services,
374	374	consistent with any pricing flexibility available to such company
375	375	[on or before August 31, 2005].
376	376	(c-1) A transitioning company may offer to an individual
377	377	residential customer a promotional offer that is not available
378	378	uniformly throughout the market if the company makes the offer
379	379	through a medium other than direct mail or mass electronic media and
380	380	the offer is intended to retain or obtain a customer.
381	381	SECTION 20. Subchapter D, Chapter 65, Utilities Code, is
382	382	amended by adding Sections 65.154 and 65.155 to read as follows:
383	383	Sec. 65.154. RATE AND PRICE REQUIREMENTS NOT APPLICABLE.
384	384	(a) A transitioning company is not required to comply with the
385	385	following requirements prescribed by this title on submission of a
386	386	written notice to the commission:
387	387	(1) a direct or indirect requirement to price a
388	388	residential service at, above, or according to the long-run
389	389	incremental cost of the service or to otherwise use long-run
390	390	incremental cost in establishing prices for residential services;
391	391	or
392	392	(2) a requirement to file with the commission a
393	393	long-run incremental cost study for residential or business
394	394	services.
395	395	(b) Notwithstanding Subsection (a), a transitioning company
396	396	may not:
397	397	(1) establish a retail rate, price, term, or condition
398	398	that is anticompetitive or unreasonably preferential, prejudicial,
399	399	or discriminatory;
400	400	(2) establish a retail rate for a basic or non-basic
401	401	service in a deregulated market that is subsidized either directly
402	402	or indirectly by a basic or non-basic service provided in an
403	403	exchange that is not deregulated; or
404	404	(3) engage in predatory pricing or attempt to engage
405	405	in predatory pricing.
406	406	(c) A rate or price for a basic local telecommunications
407	407	service is not anticompetitive, predatory, or unreasonably
408	408	preferential, prejudicial, or discriminatory if the rate or price
409	409	is equal to or greater than the rate or price in the transitioning
410	410	company's tariff for that service in effect on the date the
411	411	transitioning company submits notice to the commission under
412	412	Subsection (a).
413	413	(d) This section, including Subsection (a)(1), does not
414	414	affect:
415	415	(1) other law or legal standards governing predatory
416	416	pricing or anticompetitive conduct; or
417	417	(2) an infrastructure commitment under Chapter 58 or
418	418	59.
419	419	Sec. 65.155. COMPLAINT BY AFFECTED PERSON. (a) An affected
420	420	person may file a complaint at the commission challenging whether a
421	421	transitioning company is complying with Section 65.154(b).
422	422	(b) Notwithstanding Section 65.154(a)(2), the commission
423	423	may require a transitioning company to submit a long-run
424	424	incremental cost study for a business service that is the subject of
425	425	a complaint submitted under Subsection (a).
426	426	SECTION 21. Sections 52.057, 53.065(b), 65.052(d), (e), and
427	427	(f), 65.054, and 65.055, Utilities Code, are repealed.
428	428	SECTION 22. (a) In this section, "commission" means the
429	429	Public Utility Commission of Texas.
430	430	(b) The commission shall initiate one or more proceedings to
431	431	review and evaluate whether the universal service fund accomplishes
432	432	the fund's purposes, as prescribed by Section 56.021, Utilities
433	433	Code, or whether changes are necessary to accomplish those
434	434	purposes. The commission may not initiate a proceeding to review
435	435	the Texas High Cost Universal Service Plan before January 2, 2012.
436	436	(c) The commission has all authority necessary to conduct
437	437	the review, including determining issues relevant to each
438	438	telecommunications provider's need for universal service fund
439	439	support, adjusting monthly per line support amounts under Section
440	440	56.031, Utilities Code, and implementing any other changes it
441	441	determines are necessary and in the public interest.
442	442	(d) Notwithstanding Section 56.024(b), Utilities Code, a
443	443	party to a commission proceeding examining the universal service
444	444	fund is entitled to access confidential information provided to the
445	445	commission under Section 56.024(a), Utilities Code, if a protective
446	446	order is issued for the confidential information in the proceeding.
447	447	(e) The commission shall complete each proceeding required
448	448	by this section not later than November 1, 2012. The commission
449	449	shall provide to the legislature a copy of the commission's
450	450	findings and of any orders issued under this section.
451	451	SECTION 23. (a) Except as provided by Subsection (b) of
452	452	this section, this Act takes effect September 1, 2011.
453	453	(b) Sections 56.032, 65.154, and 65.155, Utilities Code, as
454	454	added by this Act, take effect January 2, 2012.