82R10014 JJT-D By: Gallego H.B. No. 2841 A BILL TO BE ENTITLED AN ACT relating to the authority of the Public Utility Commission of Texas to protect telecommunications network integrity from unauthorized or uncompensated use. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 55, Utilities Code, is amended by adding Section 55.018 to read as follows: Sec. 55.018. PROTECTION FROM UNAUTHORIZED TRAFFIC. (a) The commission has jurisdiction over all entities in this state as necessary to impose requirements to ensure the integrity of publicly switched telecommunications infrastructure in this state, so as to prevent fraud and prevent dangers to the security of this state. (b) The commission by rule or order may ensure that all telecommunications traffic that originates or terminates on, or is directed to a destination from, any other network and is transmitted by publicly switched telecommunications infrastructure in this state is authorized traffic, the origination, carriage, and termination of which is subject to proper authorization, identification, and compensation. (c) The commission by rule shall establish procedures to mandate and enforce inter-carrier compensation agreements by which all network traffic on publicly switched telecommunications infrastructure in this state must be authorized, identified, and, as appropriate, compensated. (d) The commission shall require each provider of telecommunications traffic on a publicly switched network to transmit in the provider's signaling without alteration, where technically feasible, all information necessary to ensure that the traffic is properly authorized and not fraudulent. (e) The commission, on the commission's own motion or following a hearing held not later than the 60th day after the commission receives a complaint about unauthorized, fraudulent, or uncompensated traffic on publicly switched telecommunications infrastructure in this state, shall expeditiously act by rule or order to ensure the integrity of the infrastructure and to protect the infrastructure from unauthorized traffic, abuse, and fraudulent use. (f) The commission shall impose reasonable administrative penalties for a violation of a rule adopted or order issued under this section. On a finding of a violation of a rule adopted or order issued under this section, the commission by order may: (1) in the manner the commission may impose an administrative penalty, order a violating carrier to reimburse a proper network owner or operator for unauthorized or fraudulent traffic; or (2) authorize a proper network owner or operator to block traffic that may be unauthorized or uncompensated. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.