HBA-ALS H.B. 1700 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1700 By: Danburg State Affairs 3/4/1999 Introduced BACKGROUND AND PURPOSE Currently, there are two telecommunications assistance programs available to qualifying low-income individuals. The first of these programs is the tel-assistance service program created in 1987 by the Texas legislature, which is codified in the Public Utilities Regulatory Act. This service provides low-income residential customers a reduction in their basic local exchange access service, including a 65 percent reduction of applicable local exchange monthly rates. In October 1998, there were 52,404 individuals receiving assistance from the tel-assistance program, and the amount of assistance in 1997 totaled $4,359,520. Under the second program, the lifeline service, many local exchange carriers apply a credit of $10.50 to the basic local service rate of eligible low-income customers. Over 216,000 individuals benefit from these two programs annually, with an annual support revenue of more than $10.6 million from the interstate universal service fund. Despite this, 7.1 percent of Texas households are without phone service, according to a survey conducted by the LBJ School of Public Affairs at the University of Texas in 1996. H.B. 1700 grants rulemaking authority to the Public Utility Commission of Texas (commission) to prohibit telecommunications providers from disconnecting a lifeline or tel-assistance service customer's local telephone service for nonpayment of charges for other services billed by the provider; provides for automatic enrollment of eligible low-income consumers for both lifeline and tel-assistance services; and allows providers to block long distance service, excluding toll-free numbers, if the lifeline or tel-assistance service customer has an outstanding balance for that service. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Public Utility Commission of Texas in SECTIONS 1, 2, and 3 (Sections 55.012, 56.072, and 56.079, Utilities Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 55, Utilities Code, by adding Section 55.012, as follows: Sec. 55.012. LIFELINE SERVICE. (a) Requires the Public Utility Commission of Texas (commission) to adopt rules prohibiting a telecommunications provider (provider) from discontinuing local exchange telephone service of a consumer who receives lifeline service because the consumer did not pay charges for other services billed by the provider, including long distance service. (b) Requires the commission to adopt rules providing for the automatic enrollment in lifeline service for eligible consumers. Requires a state agency to assist in the adoption and implementation of those rules upon request of the commission. (c) Authorizes a provider to block a lifeline service participant's access to all long distance service, other than toll-free numbers, if the participant owes an outstanding balance for that service. Requires the provider to remove the block without charge upon payment of the outstanding balance. (d) Requires a provider to offer a recipient of or applicant for the lifeline service the option of blocking or limiting toll calls at no charge. SECTION 2. Amends Section 56.072, Utilities Code, by adding Subsection (d) to require the commission to adopt rules that provide for automatic enrollment to receive tel-assistance service for eligible consumers. Requires each state agency to assist in the adoption and implementation of those rules upon request of the commission. SECTION 3. Amends Subchapter C, Chapter 56, Utilities Code, by adding Section 56.079, as follows: Sec. 56.079. RELATIONSHIP TO OTHER SERVICES. (a) Requires the commission to adopt rules prohibiting a provider from discontinuing local exchange telephone service of a consumer who receives tel-assistance service because the consumer did not pay charges for other services billed by the provider, including long distance service. (b) Authorizes a provider to block a tel-assistance service participant's access to all long distance service, other than toll-free numbers, if the participant owes an outstanding balance for that service. Requires the provider to remove the block without charge upon payment of the outstanding balance. (c) Requires a provider to offer a recipient or applicant of the tel-assistance service the option of blocking or limiting toll calls at no charge. SECTION 4.Effective date: September 1, 1999. SECTION 5.Emergency clause.