HBA-ALS C.S.H.B. 2692 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2692
By: Counts
State Affairs
5/6/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, telephone companies do not have the direct authority to recover
their costs associated with the statewide Universal Service Fund
assessment.  In order to recover this charge, telephone companies are
required to file a rate case type proceeding at the Public Utility
Commission of Texas (PUC).  In addition, small telephone companies do not
currently have the ability to market or sell their products and services
jointly with those of an affiliate. 

C.S.H.B. 2692 allows a local exchange company to recover its universal
service fund assessment through a surcharge added to the bills of customers
without presenting a full rate case to PUC.  This bill provides
reimbursement to certain local exchange companies through the universal
service fund from reduced rates for certain intraLATA services.  In
addition, this bill allows a local exchange company to market and sell its
products or services jointly with the products and services of an
affiliate. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS
  
SECTION 1. Amends Subchapter B, Chapter 56, Utilities Code, by adding
Sections 56.027 and 56.028, as follows: 

Sec. 56.027.  UNIVERSAL SERVICE CHARGE SURCHARGE.  Authorizes a local
exchange company to recover its universal service fund assessment through a
surcharge added to the bills of the local exchange company's customers.  

Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR CERTAIN INTRALATA
SERVICE.  Requires the Public Utility Commission of Texas (PUC), on request
of a local exchange company that is not an electing company under Chapter
58 (Incentive Regulation) or 59 (Infrastructure Plan), to provide
reimbursement through the universal service fund for reduced rates for
intraLATA interexchange high capacity (1.544 Mbps) service for entities
described under Section 58.253(a). Requires the amount of reimbursement to
be equal to the difference between the company's tariffed rates for that
service on January 1, 1998, and the lowest rate offered for that service by
any company electing incentive regulation under Chapter 58.   

SECTION 2.  Amends Subchapter I, Chapter 60, Utilities Code, by adding
Sections 60.164 and 60.165, as follows: 

Sec. 60.164.  PERMISSIBLE JOINT MARKETING.  Prohibits PUC, except as
prescribed by Chapters 61 (Information Technology Services) and 63
(Electronic Publishing), from adopting a rule or order that prohibits a
local exchange company from marketing or selling the company's products and
services jointly with the products and services of an affiliate in a manner
permitted by federal law or applicable rules of the Federal Communications
Commission.  
 
Sec. 60.165.  AFFILIATE RULES.  (a) Prohibits PUC, except as prescribed by
Chapters 61 and 63, from adopting a rule or order that prescribes for a
local exchange company an affiliate rule, including an accounting rule,
cost allocation rule, or structural separation rule, that is more
burdensome than prescribed by federal law or applicable rules of the
Federal Communications Commission.  

(b)  Prohibits PUC from attributing or imputing to a local exchange company
a price discount offered by an affiliate to the affiliate's customers,
notwithstanding any other provision of this title.  

SECTION 3.   Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

This substitute modifies the original bill to conform to Legislative
Council format.