HBA-ALS C.S.H.B. 1700 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1700
By: Danburg
State Affairs
4/28/1999
Committee Report (Substituted)



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. 

C.S.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
(commission) in SECTIONS 1, 3, and 4 (Sections 55.012, 56.072, and 56.079,
Utilities Code) and that the rulemaking previously delegated to the
commission 
is modified in SECTION 2 (Section 56.021, Utilites Code) of this bill.

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 the Texas
Department of Human Services (department) to assist in the adoption and
implementation of those rules upon request of the commission. Requires the
commission and the department to enter into a memorandum of understanding
establishing the respective duties of the commission and the department in
relation to the automatic enrollment. 

(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, if technically capable, to offer a recipient of or
applicant for the lifeline service the option of blocking or limiting toll
calls at no charge. 

(e) Defines "lifeline service."

SECTION 2.  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 reimburse certain telecommunications
carrier providing lifeline service. 

SECTION 3.  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.  Requires the commission and
the department to enter into a memorandum of understanding establishing the
respective duties of the commission and the department in relation to the
automatic enrollment. 

SECTION 4.  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, if technically capable. 

SECTION 5.  (a) Provides that in accordance with Section 311.031(c),
Government Code, (which gives effect to a substantive amendment enacted by
the same legislature that codifies the amended statute), the text of
Section 56.021, Utilities Code, as set out in the Act, gives effect to
changes made by Section 4. Chapter 149, Acts of the 75th Legislature,
Regular Session, 1997. 

(b) Provides that to the extent of a conflict, this Act prevails over
another Act of the 76th Legislature, Regular Session, 1999, relating to
nonsubstantive additions and corrections in enacted codes. 

SECTION 6.Effective date: September 1, 1999. 

SECTION 7.Emergency clause. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 (proposed Section 55.012,
Utilities Code) in Subsection (b) to require the Texas Department of Human
Services (department), rather than each state agency, to assist in the
adoption and implementation of those rules upon request of the Public
Utility Commission (commission).  The substitute adds language requiring
the commission and the department to enter into a memorandum of
understanding establishing the respective duties of the commission and the
department in relation to the automatic enrollment.  The substitute
modifies the original in Subsection (d) by qualifying the requirement that
a provider offer a consumer the option of placing a limit on the amount of
toll calls, as being subject to the provider's technical capabilities.  The
substitute adds proposed Subsection (e) to define "lifeline service." 

The substitute modifies the original by redesignating SECTIONS 2 and 3 of
the original to SECTIONS  3 and 4. 

The substitute adds a new SECTION 2 to amend Section 56.021, Utilities
Code, by adding Subsection (6) to require the commission to adopt and
enforce rules requiring local exchange companies to establish a universal
service fund to reimburse certain telecommunications carrier providing
lifeline service.  The original does not address Section 56.021. 

The substitute modifies the original in SECTION 3 (Section 56.072,
Utilities Code), in proposed Subsection (d) to require the commission and
the department to enter into a memorandum of understanding establishing the
respective duties of the commission and the department in relation to
automatic enrollment to receive tel-assistance service. 

The substitute modifies the original by redesignating SECTIONS 4 and 5
(effective date and emergency clause) of the original to SECTIONS 6 and 7
of the substitute. 

The substitute modifies the original in SECTION 4 (Section 56.079,
Utilities Code) to make a conforming change. 

The substitute adds a new SECTION 5, concerning amendments and
codifications, carried out during the same legislative session. 

For a complete analysis of SECTION 5, please see the section-by-section
portion of this document.